Document:

EXHIBIT 4.1

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                         IMPAC CMB TRUST SERIES 2003-10

                                     Issuer

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY

                                Indenture Trustee

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                                    INDENTURE

                         Dated as of September 29, 2003

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                        COLLATERALIZED ASSET-BACKED BONDS

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                                TABLE OF CONTENTS

Section                                                                     Page
                                                                            ----

ARTICLE I

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

Bonds
         Section 2.01  Form....................................................4
         Section 2.02  Execution, Authentication and Delivery..................4
         Section 2.03  Acceptance of Mortgage Loans by Indenture Trustee.......5
         Section 2.04  Acceptance of Derivative Contracts and Special
                       Certificate Cap Contract by Indenture Trustee...........6

Covenants
         Section 3.01  Collection of Payments with respect to the
                       Mortgage Loans..........................................7
         Section 3.02  Maintenance of Office or Agency.........................7
         Section 3.03  Money for Payments To Be Held in Trust; Paying
                       Agent...................................................7
         Section 3.04  Existence...............................................8
         Section 3.05  Payment of Principal and Interest.......................9
         Section 3.06  Protection of Trust Estate.............................14
         Section 3.07  Opinions as to Trust Estate............................15
         Section 3.08  Performance of Obligations.............................15
         Section 3.09  Negative Covenants.....................................16
         Section 3.10  Annual Statement as to Compliance......................17
         Section 3.11  Representations and Warranties Concerning the
                       Mortgage Loans.........................................17
         Section 3.12  Amendments to Servicing Agreement......................17
         Section 3.13  Master Servicer as Agent and Bailee of the
                       Indenture Trustee......................................17
         Section 3.14  Investment Company Act.................................17
         Section 3.15  Issuer May Consolidate, etc............................18
         Section 3.16  Successor or Transferee................................19
         Section 3.17  No Other Business......................................20
         Section 3.18  No Borrowing...........................................20
         Section 3.19  Guarantees, Loans, Advances and Other
                       Liabilities............................................20
         Section 3.20  Capital Expenditures...................................20
         Section 3.21  Determination of Bond Interest Rate....................20
         Section 3.22  Restricted Payments....................................20
         Section 3.23  Notice of Events of Default............................21
         Section 3.24  Further Instruments and Acts...........................21
         Section 3.25  Statements to Bondholders..............................21
         Section 3.26  Certain Representations Regarding the Trust
                       Estate.................................................21

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         Section 3.27  [Reserved].............................................22
         Section 3.28  [Reserved].............................................22
         Section 3.29  Replacement Derivative Contracts.......................22
         Section 3.30  [Reserved].............................................23
         Section 3.31  Allocation of Realized Losses..........................23

The Bonds; Satisfaction and Discharge of Indenture
         Section 4.01  The Bonds..............................................24
         Section 4.02  Registration of and Limitations on Transfer and
                       Exchange of Bonds; Appointment of Bond Registrar
                       and Certificate Registrar..............................24
         Section 4.03  Mutilated, Destroyed, Lost or Stolen Bonds.............25
         Section 4.04  Persons Deemed Owners..................................26
         Section 4.05  Cancellation...........................................26
         Section 4.06  Book-Entry Bonds.......................................26
         Section 4.07  Notices to Depository..................................27
         Section 4.08  Definitive Bonds.......................................27
         Section 4.09  Tax Treatment..........................................28
         Section 4.10  Satisfaction and Discharge of Indenture................28
         Section 4.11  Application of Trust Money.............................29
         Section 4.12  [Reserved].............................................29
         Section 4.13  Repayment of Monies Held by Paying Agent...............29
         Section 4.14  Temporary Bonds........................................29
         Section 4.15  Representation Regarding ERISA.........................30

ARTICLE V

Default and Remedies
         Section 5.01  Events of Default......................................31
         Section 5.02  Acceleration of Maturity; Rescission and Annulment.....31
         Section 5.03  Collection of Indebtedness and Suits for Enforcement
                       by Indenture Trustee...................................32
         Section 5.04  Remedies; Priorities...................................34
         Section 5.05  Optional Preservation of the Trust Estate..............36
         Section 5.06  Limitation of Suits....................................36
         Section 5.07  Unconditional Rights of Bondholders To Receive
                       Principal and Interest.................................37
         Section 5.08  Restoration of Rights and Remedies.....................37
         Section 5.09  Rights and Remedies Cumulative.........................37
         Section 5.10  Delay or Omission Not a Waiver.........................37
         Section 5.11  Control By Bondholders.................................38
         Section 5.12  Waiver of Past Defaults................................38
         Section 5.13  Undertaking for Costs..................................38
         Section 5.14  Waiver of Stay or Extension Laws.......................39
         Section 5.15  Sale of Trust Estate...................................39
         Section 5.16  Action on Bonds........................................40
         Section 5.17  Performance and Enforcement of Certain Obligations.....41

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ARTICLE VI

The Indenture Trustee
         Section 6.01  Duties of Indenture Trustee............................42
         Section 6.02  Rights of Indenture Trustee............................43
         Section 6.03  Individual Rights of Indenture Trustee.................44
         Section 6.04  Indenture Trustee's Disclaimer.........................44
         Section 6.05  Notice of Event of Default.............................44
         Section 6.06  Reports by Indenture Trustee to Holders and Tax
                       Administration.........................................44
         Section 6.07  Compensation and Indemnity.............................44
         Section 6.08  Replacement of Indenture Trustee.......................45
         Section 6.09  Successor Indenture Trustee by Merger..................46
         Section 6.10  Appointment of Co-Indenture Trustee or Separate
                       Indenture Trustee......................................46
         Section 6.11  Eligibility; Disqualification..........................47
         Section 6.12  Preferential Collection of Claims Against Issuer.......47
         Section 6.13  Representations and Warranties.........................47
         Section 6.14  Directions to Indenture Trustee........................48
         Section 6.15  The Agents.............................................48

ARTICLE VII

Bondholders' Lists and Reports
         Section 7.01  Issuer To Furnish Indenture Trustee Names and
                       Addresses of Bondholders ..............................49
         Section 7.02  Preservation of Information; Communications to
                       Bondholders............................................49
         Section 7.03  Reports of Issuer......................................49
         Section 7.04  Reports by Indenture Trustee...........................50
         Section 7.05  Statements to Bondholders..............................50

ARTICLE VIII

Accounts, Disbursements and Releases
         Section 8.01  Collection of Money....................................53
         Section 8.02  Trust Accounts.........................................53
         Section 8.03  Officer's Certificate..................................53
         Section 8.04  Termination Upon Distribution to Bondholders...........54
         Section 8.05  Release of Trust Estate................................54
         Section 8.06  Surrender of Bonds Upon Final Payment..................54
         Section 8.07  Optional Redemption of the Bonds.......................54

ARTICLE IX

Supplemental Indentures
         Section 9.01  Supplemental Indentures Without Consent of
                       Bondholders............................................56
         Section 9.02  Supplemental Indentures With Consent of Bondholders....57
         Section 9.03  Execution of Supplemental Indentures...................59

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         Section 9.04  Effect of Supplemental Indenture.......................59
         Section 9.05  Conformity with Trust Indenture Act....................59
         Section 9.06  Reference in Bonds to Supplemental Indentures..........59

ARTICLE X

Miscellaneous
         Section 10.01 Compliance Certificates and Opinions, etc..............60
         Section 10.02 Form of Documents Delivered to Indenture Trustee.......61
         Section 10.03 Acts of Bondholders....................................62
         Section 10.04 Notices etc., to Indenture Trustee Issuer and Rating
                       Agencies...............................................62
         Section 10.05 Notices to Bondholders; Waiver.........................63
         Section 10.06 Conflict with Trust Indenture Act......................64
         Section 10.07 Effect of Headings.....................................64
         Section 10.09 Separability...........................................64
         Section 10.10 [Reserved].............................................64
         Section 10.11 Legal Holidays.........................................64
         Section 10.12 GOVERNING LAW..........................................64
         Section 10.13 Counterparts...........................................64
         Section 10.14 Recording of Indenture.................................64
         Section 10.15 Issuer Obligation......................................65
         Section 10.16 No Petition............................................65
         Section 10.17 Inspection.............................................65

ARTICLE XI

Certain Matters Regarding the Bond Insurer
         Section 11.01 Rights of the Bond Insurer to Exercise the Rights
                       of the Class 1-A-2 Bonds...............................66
         Section 11.02 Claims Upon the Bond Insurance Policy; Insurance
                       Account................................................66
         Section 11.03 Effect of Payments by the Bond Insurer; Subrogation....67
         Section 11.04 Notices and Information to the Bond Insurer............67
         Section 11.05 Trustee to Hold Bond Insurance Policy..................68

                  EXHIBITS

         Exhibit A-1   --   Form of Class [-A-] Bonds
         Exhibit A-2   --   Form of Class M-[_]-[_] Bonds
         Exhibit B     --   Mortgage Loan Schedule
         Exhibit C     --   Form of Initial Certification
         Exhibit D     --   Form of Final Certification
         Exhibit E     --   Derivative Contracts
         Exhibit F     --   Special Certificate Cap Contract

         Appendix A    --   Definitions

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            This Indenture, dated as of September 29, 2003, is entered into
between Impac CMB Trust Series 2003-10, a Delaware statutory trust, as Issuer
(the "Issuer"), and Deutsche Bank National Trust Company, a national banking
association, as Indenture Trustee (the "Indenture Trustee").

                                WITNESSETH THAT:

            Each party hereto agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Issuer's
Collateralized Asset-Backed Bonds, Series 2003-10 (the "Bonds").

                                 GRANTING CLAUSE

            The Issuer hereby Grants to the Indenture Trustee at the Closing
Date, as trustee for the benefit of the Holders of the Bonds, all of the
Issuer's right, title and interest in and to whether now existing or hereafter
created by (a) the Mortgage Loans, Eligible Substitute Mortgage Loans and the
proceeds thereof and all rights under the Related Documents; (b) all funds on
deposit from time to time in the Collection Account allocable to the Mortgage
Loans excluding any investment income from such funds; (c) all funds on deposit
from time to time in the Payment Account and in all proceeds thereof; (d) all
rights under (i) the Mortgage Loan Sale and Contribution Agreement as assigned
to the Issuer, (ii) the Servicing Agreement and any Subservicing Agreements,
(iii) any title, hazard and primary insurance policies with respect to the
Mortgaged Properties and (iv) the rights with respect to the Derivative
Contracts and the Special Certificate Cap Contract as assigned to the Issuer;
and (e) all present and future claims, demands, causes and choses in action in
respect of any or all of the foregoing and all payments on or under, and all
proceeds of every kind and nature whatsoever in respect of, any or all of the
foregoing and all payments on or under, and all proceeds of every kind and
nature whatsoever in the conversion thereof, voluntary or involuntary, into cash
or other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts, acceptances, checks, deposit accounts, rights to payment of any
and every kind, and other forms of obligations and receivables, instruments and
other property which at any time constitute all or part of or are included in
the proceeds of any of the foregoing (collectively, the "Trust Estate" or the
"Collateral").

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

            The Indenture Trustee, as trustee on behalf of the Holders of the
Bonds, acknowledges such Grant, accepts the trust under this Indenture in
accordance with the provisions hereof and agrees to perform its duties as
Indenture Trustee as required herein. The Indenture Trustee agrees that it will
hold the Bond Insurance Policy in trust and that it will hold any proceeds of
any claim made upon the Bond Insurance Policy solely for the use and benefit of
the Holders of the Class 1-A-2 Bonds in accordance with the terms hereof and the
terms of the Bond Insurance Policy.

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                                    ARTICLE I

                                   Definitions

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

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

            "Commission" means the Securities and Exchange Commission.

            "indenture securities" means the Bonds.

            "indenture security holder" means a Bondholder.

            "indenture to be qualified" means this Indenture.

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

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

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

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

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

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

                  (iii) "or" is not exclusive;

                  (iv) "including" means including without limitation;

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

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

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                                   ARTICLE II

                           Original Issuance of Bonds

      Section 2.01 Form. The Class A and Class M Bonds, together with the
Indenture Trustee's certificate of authentication, shall be in substantially the
form set forth in Exhibits A-1 and A-2 to this Indenture, respectively, with
such appropriate insertions, omissions, substitutions and other variations as
are required or permitted by this Indenture.

      The Bonds shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders).

      The terms of the Bonds set forth in Exhibits A-1 and A-2 to this Indenture
are part of the terms of this Indenture.

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

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

      The Indenture Trustee shall upon Issuer Request authenticate and deliver
the Class 1-A-1, Class 1-A-2, Class 2-A, Class M-1-1, Class M-2-1, Class M-3-1,
Class M-4-1, Class M-5-1, Class M-6-1, Class M-1-2, Class M-2-2, Class M-3-2,
Class M-4-2, Class M-5-2 and Class M-6-2 Bonds for original issue in an
aggregate initial principal amount of $1,000,000,000. The Class 1-A-1 Bonds
shall be issued in an aggregate initial principal amount of $685,100,000, the
Class 1-A-2 Bonds shall be issued in an aggregate initial principal amount of
$75,000,000, the Class 2-A Bonds shall be issued in an aggregate initial
principal amount of $94,900,000, the Class M-1-1 Bonds shall be issued in an
aggregate initial principal amount of $20,002,458, the Class M-2-1 Bonds shall
be issued in an aggregate initial principal amount of $12,890,473, the Class
M-3-1 Bonds shall be issued in an aggregate initial principal amount of
$31,559,434, the Class M-4-1 Bonds shall be issued in an aggregate initial
principal amount of $36,448,924, the Class M-5-1 Bonds shall be issued in an
aggregate initial principal amount of $21,335,956, the Class M-6-1 Bonds shall
be issued in an aggregate initial principal amount of $6,667,486, the Class 2-A
Bonds shall be issued in an aggregate initial principal amount of $94,900,000,
Class M-1-2 Bonds shall be issued in an aggregate initial principal amount of
$2,497,542, the Class M-2-2 Bonds shall be issued in an aggregate initial
principal amount of $1,609,527, the Class M-3-2 Bonds shall be issued in an
aggregate initial principal amount of $3,940,566, the Class M-4-2 Bonds shall be
issued in an aggregate initial principal amount of $4,551,076, the Class M-5-2
Bonds shall be issued in an aggregate initial principal amount of $2,664,044 and
the Class M-6-2 Bonds shall be issued in an aggregate initial principal amount
of $832,514.

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      Each of the Bonds shall be dated the date of its authentication. The Bonds
shall be issuable as registered Bonds and the Bonds shall be issuable in the
minimum initial Bond Principal Balances of $25,000 and in integral multiples of
$1 in excess thereof.

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

      Section 2.03 Acceptance of Mortgage Loans by Indenture Trustee. (a) The
Indenture Trustee acknowledges receipt of, subject to the exceptions it notes
pursuant to the procedures described below, the documents (or certified copies
thereof) referred to in Section 2.1(b) of the Mortgage Loan Sale and
Contribution Agreement, and declares that it holds and will continue to hold
those documents and any amendments, replacements or supplements thereto and all
other assets of the Trust Estate as Indenture Trustee in trust for the use and
benefit of all present and future Holders of the Bonds. No later than 45 days
after the Closing Date (or, with respect to any Eligible Substitute Mortgage
Loan, within 5 days after the receipt by the Indenture Trustee thereof and, with
respect to any documents received beyond 45 days after the Closing Date,
promptly thereafter), the Indenture Trustee agrees, for the benefit of the
Bondholders, to review each Mortgage File delivered to it and to execute and
deliver, or cause to be executed and delivered, to the Seller and the Master
Servicer an Initial Certification in the form annexed hereto as Exhibit C. In
conducting such review, the Indenture Trustee will ascertain whether all
required documents described in Section 2.1(b) of the Mortgage Loan Sale and
Contribution Agreement have been executed and received and whether those
documents relate, determined on the basis of the Mortgagor name, original
principal balance and loan number, to the Mortgage Loans it has received, as
identified in Exhibit B to this Indenture, as supplemented (provided, however,
that with respect to those documents described in subclause (b)(vii) of such
section, the Indenture Trustee's obligations shall extend only to documents
actually delivered pursuant to such subclause). In performing any such review,
the Indenture Trustee may conclusively rely on the purported due execution and
genuineness of any such document and on the purported genuineness of any
signature thereon. If the Indenture Trustee finds any document constituting part
of the Mortgage File not to have been executed or received, or to be unrelated
to the Mortgage Loans identified in Exhibit B to this Indenture or to appear to
be defective on its face, the Indenture Trustee shall promptly notify the Seller
of such finding and the Seller's obligation to cure such defect or repurchase or
substitute for the related Mortgage Loan. To the extent the Indenture Trustee
has not received a Mortgage File with respect to any of the Mortgage Loans by
the Closing Date, the Indenture Trustee shall not require the deposit of cash
into the Payment Account or any other account to cover the amount of that
Mortgage Loan and shall solely treat such Mortgage Loan as if it were in breach
of a representation or warranty; provided that the aggregate Stated Principal
Balance of such Mortgage Loans does not exceed 1% of the Cut-off Date Balance.

      (b) No later than 180 days after the Closing Date, the Indenture Trustee
will review, for the benefit of the Bondholders, the Mortgage Files and will
execute and deliver or cause to be executed and delivered to the Seller, a Final
Certification in the form annexed hereto as Exhibit D. In conducting such
review, the Indenture Trustee will ascertain whether an original of each
document described in subclauses (b)(ii)-(iv) of Section 2.1 of the Mortgage
Loan Sale and Contribution

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Agreement, with respect to the Mortgage Loans, required to be recorded has been
returned from the recording office with evidence of recording thereon or a
certified copy has been obtained from the recording office. If the Indenture
Trustee finds any document constituting part of the Mortgage File has not been
received, or to be unrelated, determined on the basis of the Mortgagor name,
original principal balance and loan number, to the Mortgage Loans identified in
Exhibit B to this Indenture or to appear defective on its face, the Indenture
Trustee shall promptly notify the Seller.

      (c) Upon deposit of the Repurchase Price in the Payment Account, the
Indenture Trustee shall release to the Seller the related Mortgage File and
shall execute and deliver all instruments of transfer or assignment, without
recourse, furnished to it by the Seller as are necessary to vest in the Seller
title to and rights under the related Mortgage Loan. Such purchase shall be
deemed to have occurred on the date on which certification of the deposit of the
Repurchase Price in the Payment Account was received by the Indenture Trustee.
The Indenture Trustee shall amend the applicable Mortgage Loan Schedule to
reflect such repurchase and shall promptly notify the Master Servicer and the
Rating Agencies of such amendment.

      Section 2.04 Acceptance of Derivative Contracts and Special Certificate
Cap Contract by Indenture Trustee. The Indenture Trustee acknowledges receipt of
the Derivative Contracts and the Special Certificate Cap Contract and declares
that it holds and will continue to hold these documents and any amendments,
replacements or supplements thereto and all other assets of the Trust Estate as
Indenture Trustee in trust for the use and benefit of all present and future
Holders of the Bonds. The Indenture Trustee shall enforce the Derivative
Contracts and the Special Certificate Cap Contract in accordance with their
terms.

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                                   ARTICLE III

                                    Covenants

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

      Section 3.02 Maintenance of Office or Agency. The Issuer will maintain an
office or agency where, subject to satisfaction of conditions set forth herein,
Bonds may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Bonds and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. If at any time the
Issuer shall fail to maintain any such office or agency or shall fail to furnish
the Indenture Trustee with the address thereof, such surrenders may be made at
the office of the Indenture Trustee located at c/o DTC Transfer Services, 55
Water Street, Jeanette Park Entrance, New York, New York 10041, and notices and
demands may be made or served at the Corporate Trust Office, and the Issuer
hereby appoints the Indenture Trustee as its agent to receive all such
surrenders, notices and demands.

      Section 3.03 Money for Payments To Be Held in Trust; Paying Agent. (a) As
provided in Section 3.01, all payments of amounts due and payable with respect
to any Bonds that are to be made from amounts withdrawn from the Payment Account
pursuant to Section 3.01 shall be made on behalf of the Issuer by the Indenture
Trustee or by the Paying Agent, and no amounts so withdrawn from the Payment
Account for payments of Bonds shall be paid over to the Issuer except as
provided in this Section 3.03. The Issuer hereby appoints the Indenture Trustee
as its Paying Agent.

      The Issuer will cause each Paying Agent other than the Indenture Trustee
to execute and deliver to the Indenture Trustee an instrument in which such
Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Paying Agent it hereby so agrees), subject to the provisions of
this Section 3.03, that such Paying Agent will:

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

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

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

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

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

                  (vi) not commence a bankruptcy proceeding against the Issuer
      in connection with this Indenture.

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

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

      Section 3.04 Existence. The Issuer will keep in full effect its existence,
rights and franchises as a statutory trust under the laws of the State of
Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under

                                        8
<PAGE>

the laws of such other jurisdiction) and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is
or shall be necessary to protect the validity and enforceability of this
Indenture, the Bonds, the Mortgage Loans and each other instrument or agreement
included in the Trust Estate.

      Section 3.05 Payment of Principal and Interest. (a) On each Payment Date
from amounts on deposit in the Payment Account in accordance with Section 8.02
hereof, the Indenture Trustee shall pay to the Persons specified below, to the
extent provided therein, the Available Funds for such Payment Date and any Class
1-A-2 Insured Amount for such Payment Date; provided, however, that any amounts
representing payments from the Bond Insurer shall only be used to pay interest
and principal to the Class 1-A-2 Bondholders pursuant to clauses (b)(i) and (c)
below.

      (b) On each Payment Date, the Group 1 Available Funds and any Class 1-A-2
Insured Amount shall be distributed in the following order of priority, in each
case to the extent of the Group 1 Available Funds and any Class 1-A-2 Insured
Amount remaining for such Payment Date:

                  (i) concurrently, to the Holders of the Class 1-A-1 Bonds and
      the Class 1-A-2 Bonds, the related Accrued Bond Interest for such Class
      for such Payment Date;

                  (ii) to the Holders of the Class M-1-1 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (iii) to the Holders of the Class M-2-1 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (iv) to the Holders of the Class M-3-1 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (v) to the Holders of the Class M-4-1 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (vi) to the Holders of the Class M-5-1 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date; and

                  (vii) to the Holders of the Class M-6-1 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date.

      (c) On each Payment Date, the Holders of the Group 1 Bonds shall be
entitled to receive payments in respect of principal equal the related Principal
Distribution Amount for that Payment Date, allocated on a pro rata basis, based
on the Bond Principal Balances thereof, in reduction of the Bond Principal
Balances thereof, until the Bond Principal Balances thereof have been reduced to
zero.

      (d) On each Payment Date, any Net Monthly Excess Cashflow in respect of
the Group 1 Loans shall be paid as follows:

                                        9
<PAGE>

                  (i) to the Bond Insurer, the aggregate of all payments, if
      any, made by the Bond Insurer under the Bond Insurance Policy with respect
      to the Class 1-A-2 Bonds, including interest thereon, to the extent not
      previously paid or reimbursed;

                  (ii) to the Holders of the Group 1 Bonds, pro rata, an amount
      equal to any Realized Losses on the Group 1 Loans during the related Due
      Period, payable to such Holders of the Group 1 Bonds as part of the
      related Principal Distribution Amount as described under Section 3.05(c)
      above;

                  (iii) to the Holders of the Group 2 Bonds, pro rata, an amount
      equal to any Realized Losses on the Group 2 Loans during the related Due
      Period, to the extent unreimbursed by Net Monthly Excess Cashflow for the
      Group 2 Loans on that Payment Date, payable to such Holders of the Group 2
      Bonds as part of the related Principal Distribution Amount as described
      under Section 3.05(g) below;

                  (iv) to the Holders of the Group 1 Bonds, pro rata, an amount
      equal to any related Overcollateralization Increase Amount, payable to
      such Holders of the Group 1 Bonds as part of the related Principal
      Distribution Amount as described under Section 3.05(c) above;

                  (v) to the Holders of the Group 2 Bonds, pro rata, amount
      equal to any related Overcollateralized Increase Amount resulting from any
      previously unreimbursed Realized Losses on the Group 2 Loans, to the
      extent that such Realized Losses have not been reimbursed by related and
      non-related Net Monthly Excess Cashflow on prior Payment Dates, payable to
      such holders of the Group 2 Bonds as part of the related Principal
      Distribution Amount as described under Section 3.05(g) below;

                  (vi) to the Holders of the Class M-1-1, Class M-1-2, Class
      M-2-1, Class M-2-2, Class M-3-1, Class M-3-2, Class M-4-1, Class M-4-2,
      Class M-5-1, Class M-5-2, Class M-6-1 and Class M-6-2 Bonds, in that
      order, in an amount equal to the Allocated Realized Loss Amount for such
      Classes of Class M Bonds, in each case to the extent not covered by
      non-related Net Monthly Excess Cashflow for a non-related Class M Bond;

                  (vii) to the Holders of the Class 1-A-1 Bonds and Class 1-A-2
      Bonds, pro rata, and then to the Class M-1-1, Class M-2-1, Class M-3-1,
      Class M-4-1, Class M-5-1 and Class M-6-1 Bonds, in that order, any Unpaid
      Interest Shortfall for such Bonds on such Payment Date, to the extent not
      previously reimbursed;

                  (viii) to the Holders of the Class 1-A-1 Bonds and Class 1-A-2
      Bonds, pro rata, and then to the Class M-1-1, Class M-2-1, Class M-3-1,
      Class M-4-1, Class M-5-1 and Class M-6-1 Bonds, in that order, any related
      Basis Risk Shortfall Carry-Forward Amount for such Bonds on such Payment
      Date, to the extent not covered by the related Derivative Contracts;

                  (ix) to the Indenture Trustee for amounts owed the Indenture
      Trustee hereunder (other than the Indenture Trustee Fee) remaining unpaid;
      and

                                       10
<PAGE>

                  (x) any remaining amounts will be distributed to the
      Certificate Paying Agent, as designee of the Issuer, for the benefit of
      the Holders of the Owner Trust Certificates.

      (e) With respect to the Senior Derivative Contracts and on each Payment
Date, the Senior Net Derivative Contract Payment Amount with respect to such
Payment Date shall be distributed in the following order of priority, in each
case to the extent of amounts available:

                  (i) to the Holders of the Class 1-A-1 Bonds and Class 1-A-2
      Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward Amount for
      such Payment Date; and

                  (ii) any remaining amounts will be distributed to the
      Certificate Paying Agent, as designee of the Issuer, for the benefit of
      the Holders of the Owner Trust Certificates.

      (f) On each Payment Date, the Group 2 Available Funds shall be distributed
in the following manner, to the extent of the Group 2 Available Funds remaining
for such Payment Date:

                  (i) to the Holders of the Class 2-A Bonds, the related Accrued
      Bond Interest for such Class for such Payment Date;

                  (ii) to the Holders of the Class M-1-2 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (iii) to the Holders of the Class M-2-2 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (iv) to the Holders of the Class M-3-2 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (v) to the Holders of the Class M-4-2 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (vi) to the Holders of the Class M-5-2 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date;

                  (vii) to the Holders of the Class M-6-2 Bonds, the related
      Accrued Bond Interest for such Class for such Payment Date.

      (g) On each Payment Date, the Holders of the Group 2 Bonds shall be
entitled to receive payments in respect of principal equal the related Principal
Distribution Amount for that Payment Date, allocated on a pro rata basis, in
reduction of the Bond Principal Balance thereof, until the Bond Principal
Balance thereof have been reduced to zero.

      (h) On each Payment Date, any Net Monthly Excess Cashflow in respect of
the Group 2 Loans shall be paid as follows:

                                       11
<PAGE>

                  (i) to the Holders of the Group 2 Bonds, pro rata, an amount
      equal to any Realized Losses on the Group 2 Loans during the related Due
      Period, payable to such Holders as part of the Principal Distribution
      Amount as described under Section 3.05(g) above;

                  (ii) to the Holders of the Group 1 Bonds, pro rata, an amount
      equal to any Realized Losses on the Group 1 Loans during the related Due
      Period, to the extent unreimbursed by Net Monthly Excess Cashflow for the
      Group 1 Loans on that Payment Date, payable to such holders of the Group 1
      Bonds as part of the related Principal Distribution Amount as described
      under Section 3.05(c) above;

                  (iii) to the Bond Insurer, the aggregate of all payments, if
      any, made by the Bond Insurer under the Bond Insurance Policy with respect
      to the Class 1-A-2 Bonds, including interest thereon, to the extent not
      previously paid or reimbursed or covered under clause (i) under Section
      3.05(d) above;

                  (iv) to the holders of the Group 2 Bonds, pro rata, an amount
      equal to any related Overcollateralization Increase Amount, payable to
      such Holders of the Group 2 Bonds as part of the related Principal
      Distribution Amount as described under Section 3.05(g) above;

                  (v) to the Holders of the Group 1 Bonds, pro rata, amount
      equal to any related Overcollateralized Increase Amount resulting from any
      previously unreimbursed Realized Losses on the Group 1 Loans, to the
      extent that such Realized Losses have not been reimbursed by related and
      non-related Net Monthly Excess Cashflow on prior Payment Dates, payable to
      such holders of the Group 1 Bonds as part of the related Principal
      Distribution Amount as described under Section 3.05(c) above;

                  (vi) to the Holders of the Class M-1-2, Class M-1-1, Class
      M-2-2, Class M-2-1, Class M-3-2, Class M-3-1, Class M-4-2, Class M-4-1,
      Class M-5-2, Class M-5-1, Class M-6-2 and Class M-6-1 Bonds, in that
      order, in an amount equal to the Allocated Realized Loss Amount for such
      classes of the Class M Bonds, in each case to the extent not covered by
      non-related Net Monthly Excess Cashflow for a non-related Underlying Class
      M Bond;

                  (vii) to the holders of the Class 2-A, Class M-1-2, Class
      M-2-2, Class M-3- 2, Class M-4-2, Class M-5-2 and Class M-6-2 Bonds, in
      that order, any Unpaid Interest Shortfall for such Bonds on such Payment
      Date, to the extent not previously reimbursed;

                  (viii) to the holders of the Class M-1-2, Class M-2-2, Class
      M-3-2, Class M-4-2, Class M-5-2 and Class M-6-2 Bonds, in that order, any
      related Basis Risk Shortfall Carry-Forward Amount for such Bonds on such
      Payment Date, to the extent not covered by the Subordinate Derivative
      Contracts;

                  (ix) to the Indenture Trustee for amounts owed the Indenture
      Trustee hereunder (other than the Indenture Trustee Fee) remaining unpaid;
      and

                                       12
<PAGE>

                  (x) any remaining amounts will be distributed to the
      Certificate Paying Agent, as designee of the Issuer, for the benefit of
      the Holders of the Owner Trust Certificates.

      (i) With respect to the Subordinate Derivative Contracts and on each
Payment Date, the Subordinate Net Derivative Contract Payment Amount with
respect to such Payment Date shall be distributed in the following order of
priority, in each case to the extent of amounts available:

                  (i) to the Holders of the Class M-1-1 Bonds and Class M-1-2
      Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward Amount for
      such Payment Date;

                  (ii) to the Holders of the Class M-2-1 Bonds and Class M-2-2
      Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward Amount for
      such Payment Date;

                  (iii) to the Holders of the Class M-3-1 Bonds and Class M-3-2
      Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward Amount for
      such Payment Date;

                  (iv) to the Holders of the Class M-4-1 Bonds and Class M-4-2
      Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward Amount for
      such Payment Date;

                  (v) to the Holders of the Class M-5-1 Bonds and Class M-5-2
      Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward Amount for
      such Payment Date;

                  (vi) to the Holders of the Class M-6-1 Bonds and Class M-6-2
      Bonds, pro rata, any related Basis Risk Shortfall Carry-Forward Amount for
      such Payment Date; and

                  (vii) any remaining amounts will be distributed to the
      Certificate Paying Agent, as designee of the Issuer, for the benefit of
      the Holders of the Owner Trust Certificates.

      (j) On each Payment Date any amounts received in respect of the Special
Certificate Cap Contract shall be distributed to the Certificate Paying Agent,
as designee of the Issuer, for the benefit of the Holders of the Owner Trust
Certificates.

      (k) Each distribution with respect to a Book-Entry Bond shall be paid to
the Depository, as Holder thereof, and the Depository shall be responsible for
crediting the amount of such distribution to the accounts of its Depository
Participants in accordance with its normal procedures. Each Depository
Participant shall be responsible for disbursing such distribution to the Bond
Owners that it represents and to each indirect participating brokerage firm (a
"brokerage firm" or "indirect participating firm") for which it acts as agent.
Each brokerage firm shall be responsible for disbursing funds to the Bond Owners
that it represents. None of the Indenture Trustee, the Bond Registrar, the
Paying Agent, the Depositor or the Master Servicer shall have any responsibility
therefor except as otherwise provided by this Indenture or applicable law.

                                       13
<PAGE>

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

      (m) Any installment of interest or principal, if any, payable on any Bond
that is punctually paid or duly provided for by the Issuer on the applicable
Payment Date shall, if such Holder shall have so requested at least five
Business Days prior to the related Record Date, be paid to each Holder of record
on the preceding Record Date, by wire transfer to an account specified in
writing by such Holder reasonably satisfactory to the Indenture Trustee as of
the preceding Record Date or in all other cases or if no such instructions have
been delivered to the Indenture Trustee, by check to such Bondholder mailed to
such Holder's address as it appears in the Bond Register in the amount required
to be distributed to such Holder on such Payment Date pursuant to such Holder's
Bonds; provided, however, that the Indenture Trustee shall not pay to such
Holders any amount required to be withheld from a payment to such Holder by the
Code.

      (n) The principal of each Bond shall be due and payable in full on the
Final Scheduled Payment Date for such Bond as provided in the forms of Bond set
forth in Exhibits A-1 and A-2 to this Indenture. All principal payments on the
Bonds shall be made to the Bondholders entitled thereto in accordance with the
Percentage Interests represented by such Bonds. Upon notice to the Indenture
Trustee by the Issuer, the Indenture Trustee shall notify the Person in whose
name a Bond is registered at the close of business on the Record Date preceding
the Final Scheduled Payment Date or other final Payment Date (including any
final Payment Date resulting from any redemption pursuant to Section 8.07
hereof). Such notice shall to the extent practicable be mailed no later than
five Business Days prior to such Final Scheduled Payment Date or other final
Payment Date and shall specify that payment of the principal amount and any
interest due with respect to such Bond at the Final Scheduled Payment Date or
other final Payment Date will be payable only upon presentation and surrender of
such Bond and shall specify the place where such Bond may be presented and
surrendered for such final payment. No interest shall accrue on the Bonds on or
after the Final Scheduled Payment Date or any such other final Payment Date.

      The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.05 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.

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

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

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

                                       14
<PAGE>

                  (iii) cause the Issuer or Master Servicer to enforce any of
      the rights to the Mortgage Loans; or

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

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

      The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to sign any financing statement, continuation statement or
other instrument required to be signed pursuant to this Section 3.06 upon the
Issuer's preparation thereof and delivery to the Indenture Trustee.

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

      (b) On or before April 15 in each calendar year, beginning in 2004, the
Issuer shall furnish to the Indenture Trustee an Opinion of Counsel at the
expense of the Issuer either stating that, in the opinion of such counsel, such
action has been taken with respect to the recording, filing, re- recording and
refiling of this Indenture, any indentures supplemental hereto and any other
requisite documents and with respect to the execution and filing of any
financing statements and continuation statements as is necessary to maintain the
lien and first priority security interest in the Collateral and reciting the
details of such action or stating that in the opinion of such counsel no such
action is necessary to maintain such lien and security interest. Such Opinion of
Counsel shall also describe the recording, filing, re-recording and refiling of
this Indenture, any indentures supplemental hereto and any other requisite
documents and the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest in the Collateral until December 31
in the following calendar year.

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

                                       15
<PAGE>

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

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

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

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

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

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

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

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

      Section 3.10 Annual Statement as to Compliance. The Issuer will deliver to
the Indenture Trustee, by March 1 of each year commencing with the calendar year
2004, an Officer's Certificate stating, as to the Authorized Officer signing
such Officer's Certificate, that:

                                       16
<PAGE>

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

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

      Section 3.11 Representations and Warranties Concerning the Mortgage Loans.
The Indenture Trustee, as pledgee of the Mortgage Loans, has the benefit of the
representations and warranties made by the Seller in the Mortgage Loan Sale and
Contribution Agreement concerning the Seller and the Mortgage Loans to the same
extent as though such representations and warranties were made directly to the
Indenture Trustee. If a Responsible Officer of the Indenture Trustee has actual
knowledge of any breach of any representation or warranty made by the Seller in
the Mortgage Loan Sale and Contribution Agreement, the Indenture Trustee shall
promptly notify the Seller of such finding and the Seller's obligation to cure
such defect or repurchase or substitute for the related Mortgage Loan.

      Section 3.12 Amendments to Servicing Agreement. The Issuer covenants with
the Indenture Trustee that it will not enter into any amendment or supplement to
the Servicing Agreement without the prior written consent of the Indenture
Trustee.

      Section 3.13 Master Servicer as Agent and Bailee of the Indenture Trustee.
Solely for purposes of perfection under Section 9-305 of the Uniform Commercial
Code or other similar applicable law, rule or regulation of the state in which
such property is held by the Master Servicer, the Issuer and the Indenture
Trustee hereby acknowledge that the Master Servicer is acting as bailee of the
Indenture Trustee in holding amounts on deposit in the Collection Account, as
well as its bailee in holding any Related Documents released to the Master
Servicer, and any other items constituting a part of the Trust Estate which from
time to time come into the possession of the Master Servicer. It is intended
that, by the Master Servicer's acceptance of such bailee arrangement, the
Indenture Trustee, as a secured party of the Mortgage Loans, will be deemed to
have possession of such Related Documents, such monies and such other items for
purposes of Section 9-305 of the Uniform Commercial Code of the state in which
such property is held by the Master Servicer. The Indenture Trustee shall not be
liable with respect to such documents, monies or items while in possession of
the Master Servicer.

      Section 3.14 Investment Company Act. The Issuer shall not become an
"investment company" or be under the "control" of an "investment company" as
such terms are defined in the Investment Company Act of 1940, as amended (or any
successor or amendatory statute), and the rules and regulations thereunder
(taking into account not only the general definition of the term "investment
company" but also any available exceptions to such general definition);
provided, however, that the Issuer shall be in compliance with this Section 3.14
if it shall have obtained an order exempting it from regulation as an
"investment company" so long as it is in compliance with the conditions imposed
in such order.

                                       17
<PAGE>

      Section 3.15 Issuer May Consolidate, etc. (a) The Issuer shall not
consolidate or merge with or into any other Person, unless:

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

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

                  (iii) the Rating Agencies shall have notified the Issuer that
      such transaction shall not cause the rating of the Bonds to be reduced,
      suspended or withdrawn or to be considered by either Rating Agency to be
      below investment grade;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
      shall have delivered a copy thereof to the Indenture Trustee) to the
      effect that such transaction will not (A) result in a "substantial
      modification" of the Bonds under Treasury Regulation section 1.1001-3, or
      adversely affect the status of the Bonds as indebtedness for federal
      income tax purposes, or (B) if 100% of the Certificates are not owned by
      IMH Assets Corp., cause the Trust to be subject to an entity level tax for
      federal income tax purposes;

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

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

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

                  (i) the Person that acquires by conveyance or transfer the
      properties and assets of the Issuer, the conveyance or transfer of which
      is hereby restricted, shall (A) be a United States citizen or a Person
      organized and existing under the laws of the United States of America or
      any state thereof, (B) expressly assume, by an indenture supplemental
      hereto, executed and delivered to the Indenture Trustee, in form
      satisfactory to the Indenture Trustee, the due and punctual payment of the
      principal of and interest on all Bonds and the payment

                                       18
<PAGE>

      of the Bond Insurance Premium and all other amounts payable to the Bond
      Insurer and Derivative Contract Counterparty and the performance or
      observance of every agreement and covenant of this Indenture on the part
      of the Issuer to be performed or observed, all as provided herein, (C)
      expressly agree by means of such supplemental indenture that all right,
      title and interest so conveyed or transferred shall be subject and
      subordinate to the rights of the Holders of the Bonds, (D) unless
      otherwise provided in such supplemental indenture, expressly agree to
      indemnify, defend and hold harmless the Issuer, the Indenture Trustee and
      the Bond Insurer against and from any loss, liability or expense arising
      under or related to this Indenture and the Bonds and (E) expressly agree
      by means of such supplemental indenture that such Person (or if a group of
      Persons, then one specified Person) shall make all filings with the
      Commission (and any other appropriate Person) required by the Exchange Act
      in connection with the Bonds;

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

                  (iii) the Rating Agencies shall have notified the Issuer that
      such transaction shall not cause the rating of the Bonds to be reduced,
      suspended or withdrawn;

                  (iv) the Issuer shall have received an Opinion of Counsel (and
      shall have delivered a copy thereof to the Indenture Trustee) to the
      effect that such transaction will not (A) result in a "substantial
      modification" of the Bonds under Treasury Regulation section 1.1001-3, or
      adversely affect the status of the Bonds as indebtedness for federal
      income tax purposes, or (B) if 100% of the Certificates are not owned by
      IMH Assets Corp., cause the Trust to be subject to an entity level tax for
      federal income tax purposes;

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

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

      Section 3.16 Successor or Transferee. (a) Upon any consolidation or merger
of the Issuer in accordance with Section 3.15(a), the Person formed by or
surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the
Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

      (b) Upon a conveyance or transfer of all the assets and properties of the
Issuer pursuant to Section 3.15(b), the Issuer will be released from every
covenant and agreement of this Indenture to be observed or performed on the part
of the Issuer with respect to the Bonds immediately upon the delivery of written
notice to the Indenture Trustee of such conveyance or transfer.

                                       19
<PAGE>

      Section 3.17 No Other Business. The Issuer shall not engage in any
business other than financing, purchasing, owning and selling and managing the
Mortgage Loans and the issuance of the Bonds and Certificates in the manner
contemplated by this Indenture and the Basic Documents and all activities
incidental thereto.

      Section 3.18 No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Bonds under this Indenture.

      Section 3.19 Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by this Indenture or the Basic Documents, the Issuer shall not make
any loan or advance or credit to, or guarantee (directly or indirectly or by an
instrument having the effect of assuring another's payment or performance on any
obligation or capability of so doing or otherwise), endorse or otherwise become
contingently liable, directly or indirectly, in connection with the obligations,
stocks or dividends of, or own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any
other interest in, or make any capital contribution to, any other Person.

      Section 3.20 Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

      Section 3.21 Determination of Bond Interest Rate. On each Interest
Determination Date the Indenture Trustee shall determine One-Month LIBOR and the
related Bond Interest Rate for each Class of Bonds for the following Accrual
Period and shall inform the Issuer, the Master Servicer, and the Depositor at
their respective facsimile numbers given to the Indenture Trustee in writing
thereof. The establishment of One-Month LIBOR on each Interest Determination
Date by the Indenture Trustee and the Indenture Trustee's calculation of the
rate of interest applicable to each Class of Bonds for the related Accrual
Period shall (in the absence of manifest error) be final and binding.

      Section 3.22 Restricted Payments. The Issuer shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to the Owner Trustee or any owner of a beneficial interest in the
Issuer or otherwise with respect to any ownership or equity interest or security
in or of the Issuer, (ii) redeem, purchase, retire or otherwise acquire for
value any such ownership or equity interest or security or (iii) set aside or
otherwise segregate any amounts for any such purpose; provided, however, that
the Issuer may make, or cause to be made, (x) distributions and payments to the
Owner Trustee, the Indenture Trustee, Bondholders and the Certificateholders as
contemplated by, and to the extent funds are available for such purpose under
this Indenture and the Trust Agreement and (y) payments to the Master Servicer
and the Subservicers pursuant to the terms of the Servicing Agreement. The
Issuer will not, directly or indirectly, make payments to or distributions from
the Collection Account except in accordance with this Indenture and the Basic
Documents.

      Section 3.23 Notice of Events of Default. The Issuer shall give the
Indenture Trustee, the Bond Insurer and the Rating Agencies prompt written
notice of each Event of Default hereunder and under the Trust Agreement.

                                       20
<PAGE>

      Section 3.24 Further Instruments and Acts. Upon request of the Indenture
Trustee, the Issuer will execute and deliver such further instruments and do
such further acts as may be reasonably necessary or proper to carry out more
effectively the purpose of this Indenture.

      Section 3.25 Statements to Bondholders. On each Payment Date, the
Indenture Trustee and the Certificate Registrar shall prepare and make available
on the Indenture Trustee's website, https://www.corporatetrust.db.com/invr (or
deliver at the recipient's option), to the Bond Insurer and to each Bondholder
and Certificateholder the most recent statement prepared by the Master Servicer
pursuant to Section 4.01 of the Servicing Agreement.

      Section 3.26 Certain Representations Regarding the Trust Estate.

      (a) With respect to that portion of the Collateral described in clauses
(a) through (d) of the definition of Trust Estate, the Issuer represents to the
Indenture Trustee that:

            (i) This Indenture creates a valid and continuing security interest
(as defined in the applicable UCC) in the Collateral in favor of the Indenture
Trustee, which security interest is prior to all other liens, and is enforceable
as such as against creditors of and purchasers from the Issuer.

            (ii) The Collateral constitutes "deposit accounts" or "instruments,"
as applicable, within the meaning of the applicable UCC.

            (iii) The Issuer owns and has good and marketable title to the
Collateral, free and clear of any lien, claim or encumbrance of any Person.

            (iv) The Issuer has taken all steps necessary to cause the Indenture
Trustee to become the account holder of the Collateral.

            (v) Other than the security interest granted to the Indenture
Trustee pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Collateral.

            (vi) The Collateral is not in the name of any Person other than the
Issuer or the Indenture Trustee. The Issuer has not consented to the bank
maintaining the Collateral to comply with instructions of any Person other than
the Indenture Trustee.

      (b) With respect to that portion of the Collateral described in clauses
(e) and (f), the Issuer represents to the Indenture Trustee that:

            (i) This Indenture creates a valid and continuing security interest
(as defined in the applicable UCC) in the Collateral in favor of the Indenture
Trustee, which security interest is prior to all other liens, and is enforceable
as such as against creditors of and purchasers from the Issuer.

            (ii) The Collateral constitutes "general intangibles" within the
meaning of the applicable UCC.

                                       21
<PAGE>

            (iii) The Issuer owns and has good and marketable title to the
Collateral, free and clear of any lien, claim or encumbrance of any Person.

            (iv) Other than the security interest granted to the Indenture
Trustee pursuant to this Indenture, the Issuer has not pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Collateral.

      (c) With respect to any Collateral in which a security interest may be
perfected by filing, the Issuer has not authorized the filing of, and is not
aware of any financing statements against, the Issuer, that include a
description of collateral covering such Collateral, other than any financing
statement relating to the security interest granted to the Indenture Trustee
hereunder or that has been terminated. The Issuer is not aware of any judgment
or tax lien filings against the Issuer.

      (d) The Issuer has caused or will have caused, within ten days, the filing
of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the security
interest in all Collateral granted to the Indenture Trustee hereunder in which a
security interest may be perfected by filing. Any financing statement that is
filed in connection with this Section 3.26 shall contain a statement that a
purchase or security interest in any collateral described therein will violate
the rights of the secured party named in such financing statement.

      (e) The foregoing representations may not be waived and shall survive the
issuance of the Bonds.

      Section 3.27 [Reserved].

      Section 3.28 [Reserved].

      Section 3.29 Replacement Derivative Contracts. In the event of a default
by a Derivative Contract Counterparty with respect to the related Derivative
Contracts (a "Derivative Contract Default"), the Issuer, at its expense, may,
but shall not be required to, substitute a new derivative contract for the
existing Derivative Contracts or any other form of similar coverage for basis
risk shortfalls; provided, however, that the timing and mechanism for receiving
payments under such new derivative contracts shall be reasonably acceptable to
the Indenture Trustee. It shall be a condition to substitution of any new
derivative contracts that there be delivered to the Indenture Trustee an Opinion
of Counsel to the effect that such substitution would not (a) result in a
"substantial modification" of the Bonds under Treasury Regulation section
1.1001-3, or adversely affect the status of the Bonds as indebtedness for
federal income tax purposes, or (b) if 100% of the Certificates are not owned by
IMH Assets Corp., cause the Trust to be subject to an entity level tax for
federal income tax purposes.

      Section 3.30 [Reserved].

      Section 3.31 Allocation of Realized Losses. (a) Prior to each Payment
Date, the Master Servicer shall determine the total amount of Realized Losses
that occurred during the related

                                       22
<PAGE>

Prepayment Period. The amount of each Realized Loss shall be evidenced by an
Officer's Certificate delivered to the Indenture Trustee with the related
Remittance Report.

      (b) On each Payment Date following the application of all amounts
distributable on such date, to the extent the aggregate Stated Principal Balance
of the Group 1 Loans is less than the aggregate Bond Principal Balances of the
Group 1 Bonds due to Realized Losses on the Group 1 Loans, the Bond Principal
Balances of the Class M-6-1, Class M-6-2, Class M-5-1, Class M-5-2, Class M-4-1,
Class M-4-2, Class M-3-1, Class M-3-2, Class M-2-1, Class M-2-2, Class M-1-1and
Class M-1-2 Bonds, in that order, shall be reduced, until the Bond Principal
Balance thereof has been reduced to zero. On each Payment Date following the
application of all amounts distributable on such date, to the extent the
aggregate Stated Principal Balance of the Group 2 Loans is less than the
aggregate Bond Principal Balances of the Group 2 Bonds due to Realized Losses on
the Group 2 Loans, the Bond Principal Balances of the of the Class M-6-2, Class
M-6-1, Class M-5-2, Class M-5- 1, Class M-4-2, Class M-4-1, Class M-3-2, Class
M-3-1, Class M-2-2, Class M-2-1, Class M-1-2 and Class M-1-1, in that order,
shall be reduced, until the Bond Principal Balance thereof has been reduced to
zero. All Realized Losses allocated to a Class of Bonds will be allocated in
proportion to the Percentage Interests evidenced thereby.

                                       23
<PAGE>

                                   ARTICLE IV

               The Bonds; Satisfaction and Discharge of Indenture

      Section 4.01 The Bonds. Each Class of Bonds shall be registered in the
name of a nominee designated by the Depository. Beneficial Owners will hold
interests in the Bonds through the book- entry facilities of the Depository in
minimum initial Bond Principal Balances of $25,000 and integral multiples of $1
in excess thereof.

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

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

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

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

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

                                       24
<PAGE>

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

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

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

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

                                       25
<PAGE>

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

      Every replacement Bond issued pursuant to this Section 4.03 in replacement
of any mutilated, destroyed, lost or stolen Bond shall constitute an original
additional contractual obligation of the Issuer, whether or not the mutilated,
destroyed, lost or stolen Bond shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Bonds duly issued hereunder.

      The provisions of this Section 4.03 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Bonds.

      Section 4.04 Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Bond, the Issuer, the Indenture Trustee, the
Paying Agent and any agent of the Issuer or the Indenture Trustee may treat the
Person in whose name any Bond is registered (as of the day of determination) as
the owner of such Bond for the purpose of receiving payments of principal of and
interest, if any, on such Bond and for all other purposes whatsoever, whether or
not such Bond be overdue, and neither the Issuer, the Indenture Trustee, the
Paying Agent nor any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.

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

      Section 4.06 Book-Entry Bonds. The Bonds, upon original issuance, will be
issued in the form of typewritten Bonds representing the Book-Entry Bonds, to be
delivered to The Depository Trust Company, the initial Depository, by, or on
behalf of, the Issuer. The Bonds shall initially be registered on the Bond
Register in the name of Cede & Co., the nominee of the initial Depository, and
no Beneficial Owner will receive a Definitive Bond representing such Beneficial
Owner's interest in such Bond, except as provided in Section 4.08. With respect
to such Bonds, unless and until definitive, fully registered Bonds (the
"Definitive Bonds") have been issued to Beneficial Owners pursuant to Section
4.08:

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

                                       26
<PAGE>

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

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

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

                  (v) whenever this Indenture requires or permits actions to be
      taken based upon instructions or directions of Holders of Bonds evidencing
      a specified percentage of the Bond Principal Balances of the Bonds, the
      Depository shall be deemed to represent such percentage with respect to
      the Bonds only to the extent that it has received instructions to such
      effect from Beneficial Owners and/or Depository Participants owning or
      representing, respectively, such required percentage of the beneficial
      interest in the Bonds and has delivered such instructions to the Indenture
      Trustee.

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

      Section 4.08 Definitive Bonds. If (i) the Indenture Trustee determines
that the Depository is no longer willing or able to properly discharge its
responsibilities with respect to the Bonds and the Indenture Trustee is unable
to locate a qualified successor, (ii) the Indenture Trustee elects to terminate
the book-entry system through the Depository or (iii) after the occurrence of an
Event of Default, Beneficial Owners of Bonds representing beneficial interests
aggregating at least a majority of the Bond Principal Balances of the Bonds
advise the Depository in writing that the continuation of a book-entry system
through the Depository is no longer in the best interests of the Beneficial
Owners, then the Depository shall notify all Beneficial Owners and the Indenture
Trustee of the occurrence of any such event and of the availability of
Definitive Bonds to Beneficial Owners requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Bonds representing the Book-Entry Bonds by
the Depository, accompanied by registration instructions, the Issuer shall
execute and the Indenture Trustee shall authenticate the Definitive Bonds in
accordance with the instructions of the Depository. None of the Issuer, the Bond
Registrar or the Indenture Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in
relying on, such instructions. Upon the issuance of Definitive Bonds, the
Indenture Trustee shall recognize the Holders of the Definitive Bonds as
Bondholders.

                                       27
<PAGE>

      Section 4.09 Tax Treatment. The Issuer has entered into this Indenture,
and the Bonds will be issued with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Bonds will qualify
as indebtedness. The Issuer and the Indenture Trustee (in accordance with
Section 6.06 hereof), by entering into this Indenture, and each Bondholder, by
its acceptance of its Bond (and each Beneficial Owner by its acceptance of an
interest in the applicable Book-Entry Bond), agree to treat the Bonds for
federal, state and local income, single business and franchise tax purposes as
indebtedness.

      Section 4.10 Satisfaction and Discharge of Indenture. This Indenture shall
cease to be of further effect with respect to the Bonds except as to (i) rights
of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Bonds, (iii) rights of Bondholders (and the Bond
Insurer, as subrogee of the Class 1-A-2 Bondholders) to receive payments of
principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.06, 3.09,
3.16, 3.18 and 3.19, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section
6.07 and the obligations of the Indenture Trustee under Section 4.11), (vi) the
right of the Derivative Contract Counterparty to receive the related Net
Derivative Fee and (vii) the rights of Bondholders as beneficiaries hereof with
respect to the property so deposited with the Indenture Trustee payable to all
or any of them, and the Indenture Trustee, on demand of and at the expense of
the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Bonds and shall release and
deliver the Collateral to or upon the order of the Issuer, when

            (A) either

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

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

                  a.    have become due and payable,

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

                  c.    have been called for early redemption and the Trust has
                        been terminated pursuant to Section 8.07 hereof,

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

                                       28
<PAGE>

Final Scheduled Payment Date or other final Payment Date and has delivered to
the Indenture Trustee a verification report from a nationally recognized
accounting firm certifying that the amounts deposited with the Indenture Trustee
are sufficient to pay and discharge the entire indebtedness of such Bonds, or,
in the case of c. above, the Issuer shall have complied with all requirements of
Section 8.07 hereof,

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

            (C) the Issuer has delivered to the Indenture Trustee an Officer's
      Certificate and an Opinion of Counsel, each meeting the applicable
      requirements of Section 10.01 hereof, each stating that all conditions
      precedent herein provided for relating to the satisfaction and discharge
      of this Indenture have been complied with and, if the Opinion of Counsel
      relates to a deposit made in connection with Section 4.10(A)(2)b. above,
      such opinion shall further be to the effect that such deposit will
      constitute an "in-substance defeasance" within the meaning of Revenue
      Ruling 85-42, 1985-1 C.B. 36, and in accordance therewith, the Issuer will
      be the owner of the assets deposited in trust for federal income tax
      purposes.

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

      Section 4.12 [Reserved].

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

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

      If temporary Bonds are issued, the Issuer will cause Definitive Bonds to
be prepared without unreasonable delay. After the preparation of the Definitive
Bonds, the temporary Bonds shall be exchangeable for Definitive Bonds upon
surrender of the temporary Bonds at the office of the

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Indenture Trustee located at 123 Washington Street, New York, New York 10006,
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Bonds, the Issuer shall execute and the Indenture Trustee shall
authenticate and make available for delivery, in exchange therefor, Definitive
Bonds of authorized denominations and of like tenor, class and aggregate
principal amount. Until so exchanged, such temporary Bonds shall in all respects
be entitled to the same benefits under this Indenture as Definitive Bonds.

      Section 4.15 Representation Regarding ERISA. By acquiring a Class 1-A-1,
Class 1-A-2 or Class 2-A Bond or interest therein, each Holder of such Bond or
Beneficial Owner of any such interest will be deemed to represent that either
(1) it is not acquiring such Bond with Plan Assets or (2) (A) the acquisition,
holding and transfer of such Bond will not give rise to a nonexempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code and (B) the
Bonds are rated investment grade or better and such purchaser agrees to treat
them as indebtedness for federal income tax purposes. Alternatively, regardless
of the rating of such Bonds, such person may provide the Indenture Trustee and
the Owner Trustee with an opinion of counsel, which opinion of counsel will not
be at the expense of the Issuer, the Seller, the Depositor, any Underwriter, the
Owner Trustee, the Indenture Trustee, the Master Servicer or any successor
servicer, which opines that the acquisition, holding and transfer of such Bond
or interest therein is permissible under applicable law, will not constitute or
result in a non-exempt prohibited transaction under ERISA or Section 4975 of the
Code and will not subject the Issuer, the Seller, the Depositor, any
Underwriter, the Owner Trustee, the Indenture Trustee, the Master Servicer or
any successor servicer to any obligation in addition to those undertaken in the
Indenture.

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                                    ARTICLE V

                              Default and Remedies

      Section 5.01 Events of Default. The Issuer shall deliver to the Indenture
Trustee and the Bond Insurer, within five days after learning of the occurrence
of an Event of Default, written notice in the form of an Officer's Certificate
of any event which with the giving of notice and the lapse of time would become
an Event of Default under clause (iii) or (iv) of the definition of "Event of
Default", its status and what action the Issuer is taking or proposes to take
with respect thereto. The Indenture Trustee shall not be deemed to have
knowledge of any Event of Default unless a Responsible Officer has actual
knowledge thereof or unless written notice of such Event of Default is received
by a Responsible Officer and such notice references the Bonds, the Trust Estate
or this Indenture.

      Section 5.02 Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee at the written direction of the Holders of Bonds representing
not less than a majority of the aggregate Bond Principal Balance of the Bonds
may declare the Bonds to be immediately due and payable, by a notice in writing
to the Issuer (and to the Indenture Trustee if such notice is given by
Bondholders), and upon any such declaration the unpaid Bond Principal Balance of
the Class A Bonds and Class M Bonds, together with accrued and unpaid interest
thereon through the date of acceleration shall become immediately due and
payable.

      At any time after such declaration of acceleration of maturity with
respect to an Event of Default has been made and before a judgment or decree for
payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, Holders of the Bonds representing not
less than a majority of the aggregate Bond Principal Balance of the Bonds, by
written notice to the Issuer and the Indenture Trustee, may waive the related
Event of Default and rescind and annul such declaration and its consequences if

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

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

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

                  (C) all amounts owed to the Derivative Contract Counterparty;
            and

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

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<PAGE>

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

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

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

      (b) In case the Issuer shall fail forthwith to pay such amounts upon such
demand, the Indenture Trustee, in its own name and as trustee of an express
trust, subject to the provisions of Section 10.16 hereof may institute a
Proceeding for the collection of the sums so due and unpaid, and may prosecute
such Proceeding to judgment or final decree, and may enforce the same against
the Issuer or other obligor upon the Bonds and collect in the manner provided by
law out of the property of the Issuer or other obligor the Bonds, wherever
situated, the monies adjudged or decreed to be payable.

      (c) If an Event of Default occurs and is continuing, the Indenture
Trustee, subject to the provisions of Section 10.16 hereof may, as more
particularly provided in Section 5.04 hereof, in its discretion, proceed to
protect and enforce its rights and the rights of the Bondholders, by such
appropriate Proceedings, as directed in writing by Holders of a majority of the
aggregate Bond Principal Balances of the Bonds, to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

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

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<PAGE>

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

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

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

                  (iv) to file such proofs of claim and other papers or
      documents as may be necessary or advisable in order to have the claims of
      the Indenture Trustee or the Holders of Bonds allowed in any judicial
      proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Bondholders to make
payments to the Indenture Trustee and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Bondholders, to pay to
the Indenture Trustee such amounts as shall be sufficient to cover reasonable
compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other expenses and
liabilities incurred, and all advances made, by the Indenture Trustee and each
predecessor Indenture Trustee and all amounts due to the Bond Insurer.

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

      (f) All rights of action and of asserting claims under this Indenture, or
under any of the Bonds, may be enforced by the Indenture Trustee without the
possession of any of the Bonds or the production thereof in any trial or other
Proceedings relative thereto, and any such action or proceedings instituted by
the Indenture Trustee shall be brought in its own name as trustee of an express
trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor
Indenture Trustee and their respective agents and attorneys, shall be for the
ratable benefit of the Holders of the Bonds, subject to Section 5.05 hereof.

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<PAGE>

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

      Section 5.04 Remedies; Priorities. (a) If an Event of Default shall have
occurred and be continuing and if an acceleration has been declared and not
rescinded pursuant to Section 5.02 hereof, the Indenture Trustee subject to the
provisions of Section 10.16 hereof may, and shall, at the written direction of
the Holders of a majority of the aggregate Bond Principal Balances of the Bonds,
do one or more of the following (subject to Section 5.05 hereof):

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

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

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

                  (iv) sell the Trust Estate or any portion thereof or rights or
      interest therein, at one or more public or private sales called and
      conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise
liquidate the Trust Estate following an Event of Default, unless (A) the
Indenture Trustee obtains the consent of the Holders of 100% of the aggregate
Bond Principal Balance of the Bonds, (B) the proceeds of such sale or
liquidation distributable to the Holders of the Bonds are sufficient to
discharge in full all amounts then due and unpaid upon such Bonds for principal
and interest and to reimburse the Bond Insurer for any amounts drawn under the
Bond Insurance Policy and any other amounts due to the Bond Insurer under the
Bond Insurance Policy or (C) the Indenture Trustee determines that the Mortgage
Loans will not continue to provide sufficient funds for the payment of principal
of and interest on the applicable Bonds as they would have become due if the
Bonds had not been declared due and payable, and the Indenture Trustee obtains
the consent of the Holders of a majority of the aggregate Bond Principal Balance
of the Bonds. In determining such sufficiency or insufficiency with respect to
clause (B) and (C), the Indenture Trustee may, but need not, obtain and rely
upon an opinion (obtained at the expense of the Trust) of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose. Notwithstanding the foregoing, so long as an Event of
Servicer Termination has not occurred, any Sale of the Trust Estate shall be
made subject to the continued servicing of the Mortgage Loans by the Master
Servicer as provided in the Servicing Agreement.

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

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<PAGE>

representing payments from the Bond Insurer shall only be used to pay interest
and principal to the Class 1-A-2 Bondholders pursuant to clauses FOURTH and
FIFTH below:

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

            SECOND: to the Derivative Contract Counterparty, any amounts owed
      under the Derivative Contracts, other than any Additional Derivative
      Counterparty Payment;

            THIRD: to the Bond Insurer, provided no Bond Insurer Default exists,
      with respect to any Premium Amount then due to the extent unpaid pursuant
      to the Servicing Agreement;

            FOURTH: to the Bondholders for amounts due and unpaid on the Bonds
      (including Unpaid Interest Shortfalls but not including any Basis Risk
      Shortfall Carry-Forward Amounts) with respect to interest, first, to the
      Class 1-A-1, Class 1-A-2 and Class 2-A Bondholders, concurrently, second,
      to the Class M-1-1 Bondholders and Class M-1-2 Bondholders, concurrently,
      third to the Class M-2-1 Bondholders and Class M-2-2 Bondholders,
      concurrently, fourth to the Class M-3-1 Bondholders and Class M-3-2
      Bondholders, concurrently, fifth to the Class M-4-1 Bondholders and Class
      M-4-2 Bondholders, concurrently, sixth to the Class M-5-1 Bondholders and
      Class M-5-2 Bondholders, concurrently, and seventh to the Class M-6-1
      Bondholders and M-6-2 Bondholders, concurrently, according to the amounts
      due and payable on the Bonds for interest;

            FIFTH: to Bondholders for amounts due and unpaid on the Bonds with
      respect to principal, and to each Bondholder ratably, without preference
      or priority of any kind, according to the amounts due and payable on such
      Bonds for principal, until the Bond Principal Balance of each such Class
      is reduced to zero;

            SIXTH: to the payment of all amounts due and owing to the Bond
      Insurer under the Bond Insurance Policy (including any Premium Amount not
      paid pursuant to clause THIRD above);

            SEVENTH: to the Bondholders, first to the Class M-1-1 Bondholders
      and Class M- 1-2 Bondholders, concurrently, second to the Class M-2-1
      Bondholders and Class M-2-2 Bondholders, concurrently, third to the Class
      M-3-1 Bondholders, fourth to the Class M-4-1 Bondholders and Class M-4-2
      Bondholders, concurrently, fifth to the Class M-5-1 Bondholders and Class
      M-5-2 Bondholders, concurrently, and sixth to the Class M-6-1 Bondholders
      and M-6-2 Bondholders, concurrently, the amount of any related Allocated
      Realized Loss Amount not previously paid;

            EIGHTH: to the Bondholders for amounts due and unpaid on the Bonds
      with respect to any related Basis Risk Shortfall Carry-Forward Amounts,
      first, to the Class 1-A-1 and Class 1-A-2 Bondholders, concurrently,
      second, to the Class M-1-1 Bondholders and Class M-1-2 Bondholders,
      concurrently, third to the Class M-2-1 Bondholders and Class M-2-2
      Bondholders, concurrently, fourth to the Class M-3-1 Bondholders and Class
      M-3-2 Bondholders, concurrently, fifth to the Class M-4-1 Bondholders and
      Class M-4-2 Bondholders, concurrently, sixth to the Class M-5-1
      Bondholders and Class M-5-2

                                       35
<PAGE>

      Bondholders, concurrently, and seventh to the Class M-6-1 Bondholders and
      M-6-2 Bondholders, concurrently, according to the amounts due and payable
      on the Bonds with respect thereto, from amounts available in the Trust
      Estate for the Bondholders; and

            NINTH: to the payment of the remainder, if any to the Certificate
      Paying Agent on behalf of the Issuer or to any other person legally
      entitled thereto.

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

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

      Section 5.06 Limitation of Suits. No Holder of any Bond shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless and subject to the provisions of Section 10.16 hereof

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

                  (ii) the Holders of not less than 25% of the aggregate Bond
      Principal Balances of the Bonds have made a written request to the
      Indenture Trustee to institute such Proceeding in respect of such Event of
      Default in its own name as Indenture Trustee hereunder;

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

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

                                       36
<PAGE>

                  (v) no direction inconsistent with such written request has
      been given to the Indenture Trustee during such 60-day period by the
      Holders of a majority of the Bond Principal Balances of the Bonds.

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

      Subject to the last paragraph of Section 5.11 herein, in the event the
Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Bonds, each representing less
than a majority of the Bond Principal Balances of the Bonds, the Indenture
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture.

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

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

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

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

                                       37
<PAGE>

      Section 5.11 Control By Bondholders. The Holders of a majority of the
aggregate Bond Principal Balances of Bonds shall have the right to direct the
time, method and place of conducting any Proceeding for any remedy available to
the Indenture Trustee with respect to the Bonds or exercising any trust or power
conferred on the Indenture Trustee; provided that:

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

                  (ii) any direction to the Indenture Trustee to sell or
      liquidate the Trust Estate shall be by Holders of Bonds representing not
      less than 100% of the Bond Principal Balances of the Bonds; and

                  (iii) the Indenture Trustee may take any other action deemed
      proper by the Indenture Trustee that is not inconsistent with such
      direction of the Holders of Bonds representing a majority of the Bond
      Principal Balances of the Bonds.

Notwithstanding the rights of Bondholders set forth in this Section 5.11 the
Indenture Trustee need not take any action that it determines might involve it
in liability.

      Section 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Bonds as provided in Section 5.02 hereof,
the Holders of Bonds representing not less than a majority of the aggregate Bond
Principal Balance of the Bonds may waive any past Event of Default and its
consequences except an Event of Default (a) with respect to payment of principal
of or interest on any of the Bonds, (b) in respect of a covenant or provision
hereof which cannot be modified or amended without the consent of the Holder of
each Bond or (c) the waiver of which would materially and adversely affect the
interests of the Bond Insurer or modify its obligations under the Bond Insurance
Policy. In the case of any such waiver, the Issuer, the Indenture Trustee and
the Holders of the Bonds shall be restored to their former positions and rights
hereunder, respectively, but no such waiver shall extend to any subsequent or
other Event of Default or impair any right consequent thereto.

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

      Section 5.13 Undertaking for Costs. All parties to this Indenture agree,
and each Holder of any Bond and each Beneficial Owner of any interest therein by
such Holder's or Beneficial Owner's acceptance thereof shall be deemed to have
agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits and
good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13 shall not apply to (a) any suit instituted by
the Indenture Trustee, (b) any suit instituted by any Bondholder, or group of
Bondholders, in each case holding in the aggregate more than 10% of the Bond
Principal Balances of the Bonds or (c) any suit

                                       38
<PAGE>

instituted by any Bondholder for the enforcement of the payment of principal of
or interest on any Bond on or after the respective due dates expressed in such
Bond and in this Indenture.

      Section 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it will not at any time insist upon,
or plead or in any manner whatsoever, claim or take the benefit or advantage of,
any stay or extension law wherever enacted, now or at any time hereafter in
force, that may affect the covenants or the performance of this Indenture; and
the Issuer (to the extent that it may lawfully do so) hereby expressly waives
all benefit or advantage of any such law, and covenants that it shall not
hinder, delay or impede the execution of any power herein granted to the
Indenture Trustee, but will suffer and permit the execution of every such power
as though no such law had been enacted.

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

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

            (1) the Holders of all Bonds consent to or direct the Indenture
      Trustee to make, such Sale, or

            (2) the proceeds of such Sale would be not less than the entire
      amount which would be payable to the Bondholders under the Bonds and the
      Bond Insurer in respect of amounts drawn under the Bond Insurance Policy,
      in full payment thereof in accordance with Section 5.02 hereof, on the
      Payment Date next succeeding the date of such Sale, or

            (3) the Indenture Trustee determines that the conditions for
      retention of the Trust Estate set forth in Section 5.05 hereof cannot be
      satisfied (in making any such determination, the Indenture Trustee may
      rely upon an opinion of an Independent investment banking firm obtained
      and delivered as provided in Section 5.05 hereof), the Holders of Bonds
      representing at least 100% of the Bond Principal Balances of the Bonds
      consent to such Sale.

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

      (c) Unless the Holders representing at least 66-2/3% of the Bond Principal
Balances of the Bonds have otherwise consented or directed the Indenture
Trustee, at any public Sale of all or any portion of the Trust Estate at which a
minimum bid equal to or greater than the amount described in paragraph (2) of
subsection (b) of this Section 5.15 has not been established by the Indenture

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<PAGE>

Trustee and no Person bids an amount equal to or greater than such amount, the
Indenture Trustee, as trustee for the benefit of the Holders of the Bonds, shall
bid an amount at least $1.00 more than the highest other bid.

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

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

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

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

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

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

      Section 5.16 Action on Bonds. The Indenture Trustee's right to seek and
recover judgment on the Bonds or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Bondholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such

                                       40
<PAGE>

judgment upon any portion of the Trust Estate or upon any of the assets of the
Issuer. Any money or property collected by the Indenture Trustee shall be
applied in accordance with Section 5.04(b) hereof.

      Section 5.17 Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so, the Issuer in
its capacity as holder of the Mortgage Loans, shall take all such lawful action
as the Indenture Trustee may request to cause the Issuer to compel or secure the
performance and observance by the Seller and the Master Servicer, as applicable,
of each of their obligations to the Issuer under or in connection with the
Mortgage Loan Sale and Contribution Agreement and the Servicing Agreement, and
to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Mortgage Loan Sale and
Contribution Agreement and the Servicing Agreement to the extent and in the
manner directed by the Indenture Trustee, as pledgee of the Mortgage Loans,
including the transmission of notices of default on the part of the Seller or
the Master Servicer thereunder and the institution of legal or administrative
actions or proceedings to compel or secure performance by the Seller or the
Master Servicer of each of their obligations under the Mortgage Loan Sale and
Contribution Agreement and the Servicing Agreement.

      (b) The Indenture Trustee, as pledgee of the Mortgage Loans, may, and at
the direction (which direction shall be in writing or by telephone (confirmed in
writing promptly thereafter)) of the Holders of 66-2/3% of the Bond Principal
Balances of the Bonds, shall exercise all rights, remedies, powers, privileges
and claims of the Issuer against the Seller or the Master Servicer under or in
connection with the Mortgage Loan Sale and Contribution Agreement and the
Servicing Agreement, including the right or power to take any action to compel
or secure performance or observance by the Seller or the Master Servicer, as the
case may be, of each of their obligations to the Issuer thereunder and to give
any consent, request, notice, direction, approval, extension or waiver under the
Mortgage Loan Sale and Contribution Agreement and the Servicing Agreement, as
the case may be, and any right of the Issuer to take such action shall not be
suspended.

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<PAGE>

                                   ARTICLE VI

                              The Indenture Trustee

      Section 6.01 Duties of Indenture Trustee. (a) If an Event of Default has
occurred and is continuing, the Indenture Trustee shall exercise the rights and
powers vested in it by this Indenture and use the same degree of care and skill
in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs.

      (b) Except during the continuance of an Event of Default:

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

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

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

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

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

                  (iii) the Indenture Trustee shall not be liable with respect
      to any action it takes or omits to take in good faith in accordance with a
      direction received by it from Bondholders or from the Issuer, which they
      are entitled to give under the Basic Documents.

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

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

      (f) No provision of this Indenture shall require the Indenture Trustee to
expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers, if it shall have reasonable grounds to believe that

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<PAGE>

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

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

      (h) The Indenture Trustee shall act in accordance with Sections 6.03 and
6.04 of the Servicing Agreement and shall act as successor to the Master
Servicer or appoint a successor Master Servicer in accordance with Section 6.02
of the Servicing Agreement.

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

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

      (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee.

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

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

      (f) For the limited purpose of effecting any action to be undertaken by
the Indenture Trustee, but not specifically as a duty of the Indenture Trustee
in the Indenture, the Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder, either directly or by or through
agents, attorneys, custodians or nominees appointed with due care, and shall not
be responsible for any willful misconduct or negligence on the part of any
agent, attorney, custodian or nominee so appointed.

      (g) The Indenture Trustee or its Affiliates are permitted to receive
additional compensation that could be deemed to be in the Indenture Trustee's
economic self-interest for (i) serving as investment adviser, administrator,
shareholder servicing agent, custodian or sub-custodian with respect to certain
of the Eligible Investments, (ii) using Affiliates to effect transactions in
certain Eligible Investments and (iii) effecting transactions in certain
Eligible Investments. Such compensation shall not be considered an amount that
is reimbursable or payable to the Indenture Trustee (i) as part of the Indenture
Trustee Fee, (ii) pursuant to Sections 3.05(d), 3.05(h), 5.04(b), 6.07 or
8.02(c) hereunder or (iii) out of Available Funds.

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<PAGE>

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

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

      Section 6.05 Notice of Event of Default. Subject to Section 5.01, the
Indenture Trustee shall promptly mail to each Bondholder and the Bond Insurer
notice of the Event of Default after it is known to a Responsible Officer of the
Indenture Trustee, unless such Event of Default shall have been waived or cured.
Except in the case of an Event of Default in payment of principal of or interest
on any Bond, the Indenture Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding
the notice is in the interests of Bondholders.

      Section 6.06 Reports by Indenture Trustee to Holders and Tax
Administration. The Indenture Trustee shall deliver to each Bondholder such
information as may be required to enable such holder to prepare its federal and
state income tax returns.

      The Indenture Trustee shall prepare and file (or cause to be prepared and
filed), on behalf of the Owner Trustee, all tax returns (if any) and information
reports, tax elections and such annual or other reports of the Issuer as are
necessary for preparation of tax returns and information reports as provided in
Section 5.03 of the Trust Agreement, including without limitation Form 1099. All
tax returns and information reports shall be signed by the Owner Trustee as
provided in Section 5.03 of the Trust Agreement.

      Section 6.07 Compensation and Indemnity. The Issuer shall pay to the
Indenture Trustee on each Payment Date reasonable compensation for its services.
The amount of the Indenture Trustee's Fee shall be paid by the Master Servicer
to the Indenture Trustee on each Payment Date pursuant to Section 3.07(a)(x) of
the Servicing Agreement and all amounts owing to the Indenture Trustee hereunder
(including amounts owing from the Issuer for indemnification and otherwise) in
excess of such amount shall be paid solely as provided in Section 3.05(d)(ix),
Section 3.05(h)(ix) and Section 5.04(b) hereof. The Indenture Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall reimburse the Indenture Trustee for all
reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to compensation for its services. Such expenses shall
include reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Issuer shall
indemnify the Indenture Trustee against any and all loss, liability or expense
(including attorneys' fees) incurred by it in connection with the administration
of this Trust and the performance of its duties hereunder. The Indenture Trustee
shall notify the Issuer promptly of any claim for which

                                       44
<PAGE>

it may seek indemnity. Failure by the Indenture Trustee to so notify the Issuer
shall not relieve the Issuer of its obligations hereunder. The Issuer shall
defend any such claim, and the Indenture Trustee may have separate counsel and
the Issuer shall pay the fees and expenses of such counsel. The Issuer is not
obligated to reimburse any expense or indemnify against any loss, liability or
expense incurred by the Indenture Trustee through the Indenture Trustee's own
willful misconduct, negligence or bad faith.

      The Issuer's payment obligations to the Indenture Trustee pursuant to this
Section 6.07 shall survive the discharge of this Indenture and the termination
or resignation of the Indenture Trustee. When the Indenture Trustee incurs
expenses after the occurrence of an Event of Default with respect to the Issuer,
the expenses are intended to constitute expenses of administration under Title
11 of the United States Code or any other applicable federal or state
bankruptcy, insolvency or similar law.

      Section 6.08 Replacement of Indenture Trustee. No resignation or removal
of the Indenture Trustee and no appointment of a successor Indenture Trustee
shall become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section 6.08. The Indenture Trustee may
resign at any time by so notifying the Issuer. Holders of a majority of Bond
Principal Balances of the Bonds may remove the Indenture Trustee by so notifying
the Indenture Trustee and may appoint a successor Indenture Trustee. The Issuer
shall, remove the Indenture Trustee if:

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

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

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

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

      If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of the Indenture Trustee for any reason (the Indenture Trustee in
such event being referred to herein as the retiring Indenture Trustee), the
Issuer shall, promptly appoint a successor Indenture Trustee.

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

      If a successor Indenture Trustee does not take office within 60 days after
the retiring Indenture Trustee resigns or is removed, the retiring Indenture
Trustee, the Issuer or the Holders of a majority of Bond Principal Balances of
the Bonds may petition any court of competent jurisdiction for the appointment
of a successor Indenture Trustee.

                                       45
<PAGE>

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

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

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

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

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

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

                                       46
<PAGE>

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

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

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

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

      Section 6.11 Eligibility; Disqualification. The Indenture Trustee shall at
all times satisfy the requirements of TIA ss. 310(a). The Indenture Trustee
shall have a combined capital and surplus of at least $50,000,000 as set forth
in its most recent published annual report of condition and it or its parent
shall have a long-term debt rating of Baa3 or better by Moody's and BBB or
better by Standard & Poor's. The Indenture Trustee shall comply with TIA ss.
310(b), including the optional provision permitted by the second sentence of TIA
ss. 310(b)(9); provided, however, that there shall be excluded from the
operation of TIA ss. 310(b)(1) any indenture or indentures under which other
securities of the Issuer are outstanding if the requirements for such exclusion
set forth in TIA ss. 310(b)(1) are met.

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

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

                  (i) The Indenture Trustee is duly organized and validly
      existing as an association in good standing under the laws of the United
      States with power and authority to own its properties and to conduct its
      business as such properties are currently owned and such business is
      presently conducted;

                  (ii) The Indenture Trustee has the power and authority to
      execute and deliver this Indenture and to carry out its terms; and the
      execution, delivery and performance

                                       47
<PAGE>

      of this Indenture have been duly authorized by the Indenture Trustee by
      all necessary corporate action;

                  (iii) The consummation of the transactions contemplated by
      this Indenture and the fulfillment of the terms hereof do not conflict
      with, result in any breach of any of the terms and provisions of, or
      constitute (with or without notice or lapse of time) a default under, the
      articles of incorporation or bylaws of the Indenture Trustee or any
      agreement or other instrument to which the Indenture Trustee is a party or
      by which it is bound; and

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

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

      (a) to accept the pledge of the Mortgage Loans and hold the assets of the
Trust Estate in trust for the Bondholders;

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

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

      Section 6.15 The Agents. The provisions of this Indenture relating to the
limitations of the Indenture Trustee's liability and to its indemnity, rights
and protections shall inure also to the Paying Agent and Bond Registrar.

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<PAGE>

                                   ARTICLE VII

                         Bondholders' Lists and Reports

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

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

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

      (c) The Issuer, the Indenture Trustee and the Bond Registrar shall have
the protection of TIA ss. 312(c).

      Section 7.03 Reports of Issuer. (a) Subject to Section 4.06 of the
Servicing Agreement (i) The Indenture Trustee shall file with the Commission on
behalf of the Issuer, with a copy to the Issuer within 15 days before the Issuer
is required to file the same with the Commission, the annual reports and the
information, documents and other reports (or such portions of any of the
foregoing as the Commission may from time to time by rules and regulations
prescribe) that the Issuer may be required to file with the Commission pursuant
to Section 13 or 15(d) of the Exchange Act;

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

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

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<PAGE>

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

      Section 7.04 Reports by Indenture Trustee. If required by TIA ss. 313(a),
within 60 days after each January 30 beginning with March 31, 2004, the
Indenture Trustee shall mail to each Bondholder as required by TIA ss. 313(c) a
brief report dated as of such date that complies with TIA ss. 313(a). The
Indenture Trustee also shall comply with TIA ss. 313(b).

      A copy of each report at the time of its mailing to Bondholders shall be
filed by the Indenture Trustee with the Commission via EDGAR and each stock
exchange, if any, on which the Bonds are listed. The Issuer shall notify the
Indenture Trustee if and when the Bonds are listed on any stock exchange.

      Section 7.05 Statements to Bondholders. (a) With respect to each Payment
Date, the Indenture Trustee shall make available via the Indenture Trustee's
website https://www.corporatetrust.db.com/invr or deliver at the recipient's
option to each Bondholder and each Certificateholder, the Derivative Contract
Counterparty, the Depositor, the Bond Insurer, the Owner Trustee, the
Certificate Paying Agent and each Rating Agency, a statement setting forth the
following information as to the Bonds, to the extent applicable:

                  (i) the aggregate amount of collections with respect to the
      Mortgage Loans;

                  (ii) the Group 1 Available Funds, Group 2 Available Funds and
      Net Monthly Excess Cash Flow, with respect to the Group 1 Loans and Group
      2 Loans, payable to each Class of Bondholders for such Payment Date, the
      Basis Risk Shortfall Carry-Forward Amount on each Class of Bonds for such
      Payment Date and the aggregate Unpaid Interest Shortfall on each Class of
      Bonds for such Payment Date;

                  (iii) (a) the amount of such distribution to each Class of
      Class 1-A-1, Class 1-A-2, Class M-1-1, Class M-2-1, Class M-3-1, Class
      M-4-1, Class M-5-1, Class M-6-1, Class 2-A, Class M-1-2, Class M-2-2,
      Class M-3-2, Class M-4-2, Class M-5-2 and Class M- 6-2 Bonds applied to
      reduce the Bond Principal Balance thereof, and (b) the aggregate amount
      included therein representing Principal Prepayments;

                  (iv) the amount of such distribution to Holders of each Class
      of Bonds allocable to interest;

                  (v) the amount of such distribution to the Certificates;

                  (vi) if the distribution to the Holders of any Class of Bonds
      is less than the full amount that would be distributable to such Holders
      if there were sufficient funds available therefor, the amount of the
      shortfall;

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<PAGE>

                  (vii) the number and the aggregate Stated Principal Balance of
      the Mortgage Loans as of the end of the related Due Period, determined in
      the aggregate and separately for Loan Group 1 and Loan Group 2;

                  (viii) the aggregate Bond Principal Balance of each Class of
      Bonds, after giving effect to the amounts distributed on such Payment
      Date, separately identifying any reduction thereof due to Realized Losses
      other than pursuant to an actual distribution of principal and the
      aggregate Bond Principal Balance of all of the Class 1-A-1, Class 1-A-2,
      Class M-1-1, Class M-2-1, Class M-3-1, Class M-4-1, Class M-5-1, Class
      M-6-1, Class 2-A, Class M-1-2, Class M-2-2, Class M-3-2, Class M-4-2,
      Class M-5-2 and Class M-6-2 Bonds after giving effect to the distribution
      of principal on such Payment Date;

                  (ix) the number and aggregate Stated Principal Balances of
      Mortgage Loans (a) as to which the Monthly Payment is delinquent for 31-60
      days, 61-90 days, 91 or more days, respectively, (b) in foreclosure and
      (c) that have become REO Property, in each case as of the end of the
      preceding calendar month, determined in the aggregate and separately for
      Loan Group 1 and Loan Group 2;

                  (x) the Senior Net Derivative Contract Payment Amount and
      Subordinate Net Derivative Contract Payment Amount;

                  (xi) the Overcollateralization Increase Amount with respect to
      each Loan Group, Overcollateralization Release Amount,
      Overcollateralization Target Amount and Overcollateralized Amount, if any,
      in each case as the end of the related Payment Date, in each case as
      determined separately for each Loan Group;

                  (xii) the amount of any Advances and Compensating Interest
      payments;

                  (xiii) the aggregate Realized Losses with respect to the
      related Payment Date and cumulative Realized Losses since the Closing
      Date;

                  (xiv) the number and aggregate Stated Principal Balance of
      Mortgage Loans repurchased pursuant to the Mortgage Loan Sale and
      Contribution Agreement for the related Payment Date and cumulatively since
      the Closing Date determined in the aggregate and separately for Loan Group
      1 and Loan Group 2;

                  (xv) the book value of any REO Property;

                  (xvi) the amount of any Prepayment Interest Shortfalls or
      Relief Act Shortfalls for such Payment Date;

                  (xvii) the aggregate Stated Principal Balance of Mortgage
      Loans purchased pursuant to Section 3.18 of the Servicing Agreement for
      the related Payment Date and cumulatively since the Closing Date; and

                  (xviii) any Insured Amount paid for the benefit of the Class
      1-A-2 Bonds.

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<PAGE>

      Items (iii) and (v) above shall be presented on the basis of a Bond having
a $1,000 denomination. In addition, by January 31 of each calendar year
following any year during which the Bonds are outstanding, the Indenture Trustee
shall furnish a report to each Bondholder of record if so requested in writing
at any time during each calendar year as to the aggregate of amounts reported
pursuant to (iii), (iv) and (v) with respect to the Bonds for such calendar
year.

      The Indenture Trustee may conclusively rely upon the Remittance Report
provided by the Master Servicer pursuant to Section 4.01 of the Servicing
Agreement and on the amount of the Net Derivative Contract Payment Amount
furnished to the Indenture Trustee pursuant to the Derivative Contracts in its
preparation of its Statement to Bondholders.

                                       52
<PAGE>

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

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

      Section 8.02 Trust Accounts. (a) On or prior to the Closing Date, the
Issuer shall cause the Indenture Trustee to establish and maintain, in the name
of the Indenture Trustee, for the benefit of the Bondholders and the Derivative
Contract Counterparty, the Payment Account as provided in Section 3.01 hereof.

      (b) All monies deposited from time to time in the Payment Account and all
deposits therein pursuant to this Indenture (other than deposits of any gain or
income on investments thereof) are for the benefit of the Bondholders. Any loss
on any investment made by the Indenture Trustee with funds in the Payment
Account shall be reimbursed immediately to the Trust Estate by the Master
Servicer. All investments made with monies in the Payment Account and the
Certificate Distribution Account including all income or other gain from such
investments shall be for the benefit of and the risk of the Master Servicer.

      (c) On each Payment Date, the Indenture Trustee shall pay itself the
Indenture Trustee's Fee for such Payment Date and then shall pay the Derivative
Contract Counterparty the Senior Net Derivative Contract Payment Amount and
Subordinate Net Derivative Contract Payment Amount, in each case excluding any
Additional Derivative Contract Counterparty Payment, and then the Indenture
Trustee shall distribute all remaining amounts on deposit in the Payment Account
to the Bondholders in respect of the Bonds and to such other persons in the
order of priority set forth in Section 3.05 hereof (except as otherwise provided
in Section 5.04(b) hereof).

      (d) The Indenture Trustee shall invest any funds in the Payment Account,
but only in Eligible Investments, as directed by the Master Servicer, maturing
no later than the Business Day preceding each Payment Date and such Eligible
Investments shall not be sold or disposed of prior to their maturity.

      Section 8.03 Officer's Certificate. The Indenture Trustee shall receive at
least seven Business Days' notice when requested by the Issuer to take any
action pursuant to Section 8.05(a) hereof, accompanied by copies of any
instruments to be executed, and the Indenture Trustee shall also require, as a
condition to such action, an Officer's Certificate, in form and substance
satisfactory to

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<PAGE>

the Indenture Trustee, stating the legal effect of any such action, outlining
the steps required to complete the same, and concluding that all conditions
precedent to the taking of such action have been complied with.

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

      Section 8.05 Release of Trust Estate. (a) Subject to the payment of its
fees and expenses, the Indenture Trustee may, and when required by the
provisions of this Indenture shall, execute instruments to release property from
the lien of this Indenture, or convey the Indenture Trustee's interest in the
same, in a manner and under circumstances that are not inconsistent with the
provisions of this Indenture, including for the purposes of any repurchase by
the Master Servicer of a Mortgage Loan pursuant to Section 3.18 of the Servicing
Agreement. No party relying upon an instrument executed by the Indenture Trustee
as provided in Article VIII hereunder shall be bound to ascertain the Indenture
Trustee's authority, inquire into the satisfaction of any conditions precedent,
or see to the application of any monies.

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

      (c) The Indenture Trustee shall release property from the lien of this
Indenture pursuant to this Section 8.05 only upon receipt of a request from the
Issuer accompanied by an Officers' Certificate and an Opinion of Counsel stating
that all applicable requirements have been satisfied.

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

      Section 8.07 Optional Redemption of the Bonds. (a) The Majority
Certificateholder shall have the option to redeem the Bonds in whole, but not in
part, on any Payment Date on or after the earlier of (i) the Payment Date on
which the aggregate Stated Principal Balance of the Mortgage Loans as of the end
of the prior Due Period is less than or equal to 25% of the sum of the aggregate
Stated Principal Balance of the Mortgage Loans as of Cut-off Date and (ii) the
Payment Date in October 2013. The aggregate redemption price for the Bonds will
be equal to the unpaid Bond Principal Balance of the Bonds as of the Payment
Date on which the proposed redemption will take place in accordance with the
foregoing, together with accrued and unpaid interest thereon at the applicable
Bond Interest Rate through such Payment Date (including any related Unpaid
Interest Shortfall and Basis Risk Shortfall Carry-Forward Amount), plus an
amount sufficient to pay in full

                                       54
<PAGE>

all amounts owing to the Bond Insurer and the Indenture Trustee under this
Indenture and the Bond Insurance Policy (which amounts shall be specified in
writing upon request of the Issuer by the Indenture Trustee and the Bond
Insurer) and plus an amount equal to any amounts owing to the Derivative
Contract Counterparty under the Derivative Contracts.

      (b) In order to exercise the foregoing option, the Issuer shall provide
written notice of its exercise of such option to the Indenture Trustee, the
Owner Trustee and the Master Servicer at least 15 days prior to its exercise.
Following receipt of the notice, the Indenture Trustee shall provide notice to
the Bondholders of the final payment on the Bonds. In addition, the Issuer
shall, not less than one Business Day prior to the proposed Payment Date on
which such redemption is to be made, deposit the aggregate redemption price
specified in (a) above with the Indenture Trustee, who shall deposit the
aggregate redemption price into the Payment Account and shall, on the Payment
Date after receipt of the funds, apply such funds to make final payments of
principal and interest on the Bonds in accordance with Section 3.05(b) and (c)
hereof and payment in full to the Bond Insurer for all amounts owing under the
Bond Insurance Policy and the Indenture Trustee, and this Indenture shall be
discharged subject to the provisions of Section 4.10 hereof. If for any reason
the amount deposited by the Issuer is not sufficient to make such redemption or
such redemption cannot be completed for any reason, the amount so deposited by
the Issuer with the Indenture Trustee shall be immediately returned to the
Issuer in full and shall not be used for any other purpose or be deemed to be
part of the Trust Estate.

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<PAGE>

                                   ARTICLE IX

                             Supplemental Indentures

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

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

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

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

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

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

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

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

                  (viii) to modify, eliminate or add to the provisions of this
      Indenture to such extent as shall be necessary to effect the qualification
      of this Indenture under the TIA or under any similar federal statute
      hereafter enacted and to add to this Indenture such other provisions as
      may be expressly required by the TIA;

                                       56
<PAGE>

provided, however, that no such indenture supplements shall be entered into
unless the Indenture Trustee shall have received an Opinion of Counsel as to the
enforceability of any such indenture supplement and to the effect that (i) such
indenture supplement is permitted hereunder and (ii) entering into such
indenture supplement will not result in a "substantial modification" of the
Bonds under Treasury Regulation Section 1.1001-3 or adversely affect the status
of the Bonds as indebtedness for federal income tax purposes.

      The Indenture Trustee is hereby authorized to join in the execution of any
such supplemental indenture and to make any further appropriate agreements and
stipulations that may be therein contained.

      (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Request, may, also without the consent of any of the Holders of the Bonds and
prior notice to the Rating Agencies, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing in
any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner the rights of the Holders of the Bonds under this
Indenture; provided, however, that such action as evidenced by an Opinion of
Counsel, (i) is permitted by this Indenture, and shall not (ii) adversely affect
in any material respect the interests of any Bondholder or (iii) if 100% of the
Certificates are not owned by IMH Assets Corp., cause the Issuer to be subject
to an entity level tax for federal income tax purposes.

      Section 9.02 Supplemental Indentures With Consent of Bondholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Request, also
may, with prior notice to the Rating Agencies and, with the consent of the
Holders of not less than a majority of the Bond Principal Balance of each Class
of Bonds affected thereby, by Act (as defined in Section 10.03 hereof) of such
Holders delivered to the Issuer and the Indenture Trustee, enter into an
indenture or indentures supplemental hereto for the purpose of adding any
provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture or of modifying in any manner the rights of the Holders of
the Bonds under this Indenture; provided, however, that no such supplemental
indenture shall, without the consent of the Holder of each Bond affected
thereby:

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

                  (ii) reduce the percentage of the Bond Principal Balances of
      the Bonds, the consent of the Holders of which is required for any such
      supplemental indenture, or the consent of the Holders of which is required
      for any waiver of compliance with certain provisions of this Indenture or
      certain defaults hereunder and their consequences provided for in this
      Indenture;

                                       57
<PAGE>

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

                  (iv) reduce the percentage of the Bond Principal Balances of
      the Bonds required to direct the Indenture Trustee to direct the Issuer to
      sell or liquidate the Trust Estate pursuant to Section 5.04 hereof;

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

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

                  (vii) permit the creation of any lien ranking prior to or on a
      parity with the lien of this Indenture with respect to any part of the
      Trust Estate or, except as otherwise permitted or contemplated herein,
      terminate the lien of this Indenture on any property at any time subject
      hereto or deprive the Holder of any Bond of the security provided by the
      lien of this Indenture;

and provided, further, that such action shall not, as evidenced by an Opinion of
Counsel, cause the Issuer (if 100% of the Certificates are not owned by IMH
Assets Corp.) to be subject to an entity level tax.

      Any such action shall not adversely affect in any material respect the
interest of any Holder (other than a Holder who shall consent to such
supplemental indenture) as evidenced by an Opinion of Counsel (provided by the
Person requesting such supplemental indenture) delivered to the Indenture
Trustee.

      No supplemental indenture adverse to the interests of the Derivative
Contract Counterparty shall be entered into without the Derivative Contract
Counterparty's written consent.

      It shall not be necessary for any Act of Bondholders under this Section
9.02 to approve the particular form of any proposed supplemental indenture, but
it shall be sufficient if such Act shall approve the substance thereof.

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

                                       58
<PAGE>

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

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

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

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

                                       59
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                                    ARTICLE X

                                  Miscellaneous

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

      Every certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:

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

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

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

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

            (5) if the signatory of such certificate or opinion is required to
      be Independent, the statement required by the definition of the term
      "Independent".

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

                  (ii) Whenever the Issuer is required to furnish to the
      Indenture Trustee an Officer's Certificate certifying or stating the
      opinion of any signer thereof as to the matters described in clause (i)
      above, the Issuer shall also deliver to the Indenture Trustee an
      Independent Certificate from a nationally recognized accounting firm as to
      the same matters, if the fair value of the securities to be so deposited
      and of all other such securities made the basis of any such withdrawal or
      release since the commencement of the then current fiscal

                                       60
<PAGE>

      year of the Issuer, as set forth in the certificates delivered pursuant to
      clause (i) above and this clause (ii), is 10% or more of the Bond
      Principal Balances of the Bonds, but such a certificate need not be
      furnished with respect to any securities so deposited, if the fair value
      thereof as set forth in the related Officer's Certificate is less than
      $25,000 or less than one percent of the Bond Principal Balances of the
      Bonds.

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

                  (iv) Whenever the Issuer is required to furnish to the
      Indenture Trustee an Officer's Certificate certifying or stating the
      opinion of any signer thereof as to the matters described in clause (iii)
      above, the Issuer shall also furnish to the Indenture Trustee an
      Independent Certificate as to the same matters if the fair value of the
      property or securities and of all other property or securities released
      from the lien of this Indenture since the commencement of the then-current
      calendar year, as set forth in the certificates required by clause (iii)
      above and this clause (iv), equals 10% or more of the Bond Principal
      Balances of the Bonds, but such certificate need not be furnished in the
      case of any release of property or securities if the fair value thereof as
      set forth in the related Officer's Certificate is less than $25,000 or
      less than one percent of the then Bond Principal Balances of the Bonds.

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

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

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

                                       61
<PAGE>

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

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

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

      (c) The ownership of Bonds shall be proved by the Bond Registrar.

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

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

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

                  (ii) the Issuer by the Indenture Trustee or by any Bondholder
      shall be sufficient for every purpose hereunder if in writing and mailed
      first-class, postage prepaid to

                                       62

<PAGE>

      the Issuer addressed to: Impac CMB Trust Series 2003-10, in care of
      Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
      Wilmington, Delaware 19990- 0001, Attention: Corporate Trust
      Administration, or at any other address previously furnished in writing to
      the Indenture Trustee by the Issuer. The Issuer shall promptly transmit
      any notice received by it from the Bondholders to the Indenture Trustee;
      or

                  (iii) the Bond Insurer by the Issuer, the Indenture Trustee or
      by any Bondholders shall be sufficient for every purpose hereunder if in
      writing and mailed, first-class postage pre-paid, or personally delivered
      or telecopied to: Ambac Assurance Corporation, One State Street Plaza, New
      York, New York 10004, Attention: Consumer Asset-Backed Securities Group,
      Telephone: (212) 208-3394, Telecopier: (212) 363-1459. The Bond Insurer
      shall promptly transmit any notice received by it from the Issuer, the
      Indenture Trustee or the Bondholders to the Issuer or Indenture Trustee,
      as the case may be.

      Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, mailed first-class
postage pre-paid, to (i) in the case of Moody's, at the following address:
Moody's Investors Service, Inc., Residential Mortgage Monitoring Department, 99
Church Street, New York, New York 10007 and (ii) in the case of Standard &
Poor's, at the following address: Standard & Poor's, 55 Water Street, 41st
Floor, New York, New York 10041, Attention of Asset Backed Surveillance
Department; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

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

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

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

                                       63
<PAGE>

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

      Section 10.06 Conflict with Trust Indenture Act. If any provision hereof
limits, qualifies or conflicts with another provision hereof that is required to
be included in this Indenture by any of the provisions of the Trust Indenture
Act, such required provision shall control.

      The provisions of TIA ss.ss. 310 through 317 that impose duties on any
Person (including the provisions automatically deemed included herein unless
expressly excluded by this Indenture) are a part of and govern this Indenture,
whether or not physically contained herein.

      Section 10.07 Effect of Headings. The Article and Section headings herein
are for convenience only and shall not affect the construction hereof.

      Section 10.08 Successors and Assigns. All covenants and agreements in this
Indenture and the Bonds by the Issuer shall bind its successors and assigns,
whether so expressed or not. All agreements of the Indenture Trustee in this
Indenture shall bind its successors, co-trustees and agents.

      Section 10.09 Separability. In case any provision in this Indenture or in
the Bonds shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

      Section 10.10 [Reserved].

      Section 10.11 Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Bonds or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

      Section 10.12 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      Section 10.13 Counterparts. This Indenture may be executed in any number
of counterparts, each of which so executed shall be deemed to be an original,
but all such counterparts shall together constitute but one and the same
instrument.

      Section 10.14 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
at its expense (which may be counsel to the Indenture Trustee or any other
counsel reasonably acceptable to the Indenture Trustee) to the effect that such
recording

                                       64
<PAGE>

is necessary either for the protection of the Bondholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

      Section 10.15 Issuer Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Bonds or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

      Section 10.16 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Bondholder, by accepting a Bond, hereby covenant and agree
that they will not at any time prior to one year from the date of termination
hereof, institute against the Depositor or the Issuer, or join in any
institution against the Depositor or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Bonds, this Indenture or any
of the Basic Documents.

      Section 10.17 Inspection. The Issuer agrees that, at its expense, on
reasonable prior notice, it shall permit any representative of the Indenture
Trustee, during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by Independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and Independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee shall cause its representatives to hold in
confidence all such information except to the extent disclosure may be required
by law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that the Indenture Trustee may reasonably
determine that such disclosure is consistent with its obligations hereunder.

                                       65
<PAGE>

                                   ARTICLE XI

                   Certain Matters Regarding the Bond Insurer

      Section 11.01 Rights of the Bond Insurer to Exercise the Rights of the
Class 1-A-2 Bonds. By accepting its Bond, each Class 1-A-2 Bondholder agrees
that unless an Bond Insurer Default exists, the Bond Insurer shall have the
right to exercise all consent, voting, direction and other control rights of the
Class 1-A-2 Bondholders under this Indenture without any further consent of the
Class 1-A-2 Bondholders.

      Section 11.02 Claims Upon the Bond Insurance Policy; Insurance Account.
(a) If, on the Business Day next succeeding the Determination Date, the Master
Servicer determines that (i) the funds that will be on deposit in the Payment
Account on the third Business Day prior to the related Payment Date, to the
extent payable to the Class 1-A-2 Bondholders pursuant to Section 3.05, are
insufficient to pay the Accrued Bond Interest on the Class 1-A-2 Bonds for such
Payment Date, net of any Prepayment Interest Shortfalls, Relief Act Shortfalls
or Basis Risk Shortfalls allocated to the Class 1-A-2 Bonds, (ii) the principal
portion of any Realized Loss is allocated to the Class 1-A-2 Bonds on such
Payment Date or (iii) the funds available in connection with an optional
redemption of the Bonds pursuant to Section 8.07 or on the Final Scheduled
Payment Date will be insufficient to reduce the Bond Principal Balance of the
Class 1-A-2 Bonds to zero, the Master Servicer shall deliver to the Indenture
Trustee not later than 1:00 p.m. New York City time on the Business Day next
succeeding the Determination Date a certificate signed by a Servicing Officer
directing the Indenture Trustee to draw on the Bond Insurance Policy and stating
the amount to be drawn and stating the Insured Amount for the Class 1-A-2 Bonds,
and the Indenture Trustee shall give notice by telephone or telecopy of the
aggregate amount of such deficiency, confirmed in writing in the form set forth
as Exhibit A to the endorsement of the Bond Insurance Policy, to the Bond
Insurer at or before 12:00 noon, New York City time, on the Business Day prior
to such Payment Date. If, subsequent to such notice, and prior to payment by the
Bond Insurer pursuant to such notice, additional amounts are deposited in the
Payment Account, the Indenture Trustee shall reasonably promptly notify the Bond
Insurer and withdraw the notice or reduce the amount claimed, as appropriate.

      (b) The Indenture Trustee shall establish a separate special purpose trust
account for the benefit of Holders of the Class 1-A-2 Bonds and the Bond Insurer
referred to herein as the "Insurance Account" over which the Indenture Trustee
shall have exclusive control and sole right of withdrawal. The Indenture Trustee
shall deposit any amount paid to it under the Bond Insurance Policy in the
Insurance Account and distribute such amount only for purposes of payment to
Holders of Class 1-A-2 Bonds of the Insured Amount for which a claim was made.
Such amount may not be applied to satisfy any costs, expenses or liabilities of
the Master Servicer, the Indenture Trustee or the Trust Estate. Amounts paid
under the Bond Insurance Policy shall be transferred to the Payment Account in
accordance with the next succeeding paragraph and disbursed by the Indenture
Trustee to Holders of Class 1-A-2 Bonds in accordance with Section 3.05 or
Section 8.04, as applicable. It shall not be necessary for such payments to be
made by checks or wire transfers separate from the checks or wire transfers used
to pay the Insured Amount with other funds available to make such payment.
However, the amount of any payment of principal of or interest on the Class
1-A-2 Bonds to be paid from funds transferred from the Insurance Account shall
be noted as provided in paragraph (c) below

                                       66
<PAGE>

and in the statement to be furnished to Holders of the Bonds and Certificates
pursuant to Section 3.25. Funds held in the Insurance Account shall not be
invested by the Master Servicer.

      On any Payment Date with respect to which a claim has been made under the
Bond Insurance Policy, the amount of any funds received by the Indenture Trustee
as a result of any claim under the Bond Insurance Policy, to the extent required
to pay the Insured Amount on such Payment Date, shall be withdrawn by the
Indenture Trustee from the Insurance Account and deposited in the Payment
Account and applied by the Indenture Trustee, together with the other funds to
be distributed to the Class 1-A-2 Bondholders pursuant to Section 3.05, directly
to the payment in full of the Insured Amount due on the Class 1-A-2 Bonds. Any
funds remaining in the Insurance Account on the first Business Day following a
Payment Date shall be remitted by the Indenture Trustee to the Bond Insurer,
pursuant to the written instructions of the Bond Insurer, by the end of such
Business Day.

      (c) The Indenture Trustee shall keep a complete and accurate record of the
amount of interest and principal paid into the Insurance Account in respect of
any Class 1-A-2 Bond from moneys received by the Indenture Trustee under the
Bond Insurance Policy. The Bond Insurer shall have the right to inspect such
records at reasonable times during normal business hours upon two Business Day's
prior written notice to the Indenture Trustee.

      Section 11.03 Effect of Payments by the Bond Insurer; Subrogation.
Anything herein to the contrary notwithstanding, for purposes of this Section
11.03, any payment with respect to principal of or interest on the Class 1-A-2
Bonds which is made with monies received pursuant to the terms of the Bond
Insurance Policy shall not be considered payment of the Class 1-A-2 Bonds from
the Trust Estate. The Master Servicer and the Indenture Trustee acknowledge, and
each Holder by its acceptance of a Class 1-A-2 Bond agrees, that without the
need for any further action on the part of the Bond Insurer, the Master
Servicer, the Indenture Trustee or the Certificate Registrar, to the extent the
Bond Insurer makes payments, directly or indirectly, on account of principal of
or interest on the Class 1-A-2 Bonds to the Holders of such Bonds, the Bond
Insurer will be fully subrogated to, and each Class 1-A-2 Bondholder and the
Indenture Trustee hereby delegate and assign to the Bond Insurer, to the fullest
extent permitted by law, the rights of such Holders to receive such principal
and interest from the Trust Estate; provided that the Bond Insurer shall be paid
such amounts only from the sources and in the manner explicitly provided for
herein.

      The Indenture Trustee and the Master Servicer shall cooperate in all
respects with any reasonable request by the Bond Insurer for action to preserve
or enforce the Bond Insurer's rights or interests under this Indenture without
limiting the rights or affecting the interests of the Holders as otherwise set
forth herein.

      Section 11.04 Notices and Information to the Bond Insurer. All notices,
statements, reports, certificates or opinions required by this Indenture to be
sent or made available to any other party hereto or to the Bondholders or
Certificateholders shall also be sent or made available to the Bond Insurer.

                                       67
<PAGE>

      Section 11.05 Trustee to Hold Bond Insurance Policy. The Indenture Trustee
will hold the Bond Insurance Policy in trust as agent for the Class 1-A-2
Bondholders for the purpose of making claims thereon and distributing the
proceeds thereof. Neither the Bond Insurance Policy, nor the amounts paid on the
Bond Insurance Policy will constitute part of the Trust Estate. Each Class 1-A-2
Bondholder, by accepting its Bond, appoints the Indenture Trustee as
attorney-in-fact for the purpose of making claims on the Bond Insurance Policy.
The Indenture Trustee shall surrender the Bond Insurance Policy to the Bond
Insurer for cancellation upon the expiration of the term of the Bond Insurance
Policy as provided in the Bond Insurance Policy following the retirement of the
Class 1-A- 2 Bonds.

                                       68
<PAGE>

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

                                    IMPAC CMB TRUST SERIES 2003-10, as
                                    Issuer
                                    Wilmington Trust Company, not in its
                                    individual capacity but solely as Owner
                                    Trustee

                                    By: /s/ Kathleen A. Pedelini
                                        --------------------------
                                    Name:  Kathleen A. Pedelini
                                    Title: Financial Services Officer

                                    DEUTSCHE BANK NATIONAL TRUST
                                    COMPANY, as Indenture Trustee

                                    By: /s/ James F. Noriega
                                        --------------------------
                                    Name:  James F. Noriega
                                    Title: Associate

                                    By: /s/ Ronaldo Reyes
                                        --------------------------
                                    Name:  Ronaldo Reyes
                                    Title: Assistant Vice President

<PAGE>

STATE OF CALIFORNIA   )
                      ) ss.:
COUNTY OF ORANGE      )

      On this 29th day of September 2003, before me personally appeared James F.
Noriega to me known, who being by me duly sworn, did depose and say, that he is
the Associate of the Indenture Trustee, one of the corporations described in and
which executed the above instrument; and that he signed his name thereto by like
order.

                                                        Notary Public

                                                        ----------------------
                                                        NOTARY PUBLIC

[NOTARIAL SEAL]

<PAGE>

STATE OF CALIFORNIA   )
                      ) ss.:
COUNTY OF ORANGE      )

      On this 29th day of September 2003, before me personally appeared Ronaldo
Reyes to me known, who being by me duly sworn, did depose and say, that he is an
Assistant Vice President of the Indenture Trustee, one of the corporations
described in and which executed the above instrument; and that he signed his
name thereto by like order.

                                                        Notary Public

                                                        ----------------------
                                                        NOTARY PUBLIC]

[NOTARIAL SEAL]

<PAGE>

STATE OF DELAWARE     )
                      ) ss.:
COUNTY OF NEW CASTLE  )

      On this 29th day of September 2003, before me personally appeared Kathleen
A. Pedelini to me known, who being by me duly sworn, did depose and say, that
she is a Financial Services Officer of the Owner Trustee, one of the entities
described in and which executed the above instrument; and that she signed her
name thereto by like order.

                                                        Notary Public

                                                        ----------------------
                                                        NOTARY PUBLIC

[NOTARIAL SEAL]

<PAGE>

                                   EXHIBIT A-1

                            FORM OF CLASS [-A-] BONDS

UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THIS BOND IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST AND THE BOND INSURANCE POLICY AS
PROVIDED IN THE INDENTURE REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE
PERSONALLY LIABLE FOR PAYMENTS ON THIS BOND.

PRINCIPAL OF THIS BOND IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS BOND AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

                                      A-1-1
<PAGE>

                         IMPAC CMB TRUST SERIES 2003-10
                        COLLATERALIZED ASSET-BACKED BONDS
                                   CLASS [-A-]

AGGREGATE [BOND PRINCIPAL                          BOND INTEREST
BALANCE][NOTIONAL AMOUNT]:                         RATE: [Adjustable Rate][___%]
$[             ]

INITIAL [BOND PRINCIPAL                            BOND NO. 1
BALANCE][NOTIONAL AMOUNT] OF THIS
BOND: $[             ]

PERCENTAGE INTEREST: 100%                          CUSIP NO. [             ]

      Impac CMB Trust Series 2003-10 (the "Issuer"), a Delaware statutory trust,
for value received, hereby promises to pay to Cede & Co. or registered assigns,
the principal sum of ($_________________) in monthly installments on the
twenty-fifth day of each month or, if such day is not a Business Day, the next
succeeding Business Day (each a "Payment Date"), commencing in October 2003 and
ending on or before the Payment Date occurring in _____________ 2003 (the "Final
Scheduled Payment Date") and to pay interest on the Bond Principal Balance of
this Bond (this "Bond") outstanding from time to time as provided below.

      This Bond is one of a duly authorized issue of the Issuer's Collateralized
Asset-Backed Bonds, Series 2003-10 (the "Bonds"), issued under an Indenture
dated as of September 29, 2003 (the "Indenture"), between the Issuer and
Deutsche Bank National Trust Company, as indenture trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights thereunder of the
Issuer, the Indenture Trustee, and the Holders of the Bonds and the terms upon
which the Bonds are to be authenticated and delivered. All terms used in this
Bond which are defined in the Indenture shall have the meanings assigned to them
in the Indenture.

      [Ambac Assurance Corporation (the "Bond Insurer"), in consideration of the
payment of the premium and subject to the terms of the certificate guaranty
insurance policy (the "Bond Insurance Policy") issued thereby, has
unconditionally and irrevocably guaranteed the payment of the Insured Amount
with respect to the Class 1-A-2 Bonds with respect to each Payment Date. Such
Bond Insurance Policy will not cover any Prepayment Interest Shortfalls, Relief
Act Shortfalls or Basis Risk Shortfall Carry- Forward Amount.]

      Payments of principal and interest on this Bond will be made on each
Payment Date to the Bondholder of record as of the related Record Date. The
"Bond Principal Balance" of a Bond as of any date of determination is equal to
the initial Bond Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Bond on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Bond on all
prior Payment Dates.

                                      A-1-2
<PAGE>

      The principal of, and interest on, this Bond are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Bond shall
be equal to this Bond's pro rata share of the aggregate payments on all Class
[-A-] Bonds as described above, and shall be applied as between interest and
principal as provided in the Indenture.

      All principal and interest accrued on the Bonds, if not previously paid,
will become finally due and payable at the Final Scheduled Payment Date.

      The Bonds are subject to redemption in whole, but not in part, by the
Majority Certificateholder on any Payment Date on or after the earlier of (i)
the Payment Date on which the aggregate Stated Principal Balance of the Mortgage
Loans as of the end of the prior Due Period is less than or equal to 25% of the
aggregate Stated Principal Balance of the Mortgage Loans as of Cut- off Date and
(ii) the Payment Date in October 2013.

      The Issuer shall not be liable upon the indebtedness evidenced by the
Bonds except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Bonds. The assets included in the
Trust Estate will be the sole source of payments on the Class [-A-] Bonds,
and each Holder hereof, by its acceptance of this Bond, agrees that (i) such
Bond will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, IMH Assets Corp., Impac
Mortgage Holdings, Inc., the Master Servicer or any of their respective
affiliates, or to the assets of any of the foregoing entities, except the assets
of the Issuer pledged to secure the Class [-A-] Bonds pursuant to the
Indenture and the rights conveyed to the Issuer under the Indenture.

      Any payment [of principal or] interest payable on this Bond which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Bond is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Bond Register on such Record Date, except for the final installment of
[principal and] interest payable with respect to such Bond, which shall be
payable as provided below. Notwithstanding the foregoing, upon written request
with appropriate instructions by the Holder of this Bond delivered to the
Indenture Trustee at least five Business Days prior to the Record Date, any
payment of [principal or] interest, other than the final installment of
[principal or] interest, shall be made by wire transfer to an account in the
United States designated by such Holder. All [scheduled] reductions in the
principal amount of a Bond (or one or more predecessor Bonds) [effected by
payments of principal made on any Payment Date] shall be binding upon all
Holders of this Bond and of any bond issued upon the registration of transfer
thereof or in exchange therefor or in lieu thereof, whether or not such payment
is noted on such Bond. The final payment of this Bond shall be payable upon
presentation and surrender thereof on or after the Payment Date thereof at the
Corporate Trust Office or the office or agency of the Issuer maintained by it
for such purpose pursuant to Section 3.02 of the Indenture.

      Subject to the foregoing provisions, each Bond delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Bond shall carry the right to unpaid [principal and] interest that were
carried by such other Bond.

                                      A-1-3
<PAGE>

      If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Bonds, the Bonds may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs [prior to the payment of the entire unpaid
Bond Principal Balance of the Bonds], the amount payable to the Holder of this
Bond will be equal to the [sum of the unpaid Bond Principal Balance of the
Bonds, together with] accrued and unpaid interest thereon as described in the
Indenture. The Indenture provides that, notwithstanding the acceleration of the
maturity of the Bonds, under certain circumstances specified therein, all
amounts collected as proceeds of the Trust Estate securing the Bonds or
otherwise shall continue to be applied to payments of [principal of and]
interest on the Bonds as if they had not been declared due and payable.

      The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

      The Holder of this Bond or Beneficial Owner of any interest herein is
deemed to represent that either (1) it is not acquiring the Bond with Plan
Assets or (2) (A) the acquisition, holding and transfer of a Bond will not give
rise to a nonexempt prohibited transaction under Section 406 of ERISA or Section
4975 of the Code and (B) the Bonds are rated investment grade or better and such
person agrees to treat them as indebtedness for federal income tax purposes.
Alternatively, regardless of the rating of such Bonds, such person may provide
the Indenture Trustee and the Owner Trustee with an opinion of counsel, which
opinion of counsel will not be at the expense of the Issuer, the Seller, any
Underwriter, the Owner Trustee, the Indenture Trustee, the Depositor, the Master
Servicer or any successor servicer which opines that the acquisition, holding
and transfer of such Bond or interest therein is permissible under applicable
law, will not constitute or result in a non-exempt prohibited transaction under
ERISA or Section 4975 of the Code and will not subject the Issuer, the Seller,
the Depositor, any Underwriter, the Owner Trustee, the Indenture Trustee, the
Depositor, the Master Servicer or any successor servicer to any obligation in
addition to those undertaken in the Indenture.

      [Pursuant to the Indenture, unless a Bond Insurer Default (as defined in
the Indenture) exists (i) the Bond Insurer shall be deemed to be the holder of
the Class 1-A-2 Bonds for certain purposes specified in the Indenture (other
than with respect to payment on the Class 1-A-2 Bonds), and will be entitled to
exercise all rights of the Bondholders thereunder, including the rights of
Bondholders relating to the occurrence of, and the remedies with respect to, an
Event of Default, without the consent of such Bondholders, and (ii) the Trustee
may take actions which would otherwise be at its option or within its
discretion, including actions relating to the occurrence of, and the remedies
with respect to, an Event of Default, only at the direction, or with the
consent, of the Bond Insurer.]

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Bond may be registered on the Bond Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Bond at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Bonds
of any authorized denominations and of a like aggregate initial Bond Principal
Balance, will be issued to the designated transferee or transferees.

                                      A-1-4
<PAGE>

      Prior to the due presentment for registration of transfer of this Bond,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Bond is registered as the owner
of such Bond (i) on the applicable Record Date for the purpose of making
payments and interest of such Bond, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Bond be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Bonds under the Indenture at any
time by the Issuer and the Holders of a majority of all Bonds at the time
outstanding. The Indenture also contains provisions permitting the Holders of
Bonds representing specified percentages of the aggregate Bond Principal Balance
of the Bonds on behalf of the Holders of all the Bonds, to waive any past
Default under the Indenture and its consequences. Any such waiver by the Holder,
at the time of the giving thereof, of this Bond (or any one or more predecessor
Bonds) shall bind the Holder of every Bond issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent or waiver is made upon such Bond. The Indenture also permits the
Issuer and the Indenture Trustee to amend or waive certain terms and conditions
set forth in the Indenture without the consent of the Holders of the Bonds
issued thereunder.

      Initially, the Bonds will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Bonds. The
Bonds will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Bonds
are exchangeable for a like aggregate initial Bond Principal Balance of Bonds of
different authorized denominations, as requested by the Holder surrendering
same.

      Unless the Certificate of Authentication hereon has been executed by the
Indenture Trustee by manual signature, this Bond shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose.

      AS PROVIDED IN THE INDENTURE, THIS BOND AND THE INDENTURE CREATING THIS
BOND SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                      A-1-5
<PAGE>

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.

Dated: September 29, 2003

                                 IMPAC CMB TRUST SERIES 2003-10

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

                                 By:_______________________________________
                                 Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class [-A-] Bonds referred to in the within-mentioned
Indenture.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee

By:______________________________________
   Authorized Signatory

                                      A-1-6
<PAGE>

                                  ABBREVIATIONS

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

         TEN COM        --      as tenants in common

         TEN ENT        --      as tenants by the entireties

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

UNIF GIFT MIN ACT       --      __________ Custodian
                                _________________________________
                                     (Cust)               (Minor)

                                under Uniform Gifts to Minor Act
                                _________________________________
                                                                    (State)

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

                                      A-1-7
<PAGE>

                                   ASSIGNMENT

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

     PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE:

         ______________________________________________________________

         ______________________________________________________________

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

________________________________________________________________________________
the within Bond and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________ attorney to transfer said Bond on the books kept
for registration thereof, with full power of substitution in the premises.

Dated: ____________________         ____________________________________________

Signature Guaranteed by _______________________________________________

      NOTICE: The signature(s) to this assignment must correspond with the name
as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

                                      A-1-8
<PAGE>

                                   EXHIBIT A-2

                          FORM OF CLASS M-[_]-[_] BONDS

THIS BOND IS SUBORDINATED IN RIGHT OF PAYMENT TO THE CLASS [-A-] BONDS [AND
CLASS M-[_]-[_] BONDS] AS DESCRIBED IN THE INDENTURE.

UNLESS THIS BOND IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE INDENTURE TRUSTEE OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY BOND ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.

THIS BOND IS A NON-RECOURSE OBLIGATION OF THE ISSUER, AND IS LIMITED IN RIGHT OF
PAYMENT TO AMOUNTS AVAILABLE FROM THE TRUST ESTATE AS PROVIDED IN THE INDENTURE
REFERRED TO BELOW. THE ISSUER IS NOT OTHERWISE PERSONALLY LIABLE FOR PAYMENTS ON
THIS BOND.

PRINCIPAL OF THIS BOND IS PAYABLE OVER TIME AS SET FORTH HEREIN. ACCORDINGLY,
THE OUTSTANDING PRINCIPAL OF THIS BOND AT ANY TIME MAY BE LESS THAN THE AMOUNT
SHOWN ON THE FACE HEREOF.

                                      A-2-1
<PAGE>

                         IMPAC CMB TRUST SERIES 2003-10
                        COLLATERALIZED ASSET-BACKED BONDS
                                 CLASS M-[_]-[_]

AGGREGATE BOND PRINCIPAL                              BOND INTEREST
BALANCE:                                              RATE: [       %]
$[             ]

INITIAL BOND PRINCIPAL                                BOND NO. 1
BALANCE OF THIS BOND: $[           ]

PERCENTAGE INTEREST: 100%                             CUSIP NO. [        ]

      Impac CMB Trust Series 2003-10 (the "Issuer"), a Delaware statutory trust,
for value received, hereby promises to pay to Cede & Co. or registered assigns,
the principal sum of ______________________________ ($___________) in monthly
installments on the twenty-fifth day of each month or, if such day is not a
Business Day, the next succeeding Business Day (each a "Payment Date"),
commencing in August 2003 and ending on or before the Payment Date occurring in
_____________ 2003 (the "Final Scheduled Payment Date") and to pay interest on
the Bond Principal Balance of this Bond (this "Bond") outstanding from time to
time as provided below.

      This Bond is one of a duly authorized issue of the Issuer's Collateralized
Asset-Backed Bonds, Series 2003-10 (the "Bonds"), issued under an Indenture
dated as of September 29, 2003 (the "Indenture"), between the Issuer and
Deutsche Bank National Trust Company, as indenture trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee under the
Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights thereunder of the
Issuer, the Indenture Trustee, and the Holders of the Bonds and the terms upon
which the Bonds are to be authenticated and delivered. All terms used in this
Bond which are defined in the Indenture shall have the meanings assigned to them
in the Indenture.

      Payments of principal and interest on this Bond will be made on each
Payment Date to the Bondholder of record as of the related Record Date. The
"Bond Principal Balance" of a Bond as of any date of determination is equal to
the initial Bond Principal Balance thereof, reduced by the aggregate of all
amounts previously paid with respect to such Bond on account of principal and
the aggregate amount of cumulative Realized Losses allocated to such Bond on all
prior Payment Dates.

      The principal of, and interest on, this Bond are due and payable as
described in the Indenture, in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Issuer with respect to this Bond shall
be equal to this Bond's pro rata share of the aggregate payments on all Class
M-[_]-[_] Bonds as described above, and shall be applied as between interest and
principal as provided in the Indenture.

      All principal and interest accrued on the Bonds, if not previously paid,
will become finally due and payable at the Final Scheduled Payment Date.

                                      A-2-2
<PAGE>

      The Bonds are subject to redemption in whole, but not in part, by the
Majority Certificateholder on any Payment Date on or after the earlier of (i)
the Payment Date on which the aggregate Stated Principal Balance of the Mortgage
Loans is less than or equal to 25% of aggregate Stated Principal Balance of the
Mortgage Loans as of Cut-off Date and (ii) the Payment Date in October 2013.

      The Issuer shall not be liable upon the indebtedness evidenced by the
Bonds except to the extent of amounts available from the Trust Estate which
constitutes security for the payment of the Bonds. The assets included in the
Trust Estate will be the sole source of payments on the Class M-[_]-[_] Bonds,
and each Holder hereof, by its acceptance of this Bond, agrees that (i) such
Bond will be limited in right of payment to amounts available from the Trust
Estate as provided in the Indenture and (ii) such Holder shall have no recourse
to the Issuer, the Owner Trustee, the Indenture Trustee, IMH Assets Corp., Impac
Mortgage Holdings, Inc., the Master Servicer or any of their respective
affiliates, or to the assets of any of the foregoing entities, except the assets
of the Issuer pledged to secure the Class M-[_]-[_] Bonds pursuant to the
Indenture and the rights conveyed to the Issuer under the Indenture.

      Any payment of principal or interest payable on this Bond which is
punctually paid on the applicable Payment Date shall be paid to the Person in
whose name such Bond is registered at the close of business on the Record Date
for such Payment Date by check mailed to such person's address as it appears in
the Bond Register on such Record Date, except for the final installment of
principal and interest payable with respect to such Bond, which shall be payable
as provided below. Notwithstanding the foregoing, upon written request with
appropriate instructions by the Holder of this Bond delivered to the Indenture
Trustee at least five Business Days prior to the Record Date, any payment of
principal or interest, other than the final installment of principal or
interest, shall be made by wire transfer to an account in the United States
designated by such Holder. All reductions in the principal amount of a Bond (or
one or more predecessor Bonds) effected by payments of principal made on any
Payment Date shall be binding upon all Holders of this Bond and of any bond
issued upon the registration of transfer thereof or in exchange therefor or in
lieu thereof, whether or not such payment is noted on such Bond. The final
payment of this Bond shall be payable upon presentation and surrender thereof on
or after the Payment Date thereof at the Corporate Trust Office or the office or
agency of the Issuer maintained by it for such purpose pursuant to Section 3.02
of the Indenture.

      Subject to the foregoing provisions, each Bond delivered under the
Indenture, upon registration of transfer of or in exchange for or in lieu of any
other Bond shall carry the right to unpaid principal and interest that were
carried by such other Bond.

      If an Event of Default as defined in the Indenture shall occur and be
continuing with respect to the Bonds, the Bonds may become or be declared due
and payable in the manner and with the effect provided in the Indenture. If any
such acceleration of maturity occurs prior to the payment of the entire unpaid
Bond Principal Balance of the Bonds, the amount payable to the Holder of this
Bond will be equal to the sum of the unpaid Bond Principal Balance of the Bonds,
together with accrued and unpaid interest thereon as described in the Indenture.
The Indenture provides that, notwithstanding the acceleration of the maturity of
the Bonds, under certain circumstances specified therein, all amounts collected
as proceeds of the Trust Estate securing the Bonds or otherwise shall

                                      A-2-3
<PAGE>

continue to be applied to payments of principal of and interest on the Bonds as
if they had not been declared due and payable.

      The failure to pay any Unpaid Interest Shortfall at any time when funds
are not available to make such payment as provided in the Indenture shall not
constitute an Event of Default under the Indenture.

      As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Bond may be registered on the Bond Register of
the Issuer. Upon surrender for registration of transfer of, or presentation of a
written instrument of transfer for, this Bond at the office or agency designated
by the Issuer pursuant to the Indenture, accompanied by proper instruments of
assignment in form satisfactory to the Indenture Trustee, one or more new Bonds
of any authorized denominations and of a like aggregate initial Bond Principal
Balance, will be issued to the designated transferee or transferees.

      Prior to the due presentment for registration of transfer of this Bond,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Bond is registered as the owner
of such Bond (i) on the applicable Record Date for the purpose of making
payments and interest of such Bond, and (ii) on any other date for all other
purposes whatsoever, as the owner hereof, whether or not this Bond be overdue,
and neither the Issuer, the Indenture Trustee nor any such agent of the Issuer
or the Indenture Trustee shall be affected by notice to the contrary.

      The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Bonds under the Indenture at any
time by the Issuer and the Holders of a majority of all Bonds at the time
outstanding. The Indenture also contains provisions permitting the Holders of
Bonds representing specified percentages of the aggregate Bond Principal Balance
of the Bonds on behalf of the Holders of all the Bonds, to waive any past
Default under the Indenture and its consequences. Any such waiver by the Holder,
at the time of the giving thereof, of this Bond (or any one or more predecessor
Bonds) shall bind the Holder of every Bond issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not notation
of such consent or waiver is made upon such Bond. The Indenture also permits the
Issuer and the Indenture Trustee to amend or waive certain terms and conditions
set forth in the Indenture without the consent of the Holders of the Bonds
issued thereunder.

      Initially, the Bonds will be registered in the name of Cede & Co. as
nominee of DTC, acting in its capacity as the Depository for the Bonds. The
Bonds will be delivered by the clearing agency in denominations as provided in
the Indenture and subject to certain limitations therein set forth. The Bonds
are exchangeable for a like aggregate initial Bond Principal Balance of Bonds of
different authorized denominations, as requested by the Holder surrendering
same.

      Unless the Certificate of Authentication hereon has been executed by the
Indenture Trustee by manual signature, this Bond shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose.

                                      A-2-4
<PAGE>

      AS PROVIDED IN THE INDENTURE, THIS BOND AND THE INDENTURE CREATING THIS
BOND SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF THE
STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED THEREIN.

                                     A-2-5
<PAGE>

      IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly
executed by Wilmington Trust Company, not in its individual capacity but solely
as Owner Trustee.

Dated: September 29, 2003

                                 IMPAC CMB TRUST SERIES 2003-10

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

                                 By:
                                     -----------------------------------------
                                     Authorized Signatory

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

This is one of the Class M-[_]-[_] Bonds referred to in the within-mentioned
Indenture.

DEUTSCHE BANK NATIONAL TRUST COMPANY, as Indenture Trustee

By:
    --------------------------------------------
    Authorized Signatory

                                      A-2-6
<PAGE>

                                  ABBREVIATIONS

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

         TEN COM      --      as tenants in common

         TEN ENT      --      as tenants by the entireties

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

UNIF GIFT MIN ACT     --      __________ Custodian
                              _________________________________
                                   (Cust)               (Minor)

                              under Uniform Gifts to Minor Act
                              _________________________________
                                                                    (State)

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

                                      A-2-7
<PAGE>

                                   ASSIGNMENT

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

          PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
                                    ASSIGNEE:

         ______________________________________________________________

         ______________________________________________________________

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

________________________________________________________________________________
the within Bond and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________ attorney to transfer said Bond on the
books kept for registration thereof, with full power of substitution in the
premises.

Dated: _________________________          ______________________________________

Signature Guaranteed by ________________________________________________________

      NOTICE: The signature(s) to this assignment must correspond with the name
as it appears upon the face of the within Bond in every particular, without
alteration or enlargement or any change whatsoever. Signature(s) must be
guaranteed by a commercial bank or by a member firm of the New York Stock
Exchange or another national securities exchange. Notarized or witnessed
signatures are not acceptable.

                                      A-2-8
<PAGE>

                                    EXHIBIT B

                             MORTGAGE LOAN SCHEDULE

                                (Filed Manually)

                                       B-1
<PAGE>

                                    EXHIBIT C

                          FORM OF INITIAL CERTIFICATION

                                                    _______________, 200_

[Issuer]

[Master Servicer]

Attention: Impac CMB Trust Series 2003-10

            Re:   Indenture dated as of September 29, 2003, between Impac CMB
                  Trust Series 2003-10 and Deutsche Bank National Trust Company

Ladies and Gentlemen:

            In accordance with Section 2.03(a) of the above-captioned Indenture,
and Section 2.1(b)(i)-(v) of the Mortgage Loan Sale and Contribution Agreement,
dated as of September 29, 2003 between Impac Mortgage Holdings, Inc. and Impac
Funding Corporation (the "MLSCA"; and together with the Indenture, the
"Agreements"), the undersigned, as Indenture Trustee, hereby certifies that as
to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or listed on the exception report attached hereto) it
has reviewed the Mortgage File and the Mortgage Loan Schedule and has determined
that: (i) all documents required to be included in the Mortgage File are in its
possession; (ii) such documents have been reviewed by it and appear regular on
their face and relate to such Mortgage Loan; and (iii) based on examination by
it, and only as to such documents, the information set forth in items (iii) and
(v) of the definition or description of "Mortgage Loan Schedule" is correct.

            The Indenture Trustee has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the above-referenced Agreements. The Indenture Trustee makes no
representation that any documents specified in clause (v) of Section 2.1 (b) of
the MLSCA should be included in any Mortgage File. The Indenture Trustee makes
no representations as to and shall not be responsible to verify: (i) the
validity, legality, sufficiency, enforceability, due authorization,
recordability or genuineness of any of the documents contained in each Mortgage
File of any of the Mortgage Loans identified on the Mortgage Loan Schedule, (ii)
the collectability, insurability, effectiveness or suitability of any such
Mortgage Loan, or (iii) the existence of any assumption, modification, written
assurance or substitution agreement with respect to any Mortgage File if no such
documents appear in the Mortgage File delivered to the Indenture Trustee.

            Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Indenture.

                                       C-1
<PAGE>

                                                DEUTSCHE BANK NATIONAL
                                                TRUST COMPANY,
                                                as Indenture Trustee

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

                                       C-2
<PAGE>

                                    EXHIBIT D

                           FORM OF FINAL CERTIFICATION

                                                   _______________, 200__

[Issuer]

[Master Servicer]

Attention: Impac CMB Trust Series 2003-10

            Re:   Indenture, dated as of September 29, 2003, between Impac CMB
                  Trust Series 2003-10 and Deutsche Bank National Trust Company

Ladies and Gentlemen:

            In accordance with Section 2.03(b) of the above-captioned Indenture,
and Section 2.1(b) of the Mortgage Loan Sale and Contribution Agreement, dated
as of September 29, 2003, between Impac Mortgage Holdings, Inc. (formerly known
as Imperial Credit Mortgage Holdings, Inc.) and Impac Funding Corporation
(formerly known as ICI Funding Corporation) (the "MLSCA"; and together with the
Indenture, the "Agreements"), the undersigned, as Indenture Trustee, hereby
certifies that as to each Mortgage Loan listed in the Mortgage Loan Schedule
(other than any Mortgage Loan paid in full or listed on the exception report
attached hereto) it has received the documents set forth in Section 2.1(b) of
the MLSCA.

            The Indenture Trustee has made no independent examination of any
documents contained in each Mortgage File beyond the review specifically
required in the Agreements. The Indenture Trustee makes no representation that
any documents specified in clause (v) of Section 2.1 (b) should be included in
any Mortgage File. The Indenture Trustee makes no representations as to and
shall not be responsible to verify: (i) the validity, legality, sufficiency,
enforceability, due authorization, recordability or genuineness of any of the
documents contained in each Mortgage File of any of the Mortgage Loans
identified on the Mortgage Loan Schedule, (ii) the collectability, insurability,
effectiveness or suitability of any such Mortgage Loan or (iii) the existence of
any assumption, modification, written assurance or substitution agreement with
respect to any Mortgage File if no such documents appear in the Mortgage File
delivered to the Indenture Trustee.

                                       D-1
<PAGE>

            Capitalized words and phrases used herein shall have the respective
meanings assigned to them in the above-captioned Indenture.

                                          DEUTSCHE BANK NATIONAL
                                          TRUST COMPANY,
                                          as Indenture Trustee

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

                                       D-2
<PAGE>

                                    EXHIBIT E

                              DERIVATIVE CONTRACTS

                             (Provided Upon Request)

                                       E-1
<PAGE>

                                    EXHIBIT F

                        SPECIAL CERTIFICATE CAP CONTRACT

                             (Provided Upon Request)

                                       F-1
<PAGE>

                                   APPENDIX A
                                   DEFINITIONS

      180-day Delinquent High CLTV Loan: A High CLTV Loan which has been
delinquent for 180 days or more.

      Accrual Period: With respect to any Payment Date and each Class of Bonds,
other than the Class 2-A Bonds, the period from the preceding Payment Date (or
in the case of the first Payment Date, from the Closing Date) through the day
preceding such Payment Date. With respect to any Payment Date and the Class 2-A
Bonds, the preceding calendar month.

      Accrued Bond Interest: With respect to any Payment Date and each Class of
Bonds, interest accrued during the related Accrual Period at the then-applicable
Bond Interest Rate on the related Bond Principal Balance thereof immediately
prior to such Payment Date, less such Bonds' Unpaid Interest Shortfall for such
Payment Date, plus any Accrued Bond Interest remaining unpaid from any prior
Payment Date with interest thereon at the related Bond Interest Rate. Accrued
Bond Interest for the Bonds, other than the Class 2-A Bonds, shall be calculated
on the basis of the actual number of days in the Accrual Period and a 360-day
year. Accrued Bond Interest for the Class 2-A Bonds shall be calculated on the
basis of a 360-day year consisting of 12 30-day months.

      Additional Derivative Contract Counterparty Payment: With respect to any
Payment Date, any termination payments to the Derivative Contract Counterparty
as a result of a default of the Derivative Contract Counterparty under the
related Derivative Contracts.

      Adjustment Date: As to each Group 1 Loan, each date set forth in the
related Mortgage Note on which an adjustment to the interest rate on such
Mortgage Loan becomes effective.

      Advance: As to any Mortgage Loan, any advance made by the Master Servicer
pursuant to Section 4.04 of the Servicing Agreement or by a Subservicer in
respect of delinquent Monthly Payments of principal and interest pursuant to the
related Subservicing Agreement.

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

      Allocated Realized Loss Amount: With respect to the Class M Bonds and any
Payment Date, an amount equal to the sum of any Realized Loss allocated to such
Bonds on that Payment Date and any Allocated Realized Loss Amount for that Class
remaining unpaid from the previous Payment Date. With respect to each Grantor
Trust Certificate, the Allocated Realized Loss Amount for its corresponding
Class M Bonds.

      Appraised Value: The appraised value of a Mortgaged Property based upon
the lesser of (i) the appraisal made at the time of the origination of the
related Mortgage Loan, or (ii) the sale price of such Mortgaged Property at such
time of origination. With respect to a Mortgage Loan, the

<PAGE>

proceeds of which were used to refinance an existing Mortgage Loan, the
appraised value of the Mortgaged Property based upon the appraisal obtained at
the time of refinancing.

      Assignment of Mortgage: An assignment of Mortgage, notice of transfer or
equivalent instrument, in recordable form, which is sufficient under the laws of
the jurisdiction wherein the related Mortgaged Property is located to reflect of
record the sale of the Mortgage, which assignment, notice of transfer or
equivalent instrument may be in the form of one or more blanket assignments
covering Mortgages secured by Mortgaged Properties located in the same county,
if permitted by law.

      Authorized Newspaper: A newspaper of general circulation in the Borough of
Manhattan, The City of New York, printed in the English language and customarily
published on each Business Day, whether or not published on Saturdays, Sundays
or holidays.

      Authorized Officer: With respect to the Issuer, any officer of the Owner
Trustee who is authorized to act for the Owner Trustee in matters relating to
the Issuer and who is identified on the list of Authorized Officers delivered by
the Owner Trustee to the Indenture Trustee on the Closing Date (as such list may
be modified or supplemented from time to time thereafter).

      Available Funds: The Group 1 Available Funds or Group 2 Available Funds,
as applicable.

      Available Funds Rate: On any Payment Date and with respect to the Group 1
Bonds, the per annum rate equal to the product of:

      (i) (A) the product of:

                  (1) the Group 1 Adjusted Net WAC Rate, and

                  (2) a fraction equal to

                        (x) the aggregate Stated Principal Balance of the Group
                  1 Loans as of the end of the prior Due Period (plus, on any
                  Subordinated Transfer Payment Date where the Group 1 Loans are
                  the Undercollateralized Loan Group, the Subordinated Transfer
                  Realized Loss Amount) divided by

                        (y) the aggregate Bond Principal Balance of the Group 1
                  Bonds immediately prior to such Payment Date, minus

            (B) the Policy Premium Rate in respect of the Class 1-A-2 Bonds
            times a fraction equal to

                  (1) the Bond Principal Balance of the Class 1-A-2 Bonds
            immediately prior to such Payment Date divided by

                                        2
<PAGE>

                  (2) the aggregate Bond Principal Balance of the Group 1 Bonds
            immediately prior to such Payment Date, and

      (ii) a fraction equal to (x) 30 divided by (y) the number of days in the
related Accrual Period.

On any Payment Date and with respect to the Group 2 Bonds, the per annum rate
equal to the product of:

      (i) the product of:

                  (1) Group 2 Adjusted Net WAC Rate and

                  (2) a fraction equal to

                        (x) the aggregate Stated Principal Balance of the Group
                  2 Loans as of the end of the prior Due Period (plus, on any
                  Subordinated Transfer Payment Date where the Group 2 Loans are
                  the Undercollateralized Loan Group, the Subordinated Transfer
                  Realized Loss Amount) divided by

                        (y) the aggregate Bond Principal Balance of the Group 2
                  Bonds immediately prior to such Payment Date, and

      (ii) a fraction equal to (x) 30 divided by (y) the number of days in the
related Accrual Period (which shall be 30 days in the case of the Class 2-A
Bonds).

      Balloon Loan: Each of the Mortgage Loans identified in the Mortgage Loan
Schedule as having an original term to maturity that is shorter than the related
amortization term.

      Balloon Payment: With respect to any Balloon Loan, the related Monthly
Payment payable on the stated maturity date of such Balloon Loan.

      Bankruptcy Code: The Bankruptcy Code of 1978, as amended.

      Basic Documents: The Trust Agreement, the Certificate of Trust, the
Indenture, the Servicing Agreement, the Mortgage Loan Sale and Contribution
Agreement, the Derivative Contracts, the Seller Guarantee, the Special
Certificate Cap Contract and the other documents and certificates delivered in
connection with any of the above.

      Basic Principal Distribution Amount: With respect to any Payment Date and
each Loan Group, the lesser of (a) the excess of (i) the related Available Funds
and, with respect to the Group 1 Loans, the Class 1-A-2 Insured Amount, if any,
for such Payment Date over (ii) the aggregate amount of Accrued Bond Interest
for the related Bonds for such Payment Date and (b) the excess of (i) the
related Principal Remittance Amount for such Payment Date over (ii) the related
Overcollateralization Release Amount, if any, for such Payment Date.

                                        3
<PAGE>

      Basis Risk Shortfall: With respect to any Class of Group 1 Bonds and Group
2 Bonds, other than the Class A-2 Bonds, on each Payment Date where clause (iii)
of the definition of "Bond Interest Rate" is less than clauses (a)(i) or (ii) of
the definition of "Bond Interest Rate", the excess, if any, of (x) the aggregate
Accrued Bond Interest thereon for such Payment Date calculated pursuant to the
lesser of clause (a)(i) or (ii) of the definition of Bond Interest Rate over (y)
interest accrued on the related Mortgage Loans at the related Available Funds
Rate.

      Basis Risk Shortfall Carry-Forward Amount: With respect to each Class of
Group 1 Bonds and Group 2 Bonds, other than the Class A-2 Bonds, and any Payment
Date, as determined separately for each such Class of Bonds, an amount equal to
the aggregate amount of Basis Risk Shortfall for such Bonds on such Payment
Date, plus any unpaid Basis Risk Shortfall for such Class of Bonds from prior
Payment Dates, plus interest thereon at the Bond Interest Rate for such Payment
Date, to the extent previously unreimbursed by related Net Monthly Excess
Cashflow or the related Derivative Contracts.

      Beneficial Owner: With respect to any Bond, the Person who is the
beneficial owner of such Bond as reflected on the books of the Depository or on
the books of a Person maintaining an account with such Depository (directly as a
Depository Participant or indirectly through a Depository Participant, in
accordance with the rules of such Depository).

      Bond: A Group 1 Bond or Group 2 Bond.

      Bond Insurance Policy: The bond guaranty insurance policy issued by the
Bond Insurer for the benefit of the Class 1-A-2 Bondholders.

      Bond Insurance Premium: The premium payable to the Bond Insurer with
respect to the Bond Insurance Policy, as specified in the Bond Insurance Policy.

      Bond Insurer: Ambac Assurance Corporation, a Wisconsin-domiciled stock
insurance corporation, any successor thereto.

      Bond Insurer Default: The existence and continuance of any of the
following: (a) a failure by the Bond Insurer to make a payment required under
the Bond Insurance Policy in accordance with its terms; or (b)(i) the Bond
Insurer (A) files any petition or commences any case or proceeding under any
provision or chapter of the Bankruptcy Code or any other similar federal or
state law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, (B) makes a general assignment for the benefit of its creditors,
or (C) has an order for relief entered against it under the Bankruptcy Code or
any other similar federal or state law relating to insolvency, bankruptcy,
rehabilitation, liquidation or reorganization which is final and nonappealable;
or (ii) a court of competent jurisdiction, the New York or Wisconsin Department
of Insurance or other competent regulatory authority enters a final and
nonappealable order, judgment or decree (A) appointing a custodian, trustee,
agent or receiver for the Bond Insurer or for all or any material portion of its
property or (B) authorizing the taking of possession by a custodian, trustee,
agent or receiver of the Bond Insurer (or the taking of possession of all or any
material portion of the property of the Bond Insurer).

                                        4
<PAGE>

      Bond Interest Rate: With respect to each Payment Date and each Class of
Bonds, other than the Class 2-A Bonds, a floating rate equal to the least of (i)
One-Month LIBOR plus the related Bond Margin, (ii) the Maximum Bond Rate and
(iii) the related Available Funds Rate with respect to such Payment Date. With
respect to the Class 2-A Bonds, on any Payment Date prior to the Step-Up Date,
4.109% per annum, and on any Payment Date on and after the Step-Up Date, 4.609%
per annum.

      Bond Margin: With respect to the Class 1-A-1 Bonds, on any Payment Date
prior to the Step-Up Date, 0.350% per annum, and on any Payment Date on and
after the Step-Up Date, 0.700% per annum. With respect to the Class 1-A-2 Bonds,
on any Payment Date prior to the Step-Up Date, 0.270% per annum, and on any
Payment Date on and after the Step-Up Date, 0.540% per annum. With respect to
the Class M-1-1 Bonds and Class M-1-2 Bonds, on any Payment Date prior to the
Step-Up Date, 0.470% per annum, and on any Payment Date on and after the Step-Up
Date, 0.940% per annum. With respect to the Class M-2-1 Bonds and Class M-2-2
Bonds, on any Payment Date prior to the Step-Up Date, 0.570% per annum, and on
any Payment Date on and after the Step-Up Date, 0.855% per annum. With respect
to the Class M-3-1 Bonds and Class M-3-2 Bonds, on any Payment Date prior to the
Step-Up Date, 0.670% per annum, and on any Payment Date on and after the Step-Up
Date, 1.005% per annum. With respect to the Class M-4-1 Bonds and Class M-4-2
Bonds, on any Payment Date prior to the Step-Up Date, 1.250% per annum, and on
any Payment Date on and after the Step-Up Date, 1.875% per annum. With respect
to the Class M-5-1 Bonds and Class M-5-2 Bonds, on any Payment Date prior to the
Step-Up Date, 1.550% per annum, and on any Payment Date on and after the Step-Up
Date, 2.325% per annum. With respect to the Class M-6-1 Bonds and Class M-6-2
Bonds, on any Payment Date prior to the Step-Up Date, 1.700% per annum, and on
any Payment Date on and after the Step-Up Date, 2.550% per annum.

      Bond Owner: The Beneficial Owner of a Bond.

      Bond Principal Balance: With respect to any Bond as of any date of
determination, the initial Bond Principal Balance as stated on the face thereof,
minus all amounts distributed in respect of principal with respect to such Bond
and, in the case of any Class M Bond, the aggregate amount of any reductions in
the Bond Principal Balance thereof deemed to have occurred in connection with
allocations of Realized Losses on all prior Payment Dates.

      Bond Register: The register maintained by the Bond Registrar in which the
Bond Registrar shall provide for the registration of Bonds and of transfers and
exchanges of Bonds.

      Bond Registrar: The Indenture Trustee, in its capacity as Bond Registrar,
or any successor to the Indenture Trustee in such capacity.

      Bondholder or Holder: The Person in whose name a Bond is registered in the
Bond Register, except that, any Bond registered in the name of the Depositor,
the Issuer, the Indenture Trustee, the Seller or the Master Servicer or any
Affiliate of any of them shall be deemed not to be a holder or holders, nor
shall any so owned be considered outstanding, for purposes of giving any
request, demand, authorization, direction, notice, consent or waiver under the
Indenture or the Trust Agreement; provided that, in determining whether the
Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Bonds that

                                        5
<PAGE>

a Responsible Officer of the Indenture Trustee or the Owner Trustee actually
knows to be so owned shall be so disregarded. Owners of Bonds that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Indenture Trustee or the Owner Trustee the pledgee's
right so to act with respect to such Bonds and that the pledgee is not the
Issuer, any other obligor upon the Bonds or any Affiliate of any of the
foregoing Persons. Any bonds on which payments are made under the Bond Insurance
Policy shall be deemed Outstanding until the Bond Insurer has been reimbursed
with respect thereto and the Bond Insurer shall be deemed the Bondholder thereof
to the extent of such unreimbursed payment.

      Book-Entry Bonds: Beneficial interests in the Bonds, ownership and
transfers of which shall be made through book entries by the Depository as
described in Section 4.06 of the Indenture.

      Business Day: Any day other than (i) a Saturday or a Sunday or (ii) a day
on which banking institutions in the City of New York, Delaware or California or
in the city in which the corporate trust offices of the Indenture Trustee or the
principal office of the Bond Insurer are located, are required or authorized by
law to be closed.

      Cash Liquidation: As to any defaulted Mortgage Loan other than a Mortgage
Loan as to which an REO Acquisition occurred, a determination by the Master
Servicer evidenced in a certificate of a Servicing Officer that it has received
all Insurance Proceeds, Liquidation Proceeds and other payments or cash
recoveries which the Master Servicer reasonably and in good faith expects to be
finally recoverable with respect to such Mortgage Loan.

      Certificate Distribution Account: The account or accounts created and
maintained pursuant to Section 3.10(c) of the Trust Agreement. The Certificate
Distribution Account shall be an Eligible Account.

      Certificate Interest Rate: With respect to the Class M-1 Certificates, the
weighted average of the Bond Interest Rates of the Class M-1-1 Bonds and the
Class M-1-2 Bonds, weighted on the basis of the Bond Principal Balances thereof
as of the end of the prior Due Period. With respect to the Class M-2
Certificates, the weighted average of the Bond Interest Rates of the Class M-2-1
Bonds and the Class M-2-2 Bonds, weighted on the basis of the Bond Principal
Balances thereof as of the end of the prior Due Period. With respect to the
Class M-3 Certificates, the weighted average of the Bond Interest Rates of the
Class M-3-1 Bonds and the Class M-3-2 Bonds, weighted on the basis of the Bond
Principal Balances thereof as of the end of the prior Due Period. With respect
to the Class M-4 Certificates, the weighted average of the Bond Interest Rates
of the Class M-4-1 Bonds and the Class M-4-2 Bonds, weighted on the basis of the
Bond Principal Balances thereof as of the end of the prior Due Period. With
respect to the Class M-5 Certificates, the weighted average of the Bond Interest
Rates of the Class M-5-1 Bonds and the Class M-5-2 Bonds, weighted on the basis
of the Bond Principal Balances thereof as of the end of the prior Due Period.
With respect to the Class M-6 Certificates, the weighted average of the Bond
Interest Rates of the Class M-6-1 Bonds and the Class M-6-2 Bonds, weighted on
the basis of the Bond Principal Balances thereof as of the end of the prior Due
Period.

      Certificate Paying Agent: The meaning specified in Section 3.10 of the
Trust Agreement.

                                        6
<PAGE>

      Certificate Percentage Interest: With respect to each Certificate, the
Certificate Percentage Interest stated on the face thereof.

      Certificate Principal Balance: With respect to Class M-1 Certificates as
of any date of determination, the sum of the Bond Principal Balances of the
Class M-1-1 Bonds and Class M-1-2 Bonds. With respect to Class M-2 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M-2-1 Bonds and Class M-2-2 Bonds. With respect to Class M-3 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M- 3-1 Bonds and Class M-3-2 Bonds. With respect to Class M-4 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M-4-1 Bonds and Class M-4-2 Bonds. With respect to Class M-5 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M-5-1 Bonds and Class M-5-2 Bonds. With respect to Class M-6 Certificates
as of any date of determination, the sum of the Bond Principal Balances of the
Class M- 6-1 Bonds and Class M-6-2 Bonds.

      Certificate Register: The register maintained by the Certificate Registrar
in which the Certificate Registrar shall provide for the registration of
Certificates and of transfers and exchanges of Certificates.

      Certificate Registrar: Initially, the Indenture Trustee, in its capacity
as Certificate Registrar, or any successor to the Indenture Trustee in such
capacity.

      Certificate of Trust: The Certificate of Trust filed for the Trust
pursuant to Section 3810(a) of the Statutory Trust Statute.

      Certificates or Owner Trust Certificates: The Impac CMB Trust Series
2003-10 Owner Trust Certificates, Series 2003-10, evidencing the beneficial
ownership interest in the Issuer and executed by the Owner Trustee in
substantially the form set forth in Exhibit A to the Trust Agreement.

      Certificateholder or Holder: The Person in whose name a Certificate is
registered in the Certificate Register. Owners of Certificates that have been
pledged in good faith may be regarded as Holders if the pledgee establishes to
the satisfaction of the Indenture Trustee or the Owner Trustee, as the case may
be, the pledgee's right so to act with respect to such Certificates and that the
pledgee is not the Issuer, any other obligor upon the Certificates or any
Affiliate of any of the foregoing Persons.

      Class: Any of the Class A Bonds or Class M Bonds.

      Class 1-A-2 Insured Amount: Draws on the Bond Insurance Policy to cover
related Deficiency Amounts and Preference Amounts on the Class 1-A-2 Bonds.

      Class A Bonds: The Class 1-A-1, Class 1-A-1 and Class 2-A Bonds in the
form attached as Exhibit A-1 to the Indenture.

                                        7
<PAGE>

      Class M Bonds: The Class M-1-1, Class M-1-2, Class M-2-1, Class M-2-2,
Class M-3-1, Class M-3-2, Class M-4-1, Class M-4-2, Class M-5-1, Class M-5-2,
Class M-6-1 and Class M-6-2 Bonds in the form attached as Exhibit A-2 to the
Indenture.

      Closing Date: September 29, 2003.

      Code: The Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder.

      Collateral: The meaning specified in the Granting Clause of the Indenture.

      Collection Account: The account or accounts created and maintained
pursuant to Section 3.06(d) of the Servicing Agreement. The Collection Account
shall be an Eligible Account.

      Collection Period: With respect to each Payment Date, the calendar month
immediately preceding the month in which such Payment Date occurs.

      Combined Loan-to-Value Ratio: With respect to any Mortgage Loan secured by
a junior lien and any date, the percentage equivalent of a fraction, the
numerator of which is the Cut-off Date Principal Balance of such Mortgage Loan
and of any mortgage loan or mortgage loans that are secured by liens on the
Mortgaged Property that are senior to the Mortgage and the denominator of which
is the Appraised Value of the related Mortgaged Property.

      Commission: The Securities and Exchange Commission.

      Compensating Interest: With respect to any Payment Date as determined
separately for each Loan Group, the amount of any Prepayment Interest Shortfalls
resulting from prepayments in full during the preceding calendar month on the
related Mortgage Loans, but only to the extent such Prepayment Interest
Shortfalls do not exceed an amount equal to the lesser of (a) one-twelfth of
0.125% of the aggregate Stated Principal Balance of the related Mortgage Loans
immediately preceding such Payment Date and (b) the sum of the Master Servicing
Fee and Subservicing Fee for such Payment Date for the related Mortgage Loans.

      Corporate Trust Office: With respect to the Indenture Trustee, Certificate
Registrar, Certificate Paying Agent and Paying Agent, the principal corporate
trust office of the Indenture Trustee and Bond Registrar at which at any
particular time its corporate trust business shall be administered, which office
at the date of the execution of this instrument is located at 1761 East St.
Andrew Place, Santa Ana, California 92705, Attention: IM0310. With respect to
the Owner Trustee, the principal corporate trust office of the Owner Trustee at
which at any particular time its corporate trust business shall be administered,
which office at the date of the execution of this Trust Agreement is located at
Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19801, Attention: Impac CMB Trust Series 2003-10 (IM0310).

      Cumulative Losses: As to any Payment Date and the Mortgage Loans, the
cumulative aggregate amount of Realized Losses on the Mortgage Loans from the
Cut-off Date through the end of the calendar month immediately preceding such
Payment Date.

                                        8
<PAGE>

      Cut-off Date: With respect to the Mortgage Loans, other than the High CLTV
Loans, September 1, 2003, and for the High CLTV Loans the close of business on
August 29, 2003.

      Cut-off Date Balance: The aggregate Stated Principal Balance of the
Mortgage Loans as of the Cut-off Date.

      Cut-off Date Principal Balance: With respect to any Mortgage Loan, the
unpaid principal balance thereof as of the Cut-off Date after applying the
principal portion of Monthly Payments due on or before such date, whether or not
received, and without regard to any payments due after such date.

      Debt Service Reduction: With respect to any Mortgage Loan, a reduction in
the scheduled Monthly Payment for such Mortgage Loan by a court of competent
jurisdiction in a proceeding under the Bankruptcy Code, except such a reduction
constituting a Deficient Valuation or any reduction that results in a permanent
forgiveness of principal.

      Default: Any occurrence which is or with notice or the lapse of time or
both would become an Event of Default.

      Deficiency Amount: With respect to each Payment Date prior to the Final
Scheduled Payment Date and the Class 1-A-2 Bonds, an amount equal to the sum of
(i)(x) the excess, if any, of (a) the aggregate amount of Accrued Bond Interest
on the Class 1-A-1 Bonds and Class 1-A-2 Bonds for that Payment Date over (b)
the related Available Funds for that Payment Date, multiplied by a fraction
equal to (1) the amount of Accrued Bond Interest on the Class 1-A-2 Bonds over
(2) the aggregate amount of Accrued Bond Interest on the Class 1-A-1 Bonds and
Class 1-A-2 Bonds and (ii)(x) the excess, if any of (a) the aggregate Bond
Principal Balance of the Class 1-A-1 Bonds and Class 1-A-2 Bonds over (b) the
aggregate Stated Principal Balance of the Group 1 Loans, in each case
immediately following such Payment Date and, if the Group 1 Loans is an
Undercollateralized Loan Group, any Subordinated Transfer Realized Loss Amount,
multiplied by (y) a fraction equal to (1) the Bond Principal Balance of the
Class 1-A-2 Bonds over (2) the aggregate Bond Principal Balance of the Class
1-A-1 Bonds and Class 1-A-2 Bonds, in each case immediately following
distributions on that Payment Date. With respect to the Final Scheduled Payment
Date and the Class 1-A-2 Bonds, an amount equal to (i) the sum of (x) the
excess, if any, of (a) the aggregate amount of Accrued Bond Interest on the
Class 1-A-1 Bonds and Class 1-A-2 Bonds for that Payment Date over (b) the
related Available Funds for that Payment Date, multiplied by a fraction equal to
(1) the amount of Accrued Bond Interest on the Class 1-A-2 Bonds over (2) the
aggregate amount of Accrued Bond Interest on the Class 1-A-1 Bonds and Class
1-A-2 Bonds and (ii) the excess, if any, of the Bond Principal Balance of all
outstanding Class 1-A-2 Bonds due on such Final Scheduled Payment Date to the
extent not paid from the related Available Funds on that Payment Date. For the
Class 1-A-2 Bonds and any date on which the acceleration of the Bonds has been
directed or consented to by the Bondholders pursuant to the Indenture, the
amount required to pay the Bond Principal Balance of the Class 1-A-2 Bonds in
full, together with accrued and unpaid interest thereon through the date of
payment of the Class 1-A-2 Bonds.

      Deficient Valuation: With respect to any Mortgage Loan, a valuation by a
court of competent jurisdiction of the Mortgaged Property in an amount less than
the then outstanding indebtedness

                                        9
<PAGE>

under the Mortgage Loan, or any reduction in the amount of principal to be paid
in connection with any scheduled Monthly Payment that constitutes a permanent
forgiveness of principal, which valuation or reduction results from a proceeding
under the Bankruptcy Code.

      Definitive Bonds: The meaning specified in Section 4.06 of the Indenture.

      Deleted Mortgage Loan: A Mortgage Loan replaced or to be replaced with an
Eligible Substitute Mortgage Loan.

      Depositor: IMH Assets Corp., a California corporation, or its successor in
interest.

      Depository or Depository Agency: The Depository Trust Company or a
successor appointed by the Indenture Trustee. Any successor to the Depository
shall be an organization registered as a "clearing agency" pursuant to Section
17A of the Exchange Act and the regulations of the Securities and Exchange
Commission thereunder.

      Depository Participant: A Person for whom, from time to time, the
Depository effects book- entry transfers and pledges of securities deposited
with the Depository.

      Derivative Contracts: The Senior Derivative Contracts or Subordinate
Derivative Contracts, as applicable.

      Derivative Contract Counterparty: Bear Stearns Financial Products Inc.

      Determination Date: With respect to any Payment Date, the 15th of the
related month, or if the 15th day of such month is not a Business Day, the
immediately preceding Business Day.

      Due Date: With respect to each Mortgage Loan, the day of the month on
which each scheduled Monthly Payment is due.

      Due Period: With respect to any Payment Date and the Mortgage Loans (other
than the High CLTV Loans), the period commencing on the second day of the month
immediately preceding the month of such Payment Date (or, with respect to the
first Due Period, the day following the Cut-off Date) and ending on the first
day of the month of such Payment Date. With respect to any Payment Date and the
High CLTV Loans, the period is the calendar month preceding the month of such
Payment Date.

      Eligible Account: An account that is any of the following: (i) a
segregated account maintained with a federal or state chartered depository
institution (A) the short-term obligations of which are rated A-1+ or better by
Standard & Poor's and P-1 by Moody's at the time of any deposit therein or (B)
fully insured to the limits established by the FDIC, provided that any deposits
not so insured shall, to the extent acceptable to the Bond Insurer and each
Rating Agency, as evidenced in writing, be maintained such that (as evidenced by
an Opinion of Counsel delivered to the Indenture Trustee, the Bond Insurer and
each Rating Agency) the Indenture Trustee has a claim with respect to the funds
in such account or a perfected first security interest against any collateral
(which shall be limited to Eligible Investments) securing such funds that is
superior to claims of any other depositors or

                                       10
<PAGE>

creditors of the depository institution with which such account is maintained,
(ii) a segregated trust account or accounts maintained with a federal or state
chartered depository institution or trust company subject to regulations
regarding fiduciary funds on deposit similar to Title 12 of the Code of Federal
Regulations Section 9.10(b), which, in either case, has corporate trust powers,
acting in its fiduciary capacity, or (iii) in the case of the Collection Account
or Servicing Account, either (A) a trust account or accounts maintained at the
corporate trust department of the Indenture Trustee or (B) an account or
accounts maintained at the corporate trust department of the Indenture Trustee
or the Subservicer (or an affiliate thereof), as long as their short term debt
obligations are rated F-1 by Fitch Ratings, P-1 by Moody's and A-1 by Standard &
Poor's or better and their long term debt obligations are rated A by Fitch
Ratings, A2 by Moody's and A by Standard & Poor's or better, or (iv) an account
or accounts of a depository institution acceptable to each Rating Agency as
evidenced in writing by each Rating Agency that use of any such account as the
Collection Account or the Payment Account will not reduce the rating assigned to
any of the Securities by such Rating Agency below investment grade without
taking into account the Bond Insurance Policy and acceptable to the Bond Insurer
as evidenced in writing.

      Eligible Investments: One or more of the following:

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

                  (ii) repurchase agreements on obligations specified in clause
      (i) maturing not more than one month from the date of acquisition thereof,
      provided that the unsecured obligations of the party agreeing to
      repurchase such obligations are at the time rated by each Rating Agency in
      its highest short-term rating available;

                  (iii) federal funds, certificates of deposit, demand deposits,
      time deposits and bankers' acceptances (which shall each have an original
      maturity of not more than 90 days and, in the case of bankers'
      acceptances, shall in no event have an original maturity of more than 365
      days or a remaining maturity of more than 30 days) denominated in United
      States dollars of any U.S. depository institution or trust company
      incorporated under the laws of the United States or any state thereof or
      of any domestic branch of a foreign depository institution or trust
      company; provided that the debt obligations of such depository institution
      or trust company (or, if the only Rating Agency is Standard & Poor's, in
      the case of the principal depository institution in a depository
      institution holding company, debt obligations of the depository
      institution holding company) at the date of acquisition thereof have been
      rated by each Rating Agency in its highest short-term rating available;
      and provided further that, if the only Rating Agency is Standard & Poor's
      and if the depository or trust company is a principal subsidiary of a bank
      holding company and the debt obligations of such subsidiary are not
      separately rated, the applicable rating shall be that of the bank holding
      company; and, provided further that, if the original maturity of such
      short-term obligations of a domestic branch of a foreign depository
      institution or trust company shall exceed 30 days, the short-term rating
      of such institution shall be A-1+ in the case of Standard & Poor's if
      Standard & Poor's is the Rating Agency;

                                       11
<PAGE>

                  (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 Moody's and Standard & Poor's in their highest short-term
      ratings available; provided that such commercial paper shall have a
      remaining maturity of not more than 30 days;

                  (v) a money market fund or a qualified investment fund rated
      by Moody's in its highest long-term ratings available and rated AAAm or
      AAAm-G by Standard & Poor's, including any such funds for which Deutsche
      Bank National Trust Company or any affiliate thereof serves as an
      investment advisor, manager, administrator, shareholder, servicing agent,
      and/or custodian or sub-custodian; and

                  (vi) other obligations or securities that are acceptable to
      each Rating Agency as a Permitted Investment hereunder and will not reduce
      the rating assigned to any Class of Bonds (without taking the Bond
      Insurance Policy into account) by such Rating Agency below the lower of
      the then-current rating or the rating assigned to such Bonds as of the
      Closing Date by such Rating Agency, as evidenced in writing; and

                  (vii) any investment approved in writing by each of the Rating
      Agencies and the Bond Insurer.

The Indenture Trustee may purchase from or sell to itself or an affiliate, as
principal or agent, the Eligible Investments listed above.

provided, however, that no instrument shall be an Eligible Investment if it
represents, either (1) the right to receive only interest payments with respect
to the underlying debt instrument or (2) the right to receive both principal and
interest payments derived from obligations underlying such instrument and the
principal and interest payments with respect to such instrument provide a yield
to maturity greater than 120% of the yield to maturity at par of such underlying
obligations.

      Eligible Substitute Mortgage Loan: A Mortgage Loan substituted by the
Seller for a Deleted Mortgage Loan which must, on the date of such substitution,
as confirmed in an Officer's Certificate delivered to the Indenture Trustee, (i)
have an outstanding principal balance, after deduction of the principal portion
of the monthly payment due in the month of substitution (or in the case of a
substitution of more than one Mortgage Loan for a Deleted Mortgage Loan, an
aggregate outstanding principal balance, after such deduction), not in excess of
the outstanding principal balance of the Deleted Mortgage Loan (the amount of
any shortfall to be deposited by the Seller in the Collection Account in the
month of substitution); (ii) comply with each non-statistical representation and
warranty set forth in Section 3.1(b) of the Mortgage Loan Sale and Contribution
Agreement as of the date of substitution; (iii) have a Mortgage Rate no lower
than and not more than 1% per annum higher than the Mortgage Rate of the Deleted
Mortgage Loan as of the date of substitution; (iv) have a Loan-to-Value Ratio at
the time of substitution no higher than that of the Deleted Mortgage Loan at the
time of substitution; (v) have a remaining term to stated maturity not greater
than (and not more than one year less than) that of the Deleted Mortgage Loan;
(vi) not be 30 days or more delinquent; (vii) be an adjustable-rate first lien
mortgage loan, if being substituted for a Group 1 Loan; and (viii) be a
fixed-rate first lien mortgage loan, if being substituted for a Group 2 Loan.

                                       12
<PAGE>

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

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

                  (i) a failure by the Issuer to pay (a) Accrued Bond Interest
      on any Class of Bonds or the Principal Distribution Amount with respect to
      a Payment Date on such Payment Date or (b) the Unpaid Interest Shortfall
      with respect to any Class of Bonds, but only, with respect to clause (b),
      to the extent funds are available to make such payment as provided in the
      Indenture; or

                  (ii) the failure by the Issuer on the Final Scheduled Payment
      Date to reduce the Bond Principal Balance of any of the Class A Bonds or
      the Class M Bonds to zero; or

                  (iii) there occurs a default in the observance or performance
      of any covenant or agreement of the Issuer made in the Indenture, or any
      representation or warranty of the Issuer made in the Indenture or in any
      certificate or other writing delivered pursuant hereto or in connection
      herewith proving to have been incorrect in any material respect as of the
      time when the same shall have been made, and such default shall continue
      or not be cured, or the circumstance or condition in respect of which such
      representation or warranty was incorrect shall not have been eliminated or
      otherwise cured, for a period of 30 days after there shall have been
      given, by registered or certified mail, to the Issuer by the Indenture
      Trustee or to the Issuer and the Indenture Trustee by the Bond Insurer, or
      if a Bond Insurer Default exists, the Holders of at least 25% of the
      aggregate Bond Principal Balance of the Outstanding Bonds, a written
      notice specifying such default or incorrect representation or warranty and
      requiring it to be remedied and stating that such notice is a notice of
      default hereunder; or

                  (iv) there occurs the filing of a decree or order for relief
      by a court having jurisdiction in the premises in respect of the Issuer or
      any substantial part of the Trust Estate in an involuntary case under any
      applicable federal or state bankruptcy, insolvency or other similar law
      now or hereafter in effect, or appointing a receiver, liquidator,
      assignee, custodian, trustee, sequestrator or similar official of the
      Issuer or for any substantial part of the Trust Estate, or ordering the
      winding-up or liquidation of the Issuer's affairs, and such decree or
      order shall remain unstayed and in effect for a period of 60 consecutive
      days; or

                  (v) there occurs the commencement by the Issuer of a voluntary
      case under any applicable federal or state bankruptcy, insolvency or other
      similar law now or hereafter in effect, or the consent by the Issuer to
      the entry of an order for relief in an involuntary case under any such
      law, or the consent by the Issuer to the appointment or taking possession
      by a receiver, liquidator, assignee, custodian, trustee, sequestrator or
      similar official of the Issuer or for any substantial part of the assets
      of the Trust Estate, or the making by the Issuer of any

                                       13
<PAGE>

      general assignment for the benefit of creditors, or the failure by the
      Issuer generally to pay its debts as such debts become due, or the taking
      of any action by the Issuer in furtherance of any of the foregoing.

      Event of Servicer Termination: With respect to the Servicing Agreement, a
Servicing Default as defined in Section 6.01 of the Servicing Agreement.

      Exchange Act: The Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.

      Expense Fee Rate: With respect to each Mortgage Loan, the sum of the
Master Servicing Fee Rate, the applicable Subservicing Fee Rate, the Indenture
Trustee's Fee Rate, the Owner Trustee's Fee Rate, the Radian PMI Rate, if such
Mortgage Loan is a Radian PMI Insured Loan, and the related Net Derivative Fee
Rate.

      Expenses: The meaning specified in Section 7.02 of the Trust Agreement.

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

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

      Final Certification: The final certification delivered by the Indenture
Trustee pursuant to Section 2.03(b) of the Indenture in the form attached
thereto as Exhibit D.

      Final Scheduled Payment Date: With respect to each Class of Bonds, the
Payment Date in October 2033.

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

      Foreclosure Profit: With respect to a Liquidated Mortgage Loan, the
amount, if any, by which (i) the aggregate of its Net Liquidation Proceeds
exceeds (ii) the related Stated Principal Balance (plus accrued and unpaid
interest thereon at the applicable Mortgage Rate from the date interest was last
paid through the date of receipt of the final Liquidation Proceeds) of such
Liquidated Mortgage Loan immediately prior to the final recovery of its
Liquidation Proceeds.

      Freddie Mac: Freddie Mac (formerly, the Federal Home Loan Mortgage
Corporation), or any successor thereto.

      Grant: Pledge, bargain, sell, warrant, alienate, remise, release, convey,
assign, transfer, create, and grant a lien upon and a security interest in and
right of set-off against, deposit, set over and confirm pursuant to the
Indenture. A Grant of the Collateral or of any other agreement or instrument
shall include all rights, powers and options (but none of the obligations) of
the granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments
in respect of such collateral or other agreement or instrument and all other
moneys payable thereunder, to give and receive notices and other communications,
to make waivers or other agreements, to exercise all rights and options, to
bring proceedings in the name of

                                       14
<PAGE>

the granting party or otherwise, and generally to do and receive anything that
the granting party is or may be entitled to do or receive thereunder or with
respect thereto.

      Gross Margin: With respect to any Group 1 Loan, the percentage set forth
as the "Gross Margin" for such Mortgage Loan on the Mortgage Loan Schedule, as
adjusted from time to time in accordance with the terms of the Servicing
Agreement.

      Group 1 Adjusted Net WAC Rate: On any Payment Date which is not a
Subordinated Transfer Payment Date, or which is a Subordinated Transfer Payment
Date but the Group 1 Loans are an Overcollateralized Loan Group, the Group 1 Net
WAC Rate. On any Subordinated Transfer Payment Date, if the Group 1 Loans are an
Undercollateralized Loan Group, the weighted average of the Group 1 Net WAC Rate
and the Group 2 Net WAC Rate, weighted on the basis of the aggregate Stated
Principal Balance of the Group 1 Loans as of the end of the prior Due Period,
and the Subordinated Transfer Realized Loss Amount, respectively.

      Group 1 Available Funds: With respect to any Payment Date, the sum of the
following, in each case with respect to the Group 1 Loans:

                  (i) each previously undistributed Monthly Payment due after
      the Cut-off Date received on or prior to the related Determination Date or
      advanced prior to such Payment Date (other than Monthly Payments due after
      the related Due Period, which shall be treated as if received during the
      Due Period they were due and other than Monthly Payments with respect to
      which the Master Servicer has made an unreimbursed Advance) on each
      outstanding Group 1 Loan (less the related Master Servicing Fees, any
      Subservicing Fees under any Subservicing Agreement and any fees or
      penalties retained by the Master Servicer or any Subservicer, the fees of
      the Owner Trustee and the Indenture Trustee and any amounts in respect of
      the premium payable to Radian under the Radian Lender-Paid PMI Policies);

                  (ii) all proceeds of any Group 1 Loan repurchased during the
      related Prepayment Period (or deemed to have been so repurchased in
      accordance with the Servicing Agreement) pursuant to the Servicing
      Agreement and the amount of any shortfall deposited in the Collection
      Account in connection with the substitution of a Deleted Mortgage Loan
      pursuant to the Mortgage Loan Sale and Contribution Agreement, during the
      related Prepayment Period;

                  (iii) all other unscheduled collections (including, without
      limitation, Principal Prepayments, Insurance Proceeds, Liquidation
      Proceeds and REO Proceeds) received during the related Prepayment Period
      to the extent applied by the Master Servicer as recoveries of principal or
      interest of the related Group 1 Loan pursuant to the Servicing Agreement;
      and

                  (iv) any (i) Compensating Interest payments and (ii)
      Foreclosure Profits, to the extent not payable to the Subservicers; minus

                                       15
<PAGE>

                  (v) expenses incurred by and reimbursable to the Master
      Servicer or the Depositor pursuant to the Servicing Agreement or
      otherwise, or in connection with enforcing any repurchase, substitution or
      indemnification obligation of the Seller (other than an Affiliate of the
      Depositor) in respect of a Group 1 Loan;

                  (vi) amounts expended by the Master Servicer (a) pursuant to
      the Servicing Agreement in good faith in connection with the restoration
      of property related to a Group 1 Loan damaged by an Uninsured Cause, and
      (b) in connection with the liquidation of a Mortgage Loan or disposition
      of an REO Property related to a Group 1 Loan to the extent not otherwise
      reimbursed to the Master Servicer pursuant to the Servicing Agreement;

                  (vii) if the Bonds have been declared due and payable
      following an Event of Default on such Payment Date, any amounts owed to
      the Indenture Trustee by the Issuer pursuant to Section 6.07 of the
      Indenture;

                  (viii) the related Net Derivative Fee;

                  (ix) the Premium Amount in respect of the Class 1-A-2 Bonds;
      and

                  (x) any other amounts withdrawn from the Collection Account by
      the Master Servicer pursuant to Section 3.07(a)(ii) through (xv) of the
      Servicing Agreement, not described above in clauses (v) through (ix)
      above;

provided, however, that on any Subordinated Transfer Payment Date, the Group 1
Available Funds shall be increased (if it is the Undercollateralized Loan Group)
or reduced (if it is the Overcollateralized Loan Group), by the Subordinated
Payment Transfer Fraction of the Available Funds for the Overcollateralized Loan
Group.

      Group 1 Bond: A Class 1-A-1, Class 1-A-2, Class M-1-1, Class M-2-1, Class
M-3-1, Class M-4-1, Class M-5-1 or Class M-6-1 Bond.

      Group 1 Cut-off Date Balance: $889,004,734.

      Group 1 Loan: A Mortgage Loan in Loan Group 1.

      Group 1 Net WAC Rate: The weighted average of the Net Mortgage Rates on
the Group 1 Loans included in the trust as of the end of the prior Due Period,
weighted on the basis of the Stated Principal Balances thereof as of the end of
the prior Due Period.

      Group 1 Overcollateralization Target Amount: With respect to any Payment
Date (i) on or before the Payment Date occurring in March 2004, $0, or (ii) with
respect to any Payment Date thereafter, 0.50% of the Group 1 Cut-off Date
Balance; provided, that if the aggregate Bond Principal Balance of the Group 2
Bonds has been reduced to zero, the Group 1 Overcollateralization Target Amount
will be 0.50% of the sum of the Group 1 Cut-off Date Balance and Group 2 Cut-off
Date Balance.

                                       16
<PAGE>

      Group 1 Principal Distribution Amount: For any Payment Date and the Group
1 Loans, the sum of (a) the related Basic Principal Distribution Amount, (b) the
amount of related and non-related Net Monthly Excess Cashflow used to cover
Realized Losses as provided in Section 3.05(d)(ii) and Section 3.05(h)(ii) and
(v) of the Indenture and (c) the related Overcollateralization Increase Amount.

      Group 2 Adjusted Net WAC Rate: On any Payment Date which is not a
Subordinated Transfer Payment Date, or which is a Subordinated Transfer Payment
Date but the Group 2 Loans are an Overcollateralized Loan Group, the Group 2 Net
WAC Rate. On any Subordinated Transfer Payment Date, if the Group 2 Loans are an
Undercollateralized Loan Group, the weighted average of the Group 2 Net WAC Rate
and the Group 1 Net WAC Rate, weighted on the basis of the aggregate Stated
Principal Balance of the Group 2 Loans as of the end of the prior Due Period,
and the Subordinated Transfer Realized Loss Amount, respectively.

      Group 2 Available Funds: With respect to any Payment Date, the sum of the
following, in each case with respect to the Group 2 Loans:

                  (i) each previously undistributed Monthly Payment due after
      the Cut-off Date received on or prior to the related Determination Date or
      advanced prior to such Payment Date (other than Monthly Payments due after
      the related Due Period, which shall be treated as if received during the
      Due Period they were due and other than Monthly Payments with respect to
      which the Master Servicer has made an unreimbursed Advance) on each
      outstanding Group 2 Loan (less the related Master Servicing Fees, any
      Subservicing Fees under any Subservicing Agreement and any fees or
      penalties retained by the Master Servicer or any Subservicer, the fees of
      the Owner Trustee and the Indenture Trustee);

                  (ii) all proceeds of any Group 2 Loan repurchased during the
      related Prepayment Period (or deemed to have been so repurchased in
      accordance with the Servicing Agreement) pursuant to the Servicing
      Agreement and the amount of any shortfall deposited in the Collection
      Account in connection with the substitution of a Deleted Mortgage Loan
      pursuant to the Mortgage Loan Sale and Contribution Agreement, during the
      related Prepayment Period;

                  (iii) all other unscheduled collections (including, without
      limitation, Principal Prepayments, Insurance Proceeds, Liquidation
      Proceeds and REO Proceeds) received during the related Prepayment Period
      to the extent applied by the Master Servicer as recoveries of principal or
      interest of the related Group 2 Loan pursuant to the Servicing Agreement;
      and

                  (iv) any (i) Compensating Interest payments and (ii)
      Foreclosure Profits, to the extent not payable to the Subservicers;

      minus

                  (v) expenses incurred by and reimbursable to the Master
      Servicer or the Depositor pursuant to the Servicing Agreement or
      otherwise, or in connection with enforcing

                                       17
<PAGE>

      any repurchase, substitution or indemnification obligation of the Seller
      (other than an Affiliate of the Depositor) in respect of a Group 2 Loan;

                  (vi) amounts expended by the Master Servicer (a) pursuant to
      the Servicing Agreement in good faith in connection with the restoration
      of property related to a Group 2 Loan damaged by an Uninsured Cause, and
      (b) in connection with the liquidation of a Mortgage Loan or disposition
      of an REO Property related to a Group 2 Loan to the extent not otherwise
      reimbursed to the Master Servicer pursuant to the Servicing Agreement;

                  (vii) if the Bonds have been declared due and payable
      following an Event of Default on such Payment Date, any amounts owed to
      the Indenture Trustee by the Issuer pursuant to Section 6.07 of the
      Indenture;

                  (viii) the related Net Derivative Fee; and

                  (ix) any other amounts withdrawn from the Collection Account
      by the Master Servicer pursuant to Section 3.07(a)(ii) through (xv) of the
      Servicing Agreement, not described above in clauses (v) through (ix)
      above;

provided, however, that on any Subordinated Transfer Payment Date, the Group 2
Available Funds shall be increased (if it is the Undercollateralized Loan Group)
or reduced (if it is the Overcollateralized Loan Group), by the Subordinated
Payment Transfer Fraction of the Available Funds for the Overcollateralized Loan
Group.

      Group 2 Bond: A Class 2-A, Class M-1-2, Class M-2-2, Class M-3-2, Class
M-4-2, Class M- 5-2 or Class M-6-2 Bond.

      Group 2 Cut-off Date Balance: $110,995,333.

      Group 2 Loan: A Mortgage Loan in Loan Group 2.

      Group 2 Net WAC Rate: The weighted average of the Net Mortgage Rates on
the Group 2 Loans included in the trust as of the end of the prior Due Period,
weighted on the basis of the Stated Principal Balances thereof as of the end of
the prior Due Period.

      Group 2 Overcollateralization Target Amount: With respect to any Payment
Date, (i) on or before the Payment Date occurring in March 2004, $0, or (ii)
with respect to any Payment Date thereafter, 0.50% of the Group 2 Cut-off Date
Balance; provided, that if the aggregate Bond Principal Balance of the Group 1
Bonds has been reduced to zero, the Group 2 Overcollateralization Target Amount
will be 0.50% of the sum of the Group 1 Cut-off Date Balance and Group 2 Cut-off
Date Balance.

      Group 2 Principal Distribution Amount: For any Payment Date and the Group
2 Loans, the sum of (a) the related Basic Principal Distribution Amount, (b) the
amount of related and non-related Net Monthly Excess Cashflow used to cover
Realized Losses as provided in Section 3.05(d)(iii) and (v), and Section
3.05(h)(i) of the Indenture and (c) the related Overcollateralization Increase
Amount.

                                       18
<PAGE>

      High CLTV Loans: At any time, collectively, all the Mortgage Loans which
have been identified as such on the Mortgage Loan Schedule.

      Impac Holdings: Impac Mortgage Holdings, Inc., a Maryland corporation, and
its successors and assigns.

      Indemnified Party: The meaning specified in Section 7.02 of the Trust
Agreement.

      Indenture: The indenture dated as of September 29, 2003, between the
Issuer and the Indenture Trustee, relating to the Impac CMB Trust Series 2003-10
Bonds.

      Indenture Trustee: Deutsche Bank National Trust Company, and its
successors and assigns or any successor indenture trustee appointed pursuant to
the terms of the Indenture.

      Indenture Trustee's Fee: With respect to any Payment Date, one month's
interest accrued at the Indenture Trustee's Fee Rate on the Stated Principal
Balance of each Mortgage Loan as of the first day of the related Due Period.

      Indenture Trustee's Fee Rate: On each Mortgage Loan, a rate equal to
0.0037% per annum.

      Independent: When used with respect to any specified Person, the Person
(i) is in fact independent of the Issuer, any other obligor on the Bonds, the
Seller, the Master Servicer, the Depositor and any Affiliate of any of the
foregoing Persons, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the
Seller, the Master Servicer, the Depositor or any Affiliate of any of the
foregoing Persons and (iii) is not connected with the Issuer, any such other
obligor, the Seller, the Master Servicer, the Depositor or any Affiliate of any
of the foregoing Persons as an officer, employee, promoter, underwriter,
trustee, partner, director or person performing similar functions.

      Independent Certificate: A certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying
with, the applicable requirements of Section 10.01 of the Indenture, made by an
independent appraiser or other expert appointed by an Issuer Request and
approved by the Indenture Trustee in the exercise of reasonable care, and such
opinion or certificate shall state that the signer has read the definition of
"Independent" in this Indenture and that the signer is Independent within the
meaning thereof.

      Index: With respect to any Mortgage Loan, the index for the adjustment of
the Mortgage Rate set forth as such on the related Mortgage Note.

      Initial Bond Principal Balance: With respect to the Class 1-A-1 Bonds,
$685,100,000, with respect to the Class 1-A-2 Bonds, $75,000,000, with respect
to the Class 2-A Bonds, $94,900,000, with respect to the Class M-1-1 Bonds,
$20,002,458, with respect to the Class M-1-2 Bonds, $2,497,542, with respect to
the Class M-2-1 Bonds, $12,890,473, with respect to the Class M-2-2 Bonds,
$1,609,527, with respect to the Class M-3-1 Bonds, $31,559,434, with respect to
the Class M-3-2 Bonds, $3,940,566, with respect to the Class M-4-1 Bonds,
$36,448,924, with respect to the Class M-4-2 Bonds, $4,551,076, with respect to
the Class M-5-1 Bonds, $21,335,956, with respect

                                       19
<PAGE>

to the Class M-5-2 Bonds, $2,664,044, with respect to the Class M-6-1 Bonds,
$6,667,486 and with respect to the Class M-6-2 Bonds, $832,514.

      Initial Certification: The initial certification delivered by the
Indenture Trustee pursuant to Section 2.03(a) of the Indenture in the form
attached thereto as Exhibit C.

      Initial Subservicers: With respect to substantially all of the Mortgage
Loans, Wendover Funding, Inc., Countrywide Home Loans Servicing LP, and GMAC
Mortgage Corporation, or their respective successors in interest.

      Insurance Account: The account created and maintained pursuant to Section
11.02(b) of the Indenture. The Insurance Account shall be an Eligible Account.

      Insurance Proceeds: Proceeds paid by any insurer pursuant to any insurance
policy covering a Mortgage Loan which are required to be remitted to the Master
Servicer, net of any component thereof (i) covering any expenses incurred by or
on behalf of the Master Servicer in connection with obtaining such proceeds,
(ii) that is applied to the restoration or repair of the related Mortgaged
Property or (iii) released to the Mortgagor in accordance with the Master
Servicer's normal servicing procedures.

      Insured Amount: Shall have the meaning assigned to the term "Insured
Amount" in the Bond Insurance Policy.

      Insured Undercollateralization Amount: With respect to any Payment Date
and the Group 1 Loans, (x) the amount by which the aggregate Bond Principal
Balance of the Class 1-A-1 Bonds and Class 2-A-1 Bonds exceeds the aggregate
Stated Principal Balance of the Group 1 Loans and, if it is an
Undercollateralized Loan Group, any Subordinated Transfer Realized Loss Amount
multiplied by (y) a fraction equal to (1) the Bond Principal Balance of the
Class 1-A-2 Bonds over (2) the aggregate Bond Principal Balance of the Class
1-A-1 Bonds and Class 1-A-2 Bonds, in each case immediately following
distributions on that Payment Date.

      Interest Determination Date: With respect to the first Accrual Period, the
second LIBOR Business Day preceding the Closing Date, and with respect to each
Accrual Period thereafter, the second LIBOR Business Day preceding the related
Payment Date on which such Accrual Period commences.

      Interest Rate Adjustment Date: With respect to each Mortgage Loan, the
date or dates on which the Mortgage Rate is adjusted in accordance with the
related Mortgage Note.

      Interested Person: As of any date of determination, the Depositor, the
Master Servicer the Bond Insurer, the Indenture Trustee, any Mortgagor, or any
Person actually known to a Responsible Officer of the Trustee to be an Affiliate
of any of them.

      Investment Company Act: The Investment Company Act of 1940, as amended,
and any amendments thereto.

                                       20
<PAGE>

      IRS: The Internal Revenue Service.

      Issuer: Impac CMB Trust Series 2003-10, a Delaware statutory trust, or its
successor in interest.

      Issuer Request: A written order or request signed in the name of the
Issuer by any one of its Authorized Officers and approved in writing by the Bond
Insurer, so long as no Bond Insurer Default exists, and delivered to the
Indenture Trustee.

      LIBOR Business Day: A day on which banks are open for dealing in foreign
currency and exchange in London and New York City.

      Lien: Any mortgage, deed of trust, pledge, conveyance, hypothecation,
assignment, participation, deposit arrangement, encumbrance, lien (statutory or
other), preference, priority right or interest or other security agreement or
preferential arrangement of any kind or nature whatsoever, including, without
limitation, any conditional sale or other title retention agreement, any
financing lease having substantially the same economic effect as any of the
foregoing and the filing of any financing statement under the UCC (other than
any such financing statement filed for informational purposes only) or
comparable law of any jurisdiction to evidence any of the foregoing; provided,
however, that any assignment pursuant to Section 6.02 of the Servicing Agreement
shall not be deemed to constitute a Lien.

      Lifetime Rate Cap: With respect to each Group 1 Loan with respect to which
the related Mortgage Note provides for a lifetime rate cap, the maximum Mortgage
Rate permitted over the life of such Mortgage Loan under the terms of such
Mortgage Note, as set forth on the Mortgage Loan Schedule and initially as set
forth on Exhibit A to the Servicing Agreement.

      Liquidated Mortgage Loan: With respect to any Payment Date, any Mortgage
Loan in respect of which the Master Servicer has determined, in accordance with
the servicing procedures specified in the Servicing Agreement, as of the end of
the related Due Period that substantially all Liquidation Proceeds which it
reasonably expects to recover with respect to the disposition of the related
Mortgaged Property or REO Property have been recovered.

      Liquidation Expenses: Out-of-pocket expenses (exclusive of overhead) which
are incurred by or on behalf of the Master Servicer, or any Special Servicer on
the Master Servicer's behalf, in connection with the liquidation of any Mortgage
Loan and not recovered under any insurance policy, such expenses including,
without limitation, legal fees and expenses, any unreimbursed amount expended
(including, without limitation, amounts advanced to correct defaults on any
mortgage loan which is senior to such Mortgage Loan, amounts advanced to keep
current or pay off a mortgage loan that is senior to such Mortgage Loan and
Disposition Fees) respecting the related Mortgage Loan and any related and
unreimbursed expenditures for real estate property taxes or for property
restoration, preservation or insurance against casualty loss or damage.

      Liquidation Proceeds: Proceeds (including Insurance Proceeds) received in
connection with the liquidation of any Mortgage Loan or related REO Property,
whether through trustee's sale, foreclosure sale or otherwise.

                                       21
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      Loan Group: Any of Loan Group 1 or Loan Group 2.

      Loan Group 1: The Group 1 Loans.

      Loan Group 2: The Group 2 Loans.

      Loan-to-Value Ratio: With respect to any Mortgage Loan, as of any date of
determination, a fraction expressed as a percentage, the numerator of which is
the then current principal amount of the Mortgage Loan, and the denominator of
which is the Appraised Value of the related Mortgaged Property.

      Loan Year: With respect to any Mortgage Loan, the one-year period
commencing on the day succeeding the origination of such Mortgage Loan and
ending on the anniversary date of such Mortgage Loan, and each annual period
thereafter.

      Lost Note Affidavit: With respect to any Mortgage Loan as to which the
original Mortgage Note has been lost or destroyed and has not been replaced, an
affidavit from the Seller certifying that the original Mortgage Note has been
lost, misplaced or destroyed (together with a copy of the related Mortgage
Note).

      Majority Certificateholder: A Holder of a 50.01% or greater Certificate
Percentage Interest of the Owner Trust Certificates.

      Master Servicer: Impac Funding Corporation, a California corporation, and
its successors and assigns.

      Master Servicing Fee: With respect to each Mortgage Loan and any Payment
Date, the fee payable monthly to the Master Servicer in respect of master
servicing compensation that accrues at an annual rate equal to the Master
Servicing Fee Rate multiplied by the Stated Principal Balance of such Mortgage
Loan as of the related Due Date in the related Due Period.

      Master Servicing Fee Rate: With respect to any Mortgage Loan, 0.030% per
annum.

      Maximum Bond Rate: With respect to any Class of Bonds, other than the
Class 2-A Bonds, 11.50% per annum.

      Maximum Mortgage Rate: With respect to each Group 1 Loan, the maximum
Mortgage Rate.

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

      MERS(R) System: The system of recording transfers of Mortgages
electronically maintained by MERS.

      MIN: The Mortgage Identification Number for Mortgage Loans registered with
MERS on the MERS(R) System.

                                       22
<PAGE>

      Minimum Mortgage Rate: With respect to each Group 1 Loan, the minimum
Mortgage Rate.

      MOM Loan: With respect to any Mortgage Loan, MERS acting as the mortgagee
of such Mortgage Loan, solely as nominee for the originator of such Mortgage
Loan and its successors and assigns, at the origination thereof.

      Monthly Payment: With respect to any Mortgage Loan (including any REO
Property) and any Due Date, the payment of principal and interest due thereon in
accordance with the amortization schedule at the time applicable thereto (after
adjustment, if any, for partial Principal Prepayments and for Deficient
Valuations occurring prior to such Due Date but before any adjustment to such
amortization schedule by reason of any bankruptcy, other than a Deficient
Valuation, or similar proceeding or any moratorium or similar waiver or grace
period).

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

      Mortgage: The mortgage, deed of trust or other instrument creating a first
lien on an estate in fee simple interest in real property securing a Mortgage
Loan.

      Mortgage File: The file containing the Related Documents pertaining to a
particular Mortgage Loan and any additional documents required to be added to
the Mortgage File pursuant to the Mortgage Loan Sale and Contribution Agreement
or the Servicing Agreement.

      Mortgage Loans: The Mortgage Loans that will be transferred and assigned
to the Trust pursuant to Section 2.03(a) of the Indenture, each Mortgage Loan so
held being identified in the Mortgage Loan Schedule. The Mortgage Loans have
been divided into two groups, Loan Group 1 and Loan Group 2.

      Mortgage Loan Sale and Contribution Agreement: The Mortgage Loan Sale and
Contribution Agreement, dated as of the Closing Date, between the Seller, as
seller, and the Purchaser, as purchaser, relating to the sale, transfer and
assignment of the Mortgage Loans.

      Mortgage Loan Schedule: With respect to any date, the schedule of Mortgage
Loans held by the Issuer on such date. The schedule of Mortgage Loans as of the
Cut-off Date is the schedule set forth in Exhibit B of the Indenture, which
schedule sets forth as to each Mortgage Loan:

                  (i) the loan number and name of the Mortgagor;

                  (ii) the street address, city, state and zip code of the
      Mortgaged Property;

                  (iii) the original Mortgage Rate;

                  (iv) the maturity date;

                  (v) the original principal balance;

                  (vi) the first Payment Date;

                                       23

<PAGE>

                  (vii) the type of Mortgaged Property;

                  (viii) the Monthly Payment in effect as of the Cut-off Date;

                  (ix) the Cut-off Date Principal Balance;

                  (x) the Index and the Gross Margin, if applicable;

                  (xi) the Adjustment Date frequency and Payment Date frequency,
      if applicable;

                  (xii) the occupancy status;

                  (xiii) the purpose of the Mortgage Loan;

                  (xiv) the Appraised Value of the Mortgaged Property;

                  (xv) (A) the original term to maturity and (B) if such
      Mortgage Loan is a Balloon Loan, the amortization term thereof;

                  (xvi) the paid-through date of the Mortgage Loan;

                  (xvii) whether the Mortgage Loan is a Balloon Mortgage Loan or
      a Mortgage Loan the terms of which do not provide for a Balloon Payment;

                  (xviii) the Loan-to-Value Ratio;

                  (xix) whether such Mortgage Loan is a Radian PMI Insured Loan,
      and if so, the related Radian PMI Rate; and

                  (xx) whether or not the Mortgage Loan was underwritten
      pursuant to a limited documentation program.

      The Mortgage Loan Schedule shall also set forth the total of the amounts
described under (ix) above for all of the Mortgage Loans.

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

      Mortgage Rate: With respect to any Mortgage Loan, the annual rate at which
interest accrues on such Mortgage Loan.

      Mortgaged Property: The underlying property, including real property and
improvements thereon, securing a Mortgage Loan.

                                       24
<PAGE>

      Mortgagor: The obligor or obligors under a Mortgage Note.

      Net Collections: With respect to any Corrected Mortgage Loan, an amount
equal to all payments on account of interest and principal on such Mortgage
Loan.

      Net Derivative Fee: With respect to any Payment Date and each of Loan
Group 1 and Loan Group 2, the amount equal to the excess, if any, of (a) the
aggregate amount payable on that Payment Date to the Derivative Contract
Counterparty in respect of the related Derivative Contracts, other than any
termination payments to the Derivative Contract Counterparty as a result of a
default of the Derivative Contract Counterparty, over (b) the aggregate amount
payable on that Payment Date to the Issuer from the Derivative Contract
Counterparty pursuant to the related Derivative Contracts.

      Net Derivative Fee Rate: With respect to any Payment Date and each of Loan
Group 1 and Loan Group 2, the fraction, expressed as a rate per annum, equal to
(x) the Net Derivative Fee on such Payment Date related to such Loan Group over
(y) the aggregate Stated Principal Balance of the related Mortgage Loans in the
related Loan Group as of the beginning of the related Due Period.

      Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan,
Liquidation Proceeds net of Liquidation Expenses.

      Net Monthly Excess Cash Flow: For any Payment Date and each Loan Group,
the sum of (a) any Overcollateralization Release Amount and (b) the excess of
(x) the related Available Funds and, with respect to the Group 1 Available
Funds, the Class 1-A-2 Insured Amount, if any, for such Payment Date over (y)
the sum for such Payment Date of (A) the aggregate amount of Accrued Bond
Interest for the related Bonds and (B) the related Principal Remittance Amount.

      Net Mortgage Rate: On any Mortgage Loan and any Payment Date, the then
applicable mortgage rate thereon for the scheduled monthly payment thereon
during the related Due Period minus the sum of (1) the Master Servicing Fee
Rate, (2) the Subservicing Fee Rate, (3) the Indenture Trustee's Fee Rate, (4)
the Owner Trustee's Fee Rate, (5) the Net Derivative Fee Rate and (6) the
related Radian PMI Rate, if such Mortgage Loan is a Radian PMI Insured Loan.

      Non-High CLTV Loans: At any time, collectively, all the Mortgage Loans
which are not High CLTV Loans.

      Nonrecoverable Advance: Any advance (i) which was previously made or is
proposed to be made by the Master Servicer; and (ii) which, in the good faith
judgment of the Master Servicer, will not or, in the case of a proposed advance,
would not, be ultimately recoverable by the Master Servicer from Liquidation
Proceeds, Insurance Proceeds or future payments on any Mortgage Loan. The
Indenture Trustee may conclusively rely on any determination of
nonrecoverability made by the Master Servicer.

      Officer's Certificate: With respect to the Master Servicer, a certificate
signed by the President, Managing Director, a Director, a Vice President or an
Assistant Vice President, of the Master Servicer and delivered to the Indenture
Trustee. With respect to the Issuer, a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with,

                                       25
<PAGE>

the applicable requirements of Section 10.01 of the Indenture, and delivered to
the Indenture Trustee. Unless otherwise specified, any reference in the
Indenture to an Officer's Certificate shall be to an Officer's Certificate of
any Authorized Officer of the Issuer.

      One-Month LIBOR: With respect to any Accrual Period, the rate determined
by the Indenture Trustee on the related Interest Determination Date on the basis
of the London interbank offered rate for one-month United States dollar
deposits, as such rates appear on the Telerate Screen Page 3750, as of 11:00
a.m. (London time) on such Interest Determination Date.

      In the event that on any Interest Determination Date, Telerate Screen 3750
fails to indicate the London interbank offered rate for one-month United States
dollar deposits, then One-Month LIBOR for the related Interest Accrual Period
will be established by the Indenture Trustee as follows:

                  (i) If on such Interest Determination Date two or more
      Reference Banks provide such offered quotations, One-Month LIBOR for the
      related Accrual Period shall be the arithmetic mean of such offered
      quotations (rounded upwards if necessary to the nearest whole multiple of
      1/16%).

                  (ii) If on such Interest Determination Date fewer than two
      Reference Banks provide such offered quotations, One-Month LIBOR for the
      related Accrual Period shall be the higher of (i) One-Month LIBOR as
      determined on the previous Interest Determination Date and (ii) the
      Reserve Interest Rate.

      The establishment of One-Month LIBOR on each Interest Determination Date
by the Indenture Trustee and the Indenture Trustee's calculation of the rate of
interest applicable for the related Accrual Period shall (in the absence of
manifest error) be final and binding.

      Opinion of Counsel: A written opinion of counsel acceptable to the
Indenture Trustee and/or the Bond Insurer, as applicable, in its reasonable
discretion which counsel may be in-house counsel for the Master Servicer if
acceptable to the Indenture Trustee, the Bond Insurer and the Rating Agencies or
counsel for the Depositor, as the case may be.

      Original Value: Except in the case of a refinanced Mortgage Loan, the
lesser of the Appraised Value or sales price of Mortgaged Property at the time a
Mortgage Loan is closed, and for a refinanced Mortgage Loan, the Original Value
is the value of such property set forth in an appraisal acceptable to the Master
Servicer.

      Outstanding: With respect to the Bonds, as of the date of determination,
all Bonds theretofore executed, authenticated and delivered under this Indenture
except:

                  (i) Bonds theretofore canceled by the Bond Registrar or
      delivered to the Indenture Trustee for cancellation; and

                  (ii) Bonds in exchange for or in lieu of which other Bonds
      have been executed, authenticated and delivered pursuant to the Indenture
      unless proof satisfactory to the Indenture Trustee is presented that any
      such Bonds are held by a holder in due course;

                                       26
<PAGE>

all Bonds that have been paid with funds provided under the Bond Insurance
Policy shall be deemed to be Outstanding until the Bond Insurer has been
reimbursed with respect thereto.

      Outstanding Mortgage Loan: As to any Due Date, a Mortgage Loan (including
an REO Property) which was not the subject of a Principal Prepayment in Full,
Cash Liquidation or REO Disposition and which was not purchased, deleted or
substituted for prior to such Due Date pursuant to the Servicing Agreement.

      Overcollateralization Increase Amount: With respect to any Payment Date
and each Loan Group, the lesser of (i) the related Net Monthly Excess Cashflow
for such Payment Date after payments in respect of Section 3.05(d)(iii) and
Section 3.05(h)(iii) of the Indenture, with respect to the Group 1 Loans and
Group 2 Loans, respectively, and (ii) the excess, if any, of (a) the related
Overcollateralization Target Amount over (b) the related Overcollateralized
Amount on such Payment Date (after taking into account payments to the related
Bonds of the related Basic Principal Distribution Amount on such Payment Date).

      Overcollateralization Release Amount: With respect to any Payment Date and
each Loan Group, the lesser of (x) the related Principal Remittance Amount for
such Payment Date and (y) the excess, if any, of (i) the Overcollateralized
Amount for such Payment Date (assuming that 100% of the related Principal
Remittance Amount is applied as a principal payment on such Payment Date) over
(ii) the related Overcollateralization Target Amount for such Payment Date.

      Overcollateralization Target Amount: The Group 1 Overcollateralization
Target Amount or Group 2 Overcollateralization Target Amount, as applicable.

      Overcollateralized Amount: As of any Payment Date, other than a
Subordinated Transfer Payment Date, and each Loan Group, the amount, if any, by
which (i) the aggregate principal balance of the related Mortgage Loans (after
giving effect to scheduled payments of principal due during the related Due
Period, to the extent received or Advanced, and unscheduled collections of
principal received during the related Prepayment Period, but prior to reduction
for Realized Losses incurred during the related Prepayment Period) exceeds (ii)
the aggregate Bond Principal Balance of such related Loan Group as of such
Payment Date (after giving effect to distributions to be made on such Payment
Date).

      For any Subordinated Transfer Payment Date and the Undercollateralized
Loan Group, the amount, if any, by which (i) the aggregate principal balance of
the related Mortgage Loans (after giving effect to scheduled payments of
principal due during the related Due Period, to the extent received or advanced,
and unscheduled collections of principal received during the related Prepayment
Period, but prior to reduction for Realized Losses on the related Mortgage Loans
incurred during the related Prepayment Period), exceeds (ii) the sum of (x) the
aggregate Bond Principal Balance related to such Loan Group as of such Payment
Date (after giving effect to distributions to be made on such Payment Date) and
(y) the Subordinated Transfer Realized Loss Amount.

                                       27
<PAGE>

      For any Subordinated Transfer Payment Date and the Overcollateralized Loan
Group, the amount, if any, by which (i) the aggregate principal balance of the
related Mortgage Loans (after giving effect to scheduled payments of principal
due during the related Due Period, to the extent received or advanced, and
unscheduled collections of principal received during the related Prepayment
Period, but prior to reduction for Realized Losses on the related Mortgage Loans
incurred during the related Prepayment Period), exceeds (ii) (x) the aggregate
Bond Principal Balance related to such Loan Group as of such Payment Date (after
giving effect to distributions to be made on such Payment Date) minus (y) the
Subordinated Transfer Realized Loss Amount.

      Overcollateralized Loan Group: For any Subordinated Transfer Payment Date,
the Loan Group which is not the Undercollateralized Loan Group.

      Owner Trust Estate: The corpus of the Issuer created by the Trust
Agreement which consists of items referred to in Section 3.01 of the Trust
Agreement.

      Owner Trustee: Wilmington Trust Company and its successors and assigns or
any successor owner trustee appointed pursuant to the terms of the Trust
Agreement.

      Owner Trustee's Fee: With respect to any Payment Date the product of (i)
the Owner Trustee's Fee Rate divided by 12 and (ii) the aggregate Stated
Principal Balance of the Mortgage Loans as of the first day of the related Due
Period.

      Owner Trustee's Fee Rate: On each Mortgage Loan, a rate equal to 0.0017%
per annum.

      Paying Agent: Any paying agent or co-paying agent appointed pursuant to
Section 3.03 of the Indenture, which initially shall be the Indenture Trustee.

      Payment Account: The account established by the Indenture Trustee pursuant
to Section 3.01 of the Indenture. The Payment Account shall be an Eligible
Account.

      Payment Date: The 25th day of each month, or if such day is not a Business
Day, then the next Business Day.

      Percentage Interest: With respect to any Bond, the percentage obtained by
dividing the Bond Principal Balance of such Bond by the aggregate Bond Principal
Balances of all Bonds of that Class. With respect to any Certificate, the
percentage as stated on the face thereof.

      Periodic Rate Cap: With respect to any Group 1 Loan, the maximum rate, if
any, by which the Mortgage Rate on such Mortgage Loan can adjust on any
Adjustment Date, as stated in the related Mortgage Note or Mortgage.

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

                                       28
<PAGE>

      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 ERISA or Section 4975 of the Code.

      Plan Assets: Assets of a Plan within the meaning of Department of Labor
regulation 29 C.F.R. ss. 2510.3-101.

      Policy Premium Rate: With respect to any Payment Date, the rate per annum
at which the Premium Amount for the Bond Insurance Policy accrues, as specified
in the Bond Insurance Policy.

      Pool Balance: With respect to any date of determination, the aggregate of
the Stated Principal Balances of all Mortgage Loans as of such date.

      Preference Amount: With respect to the Class 1-A-2 Bonds, any amount
previously distributed to a Class 1-A-2 Bondholder that is recoverable and
sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time
to time, in accordance with a final nonappealable order of a court having
competent jurisdiction.

      Premium Amount: The amount of premium due to the Bond Insurer in
accordance with the Bond Insurance Policy.

      Prepayment Assumption: A Prepayment Assumption of 100% assumes, (i) with
respect to the Group 1 Loans, 30% CPR and (ii) with respect to the Group 2
Loans, a Prepayment Assumption of 100% assumes that the outstanding balance of a
pool of mortgage loans prepays at a rate of 2% CPR in the first month, such rate
increasing by an additional 18/11 CPR each month thereafter through the twelfth
month, and such rate remaining constant at 20% CPR thereafter.

      Prepayment Interest Shortfall: As to any Payment Date and any Mortgage
Loan (other than a Mortgage Loan relating to an REO Property) that was the
subject of (a) a Principal Prepayment in Full during the related Prepayment
Period, an amount equal to the excess of interest accrued during the related
Prepayment Period at the Net Mortgage Rate on the Stated Principal Balance of
such Mortgage Loan over the sum of the amount of interest (less interest at the
related Expense Fee Rate) paid by the Mortgagor for such Prepayment Period to
the date of such Principal Prepayment in Full and any Advances made by the
Master Servicer pursuant to Section 4.04 of the Servicing Agreement or (b) a
partial Principal Prepayment during the related Prepayment Period, an amount
equal to the interest at the Mortgage Rate (less the Subservicing Fee Rate)
during the related Prepayment Period on the amount of such partial Principal
Prepayment.

      Prepayment Period: With respect to each Mortgage Loan and any Payment
Date, the prior calendar month.

      Primary Insurance Policy: Each primary policy of mortgage guaranty
insurance issued by a Qualified Insurer or any replacement policy therefor,
including the Radian Lender-Paid PMI Policies.

                                       29
<PAGE>

      Principal Distribution Amount: The Group 1 Principal Distribution Amount
or Group 2 Principal Distribution Amount, as applicable.

      Principal Prepayment: Any payment of principal or other recovery on a
Mortgage Loan, including a recovery that takes the form of Liquidation Proceeds
or Insurance Proceeds, which is received in advance of its scheduled Due Date
and is not accompanied by an amount as to interest representing scheduled
interest on such payment due on any date or dates in any month or months
subsequent to the month of prepayment.

      Principal Prepayment in Full: Any Principal Prepayment made by a Mortgagor
of the entire principal balance of a Mortgage Loan.

      Principal Remittance Amount: With respect to any Payment Date and each
Loan Group, the sum of the following:

                  (i) the principal portion of each previously undistributed
      Monthly Payment due after the Cut-off Date received on or prior to the
      related Determination Date or advanced prior to such Payment Date (other
      than Monthly Payments due after the related Due Period, which shall be
      treated as if received during the Due Period they were due) on each
      Outstanding Mortgage Loan;

                  (ii) the principal portion of all proceeds of any Mortgage
      Loan repurchased during the related Prepayment Period (or deemed to have
      been so repurchased in accordance with the Servicing Agreement) pursuant
      to the Servicing Agreement and the amount of any shortfall deposited in
      the Collection Account in connection with the substitution of a Deleted
      Mortgage Loan pursuant to the Mortgage Loan Sale and Contribution
      Agreement during the related Collection Period;

                  (iii) the principal portion of all other unscheduled
      collections received during the related Prepayment Period (including,
      without limitation, Principal Prepayments, Insurance Proceeds, Liquidation
      Proceeds and REO Proceeds) to the extent applied by the Master Servicer as
      recoveries of principal of the related Mortgage Loan pursuant to the
      Servicing Agreement; and

                  (iv) with respect to the Group 1 Loans, any portion of any
      Class 1-A-2 Insured Amount for such Payment Date representing an Insured
      Undercollateralization Amount allocable to the Class 1-A-2 Bonds;

provided, however, that on any Subordinated Transfer Payment Date, the Principal
Remittance Amount for the Undercollateralized Loan Group shall be increased, and
the Principal Remittance Amount for the Overcollateralized Loan Group shall be
reduced, by the Subordinated Payment Transfer Fraction of the amounts determined
pursuant to clauses (1) through (3) above for the Overcollateralized Loan Group.

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

                                       30
<PAGE>

      Prospectus: The Prospectus Supplement, dated September 25, 2003, together
with the attached Prospectus, dated September 25, 2003.

      Purchase Price: The meaning specified in Section 2.2(a) of the Mortgage
Loan Sale and Contribution Agreement.

      Purchaser: IMH Assets Corp., a California corporation, and its successors
and assigns.

      Qualified Insurer: A mortgage guaranty insurance company duly qualified as
such under the laws of the state of its principal place of business and each
state having jurisdiction over such insurer in connection with the insurance
policy issued by such insurer, duly authorized and licensed in such states to
transact a mortgage guaranty insurance business in such states and to write the
insurance provided by the insurance policy issued by it, approved as an insurer
by the Master Servicer and as a Fannie Mae-approved mortgage insurer.

      Radian: Radian Guaranty, Inc., or its successors or assigns.

      Radian Lender-Paid PMI Policy: A lender-paid primary mortgage insurance
policy issued by Radian in accordance with a March 29, 2002 letter between the
Seller and Radian.

      Radian PMI Insured Loans: The Mortgage Loans included in the Trust Fund
covered by a Radian Lender-Paid PMI Policy, as indicated on the Mortgage Loan
Schedule.

      Radian PMI Policy Fee: With respect to each Radian PMI Insured Loan and
any Payment Date, the product of (i) the Radian PMI Rate divided by 12 and (ii)
the Stated Principal Balance of such Mortgage Loan as of the first day of the
related Due Period.

      Radian PMI Rate: With respect to any Mortgage Loan covered by the Radian
Lender-Paid PMI Policy, the rate per annum at which the premium with respect to
such policy accrues as indicated in the Mortgage Loan Schedule.

      Rating Agency: Any nationally recognized statistical rating organization,
or its successor, that rated the Bonds at the request of the Depositor at the
time of the initial issuance of the Bonds. Initially, Standard & Poor's or
Moody's. If such organization or a successor is no longer in existence, "Rating
Agency" with respect to the Class A Bonds shall be such nationally recognized
statistical rating organization, or other comparable Person, designated by the
Bond Insurer so long as no Bond Insurer Default exists, notice of which
designation shall be given to the Indenture Trustee. References herein to the
highest short term unsecured rating category of a Rating Agency shall mean A-1
or better in the case of Standard & Poor's and P-1 or better in the case of
Moody's and in the case of any other Rating Agency shall mean such equivalent
ratings. References herein to the highest long-term rating category of a Rating
Agency shall mean "AAA" in the case of Standard & Poor's and "Aaa" in the case
of Moody's and in the case of any other Rating Agency, such equivalent rating.

      Realized Loss: With respect to each Mortgage Loan (or REO Property) as to
which a Cash Liquidation or REO Disposition has occurred, an amount (not less
than zero) equal to (i) the Stated Principal Balance of the Mortgage Loan (or
REO Property) as of the date of Cash Liquidation or

                                       31
<PAGE>

REO Disposition, plus (ii) interest (and REO Imputed Interest, if any) at the
Net Mortgage Rate from the Due Date as to which interest was last paid or
advanced to Bondholders up to the last day of the month in which the Cash
Liquidation (or REO Disposition) occurred on the Stated Principal Balance of
such Mortgage Loan (or REO Property) outstanding during each Due Period that
such interest was not paid or advanced, minus (iii) the proceeds, if any,
received during the month in which such Cash Liquidation (or REO Disposition)
occurred, to the extent applied as recoveries of interest at the Net Mortgage
Rate and to principal of the Mortgage Loan, net of the portion thereof
reimbursable to the Master Servicer or any Subservicer with respect to related
Advances or expenses as to which the Master Servicer or any Subservicer is
entitled to reimbursement thereunder but which have not been previously
reimbursed. With respect to each Mortgage Loan which has become the subject of a
Deficient Valuation, the difference between the principal balance of the
Mortgage Loan outstanding immediately prior to such Deficient Valuation and the
principal balance of the Mortgage Loan as reduced by the Deficient Valuation.
With respect to each Mortgage Loan which has become the object of a Debt Service
Reduction, the amount of such Debt Service Reduction.

      Record Date: With respect to the Bonds, other than the Class 2-A Bonds,
and any Payment Date, the close of business on the Business Day immediately
preceding such Payment Date. With respect to the Class 2-A Bonds and any Bonds
that are not Book-Entry Bonds, the close of business on the last Business Day of
the calendar month preceding such Payment Date.

      Reference Banks: Any leading banks selected by the Indenture Trustee after
consultation with the Master Servicer and the Bond Insurer and engaged in
transactions in Eurodollar deposits in the international Eurocurrency market (i)
with an established place of business in London, (ii) whose quotations appear on
the Telerate Screen Page 3750 on the Interest Determination Date in question,
(iii) which have been designated as such by the Indenture Trustee after
consultation with the Master Servicer and the Bond Insurer, and (iv) which are
not Affiliates of the Depositor or the Seller.

      Registered Holder: The Person in whose name a Bond is registered in the
Bond Register on the applicable Record Date.

      Related Documents: With respect to each Mortgage Loan, the documents
specified in Section 2.1(b) of the Mortgage Loan Sale and Contribution Agreement
and any documents required to be added to such documents pursuant to the
Mortgage Loan Sale and Contribution Agreement, the Trust Agreement, Indenture or
the Servicing Agreement.

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

      Relief Act Shortfall: As to any Payment Date and any Mortgage Loan (other
than a Mortgage Loan relating to an REO Property), any shortfalls relating to
the Relief Act or similar legislation or regulations.

      Remittance Report: The report prepared by the Master Servicer pursuant to
Section 4.01 of the Servicing Agreement.

                                       32
<PAGE>

      REO Acquisition: The acquisition by the Master Servicer on behalf of the
Indenture Trustee for the benefit of the Bondholders of any REO Property
pursuant to Section 3.13 of the Servicing Agreement.

      REO Disposition: As to any REO Property, a determination by the Master
Servicer that it has received substantially all Insurance Proceeds, Liquidation
Proceeds, REO Proceeds and other payments and recoveries (including proceeds of
a final sale) which the Master Servicer expects to be finally recoverable from
the sale or other disposition of the REO Property.

      REO Imputed Interest: As to any REO Property, for any period, an amount
equivalent to interest (at the Net Mortgage Rate that would have been applicable
to the related Mortgage Loan had it been Outstanding) on the unpaid principal
balance of the Mortgage Loan as of the date of acquisition thereof for such
period as such balance is reduced pursuant to Section 3.13 of the Servicing
Agreement by any income from the REO Property treated as a recovery of
principal.

      REO Proceeds: Proceeds, net of expenses, received in respect of any REO
Property (including, without limitation, proceeds from the rental of the related
Mortgaged Property) which proceeds are required to be deposited into the
Collection Account only upon the related REO Disposition.

      REO Property: A Mortgaged Property that is acquired by the Issuer by
foreclosure or by deed in lieu of foreclosure.

      Repurchase Event: With respect to any Mortgage Loan, either (i) a
discovery that, as of the Closing Date, the related Mortgage was not a valid
first lien on the related Mortgaged Property, or (ii) with respect to any
Mortgage Loan as to which the Seller delivers an affidavit certifying that the
original Mortgage Note has been lost or destroyed, a subsequent default on such
Mortgage Loan if the enforcement thereof or of the related Mortgage is
materially and adversely affected by the absence of such original Mortgage Note.

      Repurchase Price: With respect to any Mortgage Loan required to be
repurchased on any date pursuant to the Mortgage Loan Sale and Contribution
Agreement or purchased by the Master Servicer pursuant to the Servicing
Agreement, an amount equal to the sum, without duplication, of (i) 100% of the
Stated Principal Balance thereof (without reduction for any amounts charged off)
and (ii) unpaid accrued interest at the Mortgage Rate on the outstanding
principal balance thereof from the Due Date to which interest was last paid by
the Mortgagor to the first day of the month following the month of purchase plus
(iii) the amount of unreimbursed Advances or unreimbursed Servicing Advances
made with respect to such Mortgage Loan plus (iv) any other amounts owed to the
Master Servicer or any Subservicer pursuant to Section 3.07 of the Servicing
Agreement and not included in clause (iii) of this definition.

      Reserve Interest Rate: With respect to any Interest Determination Date,
the rate per annum that the Indenture Trustee determines to be either (i) the
arithmetic mean (rounded upwards if necessary to the nearest whole multiple of
0.0625%) of the one-month United States dollar lending rates which New York City
banks selected by the Indenture Trustee are quoting on the relevant Interest
Determination Date to the principal London offices of leading banks in the
London interbank

                                       33
<PAGE>

market or (ii) in the event that the Indenture Trustee can determine no such
arithmetic mean, the lowest one-month United States dollar lending rate which
New York City banks selected by the Indenture Trustee are quoting on such
Interest Determination Date to leading European banks.

      Responsible Officer: With respect to the Indenture Trustee, any officer of
the Indenture Trustee with direct responsibility for the administration of the
Indenture and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer's knowledge of and
familiarity with the particular subject.

      Securities Act: The Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

      Securities Intermediary: Deutsche Bank National Trust Company, or its
successors and assigns.

      Security: Any of the Certificates or Bonds.

      Securityholder or Holder: Any Bondholder or a Certificateholder.

      Security Instrument: A written instrument creating a valid first lien or
second lien on a Mortgaged Property securing a Mortgage Note, which may be any
applicable form of mortgage, deed of trust, deed to secure debt or security
deed, including any riders or addenda thereto.

      Seller: Impac Mortgage Holdings, Inc., a Maryland corporation, and its
successors and assigns.

      Senior Derivative Contracts: The six Derivative Contracts between the
Seller and the Derivative Contract Counterparty for the benefit of the Class
1-A-1 Bonds, Class 1-A-2 or Class 2-A Bonds, and the Owner Trust Certificates,
set forth in Exhibit E of the Indenture.

      Senior Net Derivative Contract Payment Amount: With respect to any Payment
Date, the amount equal to the excess, if any, of (a) the aggregate amount
payable on that Payment Date to the Issuer from the Derivative Contract
Counterparty pursuant to the Senior Derivative Contracts, over (b) the aggregate
amount payable on that Payment Date to the Derivative Contract Counterparty
under the Senior Derivative Contracts, in each case as described in Section
8.02(c) of the Indenture.

      Servicing Account: The separate trust account created and maintained by
the Master Servicer or each Subservicer with respect to the Mortgage Loans or
REO Property, which shall be an Eligible Account, for collection of taxes,
assessments, insurance premiums and comparable items as described in Section
3.08 of the Servicing Agreement.

      Servicing Advances: All customary, reasonable and necessary "out of
pocket"costs and expenses incurred in connection with a default, delinquency or
other unanticipated event in the performance by the Master Servicer or any
Subservicer of its servicing obligations, including, without duplication, but
not limited to, the cost of (i) the preservation, restoration and protection of
a Mortgaged Property, (ii) any enforcement or judicial proceedings, including
foreclosures and any

                                       34
<PAGE>

expenses incurred in relation to any such proceedings that result from the
Mortgage Loan being registered on the MERS(R) System, (iii) the management and
liquidation of any REO Property and (iv) compliance with the obligations under
Sections 3.10, 3.11, 3.13 of the Servicing Agreement.

      Servicing Agreement: The Servicing Agreement dated as of September 29,
2003, among the Master Servicer, the Issuer and the Indenture Trustee.

      Servicing Certificate: A certificate completed and executed by a Servicing
Officer on behalf of the Master Servicer in accordance with Section 4.01 of the
Servicing Agreement.

      Servicing Default: The meaning assigned in Section 6.01 of the Servicing
Agreement.

      Servicing Fee: The sum of the Master Servicing Fee and the related
Subservicing Fee.

      Servicing Fee Rate: The sum of the Master Servicing Fee Rate and the
related Subservicing Fee Rate.

      Servicing Officer: Any officer of the Master Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loans whose
name and specimen signature appear on a list of servicing officers furnished to
the Indenture Trustee by the Master Servicer, as such list may be amended from
time to time.

      Special Certificate Cap Contract: The Confirmation together with the
associated ISDA Master Agreement, delivered to the Indenture Trustee on the
Closing Date and attached to the Indenture as Exhibit F, for which amounts
payable shall be distributed in accordance with Section 3.05(n) of the
Indenture.

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

      Stated Principal Balance: With respect to any Mortgage Loan or related REO
Property as of any date of determination, (i) the principal balance of the
Mortgage Loan outstanding as of the Cut- off Date, after application of all
scheduled Monthly Payments due on or before such date, whether or not received,
minus (ii) the sum of (a) the principal portion of the Monthly Payments due with
respect to such Mortgage Loan or REO Property during each Due Period ending
prior to the most recent Payment Date which were received or with respect to
which an Advance was made, (b) all Principal Prepayments with respect to such
Mortgage Loan or REO Property, and all Insurance Proceeds, Liquidation Proceeds
and REO Proceeds to the extent applied by the Master Servicer as recoveries of
principal in accordance with Section 3.13 of the Servicing Agreement with
respect to such Mortgage Loan or REO Property, which were distributed pursuant
to Section 3.05 of the Indenture on any previous Payment Date, and (c) the
principal portion of any Realized Loss with respect thereto allocated pursuant
to Section 3.31 of the Indenture for any previous Payment Date.

      Statutory Trust Statute: Chapter 38 of Title 12 of the Delaware Code, 12
Del. Code ss.ss.3801 et seq., as the same may be amended from time to time.

                                       35
<PAGE>

      Step-Up Date: The first Payment Date following the earlier of (i) the
first Payment Date for which the Issuer can cause the redemption of the Bonds
pursuant to Section 8.07 of the Indenture and (ii) the Payment Date in October
2013.

      Subordinate Derivative Contracts: The two Derivative Contracts between the
Seller and the Derivative Contract Counterparty for the benefit of the Class M
Bonds and the Certificates, set forth in Exhibit E of the Indenture.

      Subordinate Net Derivative Contract Payment Amount: With respect to any
Payment Date, the amount equal to the excess, if any, of (a) the aggregate
amount payable on that Payment Date to the Issuer from the Derivative Contract
Counterparty pursuant to the Subordinate Derivative Contracts, over (b) the
aggregate amount payable on that Payment Date to the Derivative Contract
Counterparty under the Subordinate Derivative Contracts, in each case as
described in Section 8.02(c) of the Indenture.

      Subordinated Payment Transfer Fraction: With respect to any Subordinated
Transfer Payment Date, a fraction equal to (x) any Subordinated Transfer
Realized Loss Amount for such Payment Date, divided by (y) the aggregate Stated
Principal Balance of the Mortgage Loans in the Overcollateralized Loan Group as
of the beginning of the related Due Period.

      Subordinated Transfer Amount: With respect to any Subordinated Transfer
Payment Date, the principal portion of any amount paid from the
Overcollateralized Loan Group to the Undercollateralized Loan Group.

      Subordinated Transfer Payment Date: Any Payment Date on which a
Subordinated Transfer Realized Loss Amount exists for either loan group.

      Subordinated Transfer Realized Loss Amount: For any Payment Date, the
amount of any Realized Loss on a mortgage loan in a Loan Group which has been
allocated on a preceding Payment Date either (a) to the non-related
Overcollateralization Amount or (b) to the non-related Underlying Class M Bonds,
to the extent such Realized Loss has not been reimbursed by related or
non-related Net Monthly Excess Cashflow or by a Subordinated Transfer Amount or
by an offsetting reduction in the overcollateralization or in the Class M Bonds
of the related Undercollateralized Loan Group.

      Subservicer: Any Person with whom the Master Servicer has entered into a
Subservicing Agreement as a Subservicer and acceptable to the Bond Insurer,
including the Initial Subservicers.

      Subservicing Account: An Eligible Account established or maintained by a
Subservicer as provided for in Section 3.06(e) of the Servicing Agreement.

      Subservicing Agreement: The written contract between the Master Servicer
and any Subservicer relating to servicing and administration of certain Mortgage
Loans as provided in Section 3.02 of the Servicing Agreement.

      Subservicing Fee: With respect to each Mortgage Loan and any Payment Date,
the fee payable monthly to the subservicer in respect of servicing compensation
that accrues at an annual rate

                                       36
<PAGE>

equal to the Subservicing Fee Rate multiplied by the Stated Principal Balance of
such Mortgage Loan as of the related Due Date in the related Due Period.

      Subservicing Fee Rate: On each Group 1 Loan, a rate equal to 0.375% per
annum. On each Group 2 Loan, a rate equal to (i) 0.25% per annum with respect to
Group 2 Loans secured by first liens on the related mortgaged property or (ii)
0.75% per annum with respect to Group 2 Loans secured by second liens on the
related mortgaged property.

      Substitution Adjustment Amount: With respect to any Eligible Substitute
Mortgage Loan, the amount as defined in Section 2.03 of the Servicing Agreement.

      Telerate Screen Page 3750: The display designated as page 3750 on the
Telerate Service (or such other page as may replace page 3750 on that service
for the purpose of displaying London interbank offered rates of major banks).

      Treasury Regulations: Regulations, including proposed or temporary
Regulations, promulgated under the Code. References herein to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

      Trust: The Impac CMB Trust Series 2003-10 to be created pursuant to the
Trust Agreement.

      Trust Agreement: The Amended and Restated Trust Agreement dated as of
September 29, 2003, among the Owner Trustee, the Depositor and Deutsche Bank
National Trust Company, as Certificate Registrar and Certificate Paying Agent,
relating to the Trust.

      Trust Estate: The meaning specified in the Granting Clause of the
Indenture.

      Trust Indenture Act or TIA: The Trust Indenture Act of 1939, as amended
from time to time, as in effect on any relevant date.

      UCC: The Uniform Commercial Code, as amended from time to time, as in
effect in any specified jurisdiction.

      Undercollateralized Loan Group: With respect to any Payment Date, a Loan
Group which benefits from the payment of a Subordinated Transfer Realized Loss
Amount.

      Underwriters: Countrywide Securities Corporation and Merrill Lynch,
Pierce, Fenner & Smith Incorporated, or their successors.

      Uninsured Cause: Any cause of damage to property subject to a Mortgage
that the complete restoration of such property is not fully reimbursable by the
hazard insurance policies.

      Unpaid Interest Shortfall: For each Class of Bonds and any Payment Date,
such Bonds' pro rata share, based on the amount of Accrued Bond Interest
otherwise payable on such Bond on such Payment Date, of (a) any Prepayment
Interest Shortfalls, to the extent not covered by Compensating

                                       37
<PAGE>

Interest, and (b) any Relief Act Shortfalls, plus interest on the amount of
previously allocated Unpaid Interest Shortfall on such Class of Bonds which
remains unreimbursed, at the Bond Interest Rate for such Class for the related
Accrual Period.

      Wendover: Wendover Funding, Inc.

                                       38EXHIBIT 4.2

<PAGE>

                                IMH ASSETS CORP.,

                                   DEPOSITOR,

                                       and

                      DEUTSCHE BANK NATIONAL TRUST COMPANY,

                                 GRANTOR TRUSTEE

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

                             GRANTOR TRUST AGREEMENT

                         Dated as of September 29, 2003

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

                                IMH ASSETS CORP.
                  IMPAC CMB GRANTOR TRUST 2003-10-1 THROUGH 6,
                   GRANTOR TRUST CERTIFICATES, SERIES 2003-10

                                   ----------

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

ARTICLE I

     Definitions...............................................................2

ARTICLE II

     Conveyance of Underlying Class M Bonds;
     Original Issuance of Certificates.........................................7
              Section 2.01  CONVEYANCE OF UNDERLYING CLASS M BONDS TO
                            GRANTOR TRUSTEE....................................7
              Section 2.02  ACCEPTANCE BY GRANTOR TRUSTEE......................8
              Section 2.03  REPRESENTATIONS AND WARRANTIES CONCERNING THE
                            DEPOSITOR..........................................8

ARTICLE III

     Accounts.................................................................10
              Section 3.01  PAYMENT ACCOUNT...................................10
              Section 3.02  PERMITTED WITHDRAWALS AND TRANSFERS FROM THE
                            PAYMENT ACCOUNTS..................................10

ARTICLE IV

     Certificates.............................................................11
              Section 4.01  CERTIFICATES......................................11
              Section 4.02  REGISTRATION OF TRANSFER AND EXCHANGE OF
                            CERTIFICATES......................................13
              Section 4.03  MUTILATED, DESTROYED, LOST OR STOLEN
                            CERTIFICATES......................................14
              Section 4.04  PERSONS DEEMED OWNERS.............................15
              Section 4.05  ERISA RESTRICTIONS................................15

ARTICLE V

     Payments to Certificateholders...........................................16
              Section 5.01  PAYMENTS ON THE CERTIFICATES......................16
              Section 5.02  ALLOCATION OF LOSSES..............................16
              Section 5.03  PAYMENTS..........................................17
              Section 5.04  STATEMENTS TO CERTIFICATEHOLDERS..................17

                                       -i-
<PAGE>

ARTICLE VI

     Indemnification..........................................................19

ARTICLE VII

     Concerning the Grantor Trustee...........................................20
              Section 7.01  DUTIES OF GRANTOR TRUSTEE.........................20
              Section 7.02  CERTAIN MATTERS AFFECTING THE GRANTOR TRUSTEE.....21
              Section 7.03  GRANTOR TRUSTEE NOT LIABLE FOR CERTIFICATES OR
                            MORTGAGE LOANS....................................23
              Section 7.04  GRANTOR TRUSTEE MAY OWN CERTIFICATES..............23
              Section 7.05  GRANTOR TRUSTEE'S FEES AND EXPENSES...............23
              Section 7.06  ELIGIBILITY REQUIREMENTS FOR GRANTOR TRUSTEE......24
              Section 7.07  INSURANCE.........................................24
              Section 7.08  RESIGNATION AND REMOVAL OF THE GRANTOR TRUSTEE....24
              Section 7.09  SUCCESSOR GRANTOR TRUSTEE.........................25
              Section 7.10  MERGER OR CONSOLIDATION OF GRANTOR TRUSTEE........26
              Section 7.11  APPOINTMENT OF CO-GRANTOR TRUSTEE OR SEPARATE
                            GRANTOR TRUSTEE...................................26
              Section 7.12  FEDERAL INFORMATION RETURNS AND REPORTS TO
                            CERTIFICATEHOLDERS; GRANTOR TRUST ADMINISTRATION..27

ARTICLE VIII

     Termination..............................................................29
              Section 8.01  TERMINATION UPON REPURCHASE BY THE DEPOSITOR
                            OR ITS DESIGNEE OR LIQUIDATION OF THE MORTGAGE
                            LOANS.............................................29

ARTICLE IX

     Miscellaneous Provisions.................................................30
              Section 9.01  INTENT OF PARTIES.................................30
              Section 9.02  ACTION UNDER UNDERLYING DOCUMENTS.................30
              Section 9.03  AMENDMENT.........................................30
              Section 9.04  RECORDATION OF AGREEMENT..........................31
              Section 9.05  LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS........31
              Section 9.06  ACTS OF CERTIFICATEHOLDERS........................32

                                      -ii-
<PAGE>

              Section 9.07  GOVERNING LAW.....................................33
              Section 9.08  NOTICES...........................................33
              Section 9.09  SEVERABILITY OF PROVISIONS........................34
              Section 9.10  SUCCESSORS AND ASSIGNS............................34
              Section 9.11  ARTICLE AND SECTION HEADINGS......................34
              Section 9.12  COUNTERPARTS......................................34
              Section 9.13  NOTICE TO RATING AGENCIES.........................34

EXHIBITS

Exhibit A - Form of Class M Certificate
Exhibit B - Copies of Underlying Class M Bonds
Exhibit C - Underlying Operative Documents

                                      -iii-
<PAGE>

                             GRANTOR TRUST AGREEMENT

      Grantor Trust Agreement dated September 29, 2003, between IMH Assets
Corp., a California corporation, as Depositor (the "Depositor") and Deutsche
Bank National Trust Company, a national banking association, not in its
individual capacity but solely as grantor trustee (the "Grantor Trustee").

                              PRELIMINARY STATEMENT

      On the Closing Date, the Depositor will acquire the Underlying Class M
Bonds. On the Closing Date, the Depositor will (i) transfer the Underlying Class
M-1-1 Bonds and Class M-1-2 Bonds to Impac CMB Grantor Trust 2003-10-1 and
receive the Class M-1 Certificates evidencing the entire beneficial ownership
interest in Trust Fund 1; (ii) transfer the Underlying Class M-2-1 Bonds and
Class M-2-2 Bonds to Impac CMB Grantor Trust 2003-10-2 and receive the Class M-1
Certificates evidencing the entire beneficial ownership interest in Trust Fund
2; (iii) transfer the Underlying Class M-3-1 Bonds and Class M-3-2 Bonds to
Impac CMB Grantor Trust 2003-10-3 and receive the Class M-3 Certificates
evidencing the entire beneficial ownership interest in Trust Fund 3; (iv)
transfer the Underlying Class M-4-1 Bonds and Class M-4-2 Bonds to Impac CMB
Grantor Trust 2003-10-4 and receive the Class M-4 Certificates evidencing the
entire beneficial ownership interest in Trust Fund 4; (v) transfer the
Underlying Class M-5-1 Bonds and Class M-5-2 Bonds to Impac CMB Grantor Trust
2003-10-5 and receive the Class M-5 Certificates evidencing the entire
beneficial ownership interest in Trust Fund 5; and (vi) transfer the Underlying
Class M-6-1 Bonds and Class M-6-2 Bonds to Impac CMB Grantor Trust 2003-10-6 and
receive the Class M-6 Certificates evidencing the entire beneficial ownership
interest in Trust Fund 6.

      The Grantor Trustee on behalf of each Trust shall make an election for the
assets constituting the related Trust Fund to be treated for federal income tax
purposes as a grantor trust.

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

                                       -1-
<PAGE>

                                    ARTICLE I

                                   Definitions

      Whenever used in this Agreement, the following words and phrases, unless
otherwise expressly provided or unless the context otherwise requires, shall
have the meanings specified in this Article. Capitalized terms not otherwise
defined herein shall have the meanings assigned to such terms in the Definitions
attached as Appendix A to the Indenture.

      AGREEMENT: This Grantor Trust Agreement and all amendments hereof and
supplements hereto.

      ASSUMED FINAL PAYMENT DATE: October 25, 2033, or if such day is not a
Business Day, the next succeeding Business Day.

      AVAILABLE FUNDS: With respect to any Payment Date and each Certificate,
the sum of any payments received from the related Underlying Class M Bonds minus
the fees, expenses and indemnity amounts owed the Grantor Trustee.

      BOOK-ENTRY CERTIFICATES: Beneficial interests in the Certificates,
ownership and transfers of which shall be made through book entries by the
Depository as described in Section 4.01 of the Grantor Trust Agreement.

      CERTIFICATE: Any grantor trust certificate evidencing a beneficial
ownership interest in the related Trust Fund signed and countersigned by the
Grantor Trustee in substantially the form annexed hereto as Exhibit A, with the
blanks therein appropriately completed.

      CERTIFICATE OWNER: Any Person who is the beneficial owner of a Certificate
registered in the name of the Depository or its nominee.

      CERTIFICATE REGISTER: The register maintained pursuant to Section 4.02(a).

      CERTIFICATEHOLDER: A Holder of a Certificate.

      CLASS: With respect to the Grantor Trust Certificates, M-1, M-2, M-3, M-4,
M-5 or M-6.

      CLOSING DATE: September 29, 2003.

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

      CORPORATE TRUST OFFICE: The office of the Grantor Trustee at which at any
particular time its corporate trust business is administered, which office, at
the date of the execution of this Agreement, is located at 1761 East St. Andrew
Place, Santa Ana, California 92705, Attention:

                                       -2-
<PAGE>

IM0310.

      CURRENT PRINCIPAL AMOUNT: With respect to any Certificate as of any
Payment Date, the initial principal amount of such Certificate, and reduced by
(i) all amounts distributed on previous Payment Dates on such Certificate with
respect to principal and (ii) the principal portion of all Underlying Realized
Losses allocated prior to such Payment Date to such Certificate. With respect to
the Certificates in the aggregate, the Current Principal Amount thereof will
equal the sum of the Current Principal Amounts of all Certificates.

      CUT-OFF DATE: September 1, 2003.

      DEPOSITORY: The Depository Trust Company, the nominee of which is Cede &
Co., or any successor thereto.

      DEPOSITORY AGREEMENT: The meaning specified in Subsection 4.01(a) hereof.

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

      DESIGNATED DEPOSITORY INSTITUTION: A depository institution (commercial
bank, federal savings bank mutual savings bank or savings and loan association)
or trust company (which may include the Grantor Trustee), the deposits of which
are fully insured by the FDIC to the extent provided by law.

      DTC CUSTODIAN: Deutsche Bank National Trust Company, or its successors in
interest as custodian for the Depository.

      FDIC: Federal Deposit Insurance Corporation or any successor thereto.

      FRACTIONAL UNDIVIDED INTEREST: With respect to each Class of Certificates,
the fractional undivided interest evidenced by any Certificate, the numerator of
which is the Current Principal Amount of such Certificate and the denominator of
which is the aggregate Current Principal Amount of the related Class of such
Certificate.

      GRANTOR TRUST: Any of the Trusts.

      GRANTOR TRUSTEE: Deutsche Bank National Trust Company, or its successor in
interest, or any successor trustee appointed as herein provided.

      HOLDER: The Person in whose name a Certificate is registered in the
Certificate Register, except that, subject to Subsections 9.03(b) and 9.06(e),
solely for the purpose of giving any consent pursuant to this Agreement, any
Certificate registered in the name of the Depositor or the Grantor

                                       -3-
<PAGE>

Trustee or any Affiliate thereof shall be deemed not to be outstanding and the
Fractional Undivided Interest evidenced thereby shall not be taken into account
in determining whether the requisite percentage of Fractional Undivided
Interests necessary to effect any such consent has been obtained.

      INDEMNIFIED PERSONS: The Grantor Trustee and its officers, directors,
agents and employees and any separate co-trustee and its officers, directors,
agents and employees.

      INDEPENDENT: When used with respect to any specified Person, this term
means that such Person (a) is in fact independent of the Depositor and of any
Affiliate of the Depositor (b) does not have any direct financial interest or
any material indirect financial interest in the Depositor or any Affiliate of
the Depositor and (c) is not connected with the Depositor or any Affiliate as an
officer, employee, promoter, underwriter, trustee, partner, director or person
performing similar functions.

      INTEREST ACCRUAL PERIOD: With respect to any Payment Date and the
Certificates, (i) with respect to the Payment Date in October 2003, the period
commencing on the Closing Date and ending on the day preceding the Payment Date
in October 2003, and (ii) with respect to any Payment Date after the Payment
Date in October 2003, the period commencing on the Payment Date in the month
immediately preceding the month in which that Payment Date occurs and ending on
the day preceding that Payment Date.

      LIBOR: LIBOR as determined by the Underlying Indenture Trustee pursuant to
the Underlying Indenture.

      MOODY'S: Moody's Investors Service, Inc. or its successor in interest.

      OPINION OF COUNSEL: A written opinion of counsel who is or are acceptable
to the Grantor Trustee and who, unless required to be Independent (an "Opinion
of Independent Counsel"), may be internal counsel for the Depositor.

      PAYMENT ACCOUNT: With respect to the Trusts, any of the related trust
accounts created and maintained pursuant to Section 3.01, which shall be
denominated (i) "Deutsche Bank National Trust Company, as Grantor Trustee f/b/o
holders of IMH Assets Corp., Impac CMB Grantor Trust 2003-10-1, Class M-1
Grantor Trust Certificates, Series 2003-10-1 Payment Account," (ii) "Deutsche
Bank National Trust Company, as Grantor Trustee f/b/o holders of IMH Assets
Corp., Impac CMB Grantor Trust 2003-10-2, Class M-2 Grantor Trust Certificates,
Series 2003-10-2 Payment Account," (iii) "Deutsche Bank National Trust Company,
as Grantor Trustee f/b/o holders of IMH Assets Corp., Impac CMB Grantor Trust
2003-10-3, Class M-3 Grantor Trust Certificates, Series 2003-10-3 Payment
Account," (iv) "Deutsche Bank National Trust Company, as Grantor Trustee f/b/o
holders of IMH Assets Corp., Impac CMB Grantor Trust 2003-10-4, Class M-4
Grantor Trust Certificates, Series 2003-10-4 Payment Account," (v) "Deutsche
Bank National Trust Company, as Grantor Trustee f/b/o holders of IMH Assets
Corp., Impac CMB Grantor Trust 2003- 10-5, Class M-5 Grantor Trust Certificates,
Series 2003-10-5 Payment Account," or (vi) "Deutsche Bank National Trust
Company, as Grantor Trustee f/b/o holders of IMH Assets Corp., Impac CMB

                                       -4-
<PAGE>

Grantor Trust 2003-10-6, Class M-6 Grantor Trust Certificates, Series 2003-10-6
Payment Account," as applicable.

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

      RATING AGENCIES: S&P and Moody's.

      RECORD DATE: With respect to the Certificates that are Book-Entry
Certificates and any Payment Date, the close of business on the Business Day
immediately preceding such Payment Date. With respect to any Certificates that
are not Book-Entry Certificates, the close of business on the last Business Day
of the calendar month preceding such Payment Date.

      RESPONSIBLE OFFICER: Any officer assigned to the Corporate Trust Office
(or any successor thereto), including any Vice President, Assistant Vice
President, Trust Officer, any Assistant Secretary, any trust officer or any
other officer of the Grantor Trustee customarily performing functions similar to
those performed by any of the above designated officers and having direct
responsibility for the administration of this Agreement.

      S&P: Standard and Poor's, a division of The McGraw-Hill Companies, Inc.,
and its successors in interest.

      STATEMENTS TO UNDERLYING CLASS M BONDHOLDERS: The statement provided to
the Holders of the Underlying Class M Bonds in accordance with Section 7.05 of
the Underlying Indenture.

      TRUST FUND 1 or TRUST 1: The corpus of the trust created by this
Agreement, consisting of the Underlying Class M-1-1 Bonds and Class M-1-2 Bonds
and the other related assets described in the third paragraph of Section 2.01.

      TRUST FUND 2 or TRUST 2: The corpus of the trust created by this
Agreement, consisting of the Underlying Class M-2-1 Bonds and Class M-2-2 Bonds
and the other related assets described in the third paragraph of Section 2.01.

      TRUST FUND 3 or TRUST 3: The corpus of the trust created by this
Agreement, consisting of the Underlying Class M-3-1 Bonds and Class M-3-2 Bonds
and the other related assets described in the third paragraph of Section 2.01.

      TRUST FUND 4 or TRUST 4: The corpus of the trust created by this
Agreement, consisting of the Underlying Class M-4-1 Bonds and Class M-4-2 Bonds
and the other related assets described in the third paragraph of Section 2.01.

                                       -5-
<PAGE>

      TRUST FUND 5 or TRUST 5: The corpus of the trust created by this
Agreement, consisting of the Underlying Class M-5-1 Bonds and Class M-5-2 Bonds
and the other related assets described in the third paragraph of Section 2.01.

      TRUST FUND 6 or TRUST 6: The corpus of the trust created by this
Agreement, consisting of the Underlying Class M-6-1 Bonds and Class M-6-2 Bonds
and the other related assets described in the third paragraph of Section 2.01.

      TRUST FUND or TRUST: Any of Trust Fund 1, Trust Fund 2, Trust Fund 3,
Trust Fund 4 Trust Fund 5 or Trust Fund 6, or Trust 1, Trust 2, Trust 3, Trust
4, Trust 5 or Trust 6.

      UNDERLYING CLASS M BOND: With respect to the Class M-1 Certificates and
Trust Fund 1, the Class M-1-1 Bonds and Class M-1-2 Bonds; with respect to the
Class M-2 Certificates and Trust Fund 2, the Class M-2-1 Bonds and Class M-2-2
Bonds; with respect to the Class M-3 Certificates and Trust Fund 3, the Class
M-3-1 Bonds and Class M-3-2 Bonds; with respect to the Class M-4 Certificates
and Trust Fund 4, the Class M-4-1 Bonds and Class M-4-2 Bonds; with respect to
the Class M-5 Certificates and Trust Fund 5, the Class M-5-1 Bonds and Class
M-5-2 Bonds; and with respect to the Class M-6 Certificates and Trust Fund 6,
the Class M-6-1 Bonds and Class M-6-2 Bonds, in each case, issued pursuant to
the Underlying Indenture.

      UNDERLYING INDENTURE TRUSTEE: Deutsche Bank National Trust Company, as
trustee under the Underlying Indenture.

      UNDERLYING INTEREST SHORTFALLS: Any Unpaid Interest Shortfalls (as defined
in the Underlying Indenture) allocated to the Underlying Class M Bonds pursuant
to the Underlying Indenture.

      UNDERLYING MORTGAGE LOANS: The mortgage loans deposited into the
Underlying Trust created by the Underlying Indenture.

      UNDERLYING INDENTURE: The Indenture dated as of September 29, 2003,
between the Underlying Indenture Trustee and Impac CMB Trust Series 2003-10,
attached hereto as Exhibit E.

      UNDERLYING REALIZED LOSSES: Any realized losses allocated to the related
Underlying Class M Bonds pursuant to the Underlying Indenture.

                                       -6-
<PAGE>

                                   ARTICLE II

                     Conveyance of Underlying Class M Bonds;
                        Original Issuance of Certificates

      Section 2.01 CONVEYANCE OF UNDERLYING CLASS M BONDS TO GRANTOR TRUSTEE.
The Depositor, concurrently with the execution and delivery hereof, does hereby
issue to the Grantor Trustee, in trust, (A) for the use and benefit of the Class
M-1 Certificateholders, (i) all the right, title and interest of the Depositor
in and to the Underlying Class M-1-1 Bonds and Class M-1-2 Bonds, (ii) all
payments on the Underlying Class M-1-1 Bonds and Class M-1-2 Bonds after the
Closing Date and (iii) all other assets constituting Trust Fund 1; (B) for the
use and benefit of the Class M-2 Certificateholders, (i) all the right, title
and interest of the Depositor in and to the Underlying Class M-2-1 Bonds and
Class M-2-2 Bonds, (ii) all payments on the Underlying Class M-2-1 Bonds and
Class M-2-2 Bonds after the Closing Date and (iii) all other assets constituting
Trust Fund 2; (C) for the use and benefit of the Class M-3 Certificateholders,
(i) all the right, title and interest of the Depositor in and to the Underlying
Class M-3-1 Bonds and Class M-3-2 Bonds, (ii) all payments on the Underlying
Class M-3-1 Bonds and Class M-3-2 Bonds after the Closing Date and (iii) all
other assets constituting Trust Fund 3; (D) for the use and benefit of the Class
M-4 Certificateholders, (i) all the right, title and interest of the Depositor
in and to the Underlying Class M-4-1 Bonds and Class M-4-2 Bonds, (ii) all
payments on the Underlying Class M-4-1 Bonds and Class M-4-2 Bonds after the
Closing Date and (iii) all other assets constituting Trust Fund 4; (E) for the
use and benefit of the Class M-5 Certificateholders, (i) all the right, title
and interest of the Depositor in and to the Underlying Class M-5-1 Bonds and
Class M-5-2 Bonds, (ii) all payments on the Underlying Class M-5-1 Bonds and
Class M-5-2 Bonds after the Closing Date and (iii) all other assets constituting
Trust Fund 5; and (F) for the use and benefit of the Class M-6
Certificateholders, (i) all the right, title and interest of the Depositor in
and to the Underlying Class M-6-1 Bonds and Class M-6-2 Bonds, (ii) all payments
on the Underlying Class M-6-1 Bonds and Class M-6-2 Bonds after the Closing Date
and (iii) all other assets constituting Trust Fund 6.

      In connection with each such transfer and assignment, the Depositor is
causing the delivery of the related Underlying Class M Bonds to the Grantor
Trustee.

      It is intended that the conveyance of the Seller's right, title and
interest in and to the related Underlying Class M Bonds and all other assets
constituting the related Trust Fund pursuant to this Agreement shall constitute,
and be construed as, an absolute sale of the Underlying Class M Bonds and the
other assets constituting such Trust Fund by the Depositor to the Grantor
Trustee for the benefit of the related Certificateholders. Furthermore, it is
not intended that such conveyance be deemed a pledge of the related Underlying
Class M Bonds and the other assets constituting the related Trust Fund by the
Depositor to the Grantor Trustee to secure a debt or other obligation of the
Depositor. However, in the event that, notwithstanding the intent of the
parties, the related Underlying Class M Bonds and the other assets constituting
the applicable Trust Fund are held to be the property of the Depositor, or if
for any other reason this Agreement is held or deemed to create

                                       -7-
<PAGE>

a security interest in the related Underlying Class M Bonds and the other assets
constituting the applicable Trust Fund, then it is intended as follows: (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; (b) the conveyance provided for
in this Section shall be deemed to be a grant by the Depositor to the Grantor
Trustee of a security interest in all of the Seller's right, title and interest
in and to the related Underlying Class M Bonds, and all amounts payable to the
holders of the related Underlying Class M Bonds 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 Payment Account, whether in the form of cash,
instruments, securities or other property; (c) the possession by the Grantor
Trustee or its agent of the related Underlying Class M Bonds 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 Section 9-305 of the
Uniform Commercial Code; and (d) notifications to persons holding such property,
and acknowledgments, receipts or confirmations from persons holding such
property, shall be deemed to be notifications to or acknowledgments, receipts or
confirmations from, financial intermediaries, bailees or agents (as applicable)
of the Grantor Trustee for the purpose of perfecting such security interest
under applicable law. It is also intended that each Trust Fund be classified
(for Federal tax purposes) as a grantor trust under subpart E, part I of
subchapter J of chapter 1 of the Code, of which the Certificateholders are
owners, rather than as an association taxable as a corporation. The powers
granted and obligations undertaken in this Agreement shall be construed so as to
further such intent.

      Section 2.02 ACCEPTANCE BY GRANTOR TRUSTEE. The Grantor Trustee hereby
acknowledges the receipt by it of the Underlying Class M Bonds and declares that
it holds and will hold such Underlying Class M Bonds and all other assets and
documents included in the related Trust Fund, in trust, upon the trusts herein
set forth, for the exclusive use and benefit of all present and future
applicable Certificateholders in accordance with the terms of this Agreement.

      Section 2.03 REPRESENTATIONS AND WARRANTIES CONCERNING THE DEPOSITOR. The
Depositor hereby represents and warrants to the Grantor Trustee as follows:

            (i) the Depositor (a) is a corporation duly organized, validly
      existing and in good standing under the laws of the State of California
      and (b) is qualified and in good standing as a foreign corporation to do
      business in each jurisdiction where such qualification is necessary,
      except where the failure so to qualify would not reasonably be expected to
      have a material adverse effect on the Seller's business as presently
      conducted or on the Purchaser's ability to enter into this Agreement and
      to consummate the transactions contemplated hereby;

            (ii) the Depositor has full corporate power to own its property, to
      carry on its business as presently conducted and to enter into and perform
      its obligations under this Agreement;

            (iii) the execution and delivery by the Depositor of this Agreement
      have been duly

                                       -8-
<PAGE>

      authorized by all necessary corporate action on the part of the Depositor;
      and neither the execution and delivery of this Agreement, nor the
      consummation of the transactions herein contemplated, nor compliance with
      the provisions hereof, will conflict with or result in a breach of, or
      constitute a default under, any of the provisions of any law, governmental
      rule, regulation, judgment, decree or order binding on the Depositor or
      its properties or the articles of incorporation or by-laws of the
      Depositor, except those conflicts, breaches or defaults which would not
      reasonably be expected to have a material adverse effect on the Seller's
      ability to enter into this Agreement and to consummate the transactions
      contemplated hereby;

            (iv) the execution, delivery and performance by the Depositor of
      this Agreement and the consummation of the transactions contemplated
      hereby do not require the consent or approval of, the giving of notice to,
      the registration with, or the taking of any other action in respect of,
      any state, federal or other governmental authority or agency, except those
      consents, approvals, notices, registrations or other actions as have
      already been obtained, given or made;

            (v) this Agreement has been duly executed and delivered by the
      Depositor and, assuming due authorization, execution and delivery by the
      other parties hereto, constitutes a valid and binding obligation of the
      Depositor enforceable against it in accordance with its terms (subject to
      applicable bankruptcy and insolvency laws and other similar laws affecting
      the enforcement of the rights of creditors generally);

            (vi) there are no actions, suits or proceedings pending or, to the
      knowledge of the Depositor, threatened against the Depositor, before or by
      any court, administrative agency, arbitrator or governmental body (i) with
      respect to any of the transactions contemplated by this Agreement or (ii)
      with respect to any other matter which in the judgment of the Depositor
      will be determined adversely to the Depositor and will if determined
      adversely to the Depositor materially and adversely affect the Seller's
      ability to enter into this Agreement or perform its obligations under this
      Agreement; and the Depositor is not in default with respect to any order
      of any court, administrative agency, arbitrator or governmental body so as
      to materially and adversely affect the transactions contemplated by this
      Agreement; and

            (vii) immediately prior to the transfer and assignment to the
      Grantor Trustee, each Underlying Certificate was not subject to an
      assignment or pledge, and the Depositor had good and marketable title to
      and was the sole owner thereof and had full right to transfer and sell
      such Underlying Certificate to the Grantor Trustee free and clear of any
      encumbrance, equity, lien, pledge, charge, claim or security interest.

                                       -9-
<PAGE>

                                   ARTICLE III

                                    Accounts

      Section 3.01 PAYMENT ACCOUNT.

      (a) The Grantor Trustee shall establish and maintain in the name of the
Grantor Trustee, for the benefit of the related Certificateholders, each Payment
Account as a segregated trust account or accounts. The Grantor Trustee will
deposit in the related Payment Account any amounts received with respect to the
related Underlying Class M Bonds on each Payment Date.

      (b) All amounts deposited to the related Payment Account shall be held by
the Grantor Trustee in the name of the Grantor Trustee in trust for the benefit
of the related Certificateholders in accordance with the terms and provisions of
this Agreement.

      (c) Each Payment Account shall constitute a trust account of the related
Trust Fund segregated on the books of the Grantor Trustee and held by the
Grantor Trustee in trust in its Corporate Trust Office, and such Payment Account
and the funds deposited therein shall not be subject to, and shall be protected
from, all claims, liens, and encumbrances of any creditors or depositors of the
Grantor Trustee (whether made directly, or indirectly through a liquidator or
receiver of the Grantor Trustee). The amount at any time credited to any Payment
Account shall be held uninvested.

      Section 3.02 PERMITTED WITHDRAWALS AND TRANSFERS FROM THE PAYMENT
ACCOUNTS.

      (a) The Grantor Trustee may clear and terminate the related Payment
Account pursuant to Section 10.01 and remove amounts from time to time deposited
in error.

      (b) On an ongoing basis, the Grantor Trustee shall withdraw from the
related Payment Account any fees and expenses recoverable by the Grantor Trustee
pursuant to Sections 6.01 and 7.05.

      (c) On each Payment Date, the Grantor Trustee shall pay the amount
distributable to the Holders of the Certificates in accordance with Section 5.01
from the funds in the related Payment Account.

                                      -10-
<PAGE>

                                   ARTICLE IV

                                  Certificates

      Section 4.01 CERTIFICATES.

      (a) The Depository, the Depositor and the Grantor Trustee have entered
into a Depository Agreement dated as of September 29, 2003 (the "Depository
Agreement"). The Certificates shall at all times remain registered in the name
of the Depository or its nominee and at all times: (i) registration of such
Certificates may not be transferred by the Grantor Trustee except to a successor
to the Depository; (ii) ownership and transfers of registration of such
Certificates on the books of the Depository shall be governed by applicable
rules established by the Depository; (iii) the Depository may collect its usual
and customary fees, charges and expenses from its Depository Participants; (iv)
the Grantor Trustee shall deal with the Depository as representative of such
Certificate Owners of the Certificates for purposes of exercising the rights of
Certificateholders under this Agreement, and requests and directions for and
votes of such representative shall not be deemed to be inconsistent if they are
made with respect to different Certificate Owners; and (v) the Grantor Trustee
may rely and shall be fully protected in relying upon information furnished by
the Depository with respect to its Depository Participants.

      All transfers by Certificate Owners of the Book-Entry Certificates shall
be made in accordance with the procedures established by the Depository
Participant or brokerage firm representing such Certificate Owners. Each
Depository Participant shall only transfer Book-Entry Certificates of
Certificate Owners it represents or of brokerage firms for which it acts as
agent in accordance with the Depository's normal procedures.

      (b) If (i)(A) the Depositor advises the Grantor Trustee in writing that
the Depository is no longer willing or able to properly discharge its
responsibilities as Depository and (B) the Grantor Trustee or the Depositor is
unable to locate a qualified successor within 30 days or (ii) the Depositor at
its option and with the Grantor Trustee's consent advises the Grantor Trustee in
writing that it elects to terminate the book-entry system through the
Depository, the Grantor Trustee shall request that the Depository notify all
Certificate Owners of the occurrence of any such event and of the availability
of definitive, fully registered Certificates to Certificate Owners requesting
the same. Upon surrender to the Grantor Trustee of the Certificates by the
Depository, accompanied by registration instructions from the Depository for
registration, the Grantor Trustee shall issue the definitive Certificates.
Neither the Depositor nor the Grantor Trustee shall be liable for any delay in
delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions.

      (c) The Certificates shall have the following designation, initial
principal amount and initial Certificate Interest Rate:

                                      -11-
<PAGE>

         Designation       Initial Principal Amount  Certificate Interest Rate
         ---------------------------------------------------------------------

         M-1               $22,500,000                                 1.59%
         M-2               $14,500,000                                 1.69%
         M-3               $35,500,000                                 1.79%
         M-4               $41,000,000                                 2.37%
         M-5               $24,000,000                                 2.67%
         M-6               $ 7,500,000                                 2.82%

      (d) With respect to each Payment Date, the Certificates shall accrue
interest during the related Interest Accrual Period. With respect to each
Payment Date and the Certificates, interest shall be calculated, on the basis of
a 360-day year and the actual number of days in the related Interest Accrual
Period, based upon the respective Certificate Interest Rate set forth, or
determined as provided, above and the Current Principal Amount of the
Certificates applicable to such Payment Date.

      (e) The Certificates shall be substantially in the form set forth in
Exhibit A. On original issuance, the Grantor Trustee shall sign, countersign and
shall deliver them at the direction of the Depositor. Pending the preparation of
definitive Certificates, the Grantor Trustee may sign and countersign temporary
Certificates that are printed, lithographed or typewritten, in authorized
denominations, substantially of the tenor of the definitive Certificates in lieu
of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers or authorized signatories
executing such Certificates may determine, as evidenced by their execution of
such Certificates. If temporary Certificates are issued, the Depositor will
cause definitive Certificates to be prepared without unreasonable delay. After
the preparation of definitive Certificates, the temporary Certificates shall be
exchangeable for definitive Certificates upon surrender of the temporary
Certificates at the office of the Grantor Trustee, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Certificates, the
Grantor Trustee shall sign and countersign and deliver in exchange therefor a
like aggregate principal amount, in authorized denominations, of definitive
Certificates. Until so exchanged, such temporary Certificates shall in all
respects be entitled to the same benefits as definitive Certificates.

      (f) The Book-Entry Certificates will be registered as a single Certificate
held by a nominee of the Depository or the DTC Custodian, and beneficial
interests will be held by investors through the book-entry facilities of the
Depository in minimum denominations of $25,000 and increments of $1.00 in excess
thereof. On the Closing Date, the Grantor Trustee shall execute and countersign
the Certificate in the entire Current Principal Amount of the Certificates. The
Grantor Trustee shall sign the Certificates by facsimile or manual signature and
countersign them by manual signature on behalf of the Grantor Trustee by one or
more authorized signatories, each of whom shall be Responsible Officers of the
Grantor Trustee or its agent. A Certificate bearing the manual and facsimile
signatures of individuals who were the authorized signatories of the Grantor
Trustee or its agent at the time of issuance shall bind the Grantor Trustee,
notwithstanding that such individuals or any of them have ceased to hold such
positions prior to the delivery of such Certificate.

                                      -12-
<PAGE>

      (g) No Certificate shall be entitled to any benefit under this Agreement,
or be valid for any purpose, unless there appears on such Certificate the
manually executed countersignature of the Grantor Trustee or its agent, and such
countersignature upon any Certificate shall be conclusive evidence, and the only
evidence, that such Certificate has been duly executed and delivered hereunder.
All Certificates issued on the Closing Date shall be dated the Closing Date. All
Certificates issued thereafter shall be dated the date of their
countersignature.

      Section 4.02 REGISTRATION OF TRANSFER AND EXCHANGE OF CERTIFICATES.

      (a) The Grantor Trustee shall maintain at its Corporate Trust Office a
Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Grantor Trustee shall provide for the registration of
Certificates and of transfers and exchanges of Certificates as herein provided.

      (b) Subject to Subsection 5.01(a), upon surrender for registration of
transfer of any Certificate at any office or agency of the Grantor Trustee
maintained for such purpose, the Grantor Trustee shall sign, countersign and
shall deliver, in the name of the designated transferee or transferees, a new
Certificate of a like aggregate Fractional Undivided Interest, but bearing a
different number.

      (c) At the option of the Certificateholders, Certificates may be exchanged
for other Certificates of authorized denominations of a like aggregate
Fractional Undivided Interest, upon surrender of the Certificates to be
exchanged at any such office or agency; PROVIDED, HOWEVER, that no Certificate
may be exchanged for new Certificates unless the original Fractional Undivided
Interest represented by each such new Certificate (i) is at least equal to the
minimum authorized denomination or (ii) is acceptable to the Depositor as
indicated to the Grantor Trustee in writing. Whenever any Certificates are so
surrendered for exchange, the Grantor Trustee shall sign and countersign and the
Grantor Trustee shall deliver the Certificates which the Certificateholder
making the exchange is entitled to receive.

      In addition, Certificateholders representing, in the aggregate, no less
than a 100% Fractional Undivided Interest in a Class M Certificate may surrender
such Certificates at the offices of the Grantor Trustee in exchange for the
Underlying Class M Bonds held by the related Trust Fund; PROVIDED, HOWEVER, that
no such Class M Bonds shall be Book-Entry Bonds.

      (d) If the Grantor Trustee so requires, every Certificate presented or
surrendered for transfer or exchange shall be duly endorsed by, or be
accompanied by a written instrument of transfer, with a signature guarantee, in
form satisfactory to the Grantor Trustee, duly executed by the holder thereof or
his or her attorney duly authorized in writing.

      (e) No service charge shall be made for any transfer or exchange of
Certificates, but the Grantor 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.

                                      -13-
<PAGE>

      (f) The Grantor Trustee shall cancel all Certificates surrendered for
transfer or exchange but shall either retain such Certificates in accordance
with its standard retention policy or for such further time as is required by
the record retention requirements of the Securities Exchange Act of 1934, as
amended, and thereafter may destroy such Certificates.

      (g) The following legend shall be placed on the Certificates, whether upon
original issuance or upon issuance of any other Certificate in exchange therefor
or upon transfer thereof at any time:

      THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
      BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH
      IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF
      1974, AS AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF
      1986, AS AMENDED, UNLESS THE PROPOSED TRANSFEREE PROVIDES THE DEPOSITOR
      AND THE GRANTOR TRUSTEE WITH AN OPINION OF COUNSEL SATISFACTORY TO THOSE
      ENTITIES, WHICH OPINION WILL NOT BE AT THE EXPENSE OF THOSE ENTITIES, THAT
      THE PURCHASE OF THE CLASS M-[_] CERTIFICATES BY OR ON BEHALF OF THE PLAN
      INVESTOR, IS PERMISSIBLE UNDER APPLICABLE LAW, WILL NOT CONSTITUTE OR
      RESULT IN THE ASSETS OF THE TRUST BEING DEEMED TO BE "PLAN ASSETS" SUBJECT
      TO THE PROHIBITED TRANSACTIONS PROVISIONS OF ERISA OR CODE SECTION 4975
      AND WILL NOT SUBJECT THE DEPOSITOR OR THE GRANTOR TRUSTEE TO ANY
      OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE GRANTOR TRUST AGREEMENT.

      Section 4.03 MUTILATED, DESTROYED, LOST OR STOLEN CERTIFICATES.

      (a) If (i) any mutilated Certificate is surrendered to the Grantor
Trustee, or the Grantor Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Certificate, and (ii) there is delivered to
the Grantor Trustee such security or indemnity as it may require to save it
harmless, and (iii) the Grantor Trustee has not received notice that such
Certificate has been acquired by a third Person, the Grantor Trustee shall sign,
countersign and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Certificate, a new Certificate of like tenor and
Fractional Undivided Interest but in each case bearing a different number. The
mutilated, destroyed, lost or stolen Certificate shall thereupon be canceled of
record by the Grantor Trustee and shall be of no further effect and evidence no
rights.

      (b) Upon the issuance of any new Certificate under this Section 5.03, the
Grantor 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 Grantor Trustee) connected
therewith. Any duplicate Certificate issued pursuant to this Section 5.03 shall
constitute complete and indefeasible evidence of ownership in each Trust Fund,
as if originally issued,

                                      -14-
<PAGE>

whether or not the lost, stolen or destroyed Certificate shall be found at any
time.

      Section 4.04 PERSONS DEEMED OWNERS. Prior to due presentation of a
Certificate for registration of transfer, the Depositor, the Grantor Trustee and
any agent of the Depositor or the Grantor Trustee 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 5.01 and for all other
purposes whatsoever. Neither the Depositor, the Grantor Trustee nor any agent of
the Depositor or the Grantor Trustee shall be affected by notice to the
contrary. No Certificate shall be deemed duly presented for a transfer effective
on any Record Date unless the Certificate to be transferred is presented no
later than the close of business on the third Business Day preceding such Record
Date.

      Section 4.05 ERISA RESTRICTIONS. By acquiring a Class M-1, Class M-2,
Class M-3, Class M-4, Class M-5 or Class M-6 Certificate, each purchaser will be
deemed to represent that either (1) it is not acquiring the Certificate with
Plan Assets; or (2) (A) the acquisition and holding of the Certificate will not
give rise to a nonexempt prohibited transaction under Section 406 of ERISA or
Section 4975 of the Code and (B) the Certificate has an investment-grade rating
at the time of acquisition.

      Alternatively, regardless of the rating of the Class M Certificates, a
Person investing on behalf of or with Plan Assets of a Plan may provide the
Grantor Trustee with an Opinion of Counsel, which Opinion of Counsel will not be
at the expense of the Issuer, the Seller, the Depositor, any Underwriter, the
Owner Trustee, the Indenture Trustee, the Grantor Trustee, the Master Servicer
or any successor servicer, which opines that the acquisition, holding and
transfer of such Offered Security or interest therein is permissible under
applicable law, will not constitute or result in a non exempt prohibited
transaction under ERISA or Section 4975 of the Code and will not subject the
Issuer, the Seller, the Depositor, any Underwriter, the Owner Trustee, the
Indenture Trustee, the Grantor Trustee, the Master Servicer or any successor
servicer to any obligation in addition to those undertaken in the Indenture or
this Agreement, as applicable.

                                      -15-
<PAGE>

                                    ARTICLE V

                         Payments to Certificateholders

      Section 5.01 PAYMENTS ON THE CERTIFICATES.

      (a) Interest and principal on the Certificates will be distributed monthly
on each Payment Date, commencing in October 2003, in an aggregate amount equal
to the Available Funds for such Payment Date. On each Payment Date, the
Available Funds shall be distributed as follows:

            (i) FIRST, Accrued Certificate Interest on the Certificates shall be
      distributed to the Certificates for such Payment Date;

            (ii) SECOND, any Accrued Certificate Interest on the Certificates
      remaining undistributed from previous Payment Dates, to the extent of
      remaining Available Funds; and

            (iii) THIRD, any principal payments received from the related
      Underlying Class M Bonds shall be distributed to the related Certificates,
      in reduction of the related Current Principal Amount thereof, until the
      Current Principal Amount thereof has been reduced to zero.

      (b) No Accrued Certificate Interest will be payable with respect to the
Certificates after the Payment Date on which the Current Principal Amount of the
Certificates has been reduced to zero.

      Section 5.02 ALLOCATION OF LOSSES.

      (a) On or prior to each Determination Date, the Grantor Trustee shall
determine the amount of any Underlying Realized Losses in respect of the related
Underlying Class M Bond.

      (b) With respect to any Certificates on any Payment Date, the principal
portion of each Underlying Realized Loss on the related Underlying Class M Bonds
shall be allocated to the Current Principal Amount of the related Certificates,
until the Current Principal Amount thereof has been reduced to zero.

      (c) Any Realized Losses allocated to the Certificates shall be allocated
among the related Certificates in proportion to their respective Current
Principal Amounts. Any allocation of Realized Losses shall be accomplished by
reducing the Current Principal Amount of the related Certificates on the related
Payment Date.

      (d) Realized Losses shall be allocated on the Payment Date in the month
following the month in which such loss was incurred and, in the case of the
principal portion thereof, after giving effect to payments made on such Payment
Date.

                                      -16-
<PAGE>

      Section 5.03 PAYMENTS.

      (a) On each Payment Date, other than the final Payment Date, the Grantor
Trustee shall distribute to each Certificateholder of record on the directly
preceding Record Date the Certificateholder's PRO RATA share (based on the
aggregate Fractional Undivided Interest represented by such Holder's
Certificates) of all amounts required to be distributed on such Payment Date to
the Certificates, based on information provided to the Grantor Trustee by the
Underlying Indenture Trustee. The Grantor Trustee shall calculate the amount to
be distributed to the Certificates and, based on such amounts, the Grantor
Trustee shall determine the amount to be distributed to each Certificateholder.
All of the Grantor Trustee's calculations of payments shall be based solely on
information provided to the Grantor Trustee by the Underlying Indenture Trustee.
The Grantor Trustee shall not be required to confirm, verify or recompute any
such information but shall be entitled to rely conclusively on such information.

      (b) Payment of the above amounts to each Certificateholder shall be made
(i) by check mailed to each Certificateholder entitled thereto at the address
appearing in the Certificate Register or (ii) upon receipt by the Grantor
Trustee on or before the fifth Business Day preceding the Record Date of written
instructions from a Certificateholder by wire transfer to a United States dollar
account maintained by the payee at any United States depository institution with
appropriate facilities for receiving such a wire transfer; PROVIDED, HOWEVER,
that the final payment in respect of the Certificates will be made only upon
presentation and surrender of such respective Certificates at the office or
agency of the Grantor Trustee specified in the notice to Certificateholders of
such final payment.

      Section 5.04 STATEMENTS TO CERTIFICATEHOLDERS.

      (a) Concurrently with each payment to Certificateholders, the Grantor
Trustee shall make available via the Grantor Trustee's internet website as set
forth below, all of the information contained in the Statement to Underlying
Class M Bondholders and the following:

            (i) the Certificate Interest Rate on the related Certificates;

            (ii) the amount of any interest payments made to the related
      Certificates; and

            (iii) the amount of any principal payments made to the related
      Certificates.

      The Grantor Trustee may make available each month, to any interested
party, the monthly statement to Certificateholders via the Grantor Trustee's
website initially located at https://www.corporatetrust.db.com/invr. Assistance
in using the website can be obtained by calling the Grantor Trustee's customer
servicer desk at (800) 735-7777. Parties that are unable to use the above
payment option are entitled to have a paper copy mailed to them via first class
mail by calling the customer service desk and indicating such. The Grantor
Trustee shall have the right to change the

                                      -17-
<PAGE>

way such reports are distributed in order to make such payment more convenient
and/or more accessible to the parties, and the Grantor Trustee shall provide
timely and adequate notification to all parties regarding any such change.

      (b) By April 30 of each year beginning in 2004, the Grantor Trustee will
furnish such report to each Holder of the Certificates of record at any time
during the prior calendar year as to the aggregate of amounts reported pursuant
to subclauses (a)(i) and (a)(ii) above with respect to the Certificates, plus
information with respect to the amount of servicing compensation and such other
customary information as the Grantor Trustee may determine to be necessary
and/or to be required by the Internal Revenue Service or by a federal or state
law or rules or regulations to enable such Holders to prepare their tax returns
for such calendar year. Such obligations shall be deemed to have been satisfied
to the extent that substantially comparable information shall be provided by the
Grantor Trustee pursuant to the requirements of the Code.

                                      -18-
<PAGE>

                                   ARTICLE VI

                                 Indemnification

      Section 6.01 INDEMNIFICATION OF THE GRANTOR TRUSTEE. Each Trust shall
indemnify the Indemnified Persons for, and will hold them harmless against, any
loss, liability or expense incurred on their part, arising out of, or in
connection with, this Agreement and the Certificates, including the costs and
expenses (including reasonable legal fees and expenses) of defending themselves
against any such claim other than any loss, liability or expense incurred by
reason of such Indemnified Person's willful misfeasance, bad faith or negligence
in the performance of duties hereunder or by reason of reckless disregard of
obligations and duties hereunder. This indemnity shall survive the resignation
or removal of the Grantor Trustee and the termination of this Agreement.

                                      -19-
<PAGE>

                                   ARTICLE VII

                         Concerning the Grantor Trustee

      Section 7.01 DUTIES OF GRANTOR TRUSTEE.

      (a) The Grantor Trustee undertakes to perform such duties and only such
duties as are specifically set forth in this Agreement as duties of the Grantor
Trustee.

      (b) Upon receipt of all resolutions, certificates, statements, opinions,
reports, documents, orders or other instruments which are specifically required
to be furnished to the Grantor Trustee pursuant to any provision of this
Agreement, the Grantor Trustee shall examine them to determine whether they are
in the form required by this Agreement; PROVIDED, HOWEVER, that the Grantor
Trustee shall be not responsible for the accuracy or content of any resolution,
certificate, statement, opinion, report, document, order or other instrument
furnished by the Underlying Indenture Trustee; PROVIDED, FURTHER, that the
Grantor Trustee shall not be responsible for the accuracy or verification of any
calculation provided to it pursuant to this Agreement.

      (c) On each Payment Date, the Grantor Trustee shall make monthly payments
and the final payment to the Certificateholders from funds in the related
Payment Account as provided in Section 5.01 herein based on the report of the
Underlying Indenture Trustee.

      (d) No provision of this Agreement shall be construed to relieve the
Grantor 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 Grantor Trustee shall be
      determined solely by the express provisions of this Agreement, the Grantor
      Trustee shall not be liable except for the performance of its duties and
      obligations as are specifically set forth in this Agreement, no implied
      covenants or obligations shall be read into this Agreement against the
      Grantor Trustee and, in the absence of bad faith on the part of the
      Grantor Trustee, the Grantor Trustee may conclusively rely, as to the
      truth of the statements and the correctness of the opinions expressed
      therein, upon any certificates or opinions furnished to the Grantor
      Trustee, and conforming to the requirements of this Agreement;

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

            (iii) The Grantor Trustee shall not be liable with respect to any
      action taken, suffered or omitted to be taken by it in good faith in
      accordance with the directions of the Holders of Certificates evidencing
      Fractional Undivided Interests aggregating not less than

                                      -20-
<PAGE>

      25% of each Trust Fund, if such action or non-action relates to the time,
      method and place of conducting any proceeding for any remedy available to
      the Grantor Trustee, or exercising any trust or other power conferred upon
      the Grantor Trustee under this Agreement;

            (iv) The Grantor Trustee shall not in any way be liable by reason of
      any insufficiency in any Account held by or in the name of Grantor Trustee
      unless it is determined by a court of competent jurisdiction that the
      Grantor Trustee's gross negligence or willful misconduct was the primary
      cause of such insufficiency; and

            (v) Anything in this Agreement to the contrary notwithstanding, in
      no event shall the Grantor Trustee be liable for special, indirect or
      consequential loss or damage of any kind whatsoever (including but not
      limited to lost profits), even if the Grantor Trustee has been advised of
      the likelihood of such loss or damage and regardless of the form of
      action.

      The Grantor Trustee shall not be required to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if there is
reasonable ground for believing that the repayment of such funds or indemnity
satisfactory to the Grantor Trustee against such risk or liability is not
reasonably assured to it.

      (e) All funds received by the Grantor Trustee and required to be deposited
in the Payment Account pursuant to this Agreement will be promptly so deposited
by the Grantor Trustee.

      (f) Except for those actions that the Grantor Trustee is required to take
hereunder, the Grantor Trustee shall not have any obligation or liability to
take any action or to refrain from taking any action hereunder in the absence of
written direction as provided hereunder.

      Section 7.02 CERTAIN MATTERS AFFECTING THE GRANTOR TRUSTEE. Except as
otherwise provided in Section 7.01:

            (i) The Grantor Trustee may rely and shall be protected in acting or
      refraining from acting in reliance on any resolution, certificate of the
      Depositor or the Underlying Indenture Trustee, certificate of auditors or
      any other certificate, statement, instrument, opinion, report, notice,
      request, consent, order, appraisal, bond or other paper or document
      believed by it to be genuine and to have been signed or presented by the
      proper party or parties;

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

            (iii) The Grantor Trustee shall not be under any obligation to
      exercise any of the

                                      -21-
<PAGE>

      trusts or powers vested in it by this Agreement, other than its obligation
      to give notices pursuant to 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 Grantor Trustee security or indemnity satisfactory to the
      Grantor Trustee against the costs, expenses and liabilities which may be
      incurred therein or thereby;

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

            (v) The Grantor Trustee shall not be bound to make any investigation
      into the facts or matters stated in any resolution, certificate,
      statement, instrument, opinion, report, notice, request, consent, order,
      approval, bond or other paper or document, unless requested in writing to
      do so by Holders of Certificates evidencing Fractional Undivided Interests
      aggregating not less than 25% of each Trust Fund and provided that the
      payment within a reasonable time to the Grantor Trustee of the costs,
      expenses or liabilities likely to be incurred by it in the making of such
      investigation is, in the opinion of the Grantor Trustee, reasonably
      assured to the Grantor Trustee by the security afforded to it by the terms
      of this Agreement. The Grantor Trustee may require indemnity satisfactory
      to the Grantor Trustee against such expense or liability as a condition to
      taking any such action. The expense of every such examination shall be
      paid by the Certificateholders requesting the investigation;

            (vi) The Grantor Trustee may execute any of the trusts or powers
      hereunder or perform any duties hereunder either directly or through
      Affiliates, agents or attorneys. The Grantor Trustee shall not be liable
      or responsible for the misconduct or negligence of any of the Grantor
      Trustee's agents or attorneys or a custodian or paying agent appointed
      hereunder by the Grantor Trustee with due care;

            (vii) Should the Grantor Trustee deem the nature of any action
      required on its part, other than a payment or transfer under Subsection
      3.02 or Section 5.01, to be unclear, the Grantor Trustee may require prior
      to such action that it be provided by the Depositor with reasonable
      further instructions;

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

            (ix) The Grantor Trustee shall not be required to give any bond or
      surety with respect to the execution of the trust created hereby or the
      powers granted hereunder, except as provided in Section 7.07.

                                      -22-
<PAGE>

      Section 7.03 GRANTOR TRUSTEE NOT LIABLE FOR CERTIFICATES OR MORTGAGE
LOANS. The recitals contained herein and in the Certificates (other than the
signature and countersignature of the Grantor Trustee on the Certificates) shall
be taken as the statements of the Depositor, and the Grantor Trustee shall not
have any responsibility for their correctness. The Grantor Trustee does not make
any representation as to the validity or sufficiency of the Certificates (other
than the signature and countersignature of the Grantor Trustee on the
Certificates). The Grantor Trustee's signature and countersignature (or
countersignature of its agent) on the Certificates shall be solely in its
capacity as Grantor Trustee and shall not constitute the Certificates an
obligation of the Grantor Trustee in any other capacity. The Grantor 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 with respect to the Mortgage
Loans. The Grantor Trustee shall not be responsible for the legality or validity
of this Agreement or any document or instrument relating to this Agreement, the
validity of the execution of this Agreement or of any supplement hereto or
instrument of further assurance, or the validity, priority, perfection or
sufficiency of the security for the Certificates issued hereunder or intended to
be issued hereunder. The Grantor Trustee shall not at any time have any
responsibility or liability for or with respect to the legality, validity and
enforceability of any Mortgage or any Mortgage Loan, or the perfection and
priority of any Mortgage or the maintenance of any such perfection and priority,
or for or with respect to the sufficiency of each Trust Fund or its ability to
generate the payments to be distributed to Certificateholders, under this
Agreement. The Grantor Trustee shall not have any responsibility for filing any
financing or continuation statement in any public office at any time or to
otherwise perfect or maintain the perfection of any security interest or lien
granted to it hereunder or to record this Agreement.

      Section 7.04 GRANTOR TRUSTEE MAY OWN CERTIFICATES. The Grantor Trustee in
its individual capacity or in any capacity other than as Grantor Trustee
hereunder may become the owner or pledgee of any Certificates with the same
rights it would have if it were not Grantor Trustee, and may otherwise deal with
the parties hereto.

      Section 7.05 GRANTOR TRUSTEE'S FEES AND EXPENSES. The fees of the Grantor
Trustee shall be paid in accordance with the provisions of this Agreement. In
addition, the Grantor Trustee will be entitled to recover from the related
Payment Account pursuant to Section 3.02(b) all reasonable out- of-pocket
expenses, disbursements and advances and the expenses of the Grantor Trustee in
connection with any breach of this Agreement or any claim or legal action
(including any pending or threatened claim or legal action) incurred or made by
the Grantor Trustee in the administration of the trusts hereunder (including the
reasonable compensation, expenses and disbursements of its counsel) except any
such expense, disbursement or advance as may arise from its negligence or
intentional misconduct or which is the responsibility of the Certificateholders.
If funds in the related Payment Account are insufficient therefor, the Grantor
Trustee shall recover such expenses from the Depositor. Such compensation and
reimbursement obligation shall not be limited by any provision of law in regard
to the compensation of a trustee of an express trust.

                                      -23-
<PAGE>

      Section 7.06 ELIGIBILITY REQUIREMENTS FOR GRANTOR TRUSTEE. The Grantor
Trustee and any successor Grantor Trustee shall during the entire duration of
this Agreement be a state bank or trust company or a national banking
association 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 and undivided profits of at least
$40,000,000 or, in the case of a successor Grantor Trustee, $50,000,000, subject
to supervision or examination by federal or state authority and rated "BBB" or
higher by Standard & Poor's and "Baa2" or higher by Moody's with respect to any
outstanding long-term unsecured unsubordinated debt, and, in the case of a
successor Grantor Trustee other than pursuant to Section 7.10, rated in one of
the two highest long- term debt categories of, or otherwise acceptable to, each
of the Rating Agencies. If the Grantor Trustee 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 7.06
the combined capital and surplus of such corporation shall be deemed to be its
total equity capital (combined capital and surplus) as set forth in its most
recent report of condition so published. In case at any time the Grantor Trustee
shall cease to be eligible in accordance with the provisions of this Section
7.06, the Grantor Trustee shall resign immediately in the manner and with the
effect specified in Section 7.08.

      Section 7.07 INSURANCE. The Grantor Trustee, at its own expense, shall at
all times maintain and keep in full force and effect: (i) fidelity insurance,
(ii) theft of documents insurance and (iii) forgery insurance (which may be
collectively satisfied by a "Financial Institution Bond" and/or a "Bankers'
Blanket Bond"). All such insurance shall be in amounts, with standard coverage
and subject to deductibles, as are customary for insurance typically maintained
by banks or their affiliates which act as custodians for investor-owned mortgage
pools. A certificate of an officer of the Grantor Trustee as to the Grantor
Trustee's compliance with this Section 7.07 shall be furnished to any
Certificateholder upon reasonable written request.

      Section 7.08 RESIGNATION AND REMOVAL OF THE GRANTOR TRUSTEE.

      (a) The Grantor Trustee may at any time resign and be discharged from each
Trust hereby created by giving written notice thereof to the Depositor, with a
copy to the Rating Agencies. Upon receiving such notice of resignation, the
Depositor shall promptly appoint a successor Grantor Trustee by written
instrument, in triplicate, one copy of which instrument shall be delivered to
each of the resigning Grantor Trustee and the successor Grantor Trustee. If no
successor Grantor Trustee shall have been so appointed and have accepted
appointment within 30 days after the giving of such notice of resignation, the
resigning Grantor Trustee may petition any court of competent jurisdiction for
the appointment of a successor Grantor Trustee. The Grantor Trustee may not
resign from any Trust created hereby without also resigning as Underlying
Indenture Trustee under the Underlying Indenture.

      (b) If at any time the Grantor Trustee shall cease to be eligible in
accordance with the provisions of Section 7.06 and shall fail to resign after
written request therefor by the Depositor or if at any time the Grantor Trustee
shall become incapable of acting, or shall be adjudged a bankrupt or insolvent,
or a receiver of the Grantor Trustee or of its property shall be appointed, or
any public

                                      -24-
<PAGE>

officer shall take charge or control of the Grantor Trustee or of its property
or affairs for the purpose of rehabilitation, conservation or liquidation, then
the Depositor shall promptly remove the Grantor Trustee and appoint a successor
Grantor Trustee by written instrument, in triplicate, one copy of which
instrument shall be delivered to the Grantor Trustee so removed and the
successor Grantor Trustee.

      (c) The Holders of Certificates evidencing Fractional Undivided Interests
aggregating not less than 100% of each Trust Fund may at any time remove the
Grantor Trustee and appoint a successor Grantor Trustee by written instrument or
instruments, in quadruplicate, signed by such Holders or their attorneys-in-fact
duly authorized, one complete set of which instruments shall be delivered to the
Depositor and the Grantor Trustee so removed and the successor so appointed.

      (d) No resignation or removal of the Grantor Trustee and appointment of a
successor Grantor Trustee pursuant to any of the provisions of this Section 7.08
shall become effective except upon appointment of and acceptance of such
appointment by the successor Grantor Trustee as provided in Section 7.09.

      Section 7.09 SUCCESSOR GRANTOR TRUSTEE.

      (a) Any successor Grantor Trustee appointed as provided in Section 7.08
shall execute, acknowledge and deliver to the Depositor and to its predecessor
Grantor Trustee an instrument accepting such appointment hereunder. The
resignation or removal of the predecessor Grantor Trustee shall then become
effective and such successor Grantor Trustee, without any further act, deed or
conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as Grantor Trustee herein. The predecessor Grantor Trustee shall after
payment of its outstanding fees and expenses promptly deliver to the successor
Grantor Trustee all assets and records of each Trust held by it hereunder, and
the Depositor and the predecessor Grantor 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 Grantor Trustee all
such rights, powers, duties and obligations.

      (b) No successor Grantor Trustee shall accept appointment as provided in
this Section 7.09 unless at the time of such acceptance such successor Grantor
Trustee shall be eligible under the provisions of Section 7.06.

      (c) Upon acceptance of appointment by a successor Grantor Trustee as
provided in this Section 7.09, the successor Grantor Trustee shall mail notice
of the succession of such Grantor Trustee hereunder to all Certificateholders at
their addresses as shown in the Certificate Register and to the Rating Agencies.

                                      -25-
<PAGE>

      Section 7.10 MERGER OR CONSOLIDATION OF GRANTOR TRUSTEE. Any state bank or
trust company or national banking association into which the Grantor Trustee may
be merged or converted or with which it may be consolidated or any state bank or
trust company or national banking association resulting from any merger,
conversion or consolidation to which the Grantor Trustee shall be a party, or
any state bank or trust company or national banking association succeeding to
all or substantially all of the corporate trust business of the Grantor Trustee
shall be the successor of the Grantor Trustee hereunder, provided such state
bank or trust company or national banking association shall be eligible under
the provisions of Section 7.06. Such succession shall be valid 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 7.11 APPOINTMENT OF CO-GRANTOR TRUSTEE OR SEPARATE GRANTOR
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 any Trust or property constituting the same may at the time be located, the
Depositor and the Grantor Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons at the
expense of the Depositor approved by the Grantor Trustee and the Depositor to
act as co-trustee or co-trustees, jointly with the Grantor Trustee, or separate
trustee or separate trustees, of all or any part of any Trust, and to vest in
such Person or Persons, in such capacity, such title to any Trust, or any part
thereof, and, subject to the other provisions of this Section 7.11, such powers,
duties, obligations, rights and trusts as the Depositor and the Grantor Trustee
may consider necessary or desirable.

      (b) If the Depositor shall not have joined in such appointment within 15
days after the receipt by it of a written request so to do, the Grantor Trustee
shall have the power to make such appointment without the Depositor at the
expense of the Depositor .

      (c) No co-trustee or separate trustee hereunder shall be required to meet
the terms of eligibility as a successor Grantor Trustee under Section 7.06
hereunder and no notice to Certificateholders of the appointment of
co-trustee(s) or separate trustee(s) shall be required under Section 7.08
hereof.

      (d) In the case of any appointment of a co-trustee or separate trustee
pursuant to this Section 7.11, all rights, powers, duties and obligations
conferred or imposed upon the Grantor Trustee and required to be conferred on
such co-trustee shall be conferred or imposed upon and exercised or performed by
the Grantor 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, the Grantor 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 any Trust 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 Grantor Trustee.

                                      -26-
<PAGE>

      (e) Any notice, request or other writing given to the Grantor 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 VII. 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
Grantor 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 Grantor Trustee. Every such instrument shall be filed with
the Grantor Trustee.

      (f) To the extent not prohibited by law, any separate trustee or
co-trustee may, at any time, request the Grantor Trustee, its agent or
attorney-in-fact, with full power and authority, to do any lawful act under or
with respect to 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 Grantor Trustee, to the extent permitted by law,
without the appointment of a new or successor Grantor Trustee.

      (g) No trustee under this Agreement shall be liable by reason of any act
or omission of another trustee under this Agreement. The Depositor and the
Grantor Trustee acting jointly may at any time accept the resignation of or
remove any separate trustee or co-trustee.

      Section 7.12 FEDERAL INFORMATION RETURNS AND REPORTS TO
CERTIFICATEHOLDERS; GRANTOR TRUST ADMINISTRATION.

      (a) The Grantor Trustee covenants and agrees that it shall perform its
obligations hereunder in a manner so as to maintain the status of each Trust
Fund as a grantor trust under subpart E, part I of subchapter J of chapter 1 of
the Code and not as an association taxable as a corporation, as a taxable
mortgage pool, or as a partnership and to prevent the imposition of any federal,
state or local income or other tax on each Trust Fund.

      (b) The Grantor Trustee shall furnish or cause to be furnished to holders
of Certificates and shall file or cause to be filed with the Internal Revenue
Service, together with Form 1041 or such other form as may be applicable, such
information with respect to the income and deductions of each Trust Fund at the
time or times and in the manner required by the Code, including such other
customary factual information as is available to the Grantor Trustee to enable
Certificateholders to prepare their tax returns, including information required
with respect to computing the accrual of original issue and market discount.

      (c) Notwithstanding any other provisions of this Agreement, the Grantor
Trustee shall comply with all federal withholding requirements with respect to
payments to Certificateholders. The consent of Certificateholders shall not be
required for any such withholding. In the event the Grantor Trustee withholds
any amount from any Certificateholder pursuant to federal withholdings

                                      -27-
<PAGE>

requirements, the Grantor Trustee shall indicate to such Certificateholder the
amount so withheld.

      (d) The Grantor Trustee agrees to indemnify each Trust Fund and the
Depositor for any taxes and costs including, without limitation, any reasonable
attorneys fees imposed on or incurred by each Trust Fund or the Depositor as a
result of a breach of the Grantor Trustee's covenants set forth in this Section
7.12 (except to the extent such breach is as a result of the negligence or
willful misconduct of the Depositor or the Master Servicer).

                                      -28-
<PAGE>

                                  ARTICLE VIII

                                   Termination

      Section 8.01 TERMINATION UPON REPURCHASE BY THE DEPOSITOR OR ITS DESIGNEE
OR LIQUIDATION OF THE MORTGAGE LOANS.

      (a) The respective obligations and responsibilities of the Depositor and
the Grantor Trustee created hereby with respect to each Trust Fund, other than
the obligation of the Grantor Trustee to make payments to the related
Certificateholders as hereinafter set forth, shall terminate upon the later of
the making of the final payment or other liquidation, or any advance with
respect thereto, of the last Underlying Class M Bond remaining in the related
Trust Fund.

      (b) In no event, however, shall any Trust created hereby continue beyond
the expiration of 21 years from the death of the last survivor of the
descendants of Joseph P. Kennedy, the late Ambassador of the United States to
the Court of St. James's, living on the date of this Agreement.

      (c) The Grantor Trustee shall give notice of any termination of the
Grantor Trust to the Certificateholders, with a copy to the Rating Agencies,
upon which the Certificateholders shall surrender their Certificates to the
Grantor Trustee for payment of the final payment and cancellation. Such notice
shall be given by letter, mailed not earlier than the l5th day and not later
than the 25th day of the month next preceding the month of such final payment,
and shall specify (i) the Payment Date upon which final payment of the
Certificates will be made upon presentation and surrender of the Certificates at
the office of the Grantor 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 Grantor Trustee therein
specified.

      (d) Upon the presentation and surrender of the Certificates, the Grantor
Trustee shall distribute to the remaining Certificateholders, in accordance with
their respective interests, all distributable amounts remaining in the related
Payment Account.

      (e) If not all of the Certificateholders shall surrender their
Certificates for cancellation within six months after the time specified in the
above-mentioned written notice, the Grantor Trustee shall give a second written
notice to the remaining Certificateholders to surrender their Certificates for
cancellation and receive the final payment with respect thereto. If within six
months after the second notice, not all the Certificates shall have been
surrendered for cancellation, the Grantor Trustee may take appropriate steps, or
appoint any agent to take appropriate steps, to contact the remaining
Certificateholders concerning surrender of their Certificates, and the cost
thereof shall be paid out of the funds and other assets which remain subject to
this Agreement.

                                      -29-
<PAGE>

                                   ARTICLE IX

                            Miscellaneous Provisions

      Section 9.01 INTENT OF PARTIES. The parties intend that each Trust Fund
shall be treated as a grantor trust for federal income tax purposes and that the
provisions of this Agreement should be construed in furtherance of this intent.

      Section 9.02 ACTION UNDER UNDERLYING DOCUMENTS. In the event that there
are any matters arising under the Underlying Operative Documents related to an
Underlying Class M Bond which require the vote or direction of holders of the
related Underlying Class M Bonds thereunder, the Grantor Trustee, as holder of
each Underlying Class M Bond will vote such Underlying Class M Bond in
accordance with the written instructions received from holders of the related
Certificates evidencing at least 100% of the Fractional Undivided Interest. In
the absence of any such instructions, the Grantor Trustee will not vote such
Underlying Class M Bond.

      The Grantor Trustee will forward to each Certificateholder copies of any
communications received regarding matters arising that require action by holders
of the related Underlying Class M Bonds.

      Section 9.03 AMENDMENT.

      (a) This Agreement may be amended from time to time by the Depositor and
the Grantor Trustee, without notice to or the consent of any of the
Certificateholders, to cure any ambiguity, to correct or supplement any
provisions herein or therein that may be defective or inconsistent with any
other provisions herein or therein, to comply with any changes in the Code or to
make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement; PROVIDED, HOWEVER, that such action shall not, as evidenced by an
Opinion of Independent Counsel, adversely affect in any material respect the
interests of any Certificateholder.

      (b) This Agreement may also be amended from time to time by the Depositor
and the Grantor Trustee with the consent of the Holders of Certificates
evidencing Fractional Undivided Interests aggregating not less than 51% of each
Trust Fund 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 Certificateholders; PROVIDED, HOWEVER, that no such
amendment shall (i) reduce in any manner the amount of, or delay the timing of,
payments received on Underlying Class M Bonds which are required to be
distributed on any Certificate without the consent of the Holder of such
Certificate, (ii) reduce the aforesaid percentage of Certificates the Holders of
which are required to consent to any such amendment, without the consent of the
Holders of all Certificates then outstanding, or (iii) will not result in the
imposition of a tax on any Trust Fund or cause any Trust Fund to fail to be
classified as a grantor trust under subpart E, part I of subchapter J of chapter
1 of the Code, as evidenced by an Opinion of Independent Counsel which shall be

                                      -30-
<PAGE>

provided to the Grantor Trustee other than at the Grantor Trustee's expense.
Notwithstanding any other provision of this Agreement, for purposes of the
giving or withholding of consents pursuant to Section 9.02(b), Certificates
registered in the name of or held for the benefit of the Depositor or the
Grantor Trustee or any Affiliate thereof shall be entitled to vote their
Fractional Undivided Interests with respect to matters affecting such
Certificates.

      (c) Promptly after the execution of any such amendment, the Grantor
Trustee shall furnish a copy of such amendment or written notification of the
substance of such amendment to each Certificateholder, with a copy to the Rating
Agencies.

      (d) In the case of an amendment under SubSection 9.02(b) above, it shall
not be necessary for the Certificateholders to approve the particular form of
such an amendment. Rather, it shall be sufficient if the Certificateholders
approve the substance of the amendment. 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
Grantor Trustee may prescribe.

      (e) Prior to the execution of any amendment to this Agreement, the Grantor
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 Grantor Trustee may, but shall not be obligated to, enter into
any such amendment which affects the Grantor Trustee's rights, duties or
immunities under this Agreement.

      Section 9.04 RECORDATION OF AGREEMENT. To the extent permitted by
applicable law, this Agreement is subject to recordation in all appropriate
public offices for real property records in all the counties or other comparable
jurisdictions in which any or all of the Mortgaged Properties are situated, and
in any other appropriate public recording office or elsewhere. The Depositor
shall effect such recordation, at the expense of the related Trust upon the
request in writing of a Certificateholder, but only if such direction is
accompanied by an Opinion of Counsel (provided at the expense of the
Certificateholder requesting recordation) to the effect that such recordation
would materially and beneficially affect the interests of the Certificateholders
or is required by law.

      Section 9.05 LIMITATION ON RIGHTS OF CERTIFICATEHOLDERS.

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

      (b) Except as expressly provided in this Agreement, no Certificateholders
shall have any right to vote or in any manner otherwise control the operation
and management of any Trust, 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 establish the Certificateholders from time to time as
partners or members of an association; nor shall any Certificateholders be under
any liability to any third Person

                                      -31-
<PAGE>

by reason of any action taken by the parties to this Agreement pursuant to any
provision hereof.

      (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, under or with respect to this Agreement against the Depositor or any
successor to any such parties unless (i) such Certificateholder previously shall
have given to the Grantor Trustee a written notice of a continuing default, as
herein provided, (ii) the Holders of Certificates evidencing Fractional
Undivided Interests aggregating not less than 51% of each Trust Fund shall have
made written request upon the Grantor Trustee to institute such action, suit or
proceeding in its own name as Grantor Trustee hereunder and shall have offered
to the Grantor Trustee such indemnity satisfactory to the Grantor Trustee
against the costs and expenses and liabilities to be incurred therein or
thereby, and (iii) the Grantor 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.

      (d) No one or more Certificateholders shall have any right by virtue of
any provision of this Agreement to affect the rights of any other
Certificateholders or to obtain or seek to obtain priority or preference over
any other such Certificateholder, 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 9.04, each and every Certificateholder and the
Grantor Trustee shall be entitled to such relief as can be given either at law
or in equity.

      Section 9.06 ACTS OF CERTIFICATEHOLDERS.

      (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Agreement to be given or taken by
Certificateholders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Certificateholders in person or by
an agent duly appointed in writing. Except as herein otherwise expressly
provided, such action shall become effective when such instrument or instruments
are delivered to the Grantor Trustee and, where it is expressly required, to the
Depositor. Proof of execution of any such instrument or of a writing appointing
any such agent shall be sufficient for any purpose of this Agreement and
conclusive in favor of the Grantor Trustee and the Depositor, if made in the
manner provided in this Section 9.05.

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

                                      -32-
<PAGE>

      (c) The ownership of Certificates (notwithstanding any notation of
ownership or other writing on such Certificates, except an endorsement in
accordance with Section 5.02 made on a Certificate presented in accordance with
Section 5.04) shall be proved by the Certificate Register, and neither the
Grantor Trustee, the Depositor nor any successor to any such parties shall be
affected by any notice to the contrary.

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

      (e) In determining whether the Holders of the requisite percentage of
Certificates evidencing Fractional Undivided Interests have given any request,
demand, authorization, direction, notice, consent or waiver hereunder,
Certificates owned by the Grantor Trustee, the Depositor or any Affiliate
thereof shall be disregarded, except as otherwise provided in Section 9.02(b)
and except that, in determining whether the Grantor Trustee shall be protected
in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Certificates which the Grantor Trustee knows to be so
owned shall be so disregarded. Certificates which have been pledged in good
faith to the Grantor Trustee, the Depositor or any Affiliate thereof may be
regarded as outstanding if the pledgor establishes to the satisfaction of the
Grantor Trustee the pledgor's right to act with respect to such Certificates and
that the pledgor is not an Affiliate of the Grantor Trustee or the Depositor, as
the case may be.

      Section 9.07 GOVERNING LAW. THIS AGREEMENT AND THE CERTIFICATES SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE
TO ITS CONFLICT OF LAWS RULES AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      Section 9.08 NOTICES. All demands and notices hereunder shall be in
writing and shall be deemed given when delivered at (including delivery by
facsimile) or mailed by registered mail, return receipt requested, postage
prepaid, or by recognized overnight courier, to (i) in the case of the
Depositor, IMH Assets Corp., 1401 Dove Street, Newport Beach, California 92660;
Attention: Richard Johnson, or to such other address as may hereafter be
furnished to the other parties hereto in writing; (ii) in the case of the
Grantor Trustee, at its Corporate Trust Office, or such other address as may
hereafter be furnished to the other parties hereto in writing; or (iii) in the
case of the Rating Agencies, Moody's Investors Service, Inc., 99 Church Street,
4th Floor, New York, New York 10004, and Standard & Poor's, a division of the
McGraw-Hill Companies, Inc., 55 Water Street, 41st Floor, New York, New York,
10041, Attention: Residential Mortgage Surveillance. Any notice delivered to the
Depositor or the Grantor Trustee under this Agreement shall be effective only
upon receipt. Any notice required or permitted to be mailed to a
Certificateholder, unless otherwise

                                      -33-
<PAGE>

provided herein, 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 when mailed, whether or not the
Certificateholder receives such notice.

      Section 9.09 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 severed 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 9.10 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.

      Section 9.11 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.

      Section 9.12 COUNTERPARTS. This Agreement may be executed in two or more
counterparts each of which when so executed and delivered shall be an original
but all of which together shall constitute one and the same instrument.

      Section 9.13 NOTICE TO RATING AGENCIES. The article and section headings
herein are for convenience of reference only, and shall not limited or otherwise
affect the meaning hereof. The Grantor Trustee shall promptly provide notice to
each Rating Agency with respect to each of the following of which it has actual
knowledge:

            (1)   Any material change or amendment to this Agreement;

            (2)   The resignation or termination of the Grantor Trustee under
                  this Agreement;

            (3)   The final payment to Certificateholders; and

            (4)   Any change in the location of the related Payment Account.

                                      -34-
<PAGE>

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

                                IMH ASSETS CORP., as Depositor

                                By: /s/ Richard J. Johnson
                                    ------------------------------
                                Name:  Richard J. Johnson
                                Title: Chief Financial Officer

                                DEUTSCHE BANK NATIONAL TRUST
                                COMPANY, as Grantor Trustee

                                By: /s/ James F. Noriega
                                    ------------------------------
                                Name:  James F. Noriega
                                Title: Associate

                                By: /s/ Ronaldo Reyes
                                    ------------------------------
                                Name:  Ronaldo Reyes
                                Title: Assistant Vice President

<PAGE>

STATE OF CALIFORNIA  )
                     ) ss.:
COUNTY OF ORANGE     )

      On the 29th day of September 2003, before me, a notary public in and for
said State, personally appeared Richard J. Johnson, known to me to be the Chief
Financial Officer of IMH Assets Corp., the 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]

<PAGE>

STATE OF CALIFORNIA  )
                     ) ss.:
COUNTY OF ORANGE     )

      On the 29th day of September 2003, before me, a notary public in and for
said State, personally appeared James F. Noriega, known to me to be an Associate
of Deutsche Bank National Trust Company, the 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 CALIFORNIA )
                    ) ss.:
COUNTY OF ORANGE    )

      On the 29th day of September 2003, before me, a notary public in and for
said State, personally appeared Ronaldo Reyes, known to me to be an Assistant
Vice President of Deutsche Bank National Trust Company, the 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]

<PAGE>

                                    EXHIBIT A

                         FORM OF CLASS M-[_] CERTIFICATE

      THE CURRENT PRINCIPAL AMOUNT OF THIS CERTIFICATE WILL BE DECREASED BY THE
PRINCIPAL PAYMENTS HERETO AND REALIZED LOSSES ALLOCABLE HERETO. ACCORDINGLY,
FOLLOWING THE INITIAL ISSUANCE OF THE CERTIFICATES, THE CURRENT PRINCIPAL AMOUNT
OF THIS CERTIFICATE WILL BE DIFFERENT FROM THE DENOMINATION SHOWN BELOW. ANYONE
ACQUIRING THIS CERTIFICATE MAY ASCERTAIN ITS CURRENT PRINCIPAL AMOUNT BY INQUIRY
OF THE TRUSTEE NAMED HEREIN.

      UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

      THIS CERTIFICATE MAY NOT BE ACQUIRED DIRECTLY OR INDIRECTLY BY, OR ON
BEHALF OF, AN EMPLOYEE BENEFIT PLAN OR OTHER RETIREMENT ARRANGEMENT WHICH IS
SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS
AMENDED, AND/OR SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
UNLESS THE PROPOSED TRANSFEREE PROVIDES THE DEPOSITOR AND THE GRANTOR TRUSTEE
WITH AN OPINION OF COUNSEL SATISFACTORY TO THOSE ENTITIES, WHICH OPINION WILL
NOT BE AT THE EXPENSE OF THOSE ENTITIES, THAT THE PURCHASE OF THE CLASS M-[_]
CERTIFICATES BY OR ON BEHALF OF THE PLAN INVESTOR IS PERMITTED UNDER APPLICABLE
LAW, WILL NOT CONSTITUTE OR RESULT IN THE ASSETS OF THE TRUST BEING DEEMED TO BE
"PLAN ASSETS" SUBJECT TO THE PROHIBITED TRANSACTIONS PROVISIONS OF ERISA OR CODE
SECTION 4975 AND WILL NOT SUBJECT THE DEPOSITOR OR THE GRANTOR TRUSTEE TO ANY
OBLIGATION IN ADDITION TO THOSE UNDERTAKEN IN THE GRANTOR TRUST AGREEMENT.

                                       A-1
<PAGE>

Certificate No. __                      Adjustable Certificate Interest Rate

Class M-[_] Mezzanine

Date of Grantor Trust                   Aggregate Initial Current Principal
Agreement: September 29, 2003           Amount of this Certificate as of the
                                        Cut-off Date: $____________

Cut-off Date: September 1, 2003

First Payment Date:                     Initial Current Principal Amount of this
October 25, 2003                        Certificate as of the Cut-off Date:
                                        $____________

Assumed Final Payment Date:             CUSIP: ___________
[______] 25, 2033

                       IMPAC CMB GRANTOR TRUST 2003-10-[_]
                            GRANTOR TRUST CERTIFICATE
                                 SERIES 2003-10

            evidencing a fractional undivided interest in the payments allocable
            to the Class M-[_] Certificates with respect to Trust Fund [_]
            consisting primarily of the Underlying Class M-[_]-[_] Bonds and the
            Underlying Class M-[_]-[_] Bonds sold by IMH ASSETS CORP.

      This Certificate is payable solely from the assets of Trust Fund [_], and
does not represent an obligation of or interest in IMH Assets Corp., the Master
Servicer or the Grantor Trustee referred to below or any of their affiliates or
any other person. Neither this Certificate nor the Underlying Class M-[_]-[_]
Bonds or Class M-[_]-[_] Bonds are guaranteed or insured by any governmental
entity or by IMH Assets Corp., the Grantor Trustee or any of its affiliates or
any other person. None of IMH Assets Corp. or any of their affiliates will have
any obligation with respect to any certificate or other obligation secured by or
payable from payments on the Certificates.

      This certifies that Cede & Co. is the registered owner of the Fractional
Undivided Interest evidenced hereby in the beneficial ownership interest of
Certificates of the same Class as this Certificate in a trust ("Trust Fund [_]")
consisting primarily of two bonds (collectively, the "Underlying Class M Bonds")
sold by IMH Assets Corp. Trust Fund [_] was created pursuant to the Grantor
Trust Agreement dated as of the Cut-off Date specified above (the "Agreement"),
between IMH Assets Corp., as seller (the "Depositor"), and Deutsche Bank
National Trust Company, as grantor trustee (the "Grantor Trustee"), a summary of
certain of the pertinent provisions of which is set forth hereafter. To the
extent not defined herein, capitalized terms used herein shall have the meaning
ascribed to them in the Agreement. This Certificate is issued under and is
subject to the

                                       A-2
<PAGE>

terms, provisions and conditions of the Agreement, to which Agreement the Holder
of this Certificate by virtue of its acceptance hereof assents and by which such
Holder is bound.

      Interest on this Certificate will accrue during the month prior to the
month in which a Payment Date (as hereinafter defined) occurs on the Current
Principal Amount hereof at a per annum rate equal to the Certificate Interest
Rate set forth above. The Grantor Trustee will distribute on the 25th day of
each month, or, if such 25th day is not a Business Day, the immediately
following Business Day (each, a "Payment Date"), commencing on the First Payment
Date specified above, to the Person in whose name this Certificate is registered
at the close of business on the last Business Day (or if such last day is not a
Business Day, the Business Day immediately preceding such last day) of the
calendar month preceding the month of such Payment Date, an amount equal to the
product of the Fractional Undivided Interest evidenced by this Certificate and
the amount (of interest and principal, if any) required to be distributed to the
Holders of Certificates of the same Class as this Certificate. The Assumed Final
Payment Date is the first anniversary of the Payment Date immediately following
the latest scheduled maturity date of any Mortgage Loan and is not likely to be
the date on which the Current Principal Amount of this Class of Certificates
will be reduced to zero.

      Payments on this Certificate will be made by the Grantor Trustee by check
mailed to the address of the Person entitled thereto as such name and address
shall appear on the Certificate Register or, if such Person so requests by
notifying the Grantor Trustee in writing as specified in the Agreement, by wire
transfer. Notwithstanding the above, the final payment on this Certificate will
be made after due notice by the Grantor Trustee of the pendency of such payment
and only upon presentation and surrender of this Certificate at the office or
agency appointed by the Grantor Trustee for that purpose and designated in such
notice. The Initial Current Principal Amount of this Certificate is set forth
above. The Current Principal Amount hereof will be reduced to the extent of
payments allocable to principal hereon and any Realized Losses allocable hereto.

      This Certificate is one of a duly authorized issue of Certificates
designated as set forth on the face hereof (the "Certificates"), issued in one
Class. The Certificates, in the aggregate, evidence the entire beneficial
ownership interest in Trust Fund [_] formed pursuant to the Agreement.

      The Certificateholder, by its acceptance of this Certificate, agrees that
it will look solely to Trust Fund [_] for payment hereunder and that the Grantor
Trustee is not liable to the Certificateholders for any amount payable under
this Certificate or the Agreement or, except as expressly provided in the
Agreement, subject to any liability under the Agreement.

      This Certificate does not purport to summarize the Agreement and reference
is made to the Agreement for the interests, rights and limitations of rights,
benefits, obligations and duties evidenced hereby, and the rights, duties and
immunities of the Grantor Trustee.

      The Agreement permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Depositor and the rights of the Certificateholders under the Agreement from time
to time by the Depositor and the Grantor Trustee with the consent

                                       A-3
<PAGE>

of the Holders of Certificates evidencing Fractional Undivided Interests
aggregating not less than 66-2/3% (or in certain cases, Holders of Certificates
of affected Classes evidencing such percentage of the Fractional Undivided
Interests thereof). 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 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 with the Grantor
Trustee upon surrender of this Certificate for registration of transfer at the
offices or agencies maintained by the Grantor Trustee for such purposes, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Grantor Trustee duly executed by the Holder hereof or such
Holder's attorney duly authorized in writing, and thereupon one or more new
Certificates in authorized denominations representing a like aggregate
Fractional Undivided Interest will be issued to the designated transferee. The
Certificates are issuable only as registered Certificates without coupons in the
Classes and denominations specified in the Agreement. As provided in the
Agreement and subject to certain limitations therein set forth, this Certificate
is exchangeable for one or more new Certificates evidencing the same Class and
in the same aggregate Fractional Undivided Interest, as requested by the Holder
surrendering the same.

      No service charge will be made to the Certificateholders for any such
registration of transfer, but the Grantor Trustee may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Depositor, the Grantor Trustee and any agent of any of them may
treat the Person in whose name this Certificate is registered as the owner
hereof for all purposes, and none of Depositor, the Grantor Trustee or any such
agent shall be affected by notice to the contrary. The obligations created by
the Agreement and Trust Fund [_] created thereby (other than the obligations to
make payments to Certificateholders with respect to the termination of the
Agreement) shall terminate upon the last payment made with respect to the
Underlying Class M-[_] Bonds and Class M-[_]-[_] Bonds. In no event, however,
will Trust Fund [_] created by the Agreement continue beyond the expiration of
21 years after the death of certain persons identified in the Agreement.

      Unless this Certificate has been countersigned by an authorized signatory
of the Grantor Trustee by manual signature, this Certificate shall not be
entitled to any benefit under the Agreement, or be valid for any purpose.

                                       A-4
<PAGE>

      IN WITNESS WHEREOF, the Grantor Trustee has caused this Certificate to be
duly executed.

Dated: September 29, 2003                DEUTSCHE BANK NATIONAL TRUST
                                         COMPANY
                                         Not in its individual capacity but
                                         solely as Grantor Trustee

                                         By:
                                             ----------------------------------
                                         Authorized Signatory

                                       A-5
<PAGE>

                          CERTIFICATE OF AUTHENTICATION

      This is one of the Class M-[_] Certificates referred to in the
within-mentioned Agreement.

                                        DEUTSCHE BANK NATIONAL TRUST
                                        COMPANY Authorized signatory of Deutsche
                                        Bank National Trust Company, not in its
                                        individual capacity but solely as
                                        Grantor Trustee

                                        By:
                                            ----------------------------------
                                        Authorized Signatory

                                       A-6
<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto ____________________________________ (Please print or typewrite
name and address including postal zip code of assignee) a Fractional Undivided
Interest evidenced by the within Mortgage Pass-Through Certificate and hereby
authorizes the transfer of registration of such interest to assignee on the
Certificate Register of 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 to the following address:___________________________________________
________________________________________________________________________________

Dated:

                                        _______________________________________
                                        Signature by or on behalf of assignor

                                        _______________________________________
                                        Signature Guaranteed

                              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.

                                       A-7
<PAGE>

                                    EXHIBIT B

                       Copies of Underlying Class M Bonds

                                       B-1
<PAGE>

                                    EXHIBIT C

                         Underlying Operative Documents

                                       C-1

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