Document:

<PAGE>

                                                                     Exhibit 4.3
                                                                  EXECUTION COPY

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

                    GREENPOINT HOME EQUITY LOAN TRUST 2001-2

                   Class A-1 Variable Rate Asset Backed Notes
                   Class A-2 Variable Rate Asset Backed Notes
                   Class A-3 Variable Rate Asset Backed Notes

                                    INDENTURE

                          Dated as of November 1, 2001

                              THE BANK OF NEW YORK
                                INDENTURE TRUSTEE

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

<PAGE>

                                TABLE OF CONTENTS
                                                                            Page
                                                                            ----

ARTICLE I Definitions and Incorporation by Reference...........................3

      SECTION 1.1.    Definitions..............................................3
      SECTION 1.2.    Incorporation by Reference of the Trust Indenture Act....3
      SECTION 1.3.    Rules of Construction....................................3
      SECTION 1.4.    Action by or Consent of Noteholders, Class S
                        Certificateholders and Residual Certificateholders.....3
      SECTION 1.5.    Conflict with TIA........................................4

ARTICLE II The Notes...........................................................4

      SECTION 2.1.    Form ....................................................4
      SECTION 2.2.    Execution, Authentication and Delivery...................4
      SECTION 2.3.    Registration; Registration of Transfer and Exchange......5
      SECTION 2.4.    Mutilated, Destroyed, Lost or Stolen Notes...............6
      SECTION 2.5.    Persons Deemed Owners....................................7
      SECTION 2.6.    Payment of Principal and Interest; Defaulted Interest....7
      SECTION 2.7.    Cancellation.............................................8
      SECTION 2.8.    Release of Collateral....................................8
      SECTION 2.9.    Book-Entry Notes.........................................9
      SECTION 2.10.   Notices to Clearing Agency..............................10
      SECTION 2.11.   Definitive Notes........................................10

ARTICLE III Covenants; Representations and Warranties of the Issuer...........10

      SECTION 3.1.    Payment of Principal and Interest.......................10
      SECTION 3.2.    Maintenance of Office or Agency.........................10
      SECTION 3.3.    Money for Payments to be Held in Trust..................11
      SECTION 3.4.    Existence...............................................12
      SECTION 3.5.    Protection of Trust Property............................12
      SECTION 3.6.    Opinions as to Trust Property...........................13
      SECTION 3.7.    Performance of Obligations; Servicing of Mortgage Loans.13
      SECTION 3.8.    Negative Covenants......................................14
      SECTION 3.9.    Annual Statement as to Compliance.......................15
      SECTION 3.10.   Issuer May Not Consolidate or Transfer Assets...........15
      SECTION 3.11.   No Other Business.......................................15
      SECTION 3.12.   No Borrowing............................................15
      SECTION 3.13.   Servicer's Obligations..................................16
      SECTION 3.14.   Guarantees, Loans, Advances and Other Liabilities.......16
      SECTION 3.15.   Capital Expenditures....................................16
      SECTION 3.16.   Compliance with Laws....................................16
      SECTION 3.17.   Restricted Payments.....................................16
      SECTION 3.18.   Notice of Rapid Amortization Events and Events of
                        Servicing Termination.................................16
      SECTION 3.19.   Further Instruments and Acts............................16
      SECTION 3.20.   Amendments of Sale and Servicing Agreement and
                        Trust Agreement.......................................17
      SECTION 3.21.   Income Tax Characterization.............................17
      SECTION 3.22.   Representations and Warranties of the Issuer Regarding
                        the Lien of the Indenture Trustee.....................17

                                        i
<PAGE>

ARTICLE IV Satisfaction and Discharge.........................................18

      SECTION 4.1.    Satisfaction and Discharge of Indenture.................18
      SECTION 4.2.    Application of Trust Money..............................19
      SECTION 4.3.    Repayment of Monies Held by Note Paying Agent...........19

ARTICLE V Remedies............................................................19

      SECTION 5.1.    Remedies................................................19
      SECTION 5.2.    Limitation of Suits.....................................19
      SECTION 5.3.    Unconditional Rights of Noteholders To Receive
                        Principal and Interest................................20
      SECTION 5.4.    Restoration of Rights and Remedies......................20
      SECTION 5.5.    Rights and Remedies Cumulative..........................20
      SECTION 5.6.    Delay or Omission Not a Waiver..........................20
      SECTION 5.7.    Control by Noteholders..................................21
      SECTION 5.8.    Undertaking for Costs...................................21
      SECTION 5.9.    Waiver of Stay or Extension Laws........................21
      SECTION 5.10.   Action on Notes.........................................22
      SECTION 5.11.   Performance and Enforcement of Certain Obligations......22
      SECTION 5.12.   Subrogation.............................................23
      SECTION 5.13.   Preference Claims.......................................23
      SECTION 5.14.   Noteholder Rights.......................................24
      SECTION 5.15.   Insurer's Rights Regarding Actions, Proceedings or
                        Investigations........................................24

ARTICLE VI The Indenture Trustee..............................................25

      SECTION 6.1.    Duties of Indenture Trustee.............................25
      SECTION 6.2.    Rights of Indenture Trustee.............................27
      SECTION 6.3.    Individual Rights of Indenture Trustee..................28
      SECTION 6.4.    Indenture Trustee's Disclaimer..........................28
      SECTION 6.5.    Notice of Rapid Amortization Events and Events of
                        Servicing Termination.................................28
      SECTION 6.6.    Reports by Indenture Trustee to Holders.................28
      SECTION 6.7.    Compensation and Indemnity..............................29
      SECTION 6.8.    Replacement of Indenture Trustee........................29
      SECTION 6.9.    Successor Indenture Trustee by Merger...................31
      SECTION 6.10.   Appointment of Co-Indenture Trustee or Separate
                        Indenture Trustee.....................................31
      SECTION 6.11.   Eligibility; Disqualification...........................33
      SECTION 6.12.   Preferential Collection of Claims Against Issuer........33
      SECTION 6.13.   Appointment and Powers..................................33
      SECTION 6.14.   Performance of Duties...................................33
      SECTION 6.15.   Limitation on Liability.................................34
      SECTION 6.16.   Reliance Upon Documents.................................34
      SECTION 6.17.   Representations and Warranties of the Indenture
                        Trustee...............................................34
      SECTION 6.18.   Waiver of Setoffs.......................................34
      SECTION 6.19.   Control by the Controlling Party........................35
      SECTION 6.20.   Indenture Trustee May Enforce Claims Without
                        Possession of Notes...................................35
      SECTION 6.21.   Suits for Enforcement...................................35
      SECTION 6.22.   Mortgagor Claims........................................35

                                       ii
<PAGE>

ARTICLE VII Noteholders' Lists and Reports....................................36

      SECTION 7.1.    Issuer To Furnish To Indenture Trustee Names and
                        Addresses of Noteholders..............................36
      SECTION 7.2.    Preservation of Information; Communications to
                        Noteholders...........................................36
      SECTION 7.3.    Reports by Issuer.......................................36
      SECTION 7.4.    Reports by Indenture Trustee............................37

ARTICLE VIII Payments and Statements to Noteholders and Residual Noteholders;
             Accounts, Disbursements and Releases.............................37

      SECTION 8.1.    Collection of Money.....................................37
      SECTION 8.2.    Release of Trust Property...............................38
      SECTION 8.3.    Establishment of Accounts...............................38
      SECTION 8.4.    The Policy..............................................38
      SECTION 8.5.    [Reserved]..............................................39
      SECTION 8.6.    Reserve Fund............................................39
      SECTION 8.7.    Priority of Distributions...............................41
      SECTION 8.8.    Statements to Noteholders...............................44
      SECTION 8.9.    Pre-Funding Account.....................................47
      SECTION 8.10.   Rights of Noteholders and Residual Certificateholders...48
      SECTION 8.11.   Opinion of Counsel......................................48

ARTICLE IX Supplemental Indentures............................................49

      SECTION 9.1.    Supplemental Indentures Without Consent of Noteholders..49
      SECTION 9.2.    Supplemental Indentures with Consent of Noteholders.....50
      SECTION 9.3.    Execution of Supplemental Indentures....................51
      SECTION 9.4.    Effect of Supplemental Indenture........................52
      SECTION 9.5.    Reference in Notes to Conformity With Trust
                        Indenture Act.........................................52
      SECTION 9.6.    Reference in Notes to Supplemental Indentures...........52

ARTICLE X Redemption of Notes.................................................52

      SECTION 10.1.   Redemption..............................................52
      SECTION 10.2.   Surrender of Notes......................................52
      SECTION 10.3.   Form of Redemption Notice...............................54
      SECTION 10.4.   Notes Payable on Redemption Date........................54

                                       iii
<PAGE>

ARTICLE XI Miscellaneous......................................................54

      SECTION 11.1.   Compliance Certificates and Opinions, etc...............54
      SECTION 11.2.   Form of Documents Delivered to Indenture Trustee........55
      SECTION 11.3.   Acts of Noteholders.....................................56
      SECTION 11.4.   Notices, etc., to Indenture Trustee, Issuer, Insurer
                        and Rating Agencies...................................56
      SECTION 11.5.   Notices to Noteholders; Waiver..........................57
      SECTION 11.6.   Alternate Payment and Notice Provisions.................58
      SECTION 11.7.   Conflict with Trust Indenture Act.......................58
      SECTION 11.8.   Effect of Headings and Table of Contents................58
      SECTION 11.9.   Successors and Assigns..................................58
      SECTION 11.10.  Separability............................................58
      SECTION 11.11.  Benefits of Indenture...................................58
      SECTION 11.12.  Legal Holidays..........................................59
      SECTION 11.13.  GOVERNING LAW...........................................59
      SECTION 11.14.  Counterparts............................................59
      SECTION 11.15.  Recording of Indenture..................................59
      SECTION 11.16.  Trust Obligation........................................59
      SECTION 11.17.  No Petition.............................................60
      SECTION 11.18.  Inspection..............................................60
      SECTION 11.19.  Limitation of Liability.................................60

ARTICLE XII Rapid Amortization Events.........................................60

      SECTION 12.1.   Rapid Amortization Events...............................60

ANNEX A               -      Defined Terms

EXHIBIT A-1           -      Form of Class A-1 Note

EXHIBIT A-2           -      Form of Class A-2 Note

EXHIBIT A-3           -      Form of Class A-3 Note

EXHIBIT B             -      Form of Opinion of Counsel

                                       iv
<PAGE>

         INDENTURE, dated as of November 1, 2001 (the "Indenture"), between
GREENPOINT HOME EQUITY LOAN TRUST 2001-2, a Delaware business trust (the
"Issuer"), and The Bank of New York, a New York banking corporation, as trustee
(the "Indenture Trustee").

         Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Issuer's Class A-1 Variable
Rate Asset Backed Notes (the "Class A-1 Notes"), Class A-2 Variable Rate Asset
Backed Notes (the "Class A-2 Notes") and Class A-3 Variable Rate Asset Backed
Notes (the "Class A-3 Notes" and, together with the Class A-1 Notes and the
Class A-2 Notes, the "Notes"):

         As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer has agreed to assign
the Collateral (as defined below) to the Indenture Trustee on behalf of the
Noteholders.

         MBIA Insurance Corporation (the "Insurer") has issued and delivered a
financial guaranty insurance policy for the Notes and the Class S Certificates,
dated the Closing Date (the "Policy"), pursuant to which the Insurer guarantees
the Insured Payments (as defined in the Policy).

         As an inducement to the Insurer to issue and deliver the Policy, the
Issuer and the Insurer have executed and delivered the Insurance Agreement,
dated as of November 1, 2001 (as amended from time to time, the "Insurance
Agreement"), among the Insurer, the Issuer, GreenPoint Mortgage Funding, Inc.,
GreenPoint Mortgage Securities Inc. and the Indenture Trustee.

         As an additional inducement to the Insurer to issue the Policy, and as
security for the performance by the Issuer of the Insurer Issuer Secured
Obligations and as security for the performance by the Issuer of the Indenture
Trustee Issuer Secured Obligations, the Issuer has agreed to grant and assign
the Collateral (as defined below) to the Indenture Trustee for the benefit of
the Issuer Secured Parties, as their respective interests may appear.

<PAGE>

                                 GRANTING CLAUSE

The Issuer hereby Grants to the Indenture Trustee at the Closing Date, for the
benefit of the Issuer Secured Parties all of the Issuer's right, title and
interest in and to: (i)(A) a pool ("Pool I") of certain adjustable rate home
equity revolving credit line loans ("HELOC Mortgage Loans") (including any
Additional Balances related thereto) which conform to certain loan origination
standards with respect to loan balances and other items as of the date of
origination as set forth by the Federal Home Loan Mortgage Corporation (the
"Initial Pool I Mortgage Loans"), (B) a pool ("Pool II") of certain HELOC
Mortgage Loans (including any Additional Balances related thereto) which conform
to certain loan origination standards with respect to loan balances and other
items as of the date of origination as set forth by the Federal National
Mortgage Association (the "Initial Pool II Mortgage Loans") and (C) a pool
("Pool III") of certain HELOC Mortgage Loans (including any Additional Balances
related thereto) which may or may not conform to certain loan origination
standards with respect to loan balances and other items as of the date of
origination as set forth by Federal Home Loan Mortgage Corporation or Federal
National Mortgage Association (the "Initial Pool III Mortgage Loans", and
together with the Initial Pool I Mortgage Loans and the Initial Pool II Mortgage
Loans, the "Initial Mortgage Loans"), in each case as set forth in Exhibit A to
the Sale and Servicing Agreement; (ii) the collections in respect of the
Mortgage Loans after the Cut-Off Date; (iii) property that secured a Mortgage
Loan that has been acquired by foreclosure or deed in lieu of foreclosure; (iv)
rights of the Sponsor under hazard insurance policies covering the Mortgaged
Properties; (v) amounts on deposit from time to time in the Collection Account;
(vi) any amounts on deposit in the Pre-Funding Account; (vii) amounts on deposit
from time to time in the Reserve Fund; (viii) any and all HELOC Mortgage Loans
(including any Additional Balances related thereto) and second lien closed-end
loans ("Closed End Mortgage Loans") acquired by the Issuer from time to time as
Subsequent Mortgage Loans (the Subsequent Mortgage Loans, together with the
Initial Mortgage Loans are collectively referred to as the "Mortgage Loans")
(including any Additional Balances related thereto); (ix) all rights under the
Purchase Agreement assigned to the Issuer (including all representations and
warranties of the Seller contained therein) and all rights of the Issuer under
the Sale and Servicing Agreement; and (x) any and all proceeds of the foregoing
(the items set forth in (i) through (ix) above, the "Collateral").

         The foregoing Grant is made in trust to the Indenture Trustee, for the
benefit first, of the Holders of the Notes and the Class S Certificateholders,
and second, for the benefit of the Insurer. The Indenture Trustee hereby
acknowledges such Grant, accepts the trusts under this Indenture in accordance
with the provisions of this Indenture and agrees to perform its duties required
in this Indenture to the best of its ability to the end that the interests of
such parties, recognizing the priorities of their respective interests may be
adequately and effectively protected.

         The Indenture Trustee hereby agrees that it will hold the Policy in
trust and that it will hold any proceeds of any claim made upon the Policy
solely for the use and the benefit of the Noteholders and the Class S
Certificateholders in accordance with the terms hereof and the terms of the
Policy.

         Neither the Indenture Trustee nor the Issuer assumes or shall assume
any obligation under any Credit Line Agreement that provides for the funding of
future Draws to the Mortgagor thereunder, and neither the Indenture Trustee nor
the Issuer shall be obligated or permitted to fund any such future Draws.

                                       2
<PAGE>

                                   ARTICLE I

                   Definitions and Incorporation by Reference

         SECTION 1.1. Definitions. Except as otherwise specified herein, the
following terms have the respective meanings set forth in Annex A to this
Indenture.

         SECTION 1.2. Incorporation by Reference of the Trust Indenture Act.
Whenever this Indenture refers to a provision of the Trust Indenture Act
("TIA"), the provision is incorporated by reference in and made a part of this
Indenture. The following TIA terms used in this Indenture have the following
meanings:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Notes.

         "indenture security holder" means a Holder of a Note.

         "indenture to be qualified" means this Indenture.

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

         "obligor" on the indenture securities means the Issuer.

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

         SECTION 1.3. 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; and

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

         SECTION 1.4. Action by or Consent of Noteholders, Class S
Certificateholders and Residual Certificateholders. Whenever any provision of
this Indenture refers to action to be taken, or consented to, by Noteholders,
Class S Certificateholders or

                                       3
<PAGE>

Residual Certificateholders, such provision shall be deemed to refer to the
Noteholder, Class S Certificateholder or Residual Certificateholder, as the case
may be, of record as of the Record Date immediately preceding the date on which
such action is to be taken, or consent given, by Noteholders, Class S
Certificateholders or Residual Certificateholders. Solely for the purposes of
any action to be taken, or consented to, by Noteholders, Class S
Certificateholders or Residual Certificateholders, any Note, Class S Certificate
or Residual Certificate registered in the name of GreenPoint Mortgage Funding,
Inc. or any Affiliate thereof shall be deemed not to be outstanding; provided,
however, that, solely for the purpose of determining whether the Indenture
Trustee or the Owner Trustee is entitled to rely upon any such action or
consent, only Notes, Class S Certificates or Residual Certificates which the
Owner Trustee or the Indenture Trustee, respectively, knows to be so owned shall
be so disregarded.

         SECTION 1.5. Conflict with TIA. If any provision hereof limits,
qualifies or conflicts with a provision of the TIA that is required under the
TIA to be part of and govern this Indenture, the latter provision shall control
and all provisions required by the TIA are hereby incorporated by reference. If
any provision of this Indenture modifies or excludes any provision of the TIA
that may be so modified or excluded, the latter provisions shall be deemed to
apply to this Indenture as so modified or to be excluded, as the case may be.

                                   ARTICLE II

                                    The Notes

         SECTION 2.1. Form. The Class A-1 Notes, the Class A-2 Notes and the
Class A-3 Notes, in each case together with the Indenture Trustee's certificate
of authentication, shall be in substantially the form set forth in Exhibits A-1,
A-2 and A-3 hereto, with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture and may have
such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any
portion of the text of any Notes may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Note.

         Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibits A-1, A-2 and A-3 are part of the terms of this
Indenture.

         SECTION 2.2. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be original or
facsimile.

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

                                       4
<PAGE>

         The Indenture Trustee shall authenticate and deliver Class A-1 Notes
for original issue in the aggregate principal amount of $100,000,000, the Class
A-2 Notes for original issue in the aggregate principal amount of $100,000,000
and the Class A-3 Notes for original issue in the aggregate principal amount of
$245,000,000. The Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes
outstanding at any time may not exceed such amounts.

         Each Note shall be dated the date of its authentication. The Notes
shall be issuable as registered Notes in the minimum denomination of $1,000 and
in integral multiples of $1,000 in excess thereof.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears attached to such Note
a certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate attached to any Notes shall be
conclusive evidence, and the only evidence, that such Notes have been duly
authenticated and delivered hereunder. Subject to Section 2.11, the Notes shall
be Book Entry Notes.

         SECTION 2.3. Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "Note Register") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall be "Note Registrar" for the purpose of registering Notes
and transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

         If a Person other than the Indenture Trustee is appointed by the Issuer
as Note Registrar, the Issuer will give the Indenture Trustee and the Insurer
prompt written notice of the appointment of such Note Registrar and of the
location, and any change in the location, of the Note Register, and the
Indenture Trustee and the Insurer shall have the right to inspect the Note
Register at all reasonable times and to obtain copies thereof. The Indenture
Trustee shall have the right to rely upon a certificate executed on behalf of
the Note Registrar by an Authorized Officer thereof as to the names and
addresses of the Holders of the Notes and the principal amounts and number of
such Notes.

         Upon surrender for registration or transfer of any Note at the office
or agency of the Issuer to be maintained as provided in Section 3.2, and if the
requirements of Section 8-401(1) of the UCC are met, the Issuer shall execute or
cause the Indenture Trustee to authenticate one or more new Notes, in any
authorized denominations, of the same class and a like aggregate principal
amount. A Noteholder may also obtain from the Indenture Trustee, in the name of
the designated transferee or transferees one or more new Notes, in any
authorized denominations, of the same class and a like aggregate principal
amount. Such requirements shall not be deemed to create a duty in the Indenture
Trustee to monitor the compliance by the Issuer with Section 8-401 of the UCC.

                                       5
<PAGE>

         At the option of the Holder, Notes may be exchanged for other Notes in
any authorized denominations, of the same class and a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, and if the requirements of
Section 8-401(1) of the UCC are met, the Issuer shall execute and upon its
request the Indenture Trustee shall authenticate the Notes which the Noteholder
making the exchange is entitled to receive. Such requirements shall not be
deemed to create a duty in the Indenture Trustee to monitor the compliance by
the Issuer with Section 8-401 of the UCC.

         All Notes issued upon any registration of transfer or exchange of Notes
shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.

         Every Note presented or surrendered for registration of transfer or
exchange shall be (i) duly endorsed by, or be accompanied by a written
instrument of transfer in the form attached to Exhibits A-1, A-2 and A-3, duly
executed by the Holder thereof or such Holder's attorney duly authorized in
writing, with such signature guaranteed by an "eligible guarantor institution"
meeting the requirements of the Note Registrar all in accordance with the
Exchange Act, and (ii) accompanied by such other documents as the Note Registrar
may require.

         No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Note Registrar may require payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to Section 2.4 or 9.6 not involving any transfer.

         The Note Registrar shall not register the transfer of a Definitive Note
unless the Indenture Trustee has received a representation letter (in form and
substance satisfactory to the Indenture Trustee) from the prospective transferee
to the effect that either (a) such transferee is not an employee benefit plan
(as defined in Section 3(3) of ERISA) that is subject to the provisions of Title
I of ERISA or a plan (as defined in Section 4975(e)(1) of the Code) that is
subject to Section 4975 of the Code (each, a "Benefit Plan") and is not acting
on behalf of or investing the assets of a Benefit Plan or (b) the acquisition
and continued holding of such Note by the transferee will be covered by a U.S.
Department of Labor prohibited transaction class exemption. Each Note Owner, by
acceptance of a beneficial interest in a Book-Entry Note, will be deemed to make
one of the foregoing representations.

         SECTION 2.4. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Note Registrar, or the Note Registrar
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee and the Insurer such
security or indemnity as may be required by it to hold the Issuer, the Indenture
Trustee and the Insurer harmless, then, in the absence of notice to the Issuer,
the Note Registrar or the Indenture Trustee that such Note has been acquired by
a bona fide purchaser, and provided that the requirements of Section 8-405 of
the UCC are met, the Issuer shall execute and upon its request the Indenture
Trustee shall authenticate and deliver, in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Note, a replacement Note (such requirement
shall not be deemed to create a duty in the Indenture Trustee to monitor the
compliance by the Issuer with Section 8-405); provided, however, that if any
such destroyed, lost or stolen Note, but not a mutilated Note, shall have become
or within seven days shall be due and payable, or shall have been called for
redemption, the Issuer may, instead of issuing a replacement Note, direct the
Indenture Trustee, in writing, to pay such destroyed, lost or stolen Note when
so due or payable or upon the Redemption Date without surrender thereof. If,
after the delivery of such replacement Note or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding sentence, a bona fide
purchaser of the original Note in lieu of which such replacement Note was issued
presents for payment such original Note, the Issuer, the Indenture Trustee and
the Insurer shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered or any
assignee of such Person, except a bona fide purchaser, and shall be entitled to
recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer, the Indenture Trustee or
the Insurer in connection therewith.

                                       6
<PAGE>

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

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

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

         SECTION 2.5. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and the
Insurer and any agent of the Issuer, the Indenture Trustee and the Insurer may
treat the Person in whose name any Note is registered (as of the Record Date) as
the owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on such Note and for all other purposes whatsoever, whether or
not such Note be overdue, and none of the Issuer, the Insurer, the Indenture
Trustee nor any agent of the Issuer, the Insurer or the Indenture Trustee shall
be affected by notice to the contrary.

         SECTION 2.6. Payment of Principal and Interest; Defaulted Interest.

         (a) The Notes shall accrue interest as provided herein, and such amount
shall be payable on each Payment Date as specified herein. Any installment of
interest or principal, if any, payable on any Note which is punctually paid or
duly provided for by the Issuer on the applicable Payment Date shall be paid to
the Person in whose name such Note (or one or more Predecessor Notes) is
registered on the Record Date, by check mailed first-class, postage prepaid, to
such Person's address as it appears on the Note Register on such Record Date,
except that, unless Definitive Notes have been issued pursuant to Section 2.11,
with respect to Notes registered on the Record Date in the name of the nominee
of the Clearing Agency (initially, such nominee to be Cede & Co.), payment will
be made by wire transfer in immediately available funds to the account
designated by such nominee and except for the final installment of principal
payable with respect to such Note on a Payment Date or on the Final Scheduled
Payment Date (and except for the Redemption Price for any Note called for
redemption pursuant to Section 10.1) which shall be payable as provided below.
The funds represented by any such checks returned undelivered shall be held in
accordance with Section 3.3.

                                       7
<PAGE>

         (b) Upon written notice from the Issuer, the Indenture Trustee shall
notify the Person in whose name a Note is registered at the close of business on
the Record Date preceding the Payment Date on which the Issuer expects that the
final installment of principal of and interest on such Note will be paid. Such
notice shall be mailed or transmitted by facsimile prior to such final Payment
Date and shall specify that such final installment will be payable only upon
presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment. Notices
in connection with redemptions of Notes shall be mailed to Noteholders as
provided in Section 10.2.

         (c) If the Issuer defaults in a payment of interest on the Notes, the
Issuer shall pay defaulted interest (plus interest on such defaulted interest to
the extent lawful) at the applicable Note Rate to the extent lawful. The Issuer
may pay such defaulted interest to the Persons who are Noteholders on a
subsequent special Record Date, which date shall be at least five Business Days
prior to the Payment Date. The Issuer shall fix or cause to be fixed any such
special Record Date and Payment Date, and, at least 15 days before any such
special Record Date, the Issuer shall mail to each Noteholder, the Insurer and
the Indenture Trustee a notice that states the special Record Date, the Payment
Date and the amount of defaulted interest to be paid.

         (d) Promptly following the date on which all principal of and interest
on the Notes has been paid in full and the Notes have been surrendered to the
Indenture Trustee, the Indenture Trustee shall, upon written notice from the
Servicer of the amounts, if any, that the Insurer has paid in respect of the
Notes under the Policy or otherwise which has not been reimbursed to the
Insurer, deliver such surrendered Notes to the Insurer to the extent not
previously canceled or destroyed.

         SECTION 2.7. Cancellation. Subject to Section 2.6(d), all Notes
surrendered for payment, registration of transfer, exchange or redemption shall,
if surrendered to any Person other than the Indenture Trustee, be delivered to
the Indenture Trustee and shall be promptly canceled by the Indenture Trustee.
Subject to Section 2.6(d), the Issuer may at any time deliver to the Indenture
Trustee for cancellation any Notes previously authenticated and delivered
hereunder which the Issuer may have acquired in any manner whatsoever, and all
Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes
shall be authenticated in lieu of or in exchange for any Notes canceled as
provided in this Section, except as expressly permitted by this Indenture.
Subject to Section 2.6(d), all canceled Notes may be held or disposed of by the
Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that
they be returned to it; provided that such Issuer Order is timely and the Notes
have not been previously disposed of by the Indenture Trustee.

         SECTION 2.8. Release of Collateral. The Indenture Trustee shall, on or
after the Termination Date, release any remaining portion of the Trust Property
from the lien created by this Indenture and deposit in the Collection Account
any funds then on deposit in any other

                                       8
<PAGE>

Account. The Indenture Trustee shall release property from the lien created by
this Indenture pursuant to this Section 2.8 only upon receipt of an Issuer
Request by it accompanied by an Officer's Certificate and an Opinion of Counsel
(which shall also be addressed to the Insurer) and (if required by the TIA)
Independent Certificates in accordance with TIA ss.ss. 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

         SECTION 2.9. Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company or its custodian, the initial
Clearing Agency, by, or on behalf of, the Issuer. Such Notes shall initially be
registered on the Note Register in the name of Cede & Co., the nominee of the
initial Clearing Agency, and no Note Owner will receive a Definitive Note
representing such Note Owner's interest in such Note, except as provided in
Section 2.11. Unless and until definitive, fully registered Notes (the
"Definitive Notes") have been issued to Note Owners pursuant to Section 2.11:

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

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

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

                  (iv) the rights of Note Owners shall be exercised only through
         the Clearing Agency and shall be limited to those established by law
         and agreements between such Note Owners and the Clearing Agency and/or
         the Clearing Agency Participants. Unless and until Definitive Notes are
         issued pursuant to Section 2.11, the initial Clearing Agency will make
         book-entry transfers among the Clearing Agency Participants and receive
         and transmit payments of principal of and interest on the Notes to such
         Clearing Agency Participants;

                                       9
<PAGE>

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

                  (vi) Note Owners may receive copies of any reports sent to
         Noteholders pursuant to this Indenture, upon written request, together
         with a certification that they are Note Owners and payment of
         reproduction and postage expenses associated with the distribution of
         such reports, from the Indenture Trustee at the Corporate Trust Office.

         SECTION 2.10. Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Note Owners pursuant to Section
2.11, the Indenture Trustee shall give all such notices and communications
specified herein to be given to Holders of the Notes to the Clearing Agency, and
shall have no obligation to the Note Owners.

         SECTION 2.11. Definitive Notes. If (i) the Servicer advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities with respect to the Notes, and
the Servicer is unable to locate a qualified successor, (ii) the Servicer at its
option advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency or (iii) after the occurrence of a
Rapid Amortization Event, Note Owners representing beneficial interests
aggregating at least a majority of the Outstanding Amount of the Notes advise
the Indenture Trustee through the Clearing Agency in writing that the
continuation of a book entry system through the Clearing Agency is no longer in
the best interests of the Note Owners, then the Clearing Agency shall notify all
Note Owners and the Indenture Trustee of the occurrence of any such event and of
the availability of Definitive Notes to Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Note or Notes representing
the Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the
Holders of the Definitive Notes as Noteholders.

                                  ARTICLE III

             Covenants; Representations and Warranties of the Issuer

         SECTION 3.1. Payment of Principal and Interest. The Issuer will duly
and punctually pay the principal of and interest on the Notes in accordance with
the terms of the Notes and this Indenture. The Notes shall be debt obligations
of the Trust and shall be limited in right of payment to amounts available from
the Trust as provided in this Indenture and the Trust shall not otherwise be
liable for payments on the Notes. No person shall be personally liable for any
amounts payable under the Notes. Amounts properly withheld under the Code by any
Person from a payment to any Noteholder of interest and/or principal shall be
considered as having been paid by the Issuer to such Noteholder for all purposes
of this Indenture.

         SECTION 3.2. Maintenance of Office or Agency. The Issuer will maintain
in New York, New York, an office or agency where Notes may be surrendered for
registration, transfer or exchange of the Notes, and where notices and demands
to or upon the Issuer in respect of the Notes and this Indenture may be served.
The Issuer hereby initially appoints the Indenture Trustee to serve as its agent
for the foregoing purposes. The Issuer will give prompt written notice to the
Indenture Trustee of the location, and of any change in the location, of any
such office or agency. If at any time the Issuer shall fail to maintain any such
office or agency or shall fail to furnish the Indenture Trustee with the address
thereof, such surrenders, notices and demands may be made or served at the
Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee as
its agent to receive all such surrenders, notices and demands.

                                       10
<PAGE>

         SECTION 3.3. Money for Payments to be Held in Trust. The Issuer will
cause each Note Paying Agent other than the Indenture Trustee to execute and
deliver to the Indenture Trustee and the Insurer an instrument in which such
Note Paying Agent shall agree with the Indenture Trustee (and if the Indenture
Trustee acts as Note Paying Agent, it hereby so agrees), subject to the
provisions of this Section, that such Note Paying Agent will:

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

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

                  (iii) at any time during the continuance of any such default,
         upon the written request of the Indenture Trustee with the consent of
         the Insurer, if the Insurer is the Controlling Party, forthwith pay to
         the Indenture Trustee all sums so held in trust by such Note Paying
         Agent;

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

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

         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
Order direct any Note Paying Agent to pay to the Indenture Trustee all sums held
in trust by such Note 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 Note
Paying Agent; and upon such a payment by any Note Paying Agent to the Indenture
Trustee, such Note Paying Agent shall be released from all further liability
with respect to such money.

         Subject to applicable laws with respect to the escheat of funds, any
money held by the Indenture Trustee or any Note Paying Agent in trust for the
payment of any amount due with respect to any Note and remaining unclaimed for
two years after such amount has become due and payable shall be discharged from
such trust and be paid to the Issuer, with the prior consent of the Insurer, on
Issuer Request, and shall be deposited by the Indenture Trustee in the
Collection Account; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to the Issuer for payment thereof (but
only to the extent of the amounts so paid to the Issuer), and all liability of
the Indenture Trustee, the Insurer or such Note Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that if such money or
any portion thereof had been previously deposited by the Insurer with the
Indenture Trustee for the payment of principal or interest on the Notes or
interest on the Class S Certificates, to the extent any amounts are owing to the
Insurer, such amounts shall be paid promptly to the Insurer upon receipt of a
written request by the Insurer to such effect.

                                       11
<PAGE>

         SECTION 3.4. Existence. The Issuer will keep in full effect its
existence, rights and franchises as a business trust under the laws of the State
of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States of America,
in which case the Issuer will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Trust Property, the Notes, and each other
instrument or agreement included in the Trust Property.

         SECTION 3.5. Protection of Trust Property. The Issuer intends the
security interest granted pursuant to this Indenture in favor of the Issuer
Secured Parties to be prior to all other liens in respect of the Trust Property
and the Issuer shall take all actions necessary to obtain and maintain, in favor
of the Indenture Trustee, for the benefit of the Issuer Secured Parties, a first
lien on and a first priority, perfected security interest in the Trust Property.
The Issuer will from time to time prepare (or shall cause to be prepared),
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) Grant more effectively all or any portion of the Trust
         Property;

                  (ii) maintain or preserve the lien and security interest (and
         the priority thereof) in favor of the Indenture Trustee for the benefit
         of the Issuer Secured Parties created by this Indenture or carry out
         more effectively the purposes hereof;

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

                  (iv) enforce any of the Collateral;

                  (v) preserve and defend title to the Trust Property and the
         rights of the Indenture Trustee in such Trust Property against the
         claims of all persons and parties; and

                  (vi) pay all taxes or assessments levied or assessed upon the
         Trust Property when due.

The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required pursuant to this Section; provided that, such
designation shall not be deemed to create a duty in the Indenture Trustee to
monitor the compliance of the Issuer with respect to its duties under this
Section 3.5 or the adequacy of any financing statement, continuation statement
or other instrument prepared by the Issuer.

                                       12
<PAGE>

         SECTION 3.6. Opinions as to Trust Property.

         (a) On the Closing Date, the Issuer shall furnish to the Indenture
Trustee and the Insurer an Opinion of Counsel in the form of Exhibit B hereto,
stating that, in the opinion of such counsel, such actions have 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 first priority lien and security
interest in favor of the Indenture Trustee, for the benefit of the Issuer
Secured Parties, created by this Indenture, subject to the exceptions and
qualifications set forth in such Opinion of Counsel.

         (b) Within 90 days after the beginning of each calendar year, beginning
in 2003, the Issuer shall furnish to the Indenture Trustee and the Insurer, an
Opinion of Counsel either stating that, in the opinion of such counsel, such
actions have 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 are necessary to maintain
the lien and security interest created by this Indenture 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 of this Indenture.

         SECTION 3.7. Performance of Obligations; Servicing of Mortgage Loans.

         (a) The Issuer will not take any action and will use its best efforts
not to permit any action to be taken by others that would release any Person
from any of such Person's material covenants or obligations under any instrument
or agreement included in the Trust Property or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or impair
the validity or effectiveness of, any such instrument or agreement, except as
ordered by any bankruptcy or other court or as expressly provided in this
Indenture, the Basic Documents or such other instrument or agreement.

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

         (c) 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 Property, including, but
not limited to, preparing (or causing to be prepared) and filing (or causing to
be filed) all UCC financing statements and continuation statements required to
be filed by the terms of this Indenture and the Sale and Servicing Agreement in
accordance with and within the time periods provided for herein and therein.
Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision
thereof without the consent of the Indenture Trustee and the Insurer.

                                       13
<PAGE>

         (d) If a Responsible Officer of the Owner Trustee shall have actual
knowledge of the occurrence of an Event of Servicing Termination under the Sale
and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee,
the Insurer and the Rating Agencies thereof in accordance with Section 11.4, and
shall specify in such notice the action, if any, the Issuer is taking at the
direction of the Controlling Party in respect of such default. If an Event of
Servicing Termination shall arise from the failure of the Servicer to perform
any of its duties or obligations under the Sale and Servicing Agreement with
respect to the Mortgage Loans, the Issuer shall take all reasonable steps
available to it to remedy such failure.

         (e) The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Sponsor of their respective duties under the
Basic Documents (x) without the prior consent of the Insurer or (y) if the
effect thereof would adversely affect the Holders of the Notes.

         SECTION 3.8. Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

                  (i) except as expressly permitted by this Indenture or the
         Basic Documents, sell, transfer, exchange or otherwise dispose of any
         of the properties or assets of the Issuer, including those included in
         the Trust Property (but excluding any Mortgage Loans removed from any
         Pool pursuant to Section 2.07 of the Sale and Servicing Agreement),
         without the consent of the Insurer (which consent may not be
         unreasonably withheld) provided, that if an Insurer Default has
         occurred and is continuing the Noteholders representing 66-2/3% of the
         Outstanding Amount may direct the Indenture Trustee to sell or dispose
         of the Trust Property.

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

                  (iii) (A) permit the validity or effectiveness of this
         Indenture to be impaired, or permit the lien in favor of the Indenture
         Trustee created by this Indenture to be amended, hypothecated,
         subordinated, terminated or discharged, or permit any Person to be
         released from any covenants or obligations with respect to the Notes
         under this Indenture except as may be expressly permitted hereby, (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 Property or
         any part thereof or any interest therein or the proceeds thereof (other
         than tax liens, mechanics' liens and other liens that arise by
         operation of law, in each case on a Mortgaged Property and arising
         solely as a result of an action or omission of the related obligor),
         (C) permit the lien of this Indenture not to constitute a valid first
         priority (other than with respect to any such tax, mechanics' or other
         lien) security interest in the Trust Property or (D) amend, modify or
         fail to comply with the provisions of the Basic Documents without the
         prior written consent of the Insurer, which consent may not be
         unreasonably withheld.

                                       14
<PAGE>

         SECTION 3.9. Annual Statement as to Compliance. The Issuer will deliver
to the Indenture Trustee and the Insurer, within 90 days after the end of each
fiscal year of the Issuer (commencing with the fiscal year ended December 31,
2002) and otherwise in compliance with the requirements of TIA Section
314(a)(4), an Officer's Certificate stating, as to the Authorized Officer
signing such Officer's Certificate, that

                  (i) a review of the activities of the Issuer during such year
         and of 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 the compliance of any such condition or covenant,
         specifying each such default known to such Authorized Officer and the
         nature and status thereof.

         SECTION 3.10. Issuer May Not Consolidate or Transfer Assets.

         (a) The Issuer may not consolidate or merge with or into any other
Person.

         (b) Except as otherwise provided in the Sale and Servicing Agreement,
the Issuer shall not convey or transfer all or substantially all of its
properties or assets, including those included in the Trust Property, to any
Person.

         SECTION 3.11. No Other Business. The Issuer shall not engage in any
business other than purchasing, owning, selling and managing the Mortgage Loans
and other assets in the manner contemplated by this Indenture and the Basic
Documents and activities incidental thereto.

         SECTION 3.12. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
Indebtedness or any certificates of beneficial interest except for (i) the
Residual Certificates and the Class S Certificates, (ii) the Notes, (iii)
obligations owing from time to time to the Insurer under the Insurance Agreement
and (iv) any other indebtedness permitted by or arising under the Basic
Documents, except that the Issuer shall not incur any indebtedness that would
cause it, or any portion thereof, to be treated as a "taxable mortgage pool"
under Section 7701 of the Code. The proceeds of the Notes and the Residual
Certificates shall be used exclusively to fund the Issuer's purchase of the
Mortgage Loans and the other assets specified in the Sale and Servicing
Agreement, to fund the Pre-Funding Account and the Reserve Fund and to pay the
Issuer's organizational, transactional and start-up expenses.

                                       15
<PAGE>

         SECTION 3.13. Servicer's Obligations. The Issuer shall cause the
Servicer to comply with Sections 3.09, 3.10 and 4.01 of the Sale and Servicing
Agreement and Section 8.6 herein.

         SECTION 3.14. Guarantees, Loans, Advances and Other Liabilities. Except
as contemplated by the Sale and Servicing Agreement or this Indenture, 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 3.15. 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 3.16. Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
Basic Document.

         SECTION 3.17. 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 or to the Servicer, (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, distributions
to the Servicer, the Owner Trustee, the Indenture Trustee and the Noteholders as
permitted by, and to the extent funds are available for such purpose under, the
Sale and Servicing Agreement, this Indenture, or Trust 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 3.18. Notice of Rapid Amortization Events and Events of
Servicing Termination. Upon a Responsible Officer of the Owner Trustee having
actual knowledge thereof, the Issuer agrees to give the Indenture Trustee, the
Insurer and the Rating Agencies prompt written notice of each Rapid Amortization
Event hereunder or Event of Servicing Termination under the Sale and Servicing
Agreement.

         SECTION 3.19. Further Instruments and Acts. Upon request of the
Indenture Trustee or the Insurer, 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.

                                       16
<PAGE>

         SECTION 3.20. Amendments of Sale and Servicing Agreement and Trust
Agreement. The Issuer shall not agree to any amendment to Section 9.01 of the
Sale and Servicing Agreement or Section 12.1 of the Trust Agreement to eliminate
the requirements thereunder that the Indenture Trustee, the Insurer or the
Holders of the Notes consent to amendments thereto as provided therein.

         SECTION 3.21. Income Tax Characterization. For purposes of federal
income, state and local income and franchise and any other income taxes, the
Issuer and the Noteholders will treat the Notes as indebtedness of the Sponsor
and hereby instruct the Indenture Trustee to treat the Notes as indebtedness of
the Sponsor for federal and state tax reporting purposes.

         SECTION 3.22. Representations and Warranties of the Issuer Regarding
the Lien of the Indenture Trustee. With respect to the Collateral, the Issuer
represents and warrants that, as of the Closing Date and each Subsequent
Transfer Date:

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

                  (ii) The Mortgage Notes constitute "instruments" within the
         meaning of the UCC;

                  (iii) The Issuer owns or will own and has or will have good
         title to the Collateral free and clear of any lien, claim or
         encumbrance of any Person;

                  (iv) The Issuer has or will have received all consents and
         approvals required by the terms of the Mortgage Loans to the pledge of
         the Mortgage Loans hereunder to the Indenture Trustee;

                  (v) All original executed copies of each Mortgage Loan have
         been or will be delivered to the Custodian or the Indenture Trustee;

                  (vi) The Issuer has or will have received a written
         acknowledgement from the Custodian or the Indenture Trustee that the
         Custodian or Indenture Trustee is holding the Mortgage Loans solely on
         behalf and for the benefit of the Indenture Trustee on behalf of the
         Noteholders;

                  (vii) 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. The Issuer has not authorized the
         filing of and is not aware of any financing statement against the
         Issuer that includes a description of any of the Collateral other than
         a 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 judgement or tax lien filings against the Issuer; and

                                       17
<PAGE>

                  (viii) None of the Mortgage Notes has or will have any marks
         or notations indicating that it has been pledged, assigned or otherwise
         conveyed to any Person other than the Indenture Trustee.

                                   ARTICLE IV
                           Satisfaction and Discharge

         SECTION 4.1. Satisfaction and Discharge of Indenture. Upon payment in
full to the Insurer of amounts due to the Insurer and on the Notes, this
Indenture shall cease to be of further effect with respect to the Notes except
as to (i) the rights of registration of transfer and exchange, (ii) substitution
of mutilated, destroyed, lost or stolen Notes, (iii) the rights of Noteholders
to receive payments of principal thereof and interest thereon, (iv) Sections
3.3, 3.4, 3.5, 3.8, 3.10, 3.12, 3.13, 3.20 and 3.21, (v) the rights, obligations
and immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee
under Section 4.2) and (vi) the rights of Noteholders and the Insurer as
beneficiaries hereof with respect to the property so deposited with the
Indenture Trustee payable to all or any of them, and the Indenture Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the
Notes, when

         either

         (1) all Notes theretofore authenticated and delivered (other than (i)
Notes that have been destroyed, lost or stolen and that have been replaced or
paid as provided in Section 4.5 of the Trust Agreement and (ii) Notes for which
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 3.3) have been delivered to the Indenture Trustee
for cancellation and the Policy has terminated and been returned to the Insurer
for cancellation and all amounts owing to the Insurer have been paid in full; or

         (2) all Notes not theretofore delivered to the Indenture Trustee for
cancellation have become due and payable, and

         (A) the Issuer 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 the Notes, in each
case to the extent not theretofore delivered to the Indenture Trustee for
cancellation when due on the Final Scheduled Payment Date or Redemption Date (if
Notes shall have been called for redemption pursuant to Section 10.1), as the
case may be;

         (B) the Issuer has paid or caused to be paid all Insurer Issuer Secured
Obligations and all Indenture Trustee Issuer Secured Obligations; and

         (C) the Issuer has delivered to the Indenture Trustee and the Insurer
an Officer's Certificate, an Opinion of Counsel and, if required by the TIA, the
Indenture Trustee or the Insurer, an Independent Certificate from a firm of
certified public accountants, each meeting the applicable requirements of
Section 11.1(a) and each stating that all conditions precedent herein provided
relating to the satisfaction and discharge of this Indenture have been complied
with.

                                       18
<PAGE>

         SECTION 4.2. Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.1 hereof shall be held in trust and
applied by it, in accordance with the provisions of the Notes and this
Indenture, to the payment, either directly or through any Note Paying Agent, as
the Indenture Trustee may determine, to the Holders of the particular Notes for
the payment or redemption of which such monies have been deposited with the
Indenture Trustee, of all sums due and to become due thereon for principal and
interest and to the Insurer for the payment of any amounts due to it under the
Basic Documents.

         SECTION 4.3. Repayment of Monies Held by Note Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all monies then held by any Note Paying Agent other than the
Indenture Trustee under the provisions of this Indenture with respect to such
Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be
held and applied according to Section 3.3 and thereupon such Note Paying Agent
shall be released from all further liability with respect to such monies.

                                   ARTICLE V

                                    Remedies

         SECTION 5.1. Remedies. If a Rapid Amortization Event, with respect to a
Class of Notes, as described in Article XII shall have occurred and be
continuing, the Rapid Amortization Period with respect to all Classes of Notes
shall immediately commence and the Noteholders shall be entitled on each Payment
Date to an amount equal to the Class A-1 Maximum Principal Payment, the Class
A-2 Maximum Principal Payment or the Class A-3 Maximum Principal Payment, as
applicable, payable during such Rapid Amortization Period. The rights contained
in this Article V are in addition to any rights which the Noteholders possess
pursuant to Article XII.

         SECTION 5.2. Limitation of Suits. No Holder of any Note shall have any
right to institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

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

                  (ii) the Holders of not less than 50% of the Outstanding
         Amount of the related Notes have made written request to the Indenture
         Trustee to institute such proceeding with respect to the Notes in
         respect of such Rapid Amortization Event in its own name as Indenture
         Trustee hereunder;

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

                                       19
<PAGE>

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

                  (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 Outstanding Amount of the related Notes;
         and

                  (vi) an Insurer Default shall have occurred and be continuing;

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

         In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of
related Notes, each representing less than a majority of the Outstanding Amount
of the related Notes, the Indenture Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of
this Indenture.

         SECTION 5.3. Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) 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 5.4. Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any proceeding to enforce any right or
remedy under this Indenture and such proceeding has been discontinued or
abandoned for any reason, then and in every such case the Issuer, the Insurer,
the Indenture Trustee and the Noteholders 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, the Insurer and the Noteholders shall continue as though no such
proceeding had been instituted.

         SECTION 5.5. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Controlling Party or to the related
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

         SECTION 5.6. Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee, the Insurer or any Holder of any Note to exercise any
right or remedy accruing upon any Rapid Amortization Event shall impair any such
right or remedy or constitute a waiver of any such Rapid Amortization Event or
an acquiescence therein. Every right and remedy given by this Article V or by
law to the Indenture Trustee, the Insurer or to the Noteholders may be exercised
from time to time, and as often as may be deemed expedient, by the Indenture
Trustee, the Insurer or by the Noteholders, as the case may be.

                                       20
<PAGE>

         SECTION 5.7. Control by Noteholders. The Insurer (or, if an Insurer
Default shall have occurred and is continuing, Holders of a majority of the
Outstanding Amount of the related Notes) shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Indenture Trustee pursuant to Section 12.1 hereof with respect to the
related Notes or exercising any trust or power conferred on the Indenture
Trustee; provided that:

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

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

provided, however, that, subject to Section 6.1, the Indenture Trustee need not
take any action that it determines might involve it in liability or might
materially adversely affect the rights of any related Noteholders not consenting
to such action.

         SECTION 5.8. Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or remedy under this Indenture, or in any suit
against the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees and
expenses, 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 shall not apply to (a) any suit instituted by the
Indenture Trustee, (b) any suit instituted by the Insurer, any Noteholder, or
group of Noteholders with the prior written consent of the Insurer (so long as
no Insurer Default has occurred), in each case holding in the aggregate more
than 10% of the Outstanding Amount of the Notes or (c) any suit instituted by
any Noteholder for the enforcement of the payment of principal of or interest on
any Note on or after the respective due dates expressed in such Note and in this
Indenture (or, in the case of redemption, on or after the Redemption Date).

         SECTION 5.9. 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 will 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.

                                       21
<PAGE>

         SECTION 5.10. Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee, the Insurer or the Noteholders shall be
impaired by the recovery of any judgment by the Indenture Trustee or the Insurer
against the Issuer or by the levy of any execution under such judgment upon any
portion of the Trust Property or upon any of the assets of the Issuer.

         SECTION 5.11. Performance and Enforcement of Certain Obligations.

         (a) Promptly following a request from the Indenture Trustee (at the
direction of the Insurer) to do so and at the Servicer's expense, the Issuer
agrees to take all such lawful action as the Indenture Trustee may request to
compel or secure the performance and observance by the Sponsor and the Servicer,
as applicable, of each of their obligations to the Issuer under or in connection
with the Sale and Servicing Agreement in accordance with the terms thereof, and
to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Sale and Servicing
Agreement to the extent and in the manner directed by the Indenture Trustee,
including the transmission of notices of default on the part of the Sponsor or
the Servicer thereunder and the institution of legal or administrative actions
or proceedings to compel or secure performance by the Sponsor or the Servicer of
each of their obligations under the Sale and Servicing Agreement.

         (b) If a Rapid Amortization Event has occurred and is continuing, the
Indenture Trustee, with the consent of the Insurer, may, and, at the written
direction of the Insurer (or, if an Insurer Default has occurred and is
continuing, the Holders of 66-2/3% of the Outstanding Amount of the related
Class of Notes) shall, exercise all rights, remedies, powers, privileges and
claims of the Issuer against the Sponsor or the Servicer under or in connection
with the Sale and Servicing Agreement, including the right or power to take any
action to compel or secure performance or observance by the Sponsor or the
Servicer of each of their obligations to the Issuer thereunder and to give any
consent, request, notice, direction, approval, extension or waiver under the
Sale and Servicing Agreement, and any right of the Issuer to take such action
shall be suspended.

                                       22
<PAGE>

         SECTION 5.12. Subrogation. The Indenture Trustee shall receive as
attorney-in-fact of each Noteholder any Insured Payment from the Insurer
pursuant to the Policy. Any and all Insured Payments disbursed by the Indenture
Trustee from claims made under the Policy shall not be considered payment by the
Issuer, and shall not discharge the obligations of the Issuer with respect
thereto. The Insurer shall, to the extent it makes any payment with respect to
any Class of Notes, become subrogated to the rights of the recipient of such
payments to the extent of such payments. Subject to and conditioned upon any
payment with respect to any Class of Notes by or on behalf of the Insurer, the
Indenture Trustee shall assign to the Insurer all rights to the payment of
interest or principal with respect to such Class of Notes which are then due for
payment to the extent of all payments made by the Insurer. The Insurer may
exercise any option, vote, right, power or the like with respect to such Class
of Notes to the extent that it has made payment pursuant to the Policy.

         SECTION 5.13. Preference Claims.

         (a) In the event that the Indenture Trustee has received a certified
copy of an order of the appropriate court that any Insured Payment on a Note or
a Class S Certificate has been avoided in whole or in part as a preference
payment under applicable bankruptcy law, the Indenture Trustee shall so notify
the Insurer, shall comply with the provisions of the Policy to obtain payment by
the Insurer of such avoided payment, and shall, at the time it provides notice
to the Insurer, notify Holders of the related Notes or Class S
Certificateholders of the related Class S Certificates, as appropriate, by mail
that, in the event that any Noteholder's payment or Class S Certificateholder's
payment is so recoverable, such Noteholder or Class S Certificateholder will be
entitled to payment pursuant to the terms of the Policy. The Indenture Trustee
shall furnish to the Insurer at its written request, the requested records it
holds in its possession evidencing the payments of principal of and interest on
Notes or interest on Class S Certificates, as appropriate, if any, which have
been made by the Indenture Trustee and subsequently recovered from Noteholders
or Class S Certificateholders, and the dates on which such payments were made.
Pursuant to the terms of the Policy, the Insurer will make such payment on
behalf of the related Noteholder or Class S Certificateholder to the receiver,
conservator, debtor-in-possession or trustee in bankruptcy named in the final
order of the court exercising jurisdiction on behalf of the Noteholders or Class
S Certificateholders, as appropriate, and not to the Indenture Trustee, any
Noteholder or any Class S Certificateholder directly (unless such Noteholder or
Class S Certificateholder has returned principal or interest paid on the Notes
or Class S Certificates, as appropriate, to such receiver or trustee in
bankruptcy, in which case the Insurer shall make such payment to the Indenture
Trustee for payment to such Noteholder or Class S Certificateholder).

         (b) The Indenture Trustee shall promptly notify the Insurer of any
proceeding or the institution of any action (of which the Indenture Trustee has
actual knowledge) seeking the avoidance as a preferential transfer under
applicable bankruptcy, insolvency, receivership, rehabilitation or similar law
(a "Preference Claim") of any distribution made with respect to the Notes. Each
Holder, by its purchase of Notes, and the Indenture Trustee hereby agree that so
long as an Insurer Default shall not have occurred and be continuing, the
Insurer may at any time during the continuation of any proceeding relating to a
Preference Claim direct all matters relating to such Preference Claim,
including, without limitation, (i) the direction of any appeal of any order
relating to any Preference Claim and (ii) the posting of any surety, supersedes
or performance bond pending any such appeal at the expense of the Insurer, but
subject to reimbursement as provided in the Insurance Agreement. In addition,
and without limitation of the foregoing, as set forth in Section 5.12, the
Insurer shall be subrogated to, and each Noteholder and the Indenture Trustee
hereby delegate and assign, to the fullest extent permitted by law, the rights
of the Indenture Trustee and each Noteholder in the conduct of any proceeding
with respect to a Preference Claim, including, without limitation, all rights of
any party to an adversary proceeding action with respect to any court order
issued in connection with any such Preference Claim. All actions taken under
this Section 5.13(b) by the Indenture Trustee shall be taken in accordance with
the terms of the Policy.

                                       23
<PAGE>

         SECTION 5.14. Noteholder Rights. Each Noteholder by the acceptance of
its Note agrees that, so long as no Insurer Default has occurred and is
continuing, the Insurer shall be treated by the Issuer, the Seller, the Sponsor,
the Servicer, the Owner Trustee and the Indenture Trustee as if the Insurer were
the Holder of the related Class A Note for the purpose of the giving of any
consent, the making of any direction or the exercise of any voting or other
control rights otherwise given to the Noteholder hereunder without any further
consent of the Noteholder. So long as no Insurer Default has occurred and is
continuing, the Noteholders may only exercise such rights with the consent of
the Insurer.

         SECTION 5.15. Insurer's Rights Regarding Actions, Proceedings or
Investigations. Until all Notes have been paid in full, all amounts owed to the
Insurer have been paid in full, the Insurance Agreement has terminated and the
Policy has been returned to the Insurer for cancellation, the following
provisions shall apply:

         (a) Notwithstanding anything contained herein or in the other Basic
Documents to the contrary, the Insurer shall have the right to participate in,
to direct the enforcement or defense of, and, at the Insurer's sole option, to
institute or assume the defense of, any action, proceeding or investigation that
could adversely affect the Issuer, the Collateral, the Trust Property or the
rights or obligations of the Insurer hereunder or under the Policy or the Basic
Documents, including (without limitation) any insolvency or bankruptcy
proceeding in respect of the Servicer, the Seller, the Sponsor, the Issuer or
any affiliate thereof. Following notice to the Indenture Trustee, the Insurer
shall have exclusive right to determine, in its sole discretion, the actions
necessary to preserve and protect the Issuer, the Collateral, and the Trust
Property. All costs and expenses of the Insurer in connection with such action,
proceeding or investigation, including (without limitation) any judgment or
settlement entered into affecting the Insurer or the Insurer's interests, shall
be included in the Reimbursement Amount.

         (b) In connection with any action, proceeding or investigation that
could adversely affect the Issuer, the Collateral, the Trust Property or the
rights or obligations of the Insurer hereunder or under the Policy or the Basic
Documents, including (without limitation) any insolvency or bankruptcy
proceeding in respect of the Servicer, the Seller, the Sponsor, the Issuer or
any affiliate thereof, the Indenture Trustee hereby agrees to cooperate with,
and to take such action as directed by, the Insurer, including (without
limitation) entering into such agreements and settlements as the Insurer shall
direct, in its sole discretion, without the consent of any Noteholder.

                                       24
<PAGE>

         (c) The Indenture Trustee hereby agrees to provide to the Insurer
prompt written notice of any action, proceeding or investigation that names the
Issuer or the Indenture Trustee as a party or that could adversely affect the
Issuer, the Collateral, the Trust Property or the rights or obligations of the
Insurer hereunder or under the Policy or the Basic Documents, including (without
limitation) any insolvency or bankruptcy proceeding in respect of the Servicer,
the Seller, the Sponsor, the Trust or any affiliate thereof.

         (d) Notwithstanding anything contained herein or in any of the other
Basic Documents to the contrary, the Indenture Trustee shall not, without the
Insurer's prior written consent or unless directed by the Insurer, undertake or
join any litigation or agree to any settlement of any action, proceeding or
investigation affecting the Issuer, the Collateral, the Trust Property or the
rights or obligations of the Insurer hereunder or under the Policy or the Basic
Documents.

         (e) Each Noteholder, by acceptance of its Note, and the Indenture
Trustee agree that the Insurer shall have such rights as set forth in this
Section, which are in addition to any rights of the Insurer pursuant to the
other provisions of the Basic Documents, that the rights set forth in this
Section may be exercised by the Insurer, in its sole discretion, without the
need for the consent or approval of any Noteholder or the Indenture Trustee,
notwithstanding any other provision contained herein or in any of the other
Basic Documents, and that nothing contained in this Section shall be deemed to
be an obligation of the Insurer to exercise any of the rights provided for
herein.

                                   ARTICLE VI

                              The Indenture Trustee

         SECTION 6.1. Duties of Indenture Trustee.

         (a) If a Rapid Amortization Event has occurred and is continuing, the
Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and the Basic Documents and use the same degree of care and skill in
its exercise as a prudent person would exercise or use under the circumstances
in the conduct of such person's own affairs; provided, however, that if the
Indenture Trustee is acting as Servicer, it shall use the same degree of care
and skill as is required of the Servicer under the Sale and Servicing Agreement.

         (b) Except during the continuance of a Rapid Amortization Event

                  (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 on their face to the requirements of this Indenture.

                                       25
<PAGE>

         (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;

                  (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;

                  (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 pursuant to Section 5.12; and

                  (iv) the Indenture Trustee shall not be charged with knowledge
         of any failure by the Servicer to comply with the obligations of the
         Servicer referred to in clauses (i) and (ii) of Section 6.01 of the
         Sale and Servicing Agreement unless a Responsible Officer of the
         Indenture Trustee at the Corporate Trust Office obtains actual
         knowledge of such failure or occurrence or the Indenture Trustee
         receives written notice of such failure or occurrence from the
         Servicer, the Insurer or the Holders of Notes evidencing more than 50%
         of the Outstanding Amount.

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

         (f) 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.

         (g) The Indenture Trustee shall, upon three Business Days' prior
written notice to the Indenture Trustee, permit any representative of the
Insurer, during the Indenture Trustee's normal business hours, to examine all
books of account, records, reports and other papers of the Indenture Trustee
relating to the Notes, to make copies and extracts (at the expense of the party
requesting such copies or extracts) therefrom and to discuss the Indenture
Trustee's affairs and actions, as such affairs and actions relate to the
Indenture Trustee's duties with respect to the Notes, with the Indenture
Trustee's officers and employees responsible for carrying out the Indenture
Trustee's duties with respect to the Notes.

                                       26
<PAGE>

         (h) The Indenture Trustee shall, and hereby agrees that it will,
perform all of the obligations and duties required of it under the Sale and
Servicing Agreement.

         (i) The Indenture Trustee shall, and hereby agrees that it will, hold
the Policy in trust, and will hold any proceeds of any claim on the Policy in
trust solely for the use and benefit of the Noteholders or the Class S
Certificateholders, as applicable.

         (j) In no event shall The Bank of New York, in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the
Delaware Business Trust Statute, common law, or the Trust Agreement.

         SECTION 6.2. Rights of Indenture Trustee.

         (a) The Indenture Trustee may conclusively rely on any document
reasonably 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 the Officer's Certificate or Opinion of Counsel.

         (c) The Indenture Trustee may execute any of the trusts or powers
hereunder or perform any duties hereunder either directly or by or through
agents or attorneys or a custodian or nominee and the Indenture Trustee shall
not be liable for the negligence of such agents, attorneys, custodians or
nominees appointed (i) with due care and (ii) with the consent of the Insurer.

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

         (f) The Indenture Trustee shall be under no obligation to institute,
conduct or defend any litigation under this Indenture or in relation to this
Indenture, at the request, order or direction of any of the Holders of Notes or
the Controlling Party, pursuant to the provisions of this Indenture, unless such
Holders of Notes or the Controlling Party shall have offered to the Indenture
Trustee security or indemnity reasonably satisfactory to it against the costs,
expenses and liabilities that may be incurred therein or thereby; provided,
however, that the Indenture Trustee shall, upon the occurrence of a Rapid
Amortization Event or Event of Servicing Termination as defined in the Sale and
Servicing Agreement (that has not been cured or waived), exercise the rights and
powers vested in it by this Indenture or the Sale and Servicing Agreement with
reasonable care and skill.

                                       27
<PAGE>

         (g) The Indenture 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 the Insurer or
by the Holders of Notes evidencing not less than 25% of the Outstanding Amount
thereof; provided, however, that if the payment within a reasonable time to the
Indenture 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 Indenture
Trustee, not reasonably assured to the Indenture Trustee by the security
afforded to it by the terms of this Indenture or the Sale and Servicing
Agreement, the Indenture Trustee may require indemnity reasonably satisfactory
to it against such cost, expense or liability as a condition to so proceeding;
the reasonable expense of every such examination shall be paid by the Person
making such request, or, if paid by the Indenture Trustee shall be reimbursed by
the Person making such request upon demand.

         (h) The Indenture Trustee shall not be accountable, shall have no
liability and makes no representation as to any acts or omissions hereunder of
the Servicer until such time as the Indenture Trustee may be required to act as
Servicer.

         SECTION 6.3. Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its Affiliates with the same
rights it would have if it were not Indenture Trustee. Any Note Paying Agent,
Note Registrar, co-registrar or co-paying agent may do the same with like
rights. However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

         SECTION 6.4. 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, the Trust Property or the Notes, it shall not be
accountable for the Issuer's use of the proceeds from the Notes, 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 Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

         SECTION 6.5. Notice of Rapid Amortization Events and Events of
Servicing Termination. If a Rapid Amortization Period or an Event of Servicing
Termination occurs and is continuing and if it is either known by, or written
notice of the existence thereof has been delivered to, a Responsible Officer of
the Indenture Trustee, the Indenture Trustee shall mail to the Insurer and each
Noteholder notice of such event within 90 days after such knowledge or notice
occurs. Except in the case of a default in payment of principal of or interest
on any Note, the Indenture Trustee may withhold the notice to the Noteholders if
and so long as one of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Noteholders; provided that the
Indenture Trustee shall not withhold any such notice to the Insurer.

         SECTION 6.6. Reports by Indenture Trustee to Holders. Upon written
request, the Note Paying Agent or the Servicer shall on behalf of the Issuer
deliver to each Noteholder such information as may be reasonably required to
enable such Holder to prepare its Federal and state income tax returns required
by law.

                                       28
<PAGE>

         SECTION 6.7. Compensation and Indemnity.

         (a) Pursuant to Section 8.7 and subject to Section 6.10 herein, the
Issuer shall, or shall cause the Servicer to, pay to the Indenture Trustee from
time to time compensation as agreed to in writing between the Servicer and the
Indenture Trustee for its services. The Indenture Trustee's compensation shall
not be limited by any law on compensation of a trustee of an express trust. The
Issuer shall or shall cause the Servicer to reimburse the Indenture Trustee for
all reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and
advances of the Indenture Trustee's agents, counsel, accountants and experts.
The Issuer shall or shall cause the Servicer to indemnify the Indenture Trustee
and its respective officers, directors, employees and agents against any and all
loss, liability or expense (including attorneys' fees and expenses) incurred by
each of them in connection with the acceptance or the administration of this
trust and the performance of its duties hereunder or under any other Basic
Document. The Indenture Trustee shall notify the Issuer and the Servicer
promptly of any claim for which it may seek indemnity. Failure by the Indenture
Trustee to so notify the Issuer and the Servicer shall not relieve the Issuer of
its obligations hereunder or the Servicer of its obligations under Article VIII
of the Sale and Servicing Agreement. The Issuer shall or shall cause the
Servicer to defend the claim, the Indenture Trustee may have separate counsel
and the Issuer shall or shall cause the Servicer to pay the fees and expenses of
such counsel. Neither the Issuer nor the Servicer need 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.

         (b) The Issuer's payment obligations to the Indenture Trustee pursuant
to this Section shall survive the discharge of this Indenture. Notwithstanding
anything else set forth in this Indenture or the Basic Documents, the Indenture
Trustee agrees that the obligations of the Issuer (but not the Servicer) to the
Indenture Trustee hereunder and under the Basic Documents shall be recourse to
the Trust Property only and specifically shall not be recourse to the assets of
the Issuer or any Noteholder. In addition, the Indenture Trustee agrees that its
recourse to the Issuer, the Trust Property, the Sponsor and amounts held in the
Reserve Fund shall be limited to the right to receive the distributions referred
to in Section 8.7 herein.

         SECTION 6.8. Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by so notifying the Issuer and the Insurer by written
notice. Upon receiving such notice of resignation, the Issuer shall promptly
appoint a successor Indenture Trustee (approved in writing by the Insurer, so
long as such approval is not unreasonably withheld) by written instrument, in
duplicate, one copy of such instrument shall be delivered to the resigning
Indenture Trustee (who shall deliver a copy to the Servicer and the Insurer) and
one copy to the successor Indenture Trustee; provided, however, that any such
successor Indenture Trustee shall be subject to the prior written approval of
the Servicer. The Issuer may, and at the request of the Insurer shall, remove
the Indenture Trustee, if:

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

                                       29
<PAGE>

                  (ii) a court having jurisdiction in the premises in respect of
         the Indenture Trustee in an involuntary case or proceeding under
         federal or state banking or bankruptcy laws, as now or hereafter
         constituted, or any other applicable federal or state bankruptcy,
         insolvency or other similar law, shall have entered a decree or order
         granting relief or appointing a receiver, liquidator, assignee,
         custodian, trustee, conservator, sequestrator (or similar official) for
         the Indenture Trustee or for any substantial part of the Indenture
         Trustee's property, or ordering the winding-up or liquidation of the
         Indenture Trustee's affairs;

                  (iii) an involuntary case under the federal bankruptcy laws,
         as now or hereafter in effect, or another present or future federal or
         state bankruptcy, insolvency or similar law is commenced with respect
         to the Indenture Trustee and such case is not dismissed within 60 days;

                  (iv) the Indenture Trustee commences a voluntary case under
         any federal or state banking or bankruptcy laws, as now or hereafter
         constituted, or any other applicable federal or state bankruptcy,
         insolvency or other similar law, or consents to the appointment of or
         taking possession by a receiver, liquidator, assignee, custodian,
         trustee, conservator, sequestrator (or other similar official) for the
         Indenture Trustee or for any substantial part of the Indenture
         Trustee's property, or makes any assignment for the benefit of
         creditors or fails generally to pay its debts as such debts become due
         or takes any corporate action in furtherance of any of the foregoing;

                  (v) the Indenture Trustee otherwise becomes incapable of
         acting; or

                  (vi) the Indenture Trustee materially breaches any covenant or
         obligation under the Basic Documents.

         Additionally, the Issuer shall remove the Indenture Trustee at the
request of the Insurer.

         If the Indenture Trustee resigns or is removed or if a vacancy exists
in the office of 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 acceptable to the Insurer.
If the Issuer fails to appoint such a successor Indenture Trustee, the Insurer
may appoint a successor Indenture Trustee.

         A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, to the Insurer 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 retiring Indenture Trustee under this Indenture. The
successor Indenture Trustee shall mail a notice of its succession to
Noteholders. The retiring Indenture Trustee shall promptly transfer all property
held by it as Indenture Trustee to the successor Indenture Trustee.

                                       30
<PAGE>

         If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Issuer, the Insurer, or the Holders of a majority in
Outstanding Amount of the Notes may, at the expense of the Servicer, petition
any court of competent jurisdiction for the appointment of a successor Indenture
Trustee acceptable to the Insurer.

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

         Any resignation or removal of the Indenture Trustee and appointment of
a successor Indenture Trustee pursuant to any of the provisions of this Section
shall not become effective until acceptance of appointment by the successor
Indenture Trustee pursuant to Section 6.8 and payment of all fees and expenses
owed to the outgoing Indenture Trustee.

         Notwithstanding the replacement of the Indenture Trustee pursuant to
this Section, the Issuer's and the Servicer's indemnity obligations under
Section 6.7 shall continue for the benefit of the retiring Indenture Trustee and
the Servicer shall pay any amounts owing to the Indenture Trustee.

         SECTION 6.9. 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 entity meets the requirements of Section 6.11 hereunder and
is otherwise acceptable to the Insurer (unless an Insurer Default has occurred
and is continuing). The Indenture Trustee shall provide Insurer and the Servicer
with at least 30 days notice of any such transaction.

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

         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 may at the time be located, the Indenture Trustee,
with the consent of the Insurer, 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, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Trust, 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.

                                       31
<PAGE>

         (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 or any
         portion thereof in any such jurisdiction) shall be exercised and
         performed singly by such separate trustee or co-trustee, but solely at
         the direction of the Indenture Trustee;

                  (ii) no trustee hereunder shall be personally liable by reason
         of any act or omission of any other trustee hereunder, including acts
         or omissions of predecessor or successor trustees; and

                  (iii) the Indenture Trustee and the Servicer acting jointly
         may at any time accept the resignation of or remove any separate
         trustee or co-trustee except that following the occurrence of an Event
         of Servicing Termination, the Indenture Trustee acting alone may 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, dissolve, become insolvent, 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.

                                       32
<PAGE>

         (e) The Servicer shall be responsible for the fees of any co-trustee or
separate trustee appointed hereunder.

         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. The Indenture
Trustee shall provide copies of such reports to the Insurer upon request. 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. Appointment and Powers. Subject to the terms and
conditions hereof, each of the Issuer Secured Parties hereby appoints The Bank
of New York as the Indenture Trustee with respect to the Collateral, and The
Bank of New York hereby accepts such appointment and agrees to act as Indenture
Trustee with respect to the Trust Property for the Issuer Secured Parties, to
maintain custody and possession of such Trust Property (except as otherwise
provided hereunder) and to perform the other duties of the Indenture Trustee in
accordance with the provisions of this Indenture and the other Basic Documents.
Each Issuer Secured Party hereby authorizes the Indenture Trustee to take such
action on its behalf, and to exercise such rights, remedies, powers and
privileges hereunder, as the Controlling Party may direct and as are
specifically authorized to be exercised by the Indenture Trustee by the terms
hereof, together with such actions, rights, remedies, powers and privileges as
are reasonably incidental thereto. The Indenture Trustee shall act upon and in
compliance with the written instructions delivered to it pursuant to this
Indenture promptly following receipt of such written instructions; provided that
the Indenture Trustee shall not act in accordance with any instructions (i)
which are not authorized by, or in violation of the provisions of, this
Indenture or (ii) for which the Indenture Trustee has not received reasonable
indemnity. Receipt of such instructions shall not be a condition to the exercise
by the Indenture Trustee of its express duties hereunder, except where this
Indenture provides that the Indenture Trustee is permitted to act only following
and in accordance with such instructions.

         SECTION 6.14. Performance of Duties. The Indenture Trustee shall have
no duties or responsibilities except those expressly set forth in this Indenture
and the other Basic Documents to which the Indenture Trustee is a party or as
directed by the Controlling Party in accordance with this Indenture. The
Indenture Trustee shall not be required to take any discretionary actions
hereunder except at the written direction and with the indemnification of the
Controlling Party. The Indenture Trustee shall, and hereby agrees that it will,
perform all of the duties and obligations required of it under the Sale and
Servicing Agreement.

                                       33
<PAGE>

         SECTION 6.15. Limitation on Liability. Neither the Indenture Trustee
nor any of its directors, officers, employees and agents shall be liable for any
action taken or omitted to be taken by it or them hereunder, or in connection
herewith, except that the Indenture Trustee shall be liable for its negligence,
bad faith or willful misconduct; nor shall the Indenture Trustee be responsible
for the validity, effectiveness, value, sufficiency or enforceability against
the Issuer of this Indenture or any of the Trust Property (or any part thereof).

         SECTION 6.16. Reliance Upon Documents. In the absence of negligence,
bad faith or willful misconduct on its part, the Indenture Trustee shall be
entitled to conclusively rely on any communication, instrument, paper or other
document reasonably believed by it to be genuine and correct and to have been
signed or sent by the proper Person or Persons and shall have no liability in
acting, or omitting to act, where such action or omission to act is in
reasonable reliance upon any statement or opinion contained in any such document
or instrument.

         SECTION 6.17. Representations and Warranties of the Indenture Trustee.
The Indenture Trustee represents and warrants to the Issuer and to each Issuer
Secured Party as follows:

         (a) Due Organization. The Indenture Trustee is a New York banking
corporation, duly organized, validly existing and in good standing under the
laws of the State of New York and is duly authorized and licensed under
applicable law to conduct its business as presently conducted.

         (b) Corporate Power. The Indenture Trustee has all requisite right,
power and authority to execute and deliver this Indenture and to perform all of
its duties as the Indenture Trustee hereunder.

         (c) Due Authorization. The execution and delivery by the Indenture
Trustee of this Indenture and the other Basic Documents to which it is a party,
and the performance by the Indenture Trustee of its duties hereunder and
thereunder, have been duly authorized by all necessary corporate proceedings,
are required for the valid execution and delivery by the Indenture Trustee, or
the performance by the Indenture Trustee, of this Indenture and such other Basic
Documents.

         (d) Valid and Binding Indenture. The Indenture Trustee has duly
executed and delivered this Indenture and each other Basic Document to which it
is a party, and each of this Indenture and each such other Basic Document
constitutes the legal, valid and binding obligation of the Indenture Trustee,
enforceable against the Indenture Trustee in accordance with its terms, except
as (i) such enforceability may be limited by bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the enforcement of
creditors' rights generally and (ii) the availability of equitable remedies may
be limited by equitable principles of general applicability.

         SECTION 6.18. Waiver of Setoffs. The Indenture Trustee hereby expressly
waives any and all rights of setoff that the Indenture Trustee may otherwise at
any time have

                                       34
<PAGE>

under applicable law with respect to any Account and agrees that amounts in the
Accounts shall at all times be held and applied solely in accordance with the
provisions hereof.

         SECTION 6.19. Control by the Controlling Party. The Indenture Trustee
shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party. The Indenture
Trustee shall act upon and comply with notices and instructions given by the
Controlling Party alone.

         SECTION 6.20. Indenture Trustee May Enforce Claims Without Possession
of Notes. All rights of action and claims under this Indenture or the Notes may
be prosecuted and enforced by the Indenture Trustee without the possession of
any of the Notes or the production thereof in any proceeding relating thereto,
and such proceeding instituted by the Indenture Trustee shall be brought in its
own name or in its capacity as Indenture Trustee. Any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses,
disbursement and advances of the Indenture Trustee, its agents and counsel, be
for the ratable benefit of the Noteholders in respect of which such judgment has
been recovered.

         SECTION 6.21. Suits for Enforcement. In case an Event of Servicing
Termination or other default by the Servicer or the Sponsor hereunder shall
occur and be continuing, the Controlling Party may proceed to protect and
enforce its rights and the rights of the Noteholders under this Indenture by a
suit, action or proceeding in equity or at law or otherwise, whether for the
specific performance of any covenant or agreement contained in this Indenture or
in aid of the execution of any power granted in this Indenture or for the
enforcement of any other legal, equitable or other remedy, as the Indenture
Trustee, being advised by counsel, shall deem most effectual to protect and
enforce any of the rights of the Indenture Trustee and the Noteholders.

         SECTION 6.22. Mortgagor Claims. In connection with any offset defenses,
or affirmative claim for recovery, asserted in legal actions brought by
Mortgagors under one or more Mortgage Loans based upon provisions therein or
upon other rights or remedies arising from any requirements of law applicable to
the Mortgage Loans:

         (a) The Indenture Trustee is the holder of the Mortgage Loans only as
trustee on behalf of the holders of the Notes and the Insurer, and not as a
principal or in any individual or personal capacity.

         (b) The Indenture Trustee shall not be personally liable for, or
obligated to pay Mortgagors, any affirmative claims asserted thereby, or
responsible to holders of the Notes for any offset defense amounts applied
against Mortgage Loan payments, pursuant to such legal actions.

         (c) The Indenture Trustee will pay, solely from the Trust Estate,
affirmative claims for recovery by Mortgagors only pursuant to final judicial
orders or judgments, or judicially-approved settlement agreements, resulting
from such legal actions.

         (d) The Indenture Trustee will comply with judicial orders and
judgments which require its actions or cooperation in connection with
Mortgagors' legal actions to recover affirmative claims against holders of the
Notes.

                                       35
<PAGE>

         (e) The Indenture Trustee will cooperate with and assist the Servicer,
the Insurer, the Issuer, the Sponsor, or holders of the Notes in their defense
of legal actions by Mortgagors to recover affirmative claims if such cooperation
and assistance is not contrary to the interests of the Indenture Trustee as a
party to such legal actions and if the Indenture Trustee is satisfactorily
indemnified for all liability, costs and expenses (including attorneys' fees and
expenses) arising therefrom.

         (f) The Issuer and Servicer hereby agree to indemnify, hold harmless
and defend the Indenture Trustee from and against any and all liability, loss,
costs and expenses (including attorneys' fees and expenses) of the Indenture
Trustee resulting from any affirmative claims for recovery asserted or collected
by Mortgagors under the Mortgage Loans.

                                  ARTICLE VII

                         Noteholders' Lists and Reports

         SECTION 7.1. Issuer To Furnish To Indenture Trustee Names and Addresses
of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (a) not more than five days after the earlier of (i) each
Record Date and (ii) three months after the last Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Holders 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 Note Registrar, no such list shall be
required to be furnished. The Indenture Trustee or, if the Indenture Trustee is
not the Note Registrar, the Issuer shall furnish to the Insurer or the Issuer in
writing upon their written request and at such other times as the Insurer or the
Issuer may request a copy of the list.

         SECTION 7.2. Preservation of Information; Communications to
Noteholders.

         (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders contained in the
most recent list furnished to the Indenture Trustee as provided in Section 7.1
and the names and addresses of Holders received by the Indenture Trustee in its
capacity as Note Registrar. The Indenture Trustee may destroy any list furnished
to it as provided in such Section 7.1 upon receipt of a new list so furnished.

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

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

         SECTION 7.3. Reports by Issuer.

         (a) The Issuer shall:

                                       36
<PAGE>

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

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

                  (iii) supply to the Indenture Trustee (and the Indenture
         Trustee shall transmit by mail to all Noteholders described in TIA ss.
         313(c)) (with a copy to the Insurer) such summaries of any information,
         documents and reports required to be filed by the Issuer pursuant to
         clauses (i) and (ii) of this Section 7.3(a) as may be required by rules
         and regulations prescribed from time to time by the Commission.

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

         SECTION 7.4. Reports by Indenture Trustee. If required by TIA ss.
313(a), within 60 days after each December 31, beginning with December 31, 2002,
the Indenture Trustee shall mail to each Noteholder (with a copy to the Insurer)
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 Noteholders shall
be filed by the Indenture Trustee with the Commission and each stock exchange,
if any, on which the Notes are listed. The Issuer shall notify the Indenture
Trustee if and when the Notes are listed on any stock exchange or the delisting
thereof.

                                  ARTICLE VIII

        Payments and Statements to Noteholders and Residual Noteholders;
                      Accounts, Disbursements and Releases

         SECTION 8.1. 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 and the Sale
and Servicing Agreement. The Indenture Trustee shall apply all such money
received by it as provided in this Indenture and the Sale and Servicing
Agreement. Except as otherwise expressly provided in this Indenture or in the
Sale and Servicing Agreement, if any default occurs in the making of any payment
or performance under any agreement or instrument that is part of the Trust
Property, the Indenture Trustee may, with the consent of the Insurer (so long as
no Insurer Default has occurred and is continuing), or shall at the direction of
the Insurer (so long as no Insurer Default has occurred and is continuing), take
such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate proceedings.

                                       37
<PAGE>

         SECTION 8.2. Release of Trust Property.

         (a) Subject to Section 8.10 and the payment of its fees and expenses
pursuant to Section 6.7, the Indenture Trustee may, and when required by the
Issuer and the provisions of this Indenture shall, execute instruments to
release property from the lien of this Indenture, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture or
the Sale and Servicing Agreement. In the event that the fair value of property
to be released from the lien of this Indenture on any date, together with the
fair value of property previously released during the then-current calendar
year, equals or exceeds 10% of the sum of (i) the Class A-1 Note Principal
Balance plus (ii) the Class A-2 Note Principal Balance plus (iii) the Class A-3
Note Principal Balance, in addition to all other actions required to be taken
pursuant to this Indenture, the Sale and Servicing Agreement or otherwise in
connection with such release, an Independent Certificate in accordance with TIA
ss.ss. 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.1
shall also be delivered to the Indenture Trustee. No party relying upon an
instrument executed by the Indenture Trustee as provided in this Article VIII
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 there are no Notes
outstanding and all sums due the Indenture Trustee pursuant to Section 6.7, and
to the Insurer pursuant to the Insurance Agreement have been paid and the Policy
has been cancelled and returned to the Insurer, release any remaining portion of
the Trust Property that secured the Notes from the lien of this Indenture and
release to the Issuer or any other Person entitled thereto any funds then on
deposit in the Accounts. The Indenture Trustee shall release property from the
lien of this Indenture pursuant to this Section 8.2(b) only upon receipt by the
Indenture Trustee and the Insurer of an Issuer Request accompanied by an
Officer's Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA ss.ss. 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

         SECTION 8.3. Establishment of Accounts. The Sponsor shall cause to be
established, and the Indenture Trustee shall maintain, at the Corporate Trust
Office of the Indenture Trustee, a Collection Account, a Pre-Funding Account and
a Reserve Fund to be held by the Indenture Trustee in the name of the Trust for
the benefit of the Noteholders and the Insurer, as their interests may appear.
Each account shall be an Eligible Account. In addition, the Sponsor shall be
permitted to withdraw amounts from the Collection Account from time to time as
described in Section 3.03 of the Sale and Servicing Agreement.

         SECTION 8.4. The Policy.

         (a) By the close of business on the Business Day preceding each
Determination Date the Indenture Trustee shall determine from the related
Servicing Certificate with respect to the immediately following Payment Date,
the Class A-1 Deficiency Amount, the Class A-2 Deficiency Amount, the Class A-3
Deficiency Amount and the Class S Deficiency Amount, if any.

                                       38
<PAGE>

         (b) If the Indenture Trustee determines pursuant to paragraph (a) above
that a Class A-1 Deficiency Amount would exist, the Indenture Trustee shall
complete a Notice in the form of Exhibit A to the Policy and submit such notice
to the Insurer no later than 12:00 noon New York City time on the related
Determination Date preceding such Payment Date as a claim for a payment in an
amount equal to the Class A-1 Deficiency Amount.

         (c) If the Indenture Trustee determines pursuant to paragraph (a) above
that a Class A-2 Deficiency Amount would exist, the Indenture Trustee shall
complete a Notice in the form of Exhibit A to the Policy and submit such notice
to the Insurer no later than 12:00 noon New York City time on the related
Determination Date preceding such Payment Date as a claim for a payment in an
amount equal to the Class A-2 Deficiency Amount.

         (d) If the Indenture Trustee determines pursuant to paragraph (a) above
that a Class A-3 Deficiency Amount would exist, the Indenture Trustee shall
complete a Notice in the form of Exhibit A to the Policy and submit such notice
to the Insurer no later than 12:00 noon New York City time on the related
Determination Date preceding such Payment Date as a claim for a payment in an
amount equal to the Class A-3 Deficiency Amount.

         (e) If the Indenture Trustee determines pursuant to paragraph (a) above
that a Class S Deficiency Amount would exist, the Indenture Trustee shall
complete a Notice in the form of Exhibit A to the Policy and submit such notice
to the Insurer no later than the close of business New York City time on the
Business Day following the related Determination Date preceding such Payment
Date as a claim for a payment in an amount equal to the Class S Deficiency
Amount.

         (f) Upon receipt of payments made pursuant to the Policy from the
Insurer on behalf of the related Noteholders or Class S Certificateholders, the
Indenture Trustee shall deposit such payments in the Collection Account and
shall distribute such payments, or the proceeds thereof, in accordance with
Section 8.7(d) hereof to the related Noteholders and Class S Certificateholders.

         SECTION 8.5. [Reserved]

         SECTION 8.6. Reserve Fund.

         (a) On each Payment Date the Indenture Trustee shall deposit to the
Reserve Fund the amounts, if any, described in Section 8.7(d)(xi) hereof.

         (b)(i) If, on any Payment Date, and after taking into account the
application of the Pool I Available Funds plus any Crossover Amount payable from
Pool II or Pool III (but not the proceeds of any Insured Payment) to the items
listed in clauses (i) through (ix) of Section 8.7(d) hereof with respect to Pool
I on such Payment Date (x) the full amount of the Class A-1 Interest Payment
Amount (excluding any Relief Act Shortfalls, interest shortfalls related to
prepayments and any Deferred Interest) has not been paid; (y) a Pool I
Overcollateralization Deficit would result; and/or (z) a Class A-1 Reimbursement
Amount exists (the sum of such deficiencies the "Pool I Deficiency Amount"), the
Indenture Trustee shall withdraw from the Reserve Fund and deposit in the
Collection Account an amount with respect to the Class A-1 Notes equal to the
lesser of (x) the product of (a) the amount then on deposit in the Reserve Fund
and (b) a fraction, the numerator of which is the Pool I Deficiency Amount and
the denominator of which is the sum of (i) the Pool I Deficiency Amount, (ii)
the Pool II Deficiency Amount and (iii) the Pool III Deficiency Amount and (y)
the Pool I Deficiency Amount.

                                       39
<PAGE>

         (ii) If, on any Payment Date, and after taking into account the
application of the Pool II Available Funds plus any Crossover Amount payable
from Pool I or Pool III (but not the proceeds of any Insured Payment) to the
items listed in clauses (i) through (ix) of Section 8.7(d) hereof with respect
to Pool II on such Payment Date (x) the full amount of the Class A-2 Interest
Payment Amount (excluding any Relief Act Shortfalls, interest shortfalls related
to prepayments and any Deferred Interest) has not been paid; (y) a Pool II
Overcollateralization Deficit would result; and/or (z) a Class A-2 Reimbursement
Amount exists (the sum of such deficiencies the "Pool II Deficiency Amount"),
the Indenture Trustee shall withdraw from the Reserve Fund and deposit in the
Collection Account an amount with respect to the Class A-2 Notes equal to the
lesser of (x) the product of (a) the amount then on deposit in the Reserve Fund
and (b) a fraction, the numerator of which is the Pool II Deficiency Amount and
the denominator of which is the sum of (i) the Pool I Deficiency Amount, (ii)
the Pool II Deficiency Amount and (iii) the Pool III Deficiency Amount and (y)
the Pool II Deficiency Amount.

         (iii) If, on any Payment Date, and after taking into account the
application of the Pool III Available Funds plus any Crossover Amount payable
from Pool I or Pool II (but not the proceeds of any Insured Payment) to the
items listed in clauses (i) through (ix) of Section 8.7(d) hereof with respect
to Pool III on such Payment Date (x) the full amount of the Class A-3 Interest
Payment Amount (excluding any Relief Act Shortfalls, interest shortfalls related
to prepayments and any Deferred Interest) has not been paid; (y) a Pool III
Overcollateralization Deficit would result; and/or (z) a Class A-3 Reimbursement
Amount exists (the sum of such deficiencies the "Pool III Deficiency Amount"),
the Indenture Trustee shall withdraw from the Reserve Fund and deposit in the
Collection Account an amount with respect to the Class A-3 Notes equal to the
lesser of (x) the product of (a) the amount then on deposit in the Reserve Fund
and (b) a fraction, the numerator of which is the Pool III Deficiency Amount and
the denominator of which is the sum of (i) the Pool I Deficiency Amount, (ii)
the Pool II Deficiency Amount and (iii) the Pool III Deficiency Amount and (y)
the Pool III Deficiency Amount.

         (c) If, on any Payment Date, (A) the sum of (i) the Pool I
Overcollateralization Amount plus (ii) the Pool II Overcollateralization Amount
plus (iii) the Pool III Overcollateralization Amount plus (iv) the amount on
deposit in the Reserve Fund minus (v) any Pool I Overcollateralization Deficit
minus (vi) any Pool II Overcollateralization Deficit minus (vii) any Pool III
Overcollateralization Deficit, in each case after taking into account all
distributions on such Payment Date other than any distribution of any Reserve
Reduction Amounts (as defined below) exceeds (B) the sum of (i) the Pool I
Specified Overcollateralization Amount plus (ii) the Pool II Specified
Overcollateralization Amount plus (iii) the Pool III Specified
Overcollateralization Amount for such Payment Date (such excess being the
"Reserve Reduction Amount"), the Reserve Reduction Amount shall be released from
the Reserve Fund and distributed to the Residual Certificateholders.

                                       40
<PAGE>

         SECTION 8.7. Priority of Distributions.

         (a) The Indenture Trustee shall deposit to the Collection Account, with
respect to Pool I, without duplication, upon receipt, (i) any payments related
to the Class A-1 Notes made pursuant to the Policy, (ii) the proceeds of any
liquidation of the assets of the Trust, (iii) Interest Collections and Principal
Collections remitted by the Servicer, together with any Substitution Amounts,
and any Loan Purchase Price amounts received by the Indenture Trustee relating
to such Pool, (iv) on the Payment Dates occurring in December 2001, January 2002
and February 2002, the Capitalized Interest Requirement to be transferred
pursuant to Section 8.9(e) hereof relating to Pool I, (v) the portion of the
amount, if any, to be transferred on such Payment Date from the Pre-Funding
Account, pursuant to Section 8.9(f) hereof and (vi) the amount, if any, to be
transferred on such Payment Date from the Reserve Fund pursuant to Section
8.5(b)(i) hereof.

         (b) The Indenture Trustee shall deposit to the Collection Account, with
respect to Pool II, without duplication, upon receipt, (i) any payments related
to the Class A-2 Notes made pursuant to the Policy, (ii) the proceeds of any
liquidation of the assets of the Trust, (iii) Interest Collections and Principal
Collections remitted by the Servicer, together with any Substitution Amounts,
and any Loan Purchase Price Amounts received by the Indenture Trustee relating
to such Pool, (iv) on the Payment Dates occurring in December 2001, January 2002
and February 2002, the Capitalized Interest Requirement to be transferred
pursuant to Section 8.9(e) hereof relating to Pool II, (v) the portion of the
amount, if any, to be transferred on such Payment Date from the Pre-Funding
Account, pursuant to Section 8.9(f) hereof and (vi) the amount, if any, to be
transferred on such Payment Date from the Reserve Fund pursuant to Section
8.5(b)(ii) hereof.

         (c) The Indenture Trustee shall deposit to the Collection Account, with
respect to Pool III, without duplication, upon receipt, (i) any payments related
to the Class A-3 Notes made pursuant to the Policy, (ii) the proceeds of any
liquidation of the assets of the Trust, (iii) Interest Collections and Principal
Collections remitted by the Servicer, together with any Substitution Amounts,
and any Loan Purchase Price Amounts received by the Indenture Trustee relating
to such Pool, (iv) on the Payment Dates occurring in December 2001, January 2002
and February 2002, the Capitalized Interest Requirement to be transferred
pursuant to Section 8.9(e) hereof relating to Pool III, (v) the portion of the
amount, if any, to be transferred on such Payment Date from the Pre-Funding
Account, pursuant to Section 8.9(f) hereof and (vi) the amount, if any, to be
transferred on such Payment Date from the Reserve Fund pursuant to Section
8.5(b)(iii) hereof.

         (d) With respect to the Collection Account, on each Payment Date, the
Indenture Trustee shall make the following allocations, disbursements and
transfers in the following order of priority, and each such allocation, transfer
and disbursement shall be treated as having occurred only after all preceding
allocations, transfers and disbursements have occurred:

                  (i) to the Indenture Trustee, the Trustee Fee then due on
         account of the related Class of Notes;

                                       41
<PAGE>

                  (ii) (x) from amounts on deposit therein with respect to Pool
         I, the Premium Amounts with respect to the Class A-1 Notes to the
         Insurer for such Payment Date (y) from amounts then on deposit therein
         with respect to Pool II, the Premium Amounts with respect to the Class
         A-2 Notes to the Insurer for such Payment Date and (z) from amounts
         then on deposit therein with respect to Pool III, the Premium Amounts
         with respect to the Class A-3 Notes to the Insurer for such Payment
         Date;

                  (iii) (x) from amounts then on deposit therein with respect to
         Pool I, to the Class A-1 Noteholders, the Class A-1 Interest Payment
         Amount for such Payment Date (y) from amounts then on deposit therein
         with respect to Pool II, to the Class A-2 Noteholders, the Class A-2
         Interest Payment Amount for such Payment Date and (z) from amounts then
         on deposit therein with respect to Pool III, to the Class A-3
         Noteholders, the Class A-3 Interest Payment Amount for such Payment
         Date;

                  (iv) to the Holders of the Class S Certificate, 45% of the
         related Excess Interest;

                  (v) until and including the Payment Date in November 2002, (x)
         from amounts then on deposit therein with respect to Pool I, to the
         Sponsor, the portion of Additional Balance Contributed Amount for such
         Payment Date related to Pool I HELOC Mortgage Loans (y) from amounts
         then on deposit therein with respect to Pool II, to the Sponsor, the
         portion of Additional Balance Contributed Amount for such Payment Date
         related to Pool II HELOC Mortgage Loans and (z) from amounts then on
         deposit therein with respect to Pool III, to the Sponsor, the portion
         of Additional Balance Contributed Amount for such Payment Date related
         to Pool III HELOC Mortgage Loans;

                  (vi) (x) from amounts then on deposit therein with respect to
         Pool I, to the Class A-1 Noteholders as a distribution of principal,
         the Class A-1 Principal Payment Amount for such Payment Date (y) from
         amounts then on deposit therein with respect to Pool II, to the Class
         A-2 Noteholders, as a distribution of principal, the Class A-2
         Principal Payment Amount for such Payment Date and (z) from amounts
         then on deposit therein with respect to Pool III, to the Class A-3
         Noteholders, as a distribution of principal, the Class A-3 Principal
         Payment Amount for such Payment Date;

                  (vii) (x) from amounts then on deposit therein with respect to
         Pool I, to the Class A-1 Noteholders, as a distribution of principal,
         the Pool I Overcollateralization Deficit for such Payment Date (y) from
         amounts then on deposit therein with respect to Pool II, to the Class
         A-2 Noteholders, as a distribution of principal, the Pool II
         Overcollateralization Deficit for such Payment Date and (z) from the
         amounts then on deposit therein with respect to Pool III, to the Class
         A-3 Noteholders, as a distribution of principal, the Pool III
         Overcollateralization Deficit for such Payment Date;

                  (viii) (x) from amounts then on deposit therein with respect
         to Pool I, to the Insurer, the Class A-1 Reimbursement Amount, if any,
         then due to it (y) from amounts then on deposit therein with respect to
         Pool II, to the Insurer, the Class A-2 Reimbursement Amount, if any,
         then due to it and (z) from amounts then on deposit therein with
         respect to Pool III, to the Insurer, the Class A-3 Reimbursement
         Amount, if any, then due to it;

                                       42
<PAGE>

                  (ix) (x) from amounts then on deposit therein with respect to
         Pool I, the Excess Cashflow with respect to the Class A-1 Notes shall
         be applied to the extent necessary to fund the full amount of the
         Accelerated Principal Payment with respect to the Class A-1 Notes (y)
         from amounts then on deposit therein with respect to Pool II, the
         Excess Cashflow with respect to the Class A-2 Notes shall be applied to
         the extent necessary to fund the full amount of the Accelerated
         Principal Payment with respect to the Class A-2 Notes and (z) from
         amounts then on deposit therein with respect to Pool III, the Excess
         Cashflow with respect to the Class A-3 Notes shall be applied to the
         extent necessary to fund the full amount of the Accelerated Principal
         Payment with respect to the Class A-3 Notes;

                  (x) any portion of the Available Funds with respect to a Pool
         remaining after the application described in items (i) through (ix)
         above on a Payment Date shall be aggregated together with any Crossover
         Amounts (as defined below) from other Pools (such aggregate amount, the
         "Total Crossover Amounts") and used to fund any deficiency in items
         (iii), (vii) and (viii) above with respect to the other Pools on such
         Payment Date (such amount which is available to be allocated with
         respect to the other Pools on such Payment Date is a "Crossover Amount"
         for the related Pool) provided, that, if more than one Pool has a
         deficiency in items (iii), (vii) and (viii) above (each a "Deficient
         Pool"), each Deficient Pool will receive a pro-rata portion of the
         Crossover Amounts in accordance with the following formula:

the lesser of (a) the Total Crossover
 Amount and (b) the Total Deficiency          Pool Deficiency Amount for the
               Amount                    X              Deficient Pool
-------------------------------------          ------------------------------
                 1                                Total Deficiency Amount

         As used in this formula, the terms have the following meanings:

         Pool Deficiency Amount:    The total dollar amount of deficiency in
                                    items (iii), (vii) and (viii) for the
                                    related Deficient Pool

         Total Deficiency Amount:   With respect to any Payment Date, the sum of
                                    the Pool Deficiency Amounts of all Deficient
                                    Pools.

                  (xi) to the Reserve Fund for application pursuant to this
         Indenture, to the extent that the sum of (a) the Pool I
         Overcollateralization Amount plus (b) the Pool II Overcollateralization
         Amount plus (c) the Pool III Overcollateralization Amount (in each case
         after taking into account the reductions in the Note Principal Balance
         with respect to each Class of Notes on such Payment Date due to the
         application of the amounts described in clauses (vi), (vii), (ix) and
         (x) above) is less than the sum of (a) the Pool I Specified
         Overcollateralization Amount, (b) the Pool II Specified
         Overcollateralization Amount and (c) the Pool III Specified
         Overcollateralization Amount as of such Payment Date;

                                       43
<PAGE>

         (xii) from amounts then on deposit, pari passu (a) to the Servicer,
reimbursement for amounts reimbursable to the Servicer pursuant to Section 3.03
and Section 5.03 of the Sale and Servicing Agreement to the extent not
previously reimbursed and (b) to the Indenture Trustee, up to a maximum of
$5,000 on any Payment Date to pay certain amounts that may be required to be
paid to the Indenture Trustee with respect to its or the Custodian's preparation
and recording of assignments of mortgages (which amounts were not previously
paid pursuant to clause (i) or reimbursed pursuant to the Sale and Servicing
Agreement);

         (xiii) (x) from amounts then on deposit therein with respect to Pool I,
the current Class A-1 Deferred Interest with respect to the Class A-1 Notes and
any unpaid Class A-1 Deferred Interest from prior Payment Dates with interest
thereon at the applicable Class A-1 Formula Note Rate (y) from amounts then on
deposit therein with respect to Pool II, the current Class A-2 Deferred Interest
with respect to the Class A-2 Notes and any unpaid Class A-2 Deferred Interest
from prior Payment Dates with interest thereon at the applicable Class A-2
Formula Note Rate and (z) from amounts then on deposit therein with respect to
Pool III, the current Class A-3 Deferred Interest with respect to the Class A-3
Notes and any unpaid Class A-3 Deferred Interest from prior Payment Dates with
interest thereon at the applicable Class A-3 Formula Note Rate;

         (xiv) to the Indenture Trustee, all remaining amounts due and owing to
the Indenture Trustee pursuant to the Basic Documents and not otherwise paid
pursuant to clause (i) or (xii);

         (xv) to the Manager of the Trust, the Management Fee then due and any
amount due and owing to the Manager pursuant to Section 5(b) of the Management
Agreement; and

         (xvi) to the Residual Certificateholders, any amounts remaining on
deposit in the Collection Account or any amounts available to be released from
the Reserve Fund pursuant to Section 8.6(c) hereof.

         SECTION 8.8. Statements to Noteholders. The Indenture Trustee (based
upon information received from the Servicer) will make available via its
internet website on each Payment Date concurrently with each distribution to the
Noteholders, to the Servicer, the Noteholders and the Insurer a statement
setting forth among other items with respect to the Notes:

                  (i) the amount being distributed to each Class of Notes;

                  (ii) the amount of interest included in such distribution and
         the related Note Rate;

                  (iii) the amount, if any, of overdue accrued interest included
         in such distribution (and the amount of interest thereon);

                  (iv) the amount, if any, of the remaining overdue accrued
         interest after giving effect to such distribution;

                                       44
<PAGE>

                  (v) the amount, if any, of principal included in such
         distribution;

                  (vi) the Servicing Fee for such Payment Date;

                  (vii) the related principal balance, after giving effect to
         such distribution;

                  (viii) the related initial Pool Balance and the related Pool
         Balance as of the end of the preceding Collection Period;

                  (ix) by Pool and in the aggregate, the number and aggregate
         Principal Balance of Mortgage Loans that were (A) delinquent (exclusive
         of Mortgage Loans in bankruptcy or foreclosure or properties acquired
         by the Trust by deed in lieu of foreclosure) (1) 30 to 59 days, (2) 60
         to 89 days, (3) 90 to 119 days, (4) 120 to 149 days, (5) 150 to 179
         days, (6) 180 to 269 days and (7) 270 or more days, (B) in foreclosure,
         (C) in bankruptcy and (D) properties acquired by the Trust by deed in
         lieu of foreclosure;

                  (x) (A) cumulative losses as a percentage of original Pool
         Balance, (B) cumulative losses as a percentage of current Pool Balance
         and (C) the twelve-month rolling average of cumulative losses as a
         percentage of original Pool Balance;

                  (xi) the three-month rolling average of Mortgage Loans that
         are 60 days or more delinquent;

                  (xii) the book value of any real estate which is acquired by
         the Trust through foreclosure or grant of deed in lieu of foreclosure;

                  (xiii) the amount of any draws on the Policy;

                  (xiv) the amount, if any, on deposit in the Reserve Fund and
         the amount, if any, transferred from the Reserve Fund in respect of
         such Payment Date;

                  (xv) the amount, if any, on deposit in the Pre-Funding
         Account;

                  (xvi) whether the related Payment Date will fall during the
         Managed Amortization Period or the Rapid Amortization Period;

                  (xvii) whether a Rapid Amortization Event has occurred during
         the related Collection Period;

                  (xviii) the amount, if any, of any Relief Act Shortfalls
         incurred during the related Collection Period;

                  (xix) the outstanding principal balance of the three Mortgage
         Loans in the related Pool with the largest outstanding principal
         balance;

                  (xx) whether an Event of Servicing Termination or an Insurer
         Default has occurred;

                                       45
<PAGE>

                  (xxi) the amount, if any, of Additional Balances created
         during the related Collection Period;

                  (xxii) whether the Managed Amortization Period has ended and
         the Rapid Amortization Period has begun;

                  (xxiii) the Pool I Specified Overcollateralization Amount and
         the Pool II Specified Overcollateralization Amount;

                  (xxiv) the Pool I Overcollateralization Amount and the Pool II
         Overcollateralization Amount, in each case after giving effect to
         payments on such Payment Date;

                  (xxv) the amount of any servicing advances made by the
         Servicer during the related Collection Period; and

                  (xxvi) the amount, if any, of interest shortfalls relating to
         prepayments during the related Collection Period.

         In addition, the certificates delivered in December 2001, January 2002
and February 2002 shall also indicate (i) the amount on deposit in the
Pre-Funding Account as of such Payment Date and transfers of funds required by
Section 8.9 and (ii) the aggregate of the Principal Balances of Subsequent
Mortgage Loans purchased on the related Subsequent Transfer Date.

         In the case of information furnished pursuant to clauses (ii), (iii),
(iv) and (v) above, the amounts shall be expressed as a dollar amount per Class
A Note with a $1,000 denomination.

         The Indenture Trustee will make the reports referred to above (and, at
its option, any additional files containing the same information in an
alternative format) available each month to Noteholders, the Insurer, the
Sponsor and the Servicer via the Indenture Trustee's internet website, which is
presently located at www.mbsreporting.com. Any such persons that are unable to
use this website are entitled to have a paper copy of such information sent to
them via facsimile by faxing a request to the Indenture Trustee at (212)
328-7620. If the Insurer requests a paper copy of such information, a paper copy
shall be sent to the Insurer each month without the need for any additional
request. The Indenture Trustee shall have the right to change the manner in
which the reports referred to in this section are distributed in order to make
such distribution more convenient and/or more accessible to the Noteholders, the
Insurer, the Sponsor and the Servicer. The Indenture Trustee will provide timely
and adequate notification to all such parties regarding any such change to the
method of distribution of the reports.

         Each report provided to the Insurer (either via the Indenture Trustee's
website or a paper copy) pursuant to this Section 8.8 shall additionally report:
(a) the total amount of funds received as Insured Payments for such Payment
Date, separately stating the portions used to pay principal and interest
components of the Deficiency Amounts; (b) the cumulative Insured Payments made
by the Insurer through such Payment Date; and (c) other information as the
Insurer may reasonably request from time to time.

                                       46
<PAGE>

         Within 60 days after the end of each calendar year, the Servicer shall
prepare or cause to be prepared and shall forward to the Indenture Trustee the
information set forth in clauses (i) and (ii) above aggregated for such calendar
year. Such obligation of the Servicer shall be deemed to have been satisfied to
the extent that substantially comparable information shall be provided by the
Servicer or a Note Paying Agent pursuant to any requirements of the Code.

         SECTION 8.9. Pre-Funding Account.

         (a) The Indenture Trustee shall establish and maintain with itself a
separate trust account (the "Pre-Funding Account") entitled "The Bank of New
York, as Indenture Trustee, in trust for the registered holders of GreenPoint
Home Equity Loan Trust 2001-2, Pre-Funding Account." The Pre-Funding Account
shall be an Eligible Account.

         (b) The Servicer may cause the institution maintaining the Pre-Funding
Account to invest any funds in the Pre-Funding Account in Eligible Investments
which shall mature or otherwise be available not later than the Business Day
next preceding the Payment Date or, with the approval of the Insurer and the
Rating Agencies, on the Payment Date next following the date of such investment
(except that any investment in an obligation of the institution with which the
Pre-Funding Account is maintained may mature on or before 12:00 noon, New York
time, on such Payment Date) and shall not be sold or disposed of prior to its
maturity. At any time when the Indenture Trustee is maintaining the Pre-Funding
Account, any request by the Servicer to invest funds on deposit in the
Pre-Funding Account shall be in writing, shall be delivered to the Indenture
Trustee at or before 10:30 a.m., New York time, if such investment is to be made
on such day, and shall certify that the requested investment is an Eligible
Investment which matures at or prior to the time required hereby. Any such
investment shall be registered in the name of the Indenture Trustee as trustee
hereunder or in the name of its nominee, and to the extent such investments are
certificated they shall be maintained in the possession of the Indenture Trustee
in the state of its Corporate Trust Office. All income and gain realized from
any such investment shall be included as Interest Collections. The amount of any
losses incurred in respect of the principal amount of any such investment shall
be deposited in the Pre-Funding Account by the Servicer out of its own funds
immediately as realized. Any investment earnings on the Pre-Funding Account
shall be treated as owned by the Sponsor for federal and state income tax
purposes.

         (c) On the Closing Date, the Indenture Trustee will deposit into the
Pre-Funding Account from the proceeds of the sale of the Notes, on behalf of the
Noteholders and the Insurer, the Original Pre-Funded Amount.

         (d) On each Subsequent Transfer Date with respect to either Pool, the
Sponsor shall instruct the Indenture Trustee to withdraw from the Pre-Funding
Account an amount equal to 100% of the aggregate Principal Balances of the
Subsequent Mortgage Loans transferred to the Trust for assignment to either Pool
I, Pool II or Pool III (as indicated by the Sponsor) on such Subsequent Transfer
Date and pay such amount to or upon the order of the Sponsor upon satisfaction
of the conditions set forth in Section 2.10 of the Sale and Servicing Agreement
with respect to such transfer; provided, however, that with respect to Pool I
neither (x) the aggregate amount withdrawn from the Pre-Funding Account to
purchase Subsequent Mortgage Loans for addition to Pool I nor (y) the aggregate
Principal Balances of the Subsequent Mortgage Loans transferred to the Trust for
assignment to Pool I may exceed the Original Class A-1 Pre-Funded Amount;
provided further, however, that with respect to Pool II neither (x) the
aggregate amount withdrawn from the Pre-Funding Account to purchase Subsequent
Mortgage Loans for addition to Pool II nor (y) the aggregate Principal Balances
of the Subsequent Mortgage Loans transferred to the Trust for assignment to Pool
II may exceed the Original Class A-2 Pre-Funded Amount; provided further,
however, that with respect to Pool III neither (x) the aggregate amount
withdrawn from the Pre-Funding Account to purchase Subsequent Mortgage Loans for
addition to Pool III nor (y) the aggregate Principal Balances of the Subsequent
Mortgage Loans transferred to the Trust for assignment to Pool III may exceed
the Original Class A-3 Pre-Funded Amount.

                                       47
<PAGE>

         (e) (i) On December 14, 2001, the Servicer shall remit to the
Collection Account the Capitalized Interest Requirement, to be used for the
Payment Date in December 2001, (ii) on January 11, 2002, the Servicer shall
remit to the Collection Account the Capitalized Interest Requirement, to be used
for the Payment Date in January 2002 and (iii) on February 14, 2002, the
Servicer shall remit to the Collection Account the Capitalized Interest
Requirement, to be used for the Payment Date in February 2002, each as set forth
in the Side Letter Agreement.

         (f) If (x) the Pre-Funded Amount has not been reduced to zero by the
Payment Date occurring in February 2002 or (y) the Pre-Funded Amount has been
reduced to $100,000 or less on any Payment Date occurring during the Pre-Funding
Period, in either case after giving effect to any reductions in the Pre-Funded
Amount on or before the related such Payment Date, the Sponsor shall instruct
the Indenture Trustee to withdraw from the Pre-Funding Account and deposit to
the Collection Account the difference, if any, between (A) the Original
Pre-Funded Amount and (B) all amounts theretofore withdrawn from the Pre-Funding
Account with respect to Subsequent Mortgage Loans.

         SECTION 8.10. Rights of Noteholders and Residual Certificateholders.
The Notes shall represent obligations of the Trust, each representing interests
in or secured by the Trust Property, including the Collection Account and the
right to receive Interest Collections, Principal Collections, if any, and other
amounts at the times and in the amounts specified in this Indenture; the
Residual Certificates shall represent a beneficial interest in the Trust (other
than the Reserve Fund, the Policy, and the Pre-Funding Account); the Class S
Certificates shall represent a right to receive interest only payments as
specified in this Indenture.

         SECTION 8.11. Opinion of Counsel. The Indenture Trustee and the Insurer
shall receive at least seven days' notice when requested by the Issuer to take
any action pursuant to Section 8.2(a), accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require as a condition to such
action, an Opinion of Counsel (addressed to the Indenture Trustee and to the
Insurer), 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 and such action will not
materially and adversely impair the security for the Notes or the rights of the
Noteholders or the Insurer in contravention of the provisions of this Indenture;
provided, however, that such Opinion of Counsel shall not be required to express
an opinion as to the fair value of the Trust Property. Counsel rendering any
such opinion may rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.

                                       48
<PAGE>

                                   ARTICLE IX

                             Supplemental Indentures

         SECTION 9.1. Supplemental Indentures Without Consent of Noteholders.

         (a) Without the consent of the Holders of any Notes but with the
consent of the Insurer, as evidenced to the Indenture Trustee, the parties
hereto, when authorized by an Issuer Order, 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 and the Insurer, for any of the
following purposes:

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

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

                  (iii) to add to the covenants of the Issuer, for the benefit
         of the Holders of the Notes, or 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 which may be
         inconsistent with any other provision herein or in any supplemental
         indenture or 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 adversely affect the
         interests of the Holders of the Notes; or

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

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

                                       49
<PAGE>

         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 parties hereto, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes but with the prior
written consent of the Insurer and with prior notice to the Rating Agencies by
the Issuer, as evidenced to the Indenture Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or of modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of
any Noteholder.

         SECTION 9.2. Supplemental Indentures with Consent of Noteholders. The
parties hereto, when authorized by an Issuer Order, also may, with prior notice
to the Rating Agencies, with the consent of the Insurer and with the consent of
the Holders of not less than a majority of the Outstanding Amount of the Notes,
by Act of such Holders delivered to the parties hereto, enter into an indenture
or indentures supplemental hereto for the purpose of adding any provisions to,
or changing in any manner or eliminating any of the provisions of, this
Indenture or of modifying in any manner the rights of the Holders of the Notes
under this Indenture; provided, however, that, subject to the express rights of
the Insurer under the Basic Documents, no such supplemental indenture shall,
without the consent of the Holder of each Outstanding Notes affected thereby:

                  (i) change the date of payment of any installment of principal
         of or interest on any Note, or reduce the principal amount thereof, the
         interest rate thereon or the Redemption Price with respect thereto,
         change the provision of this Indenture relating to the application of
         collections on, or the proceeds of the sale of, the Trust Property to
         payment of principal of or interest on the Notes, or change any place
         of payment where, or the coin or currency in which, any Note or the
         interest thereon is payable;

                  (ii) impair the right to institute suit for the enforcement of
         the provisions of this Indenture requiring the application of funds
         available therefor, as provided in Article V, to the payment of any
         such amount due on the Notes on or after the respective due dates
         thereof (or, in the case of redemption, on or after the Redemption
         Date);

                  (iii) reduce the percentage of the Outstanding Amount of the
         Notes, the consent of the Holders of which is required for any such
         supplemental indenture, or the consent of the Holders of which is
         required for any waiver of compliance with certain provisions of this
         Indenture or certain defaults hereunder and their consequences provided
         for in this Indenture;

                  (iv) modify or alter the provisions of the proviso to the
         definition of the term "Outstanding";

                                       50
<PAGE>

                  (v) reduce the percentage of the Outstanding Amount of the
         Notes required to direct the Indenture Trustee to direct the Issuer to
         sell or liquidate the Trust Property pursuant to Section 5.4;

                  (vi) modify any provision of this Section 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 Outstanding Note
         affected thereby;

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

                  (viii) 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 Property or, except as otherwise permitted or contemplated
         herein or in any of the Basic Documents, terminate the lien of this
         Indenture on any property at any time subject hereto or deprive the
         Holder of any Note of the security provided by the lien of this
         Indenture.

         The Indenture Trustee may conclusively rely as to whether or not any
Notes would be adversely affected by any supplemental indenture upon receipt of
an Opinion of Counsel addressed and delivered to the Indenture Trustee and the
Insurer to that effect and any such determination shall be conclusive upon the
Holders of all Notes, whether theretofore or thereafter authenticated and
delivered hereunder. The Indenture Trustee shall not be liable for relying on
such Opinion of Counsel in good faith.

         It shall not be necessary for any Act of Noteholders under this Section
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 parties hereto of any supplemental
indenture pursuant to this Section, the Indenture Trustee shall mail to the
Holders of the Notes to which such amendment or supplemental indenture relates a
notice setting forth in general terms the substance of such supplemental
indenture. Any failure of the Indenture Trustee to mail such notice, or any
defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.

         SECTION 9.3. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modifications thereby of the trusts created
by this Indenture, the Indenture Trustee and the Insurer shall be entitled to
receive, and subject to Sections 6.1 and 6.2, shall be fully protected in
relying upon, an Opinion of Counsel (and, if requested, an Officer's Note)
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.

                                       51
<PAGE>

         SECTION 9.4. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the Indenture Trustee, the Issuer and the Holders of the Notes shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such
supplemental indenture shall be and be deemed to be part of the terms and
conditions of this Indenture for any and all purposes.

         SECTION 9.5. Reference in Notes to 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 TIA as then
in effect so long as this Indenture shall then be qualified under the TIA.

         SECTION 9.6. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X

                               Redemption of Notes

         SECTION 10.1. Redemption. Each Class of Notes is subject to redemption
in whole, but not in part, at the direction of the Sponsor pursuant to Section
7.01(b) of the Sale and Servicing Agreement, on any Payment Date on which the
Sponsor exercises its option to transfer the Trust Property pursuant to said
Section 7.01(b), for a purchase price equal to the Redemption Price. The
Servicer or the Issuer shall furnish the Insurer notice of such redemption not
later than 35 days prior to the Redemption Date. If the Notes are to be redeemed
pursuant to this Section 10.1, the Servicer or the Issuer shall furnish notice
of such election to the Indenture Trustee not later than 35 days prior to the
Redemption Date and the Issuer shall deposit or undertake to deposit on or prior
to the Redemption Date with the Indenture Trustee in the Collection Account the
Redemption Price of such Notes whereupon all such Notes shall be due and payable
on the Redemption Date upon the furnishing of a notice complying with Section
10.2 (unless the Issuer shall default in the deposit of the Redemption Price).

         SECTION 10.2. Surrender of Notes.

         (a) Notice of any termination, specifying the Payment Date (which shall
be a date that would otherwise be a Payment Date) upon which the Noteholders may
surrender their Notes to the Indenture Trustee for payment of the final
distribution and cancellation, shall be given promptly by the Indenture Trustee
(upon receipt of written directions from the Sponsor, if the Sponsor is
exercising its right to transfer of the Mortgage Loans, given not later than the
first day of the month preceding the month of such final distribution) to the
Insurer and to the Servicer and by letter to Noteholders mailed not earlier than
the 15th day and not later than the 25th day of the month next preceding the
month of such final distribution specifying (i) the Payment Date upon which
final distribution of the Notes will be made upon presentation and surrender of
Notes at the office or agency of the Indenture Trustee therein designated, (ii)
the amount of any such final distribution and (iii) that the Record Date
otherwise applicable to such Payment Date is not applicable, distributions being
made only upon presentation and surrender of the Notes at the office or agency
of the Indenture Trustee therein specified. In the event written directions are
delivered by the Sponsor to the Indenture Trustee as described in the preceding
sentence, the Sponsor shall deposit in the Collection Account on or before the
Payment Date for such final distribution in immediately available funds an
amount which, when added to the funds on deposit in the Collection Account that
are payable to the Noteholders, will be equal to the retransfer amount for the
Mortgage Loans computed as above provided, together with all amounts due and
owing to the Insurer for unpaid premiums and unreimbursed draws on the Policy
and all other amounts due and owing to the Insurer pursuant to the Insurance
Agreement, together with interest thereon as provided under the Insurance
Agreement.

                                       52
<PAGE>

         (b) Upon presentation and surrender of the Notes, the Indenture Trustee
shall cause to be distributed to the Holders of Notes on the Payment Date for
such final distribution, in proportion to the Percentage Interests of their
respective Notes and to the extent that funds are available for such purpose, an
amount equal to (i) if such final distribution is not being made pursuant to the
transfer to the Sponsor pursuant to Section 7.01(a)(B)(i) of the Sale and
Servicing Agreement, the amount required to be distributed to Noteholders
pursuant to Section 10.1 of this Indenture for such Payment Date and (ii) if
such final distribution is being made pursuant to such retransfer, the amount
specified in Section 7.01(b) of the Sale Servicing Agreement. The distribution
on such final Payment Date pursuant to a retransfer pursuant to Section
7.01(a)(B)(i) of the Sale and Servicing Agreement shall be in lieu of the
distribution otherwise required to be made on such Payment Date in respect of
the Notes. On the final Payment Date prior to having made the distributions
called for above, the Indenture Trustee shall, based upon the information set
forth in the Servicing Certificate for such Payment Date, withdraw from the
Collection Account and remit to the Insurer the lesser of (x) the amount
available for distribution on such final Payment Date, net of any portion
thereof necessary to pay the amounts described in clauses (i) and (ii) above and
(y) the unpaid amounts due and owing to the Insurer for unpaid premiums and
unreimbursed draws on the Policy and all other amounts due and owing to the
Insurer pursuant to the Insurance Agreement, together with interest thereon as
provided under the Insurance Agreement.

         (c) In the event that all of the Noteholders shall not surrender their
Notes for final payment and cancellation on or before such final Payment Date,
the Indenture Trustee shall on such date cause all funds in the Collection
Account not distributed in final distribution to Noteholders to be withdrawn
therefrom and credited to the remaining Noteholders by depositing such funds in
a separate escrow account for the benefit of such Noteholders and the Sponsor
(if the Sponsor has exercised its right to transfer the Mortgage Loans) or the
Indenture Trustee (in any other case) and shall give a second written notice to
the remaining Noteholders to surrender their Notes for cancellation and receive
the final distribution with respect thereto. If within one year after the second
notice all the Notes shall not have been surrendered for cancellation, the
Indenture Trustee may take appropriate steps, or may appoint an agent to take
appropriate steps, to contact the remaining Noteholders concerning surrender of
their Notes, and the cost thereof shall be paid out of the funds on deposit in
such escrow account.

                                       53
<PAGE>

         SECTION 10.3. Form of Redemption Notice. Notice of redemption supplied
to the Indenture Trustee by the Sponsor under Section 10.1 shall be given by the
Indenture Trustee by facsimile or by first-class mail, postage prepaid,
transmitted or mailed prior to the applicable Redemption Date to each Holder of
Notes of record, as of the close of business on the date which is not less than
5 days prior to the applicable Redemption Date, at such Holder's address
appearing in the Note Register.

         All notices of redemption shall state:

                  (i) the Redemption Date;

                  (ii) the Redemption Price;

                  (iii) that the Record Date otherwise applicable to such
         Redemption Date is not applicable and that payments shall be made only
         upon presentation and surrender of such Notes at the place where such
         Notes are to be surrendered for payment of the Redemption Price (which
         shall be the office or agency of the Issuer to be maintained as
         provided in Section 3.2); and

                  (iv) that interest on the Notes shall cease to accrue on the
         Redemption Date.

         Notice of redemption of the Notes shall be given by the Indenture
Trustee in the name and at the expense of the Issuer. Failure to give notice of
redemption, or any defect therein, to any Holder of any Note shall not impair or
affect the validity of the redemption of any other Note.

         SECTION 10.4. Notes Payable on Redemption Date. The Notes to be
redeemed shall, following notice of redemption as required by Section 10.2, on
the Redemption Date become due and payable at the Redemption Price and (unless
the Issuer shall default in the payment of the Redemption Price) no interest
shall accrue on the Redemption Price for any period after the date to which
accrued interest is calculated for purposes of calculating the Redemption Price.

                                   ARTICLE XI

                                  Miscellaneous

         SECTION 11.1. Compliance Certificates and Opinions, etc. Upon any
application or request by the Issuer to the Indenture Trustee to take any action
under any provision of this Indenture, the Issuer shall furnish to the Indenture
Trustee and to the Insurer if the application or request is made 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, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA or any provision of this
Agreement) an Independent Certificate from a firm of certified public
accountants meeting the applicable requirements of this Section, 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.

                                       54
<PAGE>

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

                  (i) 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;

                  (ii) 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;

                  (iii) 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; and

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

         SECTION 11.2. 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 or her 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 Servicer, the Sponsor or the Issuer, stating that the information with
respect to such factual matters is in the possession of the Servicer, the
Sponsor 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.

                                       55
<PAGE>

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

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

         SECTION 11.3. Acts of Noteholders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.1) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section.

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

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

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

         SECTION 11.4. Notices, etc., to Indenture Trustee, Issuer, Insurer and
Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this
Indenture to be made upon, given or furnished to or filed with:

         (a) The Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if personally delivered, delivered by
overnight courier or mailed first-class and shall be deemed to have been duly
given upon receipt to the Indenture Trustee at its Corporate Trust Office and
any notice delivered by facsimile shall be addressed to the Corporate Trust
Office, telecopy number (212) 238-7620, or

                                       56
<PAGE>

         (b) The Issuer by the Indenture Trustee or by any Noteholder shall be
sufficient for every purpose hereunder if personally delivered, delivered by
facsimile or overnight courier or mailed first class, and shall deemed to have
been duly given upon receipt to the Issuer addressed to: GreenPoint Home Equity
Loan Trust 2001-2, in care of Wilmington Trust Company, Rodney Square North,
1100 North Market Street, Wilmington, DE 19890-0001 Attention: Corporate Trust
Administration, or at any other address previously furnished in writing to the
Indenture Trustee by Issuer. The Issuer shall promptly transmit any notice
received by it from the Noteholders to the Indenture Trustee.

         (c) The Insurer by the Issuer or the Indenture Trustee shall be
sufficient for any purpose hereunder if in writing and mailed by first-class
mail personally delivered or telecopied to the recipient as follows:

                  To the Insurer:   MBIA Insurance Corporation
                                    113 King Street
                                    Armonk, NY 10504
                                    Attention:  Insured Portfolio Management--
                                    Structured Finance ("IPM-SF") (GreenPoint
                                    Home Equity Loan Trust 2001-2)

                                    Telecopy:  (914) 765-3605

         Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, delivered by overnight courier or first class or via facsimile to (i)
in the case of Moody's, at the following address: Moody's Investors Service,
Inc., 99 Church Street, New York, New York 10004, Fax No: (212) 533-0355 and
(ii) in the case of S&P, at the following address: Standard & Poor's, a division
of The McGraw-Hill Companies, Inc., 55 Water Street, New York, New York 10041,
Attention: Asset Backed Surveillance Department, Fax No: (212) 438-2661; or as
to each of the foregoing, at such other address as shall be designated by
written notice to the other parties.

         SECTION 11.5. Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event (and in all cases, the Insurer shall receive notice), at his address as it
appears on the Note Register, not later than the latest date, and not earlier
than the earliest date, prescribed for the giving of such notice. In any case
where notice to Noteholders is given by mail, neither the failure to mail such
notice nor any defect in any notice so mailed to any particular Noteholder shall
affect the sufficiency of such notice with respect to other Noteholders, and any
notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

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

                                       57
<PAGE>

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

         Where this Indenture provides for notice to the Rating Agencies,
failure to give such notice shall not affect any other rights or obligations
created hereunder.

         SECTION 11.6. Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Note Paying Agent to such
Holder, that is different from the methods provided for in this Indenture for
such payments or notices, provided that such methods are reasonable and
consented to by the Indenture Trustee (which consent shall not be unreasonably
withheld). The Issuer will furnish to the Indenture Trustee a copy of each such
agreement and the Indenture Trustee will cause payments to be made and notices
to be given in accordance with such agreements.

         SECTION 11.7. 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 TIA,
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 11.8. Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

         SECTION 11.9. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors.

         SECTION 11.10. Separability. In case any provision in this Indenture or
in the Notes shall be invalid, illegal or unenforceable, the validity, legality,
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         SECTION 11.11. Benefits of Indenture. The Insurer and its successors
and assigns shall be third-party beneficiaries to the provisions of this
Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture. Nothing in this Indenture or in the Notes, express
or implied, shall give to any Person, other than the parties hereto and their
successors hereunder, the Insurer, and the Noteholders, and any other party
secured hereunder, and any other person with an ownership interest in any part
of the Trust Property, any benefit or any legal or equitable right, remedy or
claim under this Indenture. The Insurer may disclaim any of its rights and
powers under this Indenture (in which case the Indenture Trustee may exercise
such rights or powers hereunder), but not its duties and obligations under the
Policy upon delivery of a written notice to the Indenture Trustee.

                                       58
<PAGE>

         SECTION 11.12. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such date,
but may be made on the next succeeding Business Day with the same force and
effect as if made on the date on which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

         SECTION 11.13. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

         SECTION 11.14. Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

         SECTION 11.15. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Trust or any other counsel reasonably acceptable to
the Indenture Trustee and the Insurer) to the effect that such recording is
necessary either for the protection of the Noteholders or any other person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

         SECTION 11.16. Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Sponsor, the
Servicer, the Owner Trustee or the Indenture Trustee on the Notes or under this
Indenture or any Note or other writing delivered in connection herewith or
therewith, against (i) the Sponsor, the Servicer, 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 Sponsor, the Servicer, the Indenture Trustee
or the Owner Trustee in its individual capacity, any holder of a beneficial
interest in the Issuer, the Sponsor, the Servicer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Sponsor, the Servicer,
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 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 Articles VI, VII and VIII of the Trust Agreement.

                                       59
<PAGE>

         SECTION 11.17. No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder, by accepting a Note, hereby covenant and
agree that they will not at any time institute against the Sponsor, or the
Issuer, or join in any institution against the Sponsor, or the Issuer of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings,
or other proceedings under any United States Federal or state bankruptcy or
similar law in connection with any obligations relating to the Notes, this
Indenture or any of the Basic Documents.

         SECTION 11.18. Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or of the
Insurer, during the Issuer's normal business hours, to examine all the books of
account, records, reports, and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee shall and shall cause its representatives to
hold in confidence all such information except to the extent disclosure may be
required by law (and all reasonable applications for confidential treatment are
unavailing) and except to the extent that the Indenture Trustee may reasonably
determine that such disclosure is consistent with its Obligations hereunder.

         SECTION 11.19. Limitation of Liability. It is expressly understood and
agreed by the parties hereto that (a) this Indenture is executed and delivered
by Wilmington Trust Company, not individually or personally but solely as Owner
Trustee of the Issuer under the Trust Agreement, in the exercise of the powers
and authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of the Issuer is made and
intended not as personal representations, undertakings and agreements by
Wilmington Trust Company but is made and intended for the purpose for binding
only the Issuer, (c) nothing herein contained shall be construed as creating any
liability on Wilmington Trust Company individually or personally, to perform any
covenant either expressed or implied contained herein, all such liability, if
any, being expressly waived by the parties to this Indenture and by any person
claiming by, through or under them and (d) under no circumstances shall
Wilmington Trust Company be personally liable for the payment of any
indebtedness or expenses of the Issuer or be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaking by the
Issuer under this Indenture or any related documents.

                                  ARTICLE XII

                            Rapid Amortization Events

         SECTION 12.1. Rapid Amortization Events. The following shall constitute
Rapid Amortization Events with respect to each Class of Notes:

         (a) failure on the part of the Issuer, the Sponsor or the Servicer, as
the case may be, (i) to make any payment or deposit required by the terms of
this Indenture, the Sale and Servicing Agreement or the Insurance Agreement,
within two Business Days after notification that such payment or deposit is
required to be made, or (ii) to observe or perform in any material respect the
covenants or agreements of the Issuer, the Sponsor or the Servicer, as the case
may be, set forth in the Sale and Servicing Agreement or the Insurance Agreement
or this Indenture, as the case may be, and which, in the case of clause (ii),
continues unremedied for a period of 60 days after the date on which written
notice of such failure, requiring the same to be remedied, shall have been given
to the Issuer, the Sponsor or the Servicer, as the case may be, by the Indenture
Trustee, or to the Issuer, the Sponsor or the Servicer, as the case may be, and
the Indenture Trustee by the Insurer or Holders of Notes evidencing more than
50% of the Outstanding Amount;

                                       60
<PAGE>

         (b) any representation or warranty made by the Issuer, the Sponsor or
the Servicer, as the case may be, in this Indenture, the Sale and Servicing
Agreement or the Insurance Agreement shall prove to have been incorrect in any
material respect when made, as a result of which the interests of the
Noteholders or the Insurer are materially and adversely affected and which
continues to be incorrect in any material respect and continues to affect
materially and adversely the interests of the Noteholders or the Insurer for a
period of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given to the Issuer, the
Sponsor or the Servicer, as the case may be, by the Indenture Trustee, or to the
Issuer, the Sponsor or the Servicer, as the case may be, and the Indenture
Trustee by either the Insurer or the Holders of Notes evidencing more than 50%
of the Outstanding Amount; provided, however, that with respect to any such
representation or warranty made with respect to the related Mortgage Loans, a
Rapid Amortization Event pursuant to this subparagraph (b) shall not be deemed
to have occurred hereunder if the Servicer or the Sponsor has accepted
retransfer of such related Mortgage Loan or related Mortgage Loans during such
period (or such longer period not to exceed an additional 60 days as the
Indenture Trustee may specify with the consent of the Insurer) in accordance
with the provisions hereof;

         (c) the Servicer, the Sponsor or the Issuer or any of their
Subsidiaries or Affiliates shall voluntarily go into liquidation, consent to the
appointment of a conservator or receiver or liquidator or similar person in any
insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings of or relating to the Servicer, the Sponsor or the Trust or
of or relating to all or substantially all of such Person's property, or a
decree or order of a court or agency or supervisory authority having
jurisdiction in the premises for the appointment of a conservator, receiver,
liquidator or similar person in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings, or for the
winding-up or liquidation of its affairs, shall have been entered against the
Servicer, the Sponsor of the Trust and such decree or order shall have remained
in force undischarged or unstayed for a period of 30 days; or the Servicer, the
Sponsor or the Trust shall admit in writing its inability to pay its debts
generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute, make an assignment for the
benefit of its creditors or voluntarily suspend payment of its obligations;

         (d) the Issuer becomes subject to regulation by the Securities and
Exchange Commission as an investment company within the meaning of the
Investment Company Act of 1940, as amended;

                                       61
<PAGE>

         (e) any draw is made under the Policy with respect to any Class;

         (f) an Event of Servicing Termination has occurred; and

         (g) default in the payment of any interest, principal or any
installment of principal on the related Class of Class A Notes when the same
becomes due and payable, and such default continues for a period of five
Business Days.

         The occurrence of a Rapid Amortization Event with respect to a Class of
Notes will cause the occurrence of a Rapid Amortization Event with respect to
the other Classes of Notes.

         In the case of any event described in clauses (a) through (f) above, a
Rapid Amortization Event will be deemed to have occurred only if, after the
applicable grace period, if any, described in the Indenture or Sale and
Servicing Agreement, any of the Indenture Trustee or Holders holding Class A
Notes evidencing more than 50% of the outstanding principal balance of the Class
A-1 Notes, the Class A-2 Notes or the Class A-3 Notes, as applicable, in each
case with the prior written consent of the Insurer (so long as there is no
continuing default by the Insurer in the performance of its obligations under
the Policy, or a downgrade in the rating of the Insurer) or the Insurer (so long
as there is no continuing default by the Insurer in the performance of its
obligations under the Policy), by written notice to the Trust, the Insurer, the
Sponsor, and the Servicer (and to the Indenture Trustee, if given by the
Noteholders or the Insurer) declare that a Rapid Amortization Event has occurred
as of the date of such notice, or in the case of any event described in clause
(g), the Indenture Trustee or Noteholders evidencing more than 50% of the
outstanding principal balance of the related Class of Class A Notes, by such
written notice declare that a Rapid Amortization Event has occurred as of the
date of such notice. Following the occurrence of a Rapid Amortization Event
described in clauses (a) through (f), the Insurer (so long as there is no
continuing default by the Insurer in the performance of its obligations under
the Policy) shall have the right to direct the Indenture Trustee to sell the
related Mortgage Loans. Following the occurrence of a Rapid Amortization Event
described in clause (g), the Noteholders evidencing more than 50% of the
outstanding principal balance of the related Class of Class A Notes shall have
the right to so direct the Indenture Trustee.

         In addition to the consequences of a Rapid Amortization Event discussed
above, if the Sponsor voluntarily files a bankruptcy petition or goes into
liquidation or any person is appointed a receiver or bankruptcy trustee of the
Sponsor, on the day of any such filing or appointment no further Additional
Balances will be transferred to the Trust, and the Sponsor will promptly give
notice to the Indenture Trustee and the Insurer of any such filing or
appointment. Within 15 days, the Indenture Trustee will publish a notice of the
occurrence of such event. If so directed by the Insurer, so long as no Insurer
Default shall have occurred and be continuing, the Indenture Trustee will sell,
dispose of or otherwise liquidate the Trust Property with respect to the
Mortgage Loans in each Pool in a commercially reasonable manner and on
commercially reasonable terms. So long as no Event of Servicing Termination has
occurred and is continuing, any such sale, disposal or liquidation will be
"servicing retained" by the Servicer. With respect to each Pool and the related
Class of Class A Notes, the net proceeds of such sale will be paid (i) first, to
the Holders of such Class of Class A Notes insofar as may be necessary to reduce
the principal balance of such Class, together with all accrued and unpaid
interest due thereon, to zero

                                       62
<PAGE>

and to the Class S Certificateholders insofar as may be necessary to pay all
accrued and unpaid interest due on the Class S Certificates, (ii) second, to
reimburse the Insurer to the extent of unreimbursed draws under the Policy and
other amounts owing to the Insurer, and (iii) third, to the Residual
Certificateholder.

<PAGE>
         IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, hereunto duly
authorized, all as of the day and year first above written.

                                        GREENPOINT HOME EQUITY LOAN TRUST 2001-2

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

                                        By:   /s/ W. Chris Sponenberg
                                             -----------------------------------
                                        Name: W. Chris Sponenberg
                                        Title: Vice President

                                        The Bank of New York,
                                           not in its individual capacity but
                                           solely as Indenture Trustee

                                        By:   /s/ Diane Pickett
                                             -----------------------------------
                                        Name: Diane Pickett
                                        Title: Vice President

Acknowledged and Agreed:

GREENPOINT MORTGAGE SECURITIES INC.

By:  /s/ Nathan Hieter
    ----------------------------------
    Name: Nathan Hieter
    Title: Vice President

<PAGE>

                                                                  EXECUTION COPY
                             ANNEX A - DEFINED TERMS

         Accelerated Principal Payment: With respect to any Payment Date and
each Pool, a payment received as a payment of principal by the Noteholders of
the related Class of Notes, for the purpose of increasing the related
Overcollateralization Amount, and to be paid from the Excess Cashflow with
respect to the related Pool, and equal to for any Payment Date the lesser of (x)
the amount of the related Excess Cashflow and (y) the Overcollateralization
Deficiency Amount for the related Pool.

         Account: The Collection Account, the Pre-Funding Account and the
Reserve Fund.

         Act: As defined in Section 11.3(a) of the Indenture.

         Additional Balance: As to the HELOC Mortgage Loans contained in each
Pool and any date of determination, the aggregate amount of all Draws conveyed
to the Issuer with respect to such Pool pursuant to Section 2.01 of the Sale and
Servicing Agreement.

         Additional Balance Contributed Amount: As to any Payment Date, the
difference, if any, between (a) the aggregate excess, if any, for all prior
Payment Dates of (i) the aggregate principal amount of all Additional Balances
created during the Collection Period relating to each such Payment Date over
(ii) Principal Collections relating to such Payment Date, minus (b) the
aggregate Additional Balance Contributed Amounts paid to the Sponsor on all
prior Payment Dates pursuant to Section 8.7(d)(v) of the Indenture.

         Affiliate: With respect to any specified Person, any other Person
controlling, controlled by or under common control with such Person. For the
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 the terms "controlling" and
"controlled" have meanings correlative to the foregoing.

         Appraised Value: As to any Mortgaged Property, the value established by
either a full appraisal or a drive by inspection of such Mortgaged Property made
to establish compliance with the underwriting criteria then in effect in
connection with the application for the Mortgage Loan secured by such Mortgaged
Property.

         Assignment of Mortgage: With respect to any Mortgage, an assignment,
notice of transfer or equivalent instrument, in recordable form, sufficient
under the laws of the jurisdiction in which the related Mortgaged Property is
located to reflect the sale of the Mortgage to the Indenture Trustee, which
assignment, notice of transfer or equivalent instrument may be in the form of
one or more blanket assignments covering the Mortgage Loans secured by Mortgaged
Properties located in the same jurisdiction, to the extent permitted by
applicable 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 and holidays.

<PAGE>

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

         Available Funds: The Pool I Available Funds, the Pool II Available
Funds or the Pool III Available Funds.

         Basic Documents: The Indenture, the Notes, the Class S Certificate, the
Residual Certificate, the Certificate of Trust, the Trust Agreement, the Sale
and Servicing Agreement, the Purchase Agreement, the Indemnification Agreement,
the Management Agreement, the Insurance Agreement, the Side Letter and the
Policy.

         BBA: The British Bankers' Association.

         BIF: The Bank Insurance Fund, as from time to time constituted, created
under the Financial Institutions Reform, Recovery and Enhancement Act of 1989,
or if at any time after the execution of this instrument the Bank Insurance Fund
is not existing and performing duties now assigned to it, the body performing
such duties on such date.

         Billing Cycle: With respect to any Mortgage Loan and Collection Period,
the billing period specified in the related Loan Agreement and with respect to
which amounts billed are received during such Collection Period.

         Book-Entry Notes: A beneficial interest in the Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.9 of the Indenture.

         Business Day: Any day other than (i) a Saturday or Sunday, (ii) a day
on which banking institutions in the state of New York, the state of California
or the state in which the Corporate Trust Office is located are required or
authorized by law or executive order to be closed or (iii) a day on which the
Insurer is closed.

         Capitalized Interest Requirement: Has the meaning assigned to such term
in the Side Letter.

         Certificate of Trust: The certificate of trust of the Issuer
substantially in the form of Exhibit C to the Trust Agreement.

         Class: Each respective class of Notes.

         Class A-1 Deferred Interest: With respect to any Payment Date, the
excess, if any, of interest due at the Class A-1 Formula Note Rate over interest
due at the Class A-1 Note Rate.

                                       2
<PAGE>

         Class A-1 Deficiency Amount: With respect to any Payment Date, the
excess, if any, of the Required Payments related to the Class A-1 Notes over the
Net Available Distribution Amount related to the Class A-1 Notes for such
Payment Date.

         Class A-1 Formula Note Rate: For any Interest Accrual Period, the
lesser of (i)(x) with respect to any Payment Date which occurs on or prior to
the Class A-1 Optional Redemption Date, LIBOR plus 0.28% per annum and (y) for
any Payment Date thereafter, LIBOR plus 0.56% per annum and (ii) 15.50%.

         Class A-1 Interest Payment Amount: With respect to any Payment Date,
the product of (x) the Class A-1 Note Rate applicable to such Payment Date, (y)
the Class A-1 Note Principal Balance immediately prior to such Payment Date and
(z) a fraction, the numerator of which is the actual number of days in the
related Interest Accrual Period and the denominator of which is 360.

         Class A-1 Maximum Principal Payment: With respect to (i) any Payment
Date during the Managed Amortization Period, the Pool I Net Principal
Collections and (ii) any Payment Date during the Rapid Amortization Period, 100%
of the Pool I Principal Collections relating to such Payment Date.

         Class A-1 Maximum Rate: As to any Interest Accrual Period, the Weighted
Average Net Loan Rate of the Pool I Mortgage Loans for the Collection Period
during which such Interest Accrual Period begins (adjusted to an effective rate
reflecting accrued interest calculated on the basis of the actual number of days
in the Interest Accrual Period and a year assumed to consist of 360 days).

         Class A-1 Note: Any Note designated as a "Class A-1 Home Equity Loan
Asset-Backed Note" on the face thereof in substantially the form of Exhibit A-1
to the Indenture.

         Class A-1 Note Principal Balance: As of any time of determination, the
Original Class A-1 Note Principal Balance, less any amounts actually distributed
as principal to the Class A-1 Notes on all prior Payment Dates.

         Class A-1 Note Rate: (A) For the first Interest Accrual Period,
2.38250% and (B) for any Interest Accrual Period thereafter, the lesser of the
Class A-1 Formula Note Rate and the Class A-1 Maximum Rate.

         Class A-1 Noteholder: Any Holder of a Class A-1 Note.

         Class A-1 Optional Redemption Date: The date on which the Sponsor is
first able to exercise its right of optional redemption of the Class A-1 Notes
pursuant to Section 10.1 of the Indenture or Section 7.01 of the Sale and
Servicing Agreement.

         Class A-1 Principal Payment Amount: On any Payment Date, the excess, if
any, of (x) the Class A-1 Maximum Principal Payment over (y) the Pool I
Overcollateralization Reduction Amount.

                                       3
<PAGE>

         Class A-1 Reimbursement Amount: As of any Payment Date, the sum of
(x)(i) all Insured Payments made pursuant to the Policy by the Insurer and in
each case not previously repaid to the Insurer pursuant to Section 8.7(d)(viii)
of the Indenture, plus (ii) interest accrued on each such payment made pursuant
to the Policy not previously repaid calculated at the Late Payment Rate from the
date the Indenture Trustee received the related Insured Payments and (y)(i) any
other amounts then due and owing to the Insurer under the Insurance Agreement,
plus (ii) interest on such amounts at the Late Payment Rate.

         Class A-2 Deferred Interest: With respect to any Payment Date, the
excess, if any, of interest due at the Class A-2 Formula Note Rate over interest
due at the Class A-2 Note Rate.

         Class A-2 Deficiency Amount: With respect to any Payment Date, the
excess, if any, of the Required Payments related to the Class A-2 Notes over the
Net Available Distribution Amount related to the Class A-2 Notes for such
Payment Date.

         Class A-2 Formula Note Rate: For any Interest Accrual Period, the
lesser of (i)(x) with respect to any Payment Date which occurs on or prior to
the Class A-2 Optional Redemption Date, LIBOR plus 0.28% per annum and (y) for
any Payment Date thereafter, LIBOR plus 0.56% per annum and (ii) 15.50%.

         Class A-2 Interest Payment Amount: With respect to any Payment Date,
the product of (x) the Class A-2 Note Rate applicable to such Payment Date, (y)
the Class A-2 Note Principal Balance immediately prior to such Payment Date and
(z) a fraction, the numerator of which is the actual number of days in the
related Interest Accrual Period and the denominator of which is 360.

         Class A-2 Maximum Principal Payment: With respect to (i) any Payment
Date during the Managed Amortization Period, the Pool II Net Principal
Collections and (ii) any Payment Date during the Rapid Amortization Period, 100%
of the Pool II Principal Collections relating to such Payment Date.

         Class A-2 Maximum Rate: As to any Interest Accrual Period, the Weighted
Average Net Loan Rate of the Pool II Mortgage Loans for the Collection Period
during which such Interest Accrual Period begins (adjusted to an effective rate
reflecting accrued interest calculated on the basis of the actual number of days
in the Interest Accrual Period and a year assumed to consist of 360 days).

         Class A-2 Note: Any note designated as a "Class A-2 Home Equity Loan
Asset-Backed Note" on the face thereof in substantially the form of Exhibit A-2
to the Indenture.

         Class A-2 Note Principal Balance: As of any time of determination, the
Original Class A-2 Note Principal Balance, less any amounts actually distributed
as principal to the Class A-2 Notes on all prior Payment Dates.

         Class A-2 Note Rate: (A) For the first Interest Accrual Period,
2.38250%, and (B) for any Interest Accrual Period thereafter, the lesser of the
Class A-2 Formula Note Rate and the Class A-2 Maximum Rate.

                                       4
<PAGE>

         Class A-2 Noteholder: Any Holder of a Class A-2 Note.

         Class A-2 Optional Redemption Date: The date on which the Sponsor is
first able to exercise its right of optional redemption of the Class A-2 Notes
pursuant to Section 10.1 of the Indenture or Section 7.01 of the Sale and
Servicing Agreement.

         Class A-2 Principal Payment Amount: On any Payment Date, the excess, if
any, of (x) the Class A-2 Maximum Principal Payment over (y) the Pool II
Overcollateralization Reduction Amount.

         Class A-2 Reimbursement Amount: As of any Payment Date, the sum of
(x)(i) all related payments made pursuant to the Policy by the Insurer and in
each case not previously repaid to the Insurer pursuant to Section 8.7(d)(viii)
of the Indenture, plus (ii) interest accrued on each such payment made pursuant
to the Policy not previously repaid calculated at the Late Payment Rate from the
date the Indenture Trustee received the related Insured Payments and (y)(i) any
other amounts then due and owing to the Insurer under the Insurance Agreement,
plus (ii) interest on such amounts at the Late Payment Rate.

         Class A-3 Deferred Interest: With respect to any Payment Date, the
excess, if any, of interest due at the Class A-3 Formula Note Rate over interest
due at the Class A-3 Note Rate.

         Class A-3 Deficiency Amount: With respect to any Payment Date, the
excess, if any, of the Required Payments related to the Class A-3 Notes over the
Net Available Distribution Amount related to the Class A-3 Notes for such
Payment Date.

         Class A-3 Formula Note Rate: For any Interest Accrual Period, the
lesser of (i)(x) with respect to any Payment Date which occurs on or prior to
the Class A-3 Optional Redemption Date, LIBOR plus 0.29% per annum and (y) for
any Payment Date thereafter, LIBOR plus 0.58% per annum and (ii) 15.50%.

         Class A-3 Interest Payment Amount: With respect to any Payment Date,
the product of (x) the Class A-3 Note Rate applicable to such Payment Date, (y)
the Class A-3 Note Principal Balance immediately prior to such Payment Date and
(z) a fraction, the numerator of which is the actual number of days in the
related Interest Accrual Period and the denominator of which is 360.

         Class A-3 Maximum Principal Payment: With respect to (i) any Payment
Date during the Managed Amortization Period, the Pool III Net Principal
Collections and (ii) any Payment Date during the Rapid Amortization Period, 100%
of the Pool III Principal Collections relating to such Payment Date.

         Class A-3 Maximum Rate: As to any Interest Accrual Period, the Weighted
Average Net Loan Rate of the Pool III Mortgage Loans for the Collection Period
during which such Interest Accrual Period begins (adjusted to an effective rate
reflecting accrued interest calculated on the basis of the actual number of days
in the Interest Accrual Period and a year assumed to consist of 360 days).

                                       5
<PAGE>

         Class A-3 Note: Any Note designated as a "Class A-3 Home Equity Loan
Asset-Backed Note" on the face thereof in substantially the form of Exhibit A-3
to the Indenture.

         Class A-3 Note Principal Balance: As of any time of determination, the
Original Class A-3 Note Principal Balance, less any amounts actually distributed
as principal to the Class A-3 Notes on all prior Payment Dates.

         Class A-3 Note Rate: (A) For the first Interest Accrual Period,
2.39250% and (B) for any Interest Accrual Period thereafter, the lesser of the
Class A-3 Formula Note Rate and the Class A-3 Maximum Rate.

         Class A-3 Noteholder: Any Holder of a Class A-3 Note.

         Class A-3 Optional Redemption Date: The date on which the Sponsor is
first able to exercise its right of optional redemption of the Class A-3 Notes
pursuant to Section 10.1 of the Indenture or Section 7.01 of the Sale and
Servicing Agreement.

         Class A-3 Principal Payment Amount: On any Payment Date, the excess, if
any, of (x) the Class A-3 Maximum Principal Payment over (y) the Pool III
Overcollateralization Reduction Amount.

         Class A-3 Reimbursement Amount: As of any Payment Date, the sum of
(x)(i) all Insured Payments made pursuant to the Policy by the Insurer and in
each case not previously repaid to the Insurer pursuant to Section 8.7(d)(viii)
of the Indenture, plus (ii) interest accrued on each such payment made pursuant
to the Policy not previously repaid calculated at the Late Payment Rate from the
date the Indenture Trustee received the related Insured Payments and (y)(i) any
other amounts then due and owing to the Insurer under the Insurance Agreement,
plus (ii) interest on such amounts at the Late Payment Rate.

         Class S Certificate: As defined in Section 1.1 of the Trust Agreement.

         Class S Certificateholder: The Holder of the Class S Certificate.

         Class S Deficiency Amount: With respect to any Payment Date, the
excess, if any, of the aggregate of the amounts payable to the Holder of the
Class S Certificate pursuant to Section 8.7(d)(iv) of the Indenture over the sum
of the Available Funds for each Class of Class A Notes remaining following
distribution of the amounts specified in Section 8.7(d)(i) through (iii) of the
Indenture.

         Clearing Agency: An organization registered as a "clearing agency"
pursuant to Section 17A of the Exchange Act.

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

                                       6
<PAGE>

         Closed-End Mortgage Loans: With respect to Pool III, possible
Subsequent Mortgage Loans consisting solely of fixed-rate closed-end second lien
residential mortgage loans under the Mortgage Notes.

         Closed-End Principal Balance: As to any Closed-End Mortgage Loan, other
than a Liquidated Mortgage Loan, and as of any date, the related Cut-Off Date
Principal Balance minus all collections credited as principal against the
Closed-End Principal Balance of such Closed-End Mortgage Loan in accordance with
the related Mortgage Note prior to such day.

         Closing Date: November 20, 2001.

         Code: The Internal Revenue Code of 1986, as amended from time to time.

         Collateral: As defined in the Granting Clause of the Indenture.

         Collection Account: That account designated as the "Collection Account"
and established pursuant to Section 8.3 of the Indenture.

         Collection Period: With respect to any Payment Date and any Mortgage
Loans, the calendar month preceding such Payment Date.

         Combined Loan-to-Value Ratio: (i) With respect to any HELOC Mortgage
Loan as of any date, the percentage equivalent of a fraction, the numerator of
which is the sum of (A) the Credit Limit and (B) the outstanding principal
balance as of the date of application for the related credit line (or as of any
subsequent date, if any, as of which such outstanding principal balance may be
determined in connection with an increase in the Credit Limit for such HELOC
Mortgage Loan) of any mortgage loan or mortgage loans that are senior in
priority to the HELOC Mortgage Loan and which are secured by the same Mortgaged
Property and the denominator of which is (C) the Appraised Value of the related
Mortgaged Property as set forth in the Mortgage File as of the date of the
appraisal or on such subsequent date, if any, or (D) in the case of a Mortgaged
Property purchased within one year of the date of execution of the related
Credit Line Agreement, the lesser of (x) the Appraised Value of the related
Mortgaged Property as set forth in the loan files as of the date of the
appraisal and (y) the purchase price of such Mortgaged Property and (ii) with
respect to any Closed-End Mortgage Loan as of any date, the percentage
equivalent of a fraction, the numerator of which is the sum of (A) the original
principal balance of the Closed-End Mortgage Loan and (B) any outstanding
principal balances of mortgage loans senior to such Closed-End Mortgage Loan
(calculated at the date of application for the Closed-End Mortgage Loan) and the
denominator of which is (C) the Appraised Value of the related Mortgaged
Property as set forth in the Mortgage File as of the date of the appraisal or
(D) in the case of a Mortgaged Property purchased within one year of the
origination of the related Closed-End Mortgage Loan, the lesser of (x) the
Appraised Value of the related Mortgaged Property as set forth in the Mortgage
Files as of the date of the appraisal and (y) the purchase price of such
Mortgaged Property.

         Company: GreenPoint Mortgage Funding, Inc. or any successor thereto.

                                       7
<PAGE>

         Controlling Party: The Insurer, so long as no Insurer Default shall
have occurred and be continuing, and the Indenture Trustee, for so long as an
Insurer Default shall have occurred and is continuing.

         Corporate Trust Office: With respect to (i) the Indenture Trustee, the
principal corporate trust office of the Indenture Trustee at which at any
particular time its corporate trust business shall be administered, which office
at date of the execution of the Indenture is located at c/o The Bank of New
York, 5 Penn Plaza, 16th Floor, New York, New York 10001, Attention: Diane
Pickett and (ii) the Owner Trustee, the principal corporate trust office of the
Owner Trustee located at Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration, or
at such other address as the Owner Trustee may designate by notice to the
Noteholders and the Sponsor, or the principal corporate trust office of any
successor Owner Trustee (the address of which the successor owner trustee will
notify the Noteholders and the Sponsor).

         Credit Limit: As to any HELOC Mortgage Loan, the maximum principal
balance permitted under the terms of the related Credit Line Agreement.

         Credit Limit Utilization Rate: As to any HELOC Mortgage Loan, the
percentage equivalent of a fraction the numerator of which is the related HELOC
Principal Balance and the denominator of which is the related Credit Limit.

         Credit Line Agreement: With respect to any HELOC Mortgage Loan, the
related home equity line of credit agreement and promissory note executed by the
related Mortgagor and any amendment or modification thereof.

         Credit Scores: With respect to the Mortgage Loans, statistical credit
scores obtained by mortgage lenders in connection with the loan application to
help assess a borrower's creditworthiness.

         Crossover Amount: As defined in Section 8.7(d)(x) of the Indenture.

         Custodian: BNY Western Trust Company, a California corporation, or any
replacement Custodian named by the Indenture Trustee and approved by the Insurer
on prior written notice to the Servicer, the Sponsor, the Issuer and the
Insurer.

         Cut-Off Date: For (i) any of the Initial Mortgage Loans, the Initial
Cut-Off Date and (ii) for any of the Subsequent Mortgage Loans, the Subsequent
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.

         Default: Any occurrence that is, or with notice or the lapse of time or
both would become, a Rapid Amortization Event.

         Defective Mortgage Loan: A Mortgage Loan subject to retransfer pursuant
to Section 2.03 or 2.05 of the Sale and Servicing Agreement.

                                       8
<PAGE>

         Deferred Interest: The Class A-1 Deferred Interest, the Class A-2
Deferred Interest and/or the Class A-3 Deferred Interest, as applicable.

         Deficiency Amount: The Class A-1 Deficiency Amount, the Class A-2
Deficiency Amount and/or the Class A-3 Deficiency Amount, as applicable.

         Definitive Notes: As defined in Section 2.11 of the Indenture.

         Delinquent: A Mortgage Loan is "delinquent" if any payment due thereon
is not made by the close of business on the day such payment is scheduled to be
due. A Mortgage Loan is "30 days delinquent" if such payment has not been
received by the close of business on the corresponding day of the month
immediately succeeding the month in which such payment was due, or, if there is
no such corresponding day (e.g., as when a 30-day month follows a 31-day month
in which a payment was due on the 31st day of such month) then on the last day
of such immediately succeeding month. Similarly for "60 days delinquent," "90
days delinquent" and so on.

         Depository: The initial Depository shall be The Depository Trust
Company, the nominee of which is Cede & Co., as the registered Holder of Class
A-1 Notes evidencing $100,000,000 in initial aggregate principal amount of the
Class A-1 Notes, Class A-2 Notes evidencing $100,000,000 in initial aggregate
principal amount of the Class A-2 Notes and Class A-3 Notes evidencing
$245,000,000 in initial aggregate principal amount of the Class A-3 Notes. The
Depository shall at all times be a "clearing corporation" as defined in Section
8-102(5) of the UCC of the State of New York.

         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 Telerate Page: The Dow Jones Telerate Service page 3750, or
such other page as may replace page 3750 on that service or such other service
as may be nominated by the BBA as the information vendor for the purpose of
displaying the BBA's "Interest Settlement Rates" for deposits in U.S. dollars.

         Determination Date: With respect to any Payment Date, the fourth
Business Day prior to such Payment Date or such earlier day as shall be
designated by the Insurer and the Indenture Trustee.

         Draw: With respect to any HELOC Mortgage Loan, an additional borrowing
by the Mortgagor subsequent to the Cut-Off Date in accordance with the related
Credit Line Agreement.

         Draw Period: With respect to any HELOC Mortgage Loan, the period of
time specified in the related Credit Line Agreement whereby a Mortgagor may make
a Draw under the related Credit Line Agreement, not to exceed five or fifteen
years (as applicable) unless extended pursuant to such Credit Line Agreement and
the Sale and Servicing Agreement, such extension to be limited by the provisions
set forth in Section 2.04 of the Sale and Servicing Agreement.

                                       9
<PAGE>

         Eligible Account: A segregated account that is (i) maintained with a
depository institution whose short-term debt obligations at the time of any
deposit therein have the highest short-term debt rating by the Rating Agencies,
(ii) one or more accounts maintained with a depository institution whose
long-term unsecured debt rating by the Rating Agencies is at least AA- and whose
accounts are fully insured by either the Savings Association Insurance Fund or
the Bank Insurance Fund of the Federal Deposit Insurance Corporation established
by such fund, (iii) a segregated trust account maintained with the Indenture
Trustee in its fiduciary capacity, or (iv) otherwise acceptable to each Rating
Agency and the Insurer as evidenced by a letter from each Rating Agency and the
Insurer to the Indenture Trustee, without reduction or withdrawal of their then
current ratings of the Class A Notes without regard to the Policy.

         Eligible Investments: One or more of the following (excluding any
callable investments purchased at a premium):

                  (i) direct obligations of, or obligations fully guaranteed as
         to timely payment of principal and interest by, the United States or
         any agency or instrumentality thereof, provided that 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 30 days from the date of acquisition
         thereof, provided that (a) the short-term unsecured debt obligations of
         the party agreeing to repurchase such obligations are at the time rated
         by each Rating Agency in its highest short-term rating category (which
         is A-1+ for Standard & Poor's and P-1 for Moody's), (b) the obligations
         must be valued daily at current market price plus accrued interest, (c)
         the obligations, pursuant to such evaluation, must be equal, at all
         times, to 102% of the cash transferred to the Indenture Trustee in
         exchange for the obligations and (d) the obligations must be delivered
         to the Indenture Trustee or, if the Indenture Trustee is supplying the
         obligations, to an agent for the Indenture Trustee, in such a manner as
         to accomplish perfection of a security interest in the obligations by
         possession of certificated securities;

                  (iii) certificates of deposit, time deposits and bankers'
         acceptances (which, if Moody's is a Rating Agency, 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) of any U.S. depository institution or trust company
         incorporated under the laws of the United States or any state thereof
         and subject to supervision and examination by federal and/or state
         banking authorities, provided that the unsecured short-term debt
         obligations of such depository institution or trust company at the date
         of acquisition thereof have been rated by each of Moody's and Standard
         & Poor's in its highest unsecured short-term debt rating category;

                  (iv) commercial paper (having original maturities of not more
         than 270 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 Standard & Poor's and Moody's in their highest short-term
         debt rating categories;

                                       10
<PAGE>

                  (v) short-term investment funds ("STIFS") sponsored by any
         trust company or national banking association incorporated under the
         laws of the United States or any state thereof which on the date of
         acquisition has been rated by Standard & Poor's and Moody's in their
         respective highest applicable rating category;

                  (vi) interests in any money market fund which at the date of
         acquisition of the interests in such fund and throughout the time such
         interests are held in such fund has a rating of Aaa by Moody's and
         either AAAm or AAAm-G by Standard & Poor's or such lower rating as will
         not result in the qualification, downgrading or withdrawal of the
         then-current rating assigned to the Notes by each Rating Agency without
         regard to the Policy; and

                  (vii) other obligations or securities that are acceptable to
         each Rating Agency and the Insurer as an Eligible Investment hereunder
         and will not result in a reduction in the then current rating of the
         Notes without regard to the Policy, as evidenced by a letter to such
         effect from such Rating Agency and the Insurer and with respect to
         which the Servicer has received confirmation that, for tax purposes,
         the investment complies with the last clause of this definition;

provided that no instrument described hereunder shall evidence either the right
to receive (a) only interest with respect to the obligations underlying such
instrument or (b) both principal and interest payments derived from obligations
underlying such instrument and the interest and principal payments with respect
to such instrument provided a yield to maturity at par greater than 120% of the
yield to maturity at par of the underlying obligations; and provided, further,
that (x) no instrument described hereunder may be purchased at a price greater
than par if such instrument may be prepaid or called at a price less than its
purchase price prior to its stated maturity and (y) all Eligible Investments
shall mature no later than the next Payment Date.

         Eligible Substitute Mortgage Loan: A Mortgage Loan substituted by the
Sponsor, with the consent of the Insurer, for a Defective Mortgage Loan which
must, on the date of such substitution, (i) have an outstanding Principal
Balance (or, in the case of a substitution of more than one Mortgage Loan for a
Defective Mortgage Loan, an aggregate Principal Balance), equal to or less than
the Principal Balance of the Defective Mortgage Loan as of the applicable
Cut-Off Date; (ii) except for HELOC Mortgage Loans still in their teaser period,
have a Loan Rate not less than the Loan Rate of the Defective Mortgage Loan and
not more than 4.00% in excess of the Loan Rate of such Defective HELOC Mortgage
Loan; (iii) for HELOC Mortgage Loans, have a Loan Rate based on the same Index
as the Defective Mortgage Loan with adjustments to such Loan Rate made on the
same date on which the Defective HELOC Mortgage Loan's interest rate adjusts;
(iv) for HELOC Mortgage Loans, have a Margin that is not less than the Margin of
the Defective HELOC Mortgage Loan and not more than 100 basis points higher than
the Margin for the Defective HELOC Mortgage Loan; (v) have a mortgage of the
same or higher level of priority as the Defective Mortgage Loan at the time such
Mortgage Loan was transferred to the Trust; (vi) have a remaining term to
maturity not more than 120 months earlier and not more than 180 months later
than the remaining term to maturity of the Defective Mortgage Loan; (vii) comply
with each representation and warranty as to the Mortgage Loans set forth in the
Sale and Servicing Agreement (deemed to be made as of the date of substitution);
(viii) have an original Combined Loan-to-Value Ratio not greater than that of
the Defective Mortgage Loan; and (ix) have a Credit Score greater than or equal
to the Credit Score of the Defective Mortgage Loan at the time such Mortgage
Loan was transferred to the Trust; (x) the related Mortgaged Property is not an
investment property (unless the Mortgaged Property related to the Defective
Mortgage Loan was an investment property); (xi) the related Mortgaged Property
is not a second home (unless the Mortgaged Property related to the Defective
Mortgage Loan was a second home); (xii) the Combined Loan-to-Value Ratio is not
greater than 100%; and (xiii) in the case of HELOC Mortgage Loans, are no longer
in its teaser period.

                                       11
<PAGE>

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

         Event of Servicing Termination: As defined in Section 6.01 of the Sale
and Servicing Agreement.

         Event of Termination: As defined in Article IX of the Purchase
Agreement.

         Excess Cashflow: With respect to each Pool and any Payment Date, the
related Available Funds with respect to such Pool for such Payment Date which
remain on deposit in the Collection Account after taking into account the
distributions listed in clauses (i) through (viii) of Section 8.7(d) of the
Indenture with respect to such Pool and such Payment Date.

         Excess Interest: As to any Payment Date and any Pool, the excess, if
any, of (a) Interest Collections on the related Pool with respect to such
Payment Date, over (b) the sum of (i) the related Trustee Fee, (ii) the related
Premium Amount and (iii) the related Interest Payment Amount for the related
Class of Class A Notes with respect to such Payment Date.

         Excess Spread Amount: With respect to each Pool separately and with
respect to any Payment Date, the fraction, expressed as a percentage, equal to
(x) (i) 12 multiplied by (ii) the sum of the Available Funds with respect to the
related Pool for the related Payment Date which remain on deposit in the
Collection Account after taking into account the distributions listed in clauses
(i) through (viii) of Section 8.7(d) of the Indenture with respect to such Pool
and such Payment Date divided by (y) the related Pool Balance as of such Payment
Date.

         Exchange Act: The Securities Exchange Act of 1934, as amended.

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

         Final Scheduled Payment Date: For the Class A-1 Notes, the Payment Date
in November 2027, for the Class A-2 Notes, the Payment Date in November 2027 and
for the Class A-3 Notes, the Payment Date in November 2027, in each case whereby
the related Noteholders shall be entitled to receive a payment of principal in
an amount equal to the respective outstanding Note Principal Balance and any
accrued and unpaid interest thereon.

         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 Principal Balance (plus accrued and unpaid interest
thereon at the applicable Loan Rate from the date interest was last paid through
the last day in the related Collection Period) of such Liquidated Mortgage Loan
immediately prior to the final recovery of its Liquidation Proceeds.

                                       12
<PAGE>

         GAAP: Generally accepted accounting principles, consistently applied.

         Grant: Mortgage, pledge, bargain, sell, warrant, alienate, remise,
release, convey, assign, transfer, create, 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 the Collateral and all other monies payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
proceedings in the name of the Granting party or otherwise and generally to do
and receive anything that the Granting party is or may be entitled to do or
receive thereunder or with respect thereto.

         Gross Margin: As to any HELOC Mortgage Loans, the percentage set forth
as the "Gross Margin" for such HELOC Mortgage Loans on Exhibit A to the Sale and
Servicing Agreement.

         HELOC Mortgage Loans: With respect to Pool I, Pool II and Pool III,
Mortgage Loans consisting solely of adjustable-rate home equity revolving credit
line loans under the Credit Line Agreements, which HELOC Mortgage Loans may be
Initial Mortgage Loans or Subsequent Mortgage Loans.

         HELOC Principal Balance: As to any HELOC Mortgage Loan, other than a
Liquidated Mortgage Loan, and as of any date, the related Cut-Off Date Principal
Balance, plus (i) any Additional Balance in respect of such HELOC Mortgage Loan,
minus (ii) all collections credited as principal against the HELOC Principal
Balance of any such HELOC Mortgage Loan in accordance with the related Credit
Line Agreement prior to such day.

         Holder or Noteholder: The Person in whose name a Note is registered on
the Note Register.

         Indebtedness: With respect to any Person at any time, (a) indebtedness
or liability of such Person for borrowed money whether or not evidenced by
bonds, debentures, notes or other instruments, or for the deferred purchase
price of property or services (including trade obligations); (b) obligations of
such Person as lessee under leases which should have been or should be, in
accordance with generally accepted accounting principles, recorded as capital
leases; (c) current liabilities of such Person in respect of funding vested
benefits under plans covered by Title IV of ERISA; (d) obligations issued for or
liabilities incurred on the account of such Person; (e) obligations or
liabilities of such Person arising under acceptance facilities; (f) obligations
of such Person under any guarantees, endorsements (other than for collection or
deposit in the ordinary course of business) and other contingent obligations to
purchase, to provide funds for payment, to supply funds to invest in any Person
or otherwise to assure a creditor against loss; (g) obligations of such Person
secured by any lien on property or assets of such Person, whether or not the
obligations have been assumed by such Person; or (h) obligations of such Person
under any interest rate or currency exchange agreement.

                                       13
<PAGE>

         Indemnification Agreement: The Indemnification Agreement, dated as of
November 6, 2001, by and among the Insurer, the Seller, the Servicer and
Greenwich Capital Markets, Inc. as underwriter.

         Indenture: The Indenture, dated as of November 1, 2001, by and between
the Issuer and the Indenture Trustee, as the same may be amended and
supplemented from time to time.

         Indenture Trustee: The Bank of New York, a New York banking
corporation, not in its individual capacity but as indenture trustee under the
Indenture, or any successor indenture trustee under the Indenture.

         Indenture Trustee Issuer Secured Obligations: All amounts and
obligations which the Issuer may at any time owe to the Indenture Trustee for
the benefit of the Noteholders or the Class S Certificateholders under the
Indenture or the Notes.

         Independent: When used with respect to any specified Person, that the
Person (a) is in fact independent of the Issuer, any other obligor upon the
Notes, the Sponsor and any Affiliate of any of the foregoing Persons, (b) does
not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor, the Sponsor or any Affiliate of
any of the foregoing Persons and (c) is not connected with the Issuer, any such
other obligor, the Sponsor 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, verification report or opinion
to be delivered to the Indenture Trustee and the Insurer under the circumstances
described in, and otherwise complying with, the applicable requirements of
Section 11.1 of the Indenture, prepared by an Independent appraiser or other
expert appointed pursuant to an Issuer Order and approved by the Indenture
Trustee and the Insurer in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of "Independent"
in the Indenture and that the signer is Independent within the meaning thereof.

         Index: With respect to each Interest Rate Adjustment Date for a HELOC
Mortgage Loan, the highest "prime rate" as published in the "Money Rates" table
of The Wall Street Journal as of the last business day of the previous Billing
Cycle.

         Initial Cut-Off Date: October 31, 2001.

         Initial Mortgage Loans: With respect to Pool I, Pool II, and Pool III,
Mortgage Loans consisting solely of adjustable-rate home equity revolving credit
line loans under the Credit Line Agreements which are transferred to the Trust
on the Closing Date.

         Initial Pool Balance: The Initial Pool I Balance, the Initial Pool II
Balance or the Initial Pool III Balance, as applicable.

         Initial Pool I Balance: $98,670,820.33.

                                       14
<PAGE>

         Initial Pool I Mortgage Loans: The Initial Mortgage Loans included in
Pool I (all of which are HELOC Mortgage Loans). Initial Pool II Balance:
$86,932,623.86.

         Initial Pool II Mortgage Loans: The Initial Mortgage Loans included in
Pool II (all of which are HELOC Mortgage Loans).

         Initial Pool III Balance: $163,312,202.25.

         Initial Pool III Mortgage Loans: The Initial Mortgage Loans included in
Pool III (all of which are HELOC Mortgage Loans).

         Insurance Agreement: The Insurance Agreement, dated as of November 1
2001, by and among the Insurer, the Seller, the Servicer, the Sponsor and the
Indenture Trustee.

         Insurance Policy: Any hazard, title or primary mortgage insurance
policy relating to a Mortgage Loan, but shall not include the Policy.

         Insurance Proceeds: Proceeds paid by any insurer (other than the
Insurer) pursuant to any Insurance Policy covering a Mortgage Loan, or amounts
required to be paid by the Servicer pursuant to the last sentence of Section
3.04 of the Sale and Servicing Agreement, net of any component thereof (i)
covering any expenses incurred by or on behalf of the Servicer in connection
with obtaining such proceeds, (ii) that is applied to the restoration or repair
of the related Mortgaged Property, (iii) released to the Mortgagor in accordance
with the Servicer's normal servicing procedures or (iv) required to be paid to
any holder of a mortgage senior to such Mortgage Loan.

         Insured Payment: As defined in the Policy with respect to a Class of
Notes or the Class S Certificates and as of any Payment Date.

         Insurer: MBIA Insurance Corporation, a New York-domiciled stock
insurance corporation, and any successor thereto.

         Insurer Default: Any of (i) the failure by the Insurer to make a
payment required under the Policy in accordance with the terms thereof, (ii) the
voluntary or involuntary filing of a petition or other invocation of the process
of any court or government authority for the purpose of commencing or sustaining
a case under any federal or state bankruptcy, insolvency or similar law against
the Insurer or (iii) the appointing of a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Insurer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Insurer.

         Insurer Issuer Secured Obligations: All amounts and obligations which
the Issuer may at any time owe to or on behalf of the Insurer under the
Indenture, the Insurance Agreement or any other Basic Document.

         Interest Accrual Period: With respect to any Payment Date, the period
from and including the prior Payment Date (or, in the case of the December 2001
Payment Date, from and including the Closing Date) to, but excluding, the
current Payment Date, with interest being computed on the basis of the actual
number of days in such Interest Accrual Period and a 360-day year.

                                       15
<PAGE>

         Interest Collections: With respect to each Pool and for any Payment
Date, the sum of all payments by or on behalf of Mortgagors and any other
amounts constituting interest, including the portion of Net Liquidation Proceeds
and Insurance Proceeds allocated to interest pursuant to the terms of the
related Loan Agreement (net of the applicable servicing fees and excluding the
fees or late charges or similar administrative fees paid by Mortgagors) and
earnings received on funds on deposit in the Pre-Funding Account, during the
related Collection Period, less the related Servicing Fee for the related
Collection Period. The terms of the related Loan Agreement shall determine the
portion of each payment in respect of such Mortgage Loan that constitutes
principal or interest.

         Interest Determination Date: (i) With respect to any Interest Accrual
Period (other than the initial Interest Accrual Period), the second LIBOR
Business Day preceding the first day of such Interest Accrual Period and (ii)
with respect to the initial Interest Accrual Period, the second LIBOR Business
Day preceding the Closing Date.

         Interest Payment Amount: The Class A-1 Interest Payment Amount, the
Class A-2 Interest Payment Amount or the Class A-3 Interest Payment Amount, as
applicable.

         Interest Rate Adjustment Date: With respect to each HELOC Mortgage
Loan, any date on which the Loan Rate is adjusted in accordance with the related
Credit Line Agreement.

         Interest Settlement Rates: Those rates which are displayed on the
Designated Telerate Page.

         Issuer or Trust: GreenPoint Home Equity Loan Trust 2001-2, a Delaware
business trust, until a successor replaces it and, thereafter, such successor.

         Issuer Order and Issuer Request: A written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to
the Indenture Trustee.

         Issuer Secured Obligations: The Insurer Issuer Secured Obligations and
the Indenture Trustee Issuer Secured Obligations.

         Issuer Secured Parties: Each of the Indenture Trustee in respect of the
Indenture Trustee Issuer Secured Obligations and the Insurer in respect of the
Insurer Issuer Secured Obligations.

         Late Payment Rate: For any Payment Date, the lesser of (i) the per
annum rate of interest, as it is publicly announced from time to time by
Citibank, N.A. at its principal office in New York, New York as its prime rate
(any change in such prime rate of interest to be effective on the date such
change is announced by Citibank, N.A.) plus 3% and (ii) the maximum rate
permissible under any applicable law limiting interest rates. The Late Payment
Rate shall be computed on the basis of a year of 360 days and the actual number
of days elapsed.

                                       16
<PAGE>

         LIBOR: With respect to any Interest Accrual Period, the rate determined
by the Indenture Trustee on the related Interest Determination Date appearing on
the Designated Telerate Page on that Interest Determination Date based on the
Interest Settlement Rate for U.S. dollar deposits of one-month maturity set by
the BBA as of the Interest Determination Date. If the BBA's Interest Settlement
Rate does not appear on the Designated Telerate Page as of 11:00 a.m. (London
time) on such date, or if the Designated Telerate Page is not available on such
date, the Indenture Trustee will obtain such rate from the Reuters Monitor Money
Rates Service page "LIBOR01" or the Bloomberg L.P. page "BBAM." If such rate is
not published for such Interest Determination Date, LIBOR for such date will be
the most recently published Interest Settlement Rate. In the event that the BBA
no longer sets an Interest Settlement Rate, the Indenture Trustee, with the
prior written consent of the Insurer (but only if an Insurer Default shall not
have occurred and be continuing), will designate an alternative index that has
performed in a manner substantially similar to the BBA's Interest Settlement
Rate.

         LIBOR Business Day: Any day on which banks in London and New York are
open for conducting transactions in foreign currency and exchange.

         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 5.02 of the Sale and Servicing
Agreement shall not be deemed to constitute a Lien.

         Lifetime Rate Cap: With respect to each HELOC Mortgage Loan with
respect to which the related Mortgage Note provides for a lifetime rate cap, the
maximum Loan Rate permitted over the life of such HELOC Mortgage Loan under the
terms of the related Credit Line Agreement previously delivered to the Indenture
Trustee.

         Liquidated Mortgage Loan: As to any Payment Date, any Mortgage Loan in
respect of which the Servicer has determined, in accordance with the servicing
procedures specified in the Sale and Servicing Agreement, as of the end of the
related Collection Period, that all Liquidation Proceeds which it expects to
recover with respect to the disposition of such Mortgage Loan or the related REO
have been recovered.

         Liquidation Expenses: Out-of-pocket expenses (exclusive of overhead)
which are incurred by the Servicer in connection with the liquidation of any
Mortgage Loan and not recovered under any Insurance Policy, including, without
limitation, legal fees and expenses, any unreimbursed amount expended pursuant
to Section 3.06 of the Sale and Servicing Agreement (including, without
limitation, amounts advanced to correct defaults on any mortgage loan which is
senior to such Mortgage Loan and amounts advanced to keep current or pay off a
mortgage loan that is senior to such Mortgage Loan) respecting the related
Mortgage Loan and any related and unreimbursed expenditures with respect to real
estate property taxes, water or sewer taxes, condominium association dues,
property restoration or preservation or insurance against casualty, loss or
damage.

                                       17
<PAGE>

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

         Loan Agreement: Any Credit Line Agreement or Mortgage Note.

         Loan Purchase Price: With respect to any Mortgage Loan purchased from
the Trust pursuant to Section 2.03 or 2.05 of the Sale and Servicing Agreement,
an amount equal to the Principal Balance of such Mortgage Loan as of the date of
purchase, plus one month's interest on the outstanding Principal Balance thereof
as of the beginning of the preceding Collection Period computed at the Loan Rate
less the Servicing Fee, together with, without duplication, the aggregate amount
of (i) all delinquent interest, all advances made by the Servicer and not
subsequently recovered from the related Mortgage Loan and (ii) any Class A-1
Reimbursement Amount, Class A-2 Reimbursement Amount or Class A-3 Reimbursement
Amount related to such Mortgage Loan.

         Loan Rate: With respect to any HELOC Mortgage Loan and as of any day,
the per annum rate of interest applicable under the related Credit Line
Agreement to the calculation of interest for such day on the Principal Balance
of such HELOC Mortgage Loan. With respect to any Closed-End Mortgage Loan and as
of any day, the per annum rate of interest applicable under the related Mortgage
Note to the calculation of interest for such day on the Principal Balance of
such Closed-End Mortgage Loan.

         Loan Rate Cap: With respect to each Mortgage Loan, the lesser of (i)
the Lifetime Rate Cap, if any, or (ii) the applicable state usury ceiling, if
any.

         Losses: Any and all out-of-pocket losses, claims, damages, liabilities
or expenses (including reasonable attorneys' fees and disbursements) directly
incurred by any Person specified in the Purchase Agreement, resulting from
transactions entered into under the Purchase Agreement (other than liability for
taxes). Losses must be accounted for and presented for reimbursement documented
in reasonable detail and within a reasonable time.

         Managed Amortization Period: With respect to each Class of Notes, the
period commencing on the Closing Date and ending on the earlier to occur of (x)
the November 2006 Payment Date and (y) the Payment Date which immediately
precedes the occurrence of a Rapid Amortization Event with respect to such Class
of Notes.

         Management Agreement: The Management Agreement, dated as of November 1,
2001, by and between the Company and the Issuer.

         Management Fee: $500 per month.

         Manager: The Person acting in such capacity pursuant to the Management
Agreement or its successors or assigns, which shall initially be the Company.

                                       18
<PAGE>

         Margin: With respect to each HELOC Mortgage Loan, the fixed percentage
amount set forth in the related Loan Agreement which amount is added to the
Prime Rate in accordance with the terms of the related Loan Agreement to
determine the Loan Rate for such HELOC Mortgage Loan, subject to any maximum.

         Material Adverse Change: A material adverse change in (i) the business,
results of operations or properties of the Servicer or (ii) the ability of the
Servicer to perform its obligations under the Sale and Servicing Agreement.

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

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

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

         Minimum Monthly Payment: With respect to any Mortgage Loan and any
month, the minimum amount required to be paid by the related Mortgagor in that
month.

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

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

         Mortgage File: The mortgage documents listed in Section 2.01(c) to the
Sale and Servicing Agreement pertaining to a particular Mortgage Loan and any
additional documents required to be added to the Mortgage File pursuant to the
Sale and Servicing Agreement.

         Mortgage Loan Schedule: With respect to any date, the schedule of
Initial Mortgage Loans included in the Trust on such date. The schedule of
Initial Mortgage Loans as of the Cut-Off Date is the schedule set forth in
Exhibit A to the Sale and Servicing Agreement, which schedule sets forth as to
each such Mortgage Loan, to the extent applicable, (i) the Cut-Off Date
Principal Balance, (ii) the Credit Limit, (iii) the Gross Margin, (iv) the
Lifetime Rate Cap, (v) the account number, (vi) the current Loan Rate, (vii) the
Combined Loan-to-Value Ratio, (viii) a code specifying the property type, (ix) a
code specifying documentation type and (x) a code specifying lien position. The
Mortgage Loan Schedule will be deemed to be amended from time to time to reflect
Additional Balances, Subsequent Mortgage Loans and Eligible Substitute Mortgage
Loans.

         Mortgage Loans: Any HELOC Mortgage Loans, including any Additional
Balances with respect thereto, as well as any Closed-End Mortgage Loans, that
are transferred and assigned to the Indenture Trustee pursuant to Sections 2.01
and 2.10 of the Sale and Servicing Agreement and the related Subsequent Transfer
Agreement, if applicable, together with the Related Documents, exclusive of
mortgage loans that are retransferred to the Sponsor or the Servicer from time
to time pursuant to Sections 2.03, 2.05 or 2.07 of the Sale and Servicing
Agreement as from time to time are held as a part of the Trust. The Mortgage
Loans originally so held are identified in the Mortgage Loan Schedule delivered
on the Closing Date. The Mortgage Loans shall also include any Eligible
Substitute Mortgage Loans substituted by the Sponsor for a Defective Mortgage
Loan pursuant to Sections 2.03 and 2.05 of the Sale and Servicing Agreement and
any Subsequent Mortgage Loans conveyed to the Trust pursuant to Section 2.10 of
the Sale and Servicing Agreement. The term "Mortgage Loan" includes the terms
"HELOC Mortgage Loans" and "Closed-End Mortgage Loans."

                                       19
<PAGE>

         Mortgage Note: The note or other evidence of indebtedness evidencing
the indebtedness of a Mortgagor under a Closed-End Mortgage Loan.

         Mortgaged Property: The underlying property, including any real
property and improvements thereon, securing a Mortgage Loan.

         Mortgagor: The obligor on a Mortgage Note or Credit Line Agreement.

         Net Available Distribution Amount: For each Payment Date and for each
Class of Class A Notes, the related Total Available Funds on such Payment Date.

         Net Liquidation Proceeds: With respect to any Liquidated Mortgage Loan,
Liquidation Proceeds net of Liquidation Expenses; provided, that Net Liquidation
Proceeds shall not be an amount less than zero.

         Net Loan Rate: With respect to any Mortgage Loan and as to any day, the
Loan Rate (assuming each HELOC Mortgage Loan is fully indexed) less the
Servicing Fee Rate, the Premium Percentage (multiplied by a fraction, the
numerator of which is the Note Principal Balance of the related Class of Notes
and the denominator of which is the related Pool Balance) and the Trustee Fee
Rate.

         Note: A Class A-1 Note, a Class A-2 Note or a Class A-3 Note, but not
any Class S Certificate or Residual Certificate.

         Noteholders: The Class A-1 Noteholders, the Class A-2 Noteholders and
the Class A-3 Noteholders.

         Note Owner: With respect to a Book-Entry Note, the Person who is the
owner of such Book-Entry Note, with respect to a Definitive Note, the registered
owner of such Definitive Note.

         Note Paying Agent: The Indenture Trustee or any other Person that meets
the eligibility standards for the Indenture Trustee specified in Section 6.11 of
the Indenture and is authorized by the Issuer to make payments to and
distributions from the Collection Account, including payment of principal of or
interest on the Notes on behalf of the Issuer.

         Note Principal Balance: The Class A-1 Note Principal Balance, the Class
A-2 Note Principal Balance and/or the Class A-3 Note Principal Balance, as
applicable.

                                       20
<PAGE>

         Note Rate: The Class A-1 Note Rate, the Class A-2 Note Rate and/or the
Class A-3 Note Rate, as applicable.

         Note Register: As defined in Section 2.3 of the Indenture.

         Note Registrar: As defined in Section 2.3 of the Indenture.

         Noteholder or Holder: The Person in whose name a Note is registered on
the Note Register.

         Officer's Certificate: A certificate signed by any Authorized Officer
of a Person that complies with the applicable requirements of Section 11.1 of
the Indenture.

         Opinion of Counsel: One or more opinions of counsel who may, except as
otherwise expressly provided in the Indenture, be employees of or counsel to the
Issuer and, if addressed to the Insurer, satisfactory to such party, and which
shall comply with any applicable requirements of Section 11.1 of the Indenture,
and if addressed to the Insurer, shall be satisfactory to such party; provided,
that any opinion relating to matters of federal, state or local taxation must be
provided by independent, outside counsel.

         Optional Redemption Date: Any of the Class A-1 Optional Redemption
Date, the Class A-2 Optional Redemption Amount or the Class A-3 Optional
Redemption Date.

         Original Class A Note Principal Balance: The Original Class A-1 Note
Principal Balance, the Original Class A-2 Note Principal Balance, or the
Original Class A-3 Note Principal Balance .

         Original Class A-1 Note Principal Balance: $100,000,000.

         Original Class A-1 Pre-Funded Amount: $1,329,179.67.

         Original Class A-2 Note Principal Balance: $100,000,000.

         Original Class A-2 Pre-Funded Amount: $13,067,376.14.

         Original Class A-3 Note Principal Balance: $245,000,000.

         Original Class A-3 Pre-Funded Amount: $81,687,797.75.

         Original Pool Balance: $348,915,646.

         Original Pre-Funded Amount: $96,084,353.56.

         Outstanding: As of the date of determination, all Notes theretofore
authenticated and delivered under the Indenture except:

                  (i) Notes theretofore canceled by the Note Registrar or
         delivered to the Note Registrar for cancellation;

                                       21
<PAGE>

                  (ii) Notes or portions thereof the payment for which money in
         the necessary amount has been theretofore deposited with the Indenture
         Trustee or any Note Paying Agent in trust for the Holders of such Notes
         (provided, however, that if such Notes are to be redeemed, notice of
         such redemption has been duly given pursuant to the Indenture or
         provision therefor, satisfactory to the Indenture Trustee); and

                  (iii) Notes in exchange for or in lieu of other Notes which
         have been authenticated and delivered pursuant to the Indenture unless
         proof satisfactory to the Indenture Trustee is presented that any such
         Notes are held by a bona fide purchaser;

provided, however, that Notes which have been paid with proceeds of the Policy
shall continue to remain Outstanding for purposes of the Indenture until the
Insurer has been paid as subrogee under the Insurance Agreement or the Insurer
has been reimbursed pursuant to the Insurance Agreement, as evidenced by a
written notice from the Insurer delivered to the Indenture Trustee, and the
Insurer shall be deemed to be the Holder thereof to the extent of any payments
thereon made by the Insurer; provided, further, that in determining whether the
Holders of the requisite Outstanding Amount of the Notes have given any request,
demand, authorization, direction, notice, consent or waiver hereunder or under
any Basic Document, Notes owned by the Issuer, any other obligor upon the Notes,
the Sponsor or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Notes
that a Responsible Officer of the Indenture Trustee either actually knows to be
so owned or has received written notice thereof shall be so disregarded. Notes
so owned that have been pledged in good faith may be regarded as Outstanding if
the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee's right so to act with respect to such Notes and that the pledgee is not
the Issuer, any other obligor upon the Notes, the Sponsor or any Affiliate of
any of the foregoing Persons.

         Outstanding Amount: With respect to any date of determination, the
aggregate Note Principal Balance of all the Notes, or Class of Notes, as
applicable, Outstanding as of such date of determination.

         Overcollateralization Amount: As applicable, the Pool I
Overcollateralization Amount, the Pool II Overcollateralization Amount or the
Pool III Overcollateralization Amount.

         Overcollateralization Deficiency Amount: As applicable, the Pool I
Overcollateralization Deficiency Amount, the Pool II Overcollateralization
Deficiency Amount or the Pool III Overcollateralization Deficiency Amount.

         Overcollateralization Deficit: As applicable, the Pool I
Overcollateralization Deficit, the Pool II Overcollateralization Deficit or the
Pool III Overcollateralization Deficit.

         Overcollateralization Reduction Amount: As applicable, the Pool I
Overcollateralization Reduction Amount, the Pool II Overcollateralization
Reduction Amount or the Pool III Overcollateralization Reduction Amount.

                                       22
<PAGE>

         Owner Trustee: Wilmington Trust Company, a Delaware banking
corporation, not in its individual capacity, but solely as owner trustee under
the Trust Agreement, and any successor Owner Trustee thereunder.

         Owner Trustee Fee: A fee which is separately agreed to between the
Servicer and the Owner Trustee and is payable to the Owner Trustee .

         Owner Trustee Fee Rate: The per annum rate at which the Owner Trustee
Fee is calculated.

         Payment Date: The fifteenth day of each month, or if such day is not a
Business Day, then the next Business Day, beginning in the month immediately
following the Closing Date.

         Percentage Interest: As to any Note, the percentage obtained by
dividing the principal denomination of such Note by the aggregate of the
principal denominations of all Notes of the same class. As to any Class S
Certificate or Residual Certificate, the percentage set forth on the face of
such Class S Certificate or Residual Certificate.

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

         Policy: The financial guaranty insurance policy No. 36722 and any
endorsement thereto, with respect to the Class A Notes and the Class S
Certificates, dated November 20, 2001, issued by the Insurer to the Indenture
Trustee for the benefit of the Noteholders and the Class S Certificateholders.

         Pool: Pool I, Pool II or Pool III.

         Pool Balance: With respect to any date, the Pool I Balance, the Pool II
Balance, or the Pool III Balance, as applicable, as of such date.

         Pool Delinquency Rate: With respect to any Collection Period, the
fraction, expressed as a percentage, equal to (x) the aggregate Principal
Balances of all Mortgage Loans in all Pools that are 90 or more days delinquent
(including all foreclosures and REO properties) as of the close of business on
the last day of such Collection Period over (y) sum of the Pool I Balance, the
Pool II Balance and the Pool III Balance as of the close of business on the last
day of such Collection Period.

         Pool Factor: A seven-digit decimal which the Servicer shall compute
monthly expressing the related Note Principal Balance as of each Payment Date
(after giving effect to any distribution of principal on such Payment Date) as a
proportion of the Original Note Principal Balance for the related Class. On the
Closing Date, the Pool Factor for each Pool will be 1.0000000. Thereafter, the
Pool Factor shall decline to reflect reductions in the related Note Principal
Balance resulting from distributions of principal to the related Notes.

                                       23
<PAGE>

         Pool I: The pool of Mortgage Loans identified in the related Mortgage
Loan Schedule as having been assigned to Pool I, including any Eligible
Substitute Mortgage Loan delivered in the replacement thereof.

         Pool I Available Funds: With respect to any Payment Date, the amount
then on deposit in the Collection Account with respect to Pool I, after taking
into account the deposits thereto made pursuant to Section 8.7(a) of the
Indenture, if any (exclusive of the amount of any related Insured Payment then
on deposit in the Collection Account and any deposits from the Reserve Fund).

         Pool I Balance: With respect to any date, the sum of (i) the aggregate
of the Principal Balances of all Pool I Mortgage Loans as of such date and (ii)
the related Pre-Funded Amount, if any.

         Pool I Deficiency Amount: Has the meaning specified in Section
8.6(b)(i) of the Indenture.

         Pool I HELOC Mortgage Loans: The Mortgage Loans in Pool I which are
HELOC Mortgage Loans.

         Pool I Mortgage Loans: With respect to any date, those Mortgage Loans
contained in Pool I.

         Pool I Net Principal Collections: The excess of (x) Pool I Principal
Collections over (y) the aggregate amount of all related Additional Balances
arising during the related Collection Period; provided, however, that, in no
event will Pool I Net Principal Collections be less than zero with respect to
any Payment Date.

         Pool I Overcollateralization Amount: As of any Payment Date, the
excess, if any, of (x) the Pool I Balance as of such Payment Date over (y) the
Class A-1 Note Principal Balance as of such Payment Date (after taking into
account any reductions to such Class A-1 Note Principal Balance resulting from
payments made pursuant to clauses (vi) and (vii) of Section 8.7(d) of the
Indenture on such Payment Date).

         Pool I Overcollateralization Deficiency Amount: With respect to any
Payment Date, the excess, if any, of (i) the Pool I Specified
Overcollateralization Amount applicable to such Payment Date over (ii) the Pool
I Overcollateralization Amount applicable to such Payment Date.

         Pool I Overcollateralization Deficit: With respect to any Payment Date,
the amount, if any, by which (i) the aggregate Class A-1 Note Principal Balance,
after taking into account the payment to the Class A-1 Noteholders of all
principal from sources other than the Policy on such Payment Date, exceeds (ii)
the Pool I Balance as of such Payment Date.

         Pool I Overcollateralization Reduction Amount: With respect to any
Payment Date, the excess, if any, of (x) the Pool I Overcollateralization Amount
over (y) the Pool I Specified Overcollateralization Amount assuming that the
Class A-1 Maximum Principal Payment had been distributed to the Class A-1
Noteholders on such Payment Date.

                                       24
<PAGE>

         Pool I Principal Collections: The Principal Collections relating to
Pool I.

         Pool I Specified Overcollateralization Amount: With respect to (I) any
Payment Date occurring prior to the Stepdown Date, an amount equal to the sum of
(a) 100.00% of the Principal Balance of Mortgage Loans in Pool I that are 270 or
more days Delinquent as of the close of business of the last day of the related
Collection Period (including all foreclosures and REO properties 270 or more
days Delinquent as of the close of business of the last day of the related
Collection Period) plus (b) 2.75% of the sum of (i) the Initial Pool I Balance
plus (ii) the Original Class A-1 Pre-Funded Amount; or (II) any Payment Date
occurring on or after the Stepdown Date, the greater of (a) the sum of (i)
100.00% of the Principal Balance of Mortgage Loans in Pool I that are 270 or
more days Delinquent as of the close of business of the last day of the related
Collection Period (including all foreclosures and REO properties 270 or more
days Delinquent as of the close of business of the last day of the related
Collection Period) plus (ii) 5.50% of the Pool I Balance, and (b) 0.50% of the
sum of (i) the Initial Pool I Balance plus (ii) the Original Class A-1
Pre-Funded Amount; provided, however, that if on any Payment Date on or after
the Stepdown Date either (a) cumulative Realized Losses on Pool I are greater
than or equal to 3.0% of the sum of (i) the Initial Pool I Balance plus (ii) the
Original Class A-1 Pre-Funded Amount or (b) the Excess Spread Amount with
respect to Pool I is less than 0.70%, then the "Pool I Specified
Overcollateralization Amount" on such Payment Date shall in no event be less
than the Pool I Specified Overcollateralization Amount for the immediately
preceding Payment Date.

         Pool I Total Available Funds: With respect to any Payment Date, the sum
of (i) the Pool I Available Funds (after taking into account the distributions
pursuant to clauses (i) and (ii) of Section 8.7(d) of the Indenture with respect
to Pool I for such Payment Date), (ii) any Crossover Amount available from Pool
II and Pool III and (iii) amounts on deposit in the Reserve Fund (but only to
the extent that Pool I Available Funds, plus any Crossover Amount available from
Pool II and Pool III, are insufficient to pay the amounts specified in clauses
(iii) and (vii) of Section 8.7(d) of the Indenture with respect to the Class A-1
Notes), in each case as of such Payment Date.

         Pool II: The pool of Mortgage Loans identified in the related Mortgage
Loan Schedule as having been assigned to Pool II, including any Eligible
Substitute Mortgage Loans delivered in replacement thereof.

         Pool II Available Funds: With respect to any Payment Date, the amount
then on deposit in the Collection Account with respect to Pool II, after taking
into account the deposits thereto made pursuant to Section 8.7(b) of the
Indenture, if any (exclusive of the amount of any related Insured Payment then
on deposit in the Collection Account and any deposits from the Reserve Fund).

         Pool II Balance: With respect to any date the sum of (i) the aggregate
of the Principal Balances of all Pool II Mortgage Loans as of such date plus
(ii) the related Pre-Funded Amount, if any.

         Pool II Deficiency Amount: As defined in Section 8.6(b)(ii) of the
Indenture.

                                       25
<PAGE>

         Pool II HELOC Mortgage Loans: The Mortgage Loans in Pool II which are
HELOC Mortgage Loans.

         Pool II Mortgage Loans: With respect to any date, those Mortgage Loans
contained in Pool II.

         Pool II Net Principal Collections: The excess of (x) Pool II Principal
Collections over (y) the aggregate amount of all related Additional Balances
arising during the related Collection Period; provided, however, that, in no
event will Pool II Net Principal Collections be less than zero with respect to
any Payment Date.

         Pool II Overcollateralization Amount: As of any Payment Date, the
excess, if any, of (x) the Pool II Balance as of such Payment Date over (y) the
Class A-2 Note Principal Balance as of such Payment Date (after taking into
account any reductions to such Class A-2 Note Principal Balance resulting from
payments made pursuant to clauses (vi) and (vii) of Section 8.7(d) of the
Indenture on such Payment Date).

         Pool II Overcollateralization Deficiency Amount: With respect to any
Payment Date, the excess, if any, of (i) the Pool II Specified
Overcollateralization Amount applicable to such Payment Date over (ii) the Pool
II Overcollateralization Amount applicable to such Payment Date.

         Pool II Overcollateralization Deficit: With respect to any Payment
Date, the amount, if any, by which (i) the aggregate Class A-2 Note Principal
Balance, after taking into account the payment to the Class A-2 Noteholders of
all principal from sources other than the Policy on such Payment Date, exceeds
(ii) the Pool II Balance as of such Payment Date.

         Pool II Overcollateralization Reduction Amount: With respect to any
Payment Date, the excess, if any, of (x) the Pool II Overcollateralization
Amount over (y) the Pool II Specified Overcollateralization Amount assuming that
the Class A-2 Maximum Principal Payment had been distributed to the Class A-2
Noteholders on such Payment Date.

         Pool II Principal Collections: The Principal Collections relating to
Pool II.

         Pool II Specified Overcollateralization Amount: With respect to (I) any
Payment Date occurring prior to the Stepdown Date, an amount equal to the sum of
(a) 100.00% of the Principal Balance of Mortgage Loans in Pool II that are 270
or more days Delinquent as of the close of business of the last day of the
related Collection Period (including all foreclosures and REO properties 270 or
more days Delinquent as of the close of business of the last day of the related
Collection Period) plus (b) 2.75% of the sum of (i) the Initial Pool II Balance
plus (ii) the Original Class A-2 Pre-Funded Amount; or (II) any Payment Date
occurring on or after the Stepdown Date, the greater of (a) the sum of (i)
100.00% of the Principal Balance of Mortgage Loans in Pool II that are 270 or
more days Delinquent as of the close of business of the last day of the related
Collection Period (including all foreclosures and REO properties 270 or more
days Delinquent as of the close of business of the last day of the related
Collection Period) plus (ii) 5.50% of the Pool II Balance, and (b) 0.50% of the
sum of (i) the Initial Pool II Balance plus (ii) the Original Class A-2
Pre-Funded Amount; provided, however, that if on any Payment Date on or after
the Stepdown Date either (a) cumulative Realized Losses on Pool II are greater
than or equal to 3.0% of the sum of (i) the Initial Pool II Balance plus (ii)
the Original Class A-2 Pre-Funded Amount or (b) the Excess Spread Amount with
respect to Pool II is less than 0.70%, then the "Pool II Specified
Overcollateralization Amount" on such Payment Date shall in no event be less
than the Pool II Specified Overcollateralization Amount for the immediately
preceding Payment Date.

                                       26
<PAGE>

         Pool II Total Available Funds: With respect to any Payment Date, the
sum of (i) the Pool II Available Funds (after taking into account the
distributions pursuant to clauses (i) and (ii) of Section 8.7(d) of the
Indenture with respect to Pool II for such Payment Date), (ii) any Crossover
Amount available from Pool I and Pool III and (iii) amounts on deposit in the
Reserve Fund (but only to the extent that Pool II Available Funds, plus any
Crossover Amount available from Pool I and Pool III, are insufficient to pay the
amounts specified in clauses (iii) and (vii) of Section 8.7(d) of the Indenture
with respect to the Class A-2 Notes), in each case as of such Payment Date.

         Pool III: The pool of Mortgage Loans identified in the related Mortgage
Loan Schedule as having been assigned to Pool III, including any Eligible
Substitute Mortgage Loans delivered in replacement thereof.

         Pool III Available Funds: With respect to any Payment Date, the amount
then on deposit in the Collection Account with respect to Pool III, after taking
into account the deposits thereto made pursuant to Section 8.7(c) of the
Indenture, if any (exclusive of the amount of any related Insured Payment then
on deposit in the Collection Account and any deposits from the Reserve Fund).

         Pool III Balance: With respect to any date the sum of (i) the aggregate
of the Principal Balances of all Pool III Mortgage Loans as of such date plus
(ii) the related Pre-Funded Amount, if any.

         Pool III Closed-End Mortgage Loans: Mortgage Loans in Pool III which
are Closed-End Mortgage Loans.

         Pool III Deficiency Amount: As defined in Section 8.6(b)(iii) of the
Indenture.

         Pool III HELOC Mortgage Loans: The Mortgage Loans in Pool III which are
HELOC Mortgage Loans.

         Pool III Mortgage Loans: With respect to any date, those Mortgage Loans
contained in Pool III.

         Pool III Net Principal Collections: The excess of (x) Pool III
Principal Collections over (y) the aggregate amount of all related Additional
Balances arising during the related Collection Period; provided, however, that,
in no event will Pool III Net Principal Collections be less than zero with
respect to any Payment Date.

         Pool III Overcollateralization Amount: As of any Payment Date, the
excess, if any, of (x) the Pool III Balance as of such Payment Date over (y) the
Class A-3 Note Principal Balance as of such Payment Date (after taking into
account any reductions to such Class A-3 Note Principal Balance resulting from
payments made pursuant to clauses (vi) and (vii) of Section 8.7(d) of the
Indenture on such Payment Date).

                                       27
<PAGE>

         Pool III Overcollateralization Deficiency Amount: With respect to any
Payment Date, the excess, if any, of (i) the Pool III Specified
Overcollateralization Amount applicable to such Payment Date over (ii) the Pool
III Overcollateralization Amount applicable to such Payment Date.

         Pool III Overcollateralization Deficit: With respect to any Payment
Date, the amount, if any, by which (i) the aggregate Class A-3 Note Principal
Balance, after taking into account the payment to the Class A-3 Noteholders of
all principal from sources other than the Policy on such Payment Date, exceeds
(ii) the Pool III Balance as of such Payment Date.

         Pool III Overcollateralization Reduction Amount: With respect to any
Payment Date, the excess, if any, of (x) the Pool III Overcollateralization
Amount over (y) the Pool III Specified Overcollateralization Amount assuming
that the Class A-3 Maximum Principal Payment had been distributed to the Class
A-3 Noteholders on such Payment Date.

         Pool III Principal Collections: The Principal Collections relating to
Pool III.

         Pool III Specified Overcollateralization Amount: With respect to (I)
any Payment Date occurring prior to the Stepdown Date, an amount equal to the
sum of (a) 100.00% of the Principal Balance of Mortgage Loans in Pool III that
are 270 or more days Delinquent as of the close of business of the last day of
the related Collection Period (including all foreclosures and REO properties 270
or more days Delinquent as of the close of business of the last day of the
related Collection Period) plus (b) 2.75% of the sum of (i) the Initial Pool III
Balance plus (ii) the Original Class A-3 Pre-Funded Amount; or (II) any Payment
Date occurring on or after the Stepdown Date, the greater of (a) the sum of (i)
100.00% of the Principal Balance of Mortgage Loans in Pool III that are 270 or
more days Delinquent as of the close of business of the last day of the related
Collection Period (including all foreclosures and REO properties 270 or more
days Delinquent as of the close of business of the last day of the related
Collection Period) plus (ii) 5.50% of the Pool III Balance, and (b) 0.50% of the
sum of (i) the Initial Pool III Balance plus (ii) the Original Class A-3
Pre-Funded Amount; provided, however, that if on any Payment Date on or after
the Stepdown Date either (a) cumulative Realized Losses on Pool III are greater
than or equal to 3.0% of the sum of (i) the Initial Pool III Balance plus (ii)
the Original Class A-3 Pre-Funded Amount or (b) the Excess Spread Amount with
respect to Pool III is less than 0.70%, then the "Pool III Specified
Overcollateralization Amount" on such Payment Date shall in no event be less
than the Pool III Specified Overcollateralization Amount for the immediately
preceding Payment Date.

         Pool III Total Available Funds: With respect to any Payment Date, the
sum of (i) the Pool III Available Funds (after taking into account the
distributions pursuant to clauses (i) and (ii) of Section 8.7(d) of the
Indenture with respect to Pool III for such Payment Date), (ii) any Crossover
Amount available from Pool I and Pool II and (iii) amounts on deposit in the
Reserve Fund (but only to the extent that Pool III Available Funds, plus any
Crossover Amount available from Pool I and Pool II, are insufficient to pay the
amounts specified in clauses (iii) and (vii) of Section 8.7(d) of the Indenture
with respect to the Class A-3 Notes), in each case as of such Payment Date.

                                       28
<PAGE>

         Predecessor Note: With respect to any particular Note, every previous
Note evidencing all or a portion of the same interest as that evidenced by such
particular Note; and, for the purpose of this definition, any Note authenticated
and delivered under Section 2.4 of the Indenture in lieu of a mutilated, lost,
destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

         Preference Amount: As defined in the Policy.

         Preference Claim: As defined in Section 5.13(b) of the Indenture.

         Pre-Funded Amount: With respect to any Pool and as of any date of
determination, the amount on deposit in the Pre-Funding Account related to such
Pool.

         Pre-Funding Account: The custodial account or accounts established and
maintained with the Indenture Trustee for the benefit of the Noteholders, the
Class S Certificateholders and the Insurer pursuant to Section 8.9 of the
Indenture. The Pre-Funding Account shall be an Eligible Account.

         Pre-Funding Period: The period commencing on the Closing Date and
ending on the earlier of (i) the close of business on February 14, 2002 and (ii)
the date on which the amount on deposit in the Pre-Funding Account is less than
$100,000.

         Premium Amount: With respect to any Class of Notes and as to any
Payment Date, the product of (x) one-twelfth of the applicable Premium
Percentage and (y) the applicable Note Principal Balance immediately prior to
such Payment Date.

         Premium Percentage: As defined in the Insurance Agreement.

         Prime Rate: The interest rate entitled "Prime Rate" in the published
Money Rates table of The Wall Street Journal.

         Principal Balance: As of any date and with respect to any Mortgage
Loan, the HELOC Principal Balance or the Closed-End Principal Balance, as
applicable. For purposes of this definition, a Liquidated Mortgage Loan shall be
deemed to have a Principal Balance equal to the Principal Balance of the related
Mortgage Loan immediately prior to the final recovery of related Liquidation
Proceeds and a Principal Balance of zero thereafter.

         Principal Collections: With respect to a Pool and as to any Payment
Date, the sum of all payments by or on behalf of Mortgagors and any other
amounts constituting principal (including, but not limited to, Substitution
Amounts and any portion of Insurance Proceeds, Net Liquidation Proceeds or
amounts to be deposited to the Collection Account pursuant to Section 7.01 of
the Sale and Servicing Agreement that are applicable to principal, in each case
as allocable to principal of the applicable Mortgage Loan, but excluding
Foreclosure Profits) collected by the Servicer with respect to such Pool under
the related Mortgage Loans during the related Collection Period and any related
amounts remaining on deposit in the Pre-Funding Account on the Payment Date
immediately following the end of the Pre-Funding Period. The terms of the
related Loan Agreements shall determine the portion of each payment in respect
of a Mortgage Loan that constitutes principal or interest.

                                       29
<PAGE>

         Principal Payment Amount: The Class A-1 Principal Payment Amount, the
Class A-2 Principal Payment Amount or the Class A-3 Principal Payment Amount, as
applicable.

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

         Purchase Agreement: The Mortgage Loan Purchase Agreement, dated as of
November 1, 2001, by and between the Company and the Sponsor with respect to the
Mortgage Loans.

         Purchased Assets: As defined in Section 2.01 of the Purchase Agreement.

         Purchase Date: With respect to a Subsequent Mortgage Loan, the related
Subsequent Transfer Date.

         Purchase Price: With respect to the Initial Mortgage Loans as of the
Initial Cut-Off Date (and any Eligible Substitute Mortgage Loan as of the date
delivered), at least 100% of the Principal Balance; with respect to all
Additional Balances and all Subsequent Mortgage Loans, at least 100% of the
Principal Balance (as such term is used in Section 2.01 of the Purchase
Agreement).

         Purchase Request: A request for the purchase of Subsequent Mortgage
Loans in the form of Exhibit B to the Purchase Agreement.

         Purchaser Note: As defined in Section 10.02 of the Purchase Agreement.

         Rapid Amortization Event: Any of those "Rapid Amortization Events"
described in Section 12.1 of the Indenture.

         Rapid Amortization Period: With respect to each Class of Notes, the
period which immediately follows the end of the Managed Amortization Period with
respect to such Class of Notes.

         Rating Agency: Each of Moody's and Standard & Poor's. If such agency or
a successor is no longer in existence, "Rating Agency" shall be such statistical
credit rating agency, or other comparable Person, designated by the Sponsor and
the Insurer, notice of which designation shall be given to the Indenture
Trustee. References in any Basic Document to the highest short term unsecured
rating category of a Rating Agency shall means A1+ or better in the case of
Standard & Poor's and P1 or better in the case of Moody's, and in the case of
any other Rating Agency shall mean the ratings such other Rating Agency deems
equivalent to the foregoing ratings. References in any Basic Document 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, the rating such other Rating Agency deems equivalent to
the foregoing ratings.

                                       30
<PAGE>

         Realized Losses: For any Pool and any Payment Date will equal the
positive difference between (i) the Principal Balances of all Mortgage Loans in
the related Pool that were liquidated during the related Collection Period and
(ii) the principal portion of Net Liquidation Proceeds of such Mortgage Loans.

         Recordation Event: Any of (i) the long-term senior unsecured debt
rating of GreenPoint Bank no longer being rated at least "BBB-" by Standard &
Poor's and "Baa3" by Moody's, (ii) the resignation of GreenPoint Mortgage
Funding, Inc., as Servicer, (iii) the occurrence of an Event of Servicing
Termination, (iv) the failure of GreenPoint Bank to maintain the capital
standards established for "well capitalized" institutions under the prompt
corrective action regulations issued pursuant to the Federal Deposit Insurance
Corporation Improvement Act of 1991, as amended, or (v) the occurrence of a
bankruptcy, insolvency or foreclosure relating to the Issuer; provided, that any
Recordation Event may be waived by the Insurer by its providing written notice
of such waiver to the Servicer and the Indenture Trustee; and (vi) at the
written request of the Insurer to the Indenture Trustee to record Assignments of
Mortgages because the Insurer has determined, in the exercise of its reasonable
judgment, that such recordation is necessary to protect the Insurer's interest
with respect to such Mortgage Loans because (a) a Material Adverse Change with
respect to the Servicer has occurred, (b) the Insurer has been so advised by
counsel as a result of a change that occurred after the Closing Date in
applicable law or the interpretation thereof or (c) with respect to a particular
Mortgage Loan, the insolvency of the related Mortgagor.

         Record Date: The Business Day immediately preceding the related Payment
Date; provided, however, that following the date on which Definitive Notes are
available, the Record Date for the Notes shall be the last Business Day of the
calendar month preceding the month in which the related Payment Date occurs.

         Redemption Date: In the case of a redemption of any Notes pursuant to
Section 10.1 of the Indenture, the Payment Date specified by the Sponsor
pursuant to Section 7.01(b) of the Sale and Servicing Agreement.

         Redemption Price: In the case of a redemption of any Notes pursuant to
Section 10.1 of the Indenture, an amount equal to the unpaid principal amount of
the then outstanding principal amount of each class of the related Class of
Notes being redeemed, plus accrued and unpaid interest thereon to but excluding
the Redemption Date, plus any outstanding, related Reimbursement Amount.

         Reimbursement Amount: Any of the Class A-1 Reimbursement Amount, the
Class A-2 Reimbursement Amount or the Class A-3 Reimbursement Amount, as
appropriate.

         Related Documents: As defined in Section 2.01(c) of the Sale and
Servicing Agreement.

         Relief Act Shortfall: Shortfalls in interest collections resulting from
the application of the Soldiers' and Sailors' Civil Relief Act of 1940, as
amended.

         Removal Date: As defined in Section 2.07 of the Sale and Servicing
Agreement.

                                       31
<PAGE>

         Removal Notice Date: As defined in Section 2.07 of the Sale and
Servicing Agreement.

         REO: A Mortgaged Property acquired by the Servicer or any sub-servicer
on behalf of the Trust through foreclosure or deed-in-lieu of foreclosure in
connection with a defaulted Mortgage Loan.

         Repurchase Price: The sum of (a) the outstanding principal balance of
the related Mortgage Loan as of such date of repurchase plus (b) any accrued
interest as of such date.

         Required Payments: For any Class of Class A Notes the sum of (a) for
any Payment Date, the sum of (i) the related Interest Payment Amount (excluding
any Relief Act Shortfalls, any interest shortfalls related to prepayments and
any Deferred Interest) and (ii) the related Overcollateralization Deficit and
(b) on the related Final Scheduled Payment Date, the related Note Principal
Balance after taking into account all payments to be made on the related Notes
on that Payment Date.

         Reserve Fund: That account designated as the "Reserve Fund" that is
created and maintained for the benefit of the Noteholders and the Insurer
pursuant to Section 8.3 of the Indenture.

         Residual Certificate: As defined in Section 1.1 of the Trust Agreement.

         Residual Certificateholder: Holder of the Residual Certificate.

         Responsible Officer: With respect to the Indenture Trustee or 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.

         SAIF: The Savings Association Insurance Fund, as from time to time
constituted, created under the Financial Institutions Reform, Recovery and
Enhancement Act of 1989, or if at any time after the execution of the Indenture,
the Savings Association Insurance Fund is not existing and performing duties now
assigned to it, the body performing such duties on such date.

         Sale and Servicing Agreement: The Sale and Servicing Agreement, dated
as of November 1, 2001, by and among the Issuer, the Sponsor, the Servicer and
the Indenture Trustee, as the same may be amended or supplemented from time to
time.

         SEC: The Securities and Exchange Commission and any successor thereto.

         Seller: GreenPoint Mortgage Funding, Inc., a New York corporation, in
its capacity as Seller pursuant to the Purchase Agreement.

         Servicer: GreenPoint Mortgage Funding, Inc., a New York corporation,
any successor thereto and, after its termination or resignation as Servicer, any
successor.

                                       32
<PAGE>

         Servicing Certificate: A certificate completed and executed by a
Servicing Officer in accordance with Section 4.01 of the Sale and Servicing
Agreement.

         Servicing Fee: With respect to any Payment Date and each Pool, the
product of (i) one-twelfth of the Servicing Fee Rate and (ii) the aggregate
Principal Balance of the Mortgage Loans in such Pool on the first day of the
Collection Period preceding such Payment Date (or at the Cut-Off Date with
respect to the first Payment Date).

         Servicing Fee Rate: 0.50% per annum.

         Servicing Officer: Any officer of the Servicer involved in, or
responsible for, the administration and servicing of the Mortgage Loan whose
name and specimen signature appear on a list of servicing officers furnished to
the Indenture Trustee (with a copy to the Insurer) by the Servicer on the
Closing Date, as such list may be amended from time to time.

         Side Letter: The letter, dated as of November 20, 2001 and provided by
the Servicer to the Insurer with respect to the Capitalized Interest
Requirement.

         Specified Overcollateralization Amount: As applicable, the Pool I
Specified Overcollateralization Amount, the Pool II Specified
Overcollateralization Amount, or the Pool III Specified Overcollateralization
Amount.

         Sponsor: GreenPoint Mortgage Securities Inc. or its
successors-in-interest.

         Standard & Poor's: Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, Inc., or its successor in interest.

         Stepdown Date: For each Class of Notes, the later to occur of (a) the
31st Payment Date and (b) the first Payment Date on which the related Pool
Balance has been reduced to 50% or less of the sum of (i) the related Initial
Pool Balance plus (ii) the related portion of the Original Pre-Funded Amount.

         Subsequent Cut-Off Date: With respect to any Subsequent Mortgage Loan,
the later to occur of (x) the opening of business on the first day of the
calendar month in which the related Subsequent Transfer Date occurs and (y) the
date of origination of such Subsequent Mortgage Loan.

         Subsequent Mortgage Loans: Each HELOC Mortgage Loan and any Closed-End
Mortgage Loan acquired pursuant to Section 2.10 of the Sale and Servicing
Agreement with funds on deposit in the Pre-Funding Account during the
Pre-Funding Period on the related Subsequent Transfer Date.

         Subsequent Transfer Agreement: Each acknowledgment by the Indenture
Trustee pursuant to Section 2.10(a) of the Sale and Servicing Agreement that
Subsequent Mortgage Loans have been conveyed by the Sponsor to the Trust.

         Subsequent Transfer Date: The date specified in each Subsequent
Transfer Agreement, which shall be at least five days prior to the related
Payment Date.

                                       33
<PAGE>

         Substitute Cut-Off Date: With respect to any Eligible Substitute
Mortgage Loan, the opening of business on the first day of the calendar month in
which such Eligible Substitute Mortgage Loan is conveyed to the Trust.

         Substitution Amounts: In connection with the delivery of any Eligible
Substitute Mortgage Loan, if the outstanding principal amount of such Eligible
Substitute Mortgage Loan as of the applicable Substitute Cut-Off Date is less
than the related Principal Balance of the Mortgage Loan being replaced as of
such Substitute Cut-Off Date, an amount equal to such difference together with
accrued and unpaid interest on such amount calculated at the Loan Rate net of
the Servicing Fee, if any, of the Mortgage Loan being replaced.

         Termination Date: The latest of (i) the termination of the Policy and
the return of the Policy to the Insurer for cancellation, (ii) the date on which
the Insurer shall have received all amounts due and owing to the Insurer under
the Insurance Agreement and (iii) the date on which the Indenture Trustee shall
have received payment and performance of all Indenture Trustee Issuer Secured
Obligations.

         Three Month Rolling Delinquency Rate: As of any Payment Date beginning
with the third Payment Date, a number equal to the average of the related Pool
Delinquency Rates for each of the three immediately preceding Collection
Periods.

         Total Available Funds: The Pool I Total Available Funds, the Pool II
Total Available Funds, and/or the Pool III Total Available Funds.

         Transfer Date: With respect to each Eligible Substitute Mortgage Loan,
the date on which such Eligible Substitute Mortgage Loan shall have been
transferred to the Trust.

         Trust Agreement: The Trust Agreement, dated as of November 1, 2001, by
and between the Sponsor and the Owner Trustee, as the same may be amended and
supplemented from time to time.

         Trust Property: All property and proceeds conveyed pursuant to Section
2.01 of the Sale and Servicing Agreement, and certain other rights under that
Agreement.

         Trustee Fee: A fee which is separately agreed to between the Servicer
and the Indenture Trustee.

         Trustee Fee Rate: The per annum rate at which the Trustee Fee is
calculated.

         UCC: Unless the context otherwise requires, the Uniform Commercial
Code, as in effect in the relevant jurisdiction, as amended from time to time.

         Weighted Average Net Loan Rate: As to any Collection Period and with
respect to each Pool, the average of the daily Net Loan Rate for each Mortgage
Loan in such Pool for each day during the related Billing Cycle, weighted on the
basis of the daily average of the related Principal Balances for each day in
such Billing Cycle for each Mortgage Loan as determined by the Servicer in
accordance with the Servicer's normal servicing procedures.

                                       34

<PAGE>

                                                                     EXHIBIT A-1

                                 [Form of Note]

             GREENPOINT HOME EQUITY LOAN TRUST 2001-2 CLASS A-1 NOTE

REGISTERED                                                          $100,000,000

No. A-1-1                                                  CUSIP NO. 395385 AL 1

         Unless this Class A-1 Note is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to the Issuer
or its agent for registration of transfer, exchange or payment, and any Class
A-1 Note issued is registered in the name of Cede & Co. or in such other name as
is requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

         THE PRINCIPAL OF THIS CLASS A-1 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-1
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

<PAGE>

                    GREENPOINT HOME EQUITY LOAN TRUST 2001-2

                   CLASS A-1 VARIABLE RATE ASSET BACKED NOTES

         GreenPoint Home Equity Loan Trust 2001-2, a business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of ONE HUNDRED MILLION DOLLARS
($100,000,000), such amount payable on each Payment Date in an amount equal to
the result obtained by multiplying (i) a fraction the numerator of which is
$100,000,000 and the denominator of which is $100,000,000 by (ii) the aggregate
amount, if any, payable from the Collection Account in respect of principal on
the Class A-1 Notes pursuant to Section 8.7 of the Indenture; provided, however,
that the entire unpaid principal amount of this Class A-1 Note shall be due and
payable on the Payment Date in November 2027 (the "Final Scheduled Payment
Date"). The Issuer will pay interest on this Note at the rate per annum provided
in the Indenture on each Payment Date on the principal amount of this Class A-1
Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date). Interest on this
Class A-1 Note will accrue for each Payment Date from the most recent Payment
Date on which interest has been paid to but excluding such Payment Date or, if
no interest has yet been paid, from November 20, 2001. Interest will be computed
on the basis of the actual number of days elapsed in a 360-day year. Such
principal of and interest on this Class A-1 Note shall be paid in the manner
specified on the reverse hereof.

         The principal of and interest on this Class A-1 Note are payable in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. All payments made by
the Issuer with respect to this Class A-1 Note shall be applied first to
interest due and payable on this Class A-1 Note as provided above and then to
the unpaid principal of this Class A-1 Note.

         The Notes are entitled to the benefits of a financial guaranty
insurance policy (the "Policy") issued by MBIA Insurance Corporation (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments of the Insured Payments with respect to the Class A-1 Notes on each
Payment Date, all as more fully set forth in the Policy.

         For purposes of federal income, state and local income and franchise
and any other income taxes, the Issuer will treat the Notes as indebtedness of
the Sponsor and hereby instructs the Indenture Trustee to treat the Notes as
indebtedness of the Sponsor for federal and state tax reporting purposes. Each
Noteholder by acceptance of a Note (and each owner of a beneficial interest in a
Note by acceptance of such beneficial interest) agrees to treat the Notes for
federal income, state and local income and franchise and any other income taxes
as indebtedness of the Sponsor.

         Each Noteholder or Note Owner, by acceptance of this Class A-1 Note or,
in the case of a Note Owner, a beneficial interest in a Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Class A-1 Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Sponsor, the Servicer, the
Indenture Trustee, or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any owner, beneficiary,
agent, officer, director or employee of the Sponsor, the Servicer, the Indenture
Trustee, or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Sponsor, the Servicer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Sponsor, the
Servicer, 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 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.

                                     A-1-2
<PAGE>

         Reference is made to the further provisions of this Class A-1 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-1 Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Class
A-1 Note shall not be entitled to any benefit under the Indenture referred to on
the reverse hereof, or be valid or obligatory for any purpose.

         This Class A-1 Note is one of a duly authorized issue of Notes of the
Issuer, designated as its Class A-1 Variable Rate Asset Backed Notes (herein
called the "Class A-1 Notes"), all issued under an Indenture dated as of
November 1, 2001 (such agreement, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and The Bank of New York, as Indenture
Trustee (the "Indenture Trustee"), which term includes any successor Indenture
Trustee under the Indenture.

         All terms used in this Class A-1 Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them
in or pursuant to the Indenture, as so supplemented or amended. If any such
terms are not defined in the Indenture, as supplemented or amended, then such
terms shall have the meanings assigned to them in or pursuant to the Trust
Agreement dated as of November 1, 2001 (such trust agreement, as supplemented or
amended is herein called the "Trust Agreement"), between GreenPoint Mortgage
Securities, Inc., as sponsor, and Wilmington Trust Company, as Owner Trustee
(the "Owner Trustee," which term includes any successor Owner Trustee under the
Trust Agreement), as so supplemented or amended.

         The Class A-1 Notes, the Class A-2 Notes, and the Class A-3 Notes
(together, the "Notes") are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

         Principal of the Class A-1 Notes will be payable on each Payment Date
in an amount described in the Indenture. "Payment Date" means the fifteenth day
of each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing December 17, 2001. The term "Payment Date," shall be
deemed to include the Final Scheduled Payment Date.

                                     A-1-3
<PAGE>

         As described above, the entire unpaid principal amount of this Class
A-1 Note shall be due and payable on the earlier of the Final Scheduled Payment
Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture.
Notwithstanding the foregoing, on the date on which a Rapid Amortization Period
as described in Section 5.1(a) shall have occurred and be continuing and, in the
limited instances specified in the Indenture, the Holders representing more than
50% of the Outstanding Amount of the Class A-1 Notes, with the prior written
consent of the Insurer (so long as there is no continuing Insurer Default) shall
have the right among others to direct the Indenture Trustee to sell or liquidate
the Pool I Mortgage Loans as provided in Section 12.1 of the Indenture and pay
such amounts to the Holders of the Class A-1 Notes. All principal payments on
the Class A-1 Notes shall be made pro rata to the Holders of the Class A-1 Notes
entitled thereto.

         Payments of interest on this Class A-1 Note due and payable on each
Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Class A-1 Note, shall be made by check mailed to the
Person whose name appears as the Holder of this Class A-1 Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Class A-1 Note registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of the applicable Record Date without requiring
that this Note be submitted for notation of payment. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Payment Date shall be binding upon all future Holders
of this Class A-1 Note and of any Class A-1 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Class A-1
Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Payment Date by notice mailed prior to such Payment Date and
the amount then due and payable shall be payable only upon presentation and
surrender of this Class A-1 Note at the office designated by the Indenture
Trustee for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-1 Interest Rate to the extent lawful.

         As provided in the Indenture, the Class A-1 Notes may be redeemed
pursuant to Section 10.1 of the Indenture, in whole, but not in part, at the
option of the Sponsor (with the consent of the Insurer under certain
circumstances), on any Payment Date after the Payment Date on which the Class
A-1 Note Principal Balance is less than or equal to 10% of the Original Class
A-1 Note Principal Balance, after taking into account all distributions made on
such Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Class A-1 Note may be registered on the Note
Register upon surrender of this Class A-1 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, (i)
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his
attorney duly authorized in writing, with such signature guaranteed by an
"eligible guarantor institution" meeting the requirements of the Note Registrar
which requirements include membership or participation in Notes Transfer Agents
Medallion Program ("Stamp") or such other "signature guarantee program" as may
be determined by the Registrar in addition to, or in substitution for, Stamp,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Class A-1
Note, but the transferor may be required to pay a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

                                     A-1-4
<PAGE>

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Sponsor, the Servicer, the Indenture Trustee or the
Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any owner, beneficiary, agent, officer, director
or employee of the Sponsor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Sponsor, the Servicer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Sponsor, the Servicer, 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 owner or beneficiary shall be fully liable, to the extent provided
by applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that by
accepting the benefits of the Indenture and the Trust Agreement that such
Noteholder will not at any time institute against the Sponsor, or the Issuer or
join in any institution against the Sponsor, or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United States Federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, the Trust Agreement,
the Indenture or the Basic Documents.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer,
the Indenture Trustee or the Insurer may treat the Person in whose name this
Note (as of the day of determination or as of such other date as may be
specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.

                                     A-1-5
<PAGE>

         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 Note under the Indenture at any time
by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time
Outstanding. Any such consent or waiver by the Holder of this Note (or any one
of more Predecessor Notes) shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder but with the consent of the Insurer.

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture or the Trust Agreement.

         The Class A-1 Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations
therein set forth.

         This Note, the Trust Agreement and the Indenture shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws.

         No reference herein to the Trust Agreement or the Indenture and no
provision of this Note, the Trust Agreement or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay
the principal of and interest on this Note at the times, place, and rate, and in
the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Trust Agreement, the Indenture or the Basic Documents, neither
Wilmington Trust Company in its individual capacity, any owner of a beneficial
interest in the Issuer, nor any of their respective beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of
principal of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that said covenants, obligations and
indemnifications have been made by the Issuer for the sole purposes of binding
the interests of the Issuer in the assets of the Issuer. The Holder of this Note
by the acceptance hereof agrees that except as expressly provided in the
Indenture or the Basic Documents in the case of a Rapid Amortization Event with
respect to the Class A-1 Notes under the Indenture, the Holder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.

                                     A-1-6
<PAGE>

                  IN WITNESS WHEREOF, the Issuer has caused this instrument to
be signed, manually or in facsimile, by its Authorized Officer.

Date:  November 20, 2001    GREENPOINT HOME EQUITY LOAN TRUST 2001-2

                            By:  Wilmington Trust Company, not in its individual
                                 capacity but solely as Owner Trustee

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

                                     A-1-7
<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date:  November 20, 2001            The Bank of New York, not in its individual
                                    capacity but solely as Indenture Trustee

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

                                     A-1-8
<PAGE>

                                                                     EXHIBIT A-2

                                 [Form of Note]

             GREENPOINT HOME EQUITY LOAN TRUST 2001-2 CLASS A-2 NOTE

REGISTERED                                                          $100,000,000

No. A-2-1                                                  CUSIP NO. 395385 AM 9

         Unless this Class A-2 Note is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to the Issuer
or its agent for registration of transfer, exchange or payment, and any Class
A-2 Note issued is registered in the name of Cede & Co. or in such other name as
is requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

         THE PRINCIPAL OF THIS CLASS A-2 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-2
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

<PAGE>

                    GREENPOINT HOME EQUITY LOAN TRUST 2001-2

                   CLASS A-2 VARIABLE RATE ASSET BACKED NOTES

         GreenPoint Home Equity Loan Trust 2001-2, a business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of ONE HUNDRED MILLION DOLLARS
($100,000,000), such amount payable on each Payment Date in an amount equal to
the result obtained by multiplying (i) a fraction the numerator of which is
$100,000,000 and the denominator of which is $100,000,000 by (ii) the aggregate
amount, if any, payable from the Collection Account in respect of principal on
the Class A-2 Notes pursuant to Section 8.7 of the Indenture; provided, however,
that the entire unpaid principal amount of this Class A-2 Note shall be due and
payable on the Payment Date in November 2027 (the "Final Scheduled Payment
Date"). The Issuer will pay interest on this Note at the rate per annum provided
in the Indenture on each Payment Date on the principal amount of this Class A-2
Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date). Interest on this
Class A-2 Note will accrue for each Payment Date from the most recent Payment
Date on which interest has been paid to but excluding such Payment Date or, if
no interest has yet been paid, from November 20, 2001. Interest will be computed
on the basis of the actual number of days elapsed in a 360-day year. Such
principal of and interest on this Class A-2 Note shall be paid in the manner
specified on the reverse hereof.

         The principal of and interest on this Class A-2 Note are payable in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. All payments made by
the Issuer with respect to this Class A-2 Note shall be applied first to
interest due and payable on this Class A-2 Note as provided above and then to
the unpaid principal of this Class A-2 Note.

         The Notes are entitled to the benefits of a financial guaranty
insurance policy (the "Policy") issued by MBIA Insurance Corporation (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments of the Insured Payments with respect to the Class A-2 Notes on each
Payment Date, all as more fully set forth in the Policy.

         For purposes of federal income, state and local income and franchise
and any other income taxes, the Issuer will treat the Notes as indebtedness of
the Sponsor and hereby instructs the Indenture Trustee to treat the Notes as
indebtedness of the Sponsor for federal and state tax reporting purposes. Each
Noteholder by acceptance of a Note (and each owner of a beneficial interest in a
Note by acceptance of such beneficial interest) agrees to treat the Notes for
federal income, state and local income and franchise and any other income taxes
as indebtedness of the Sponsor.

         Each Noteholder or Note Owner, by acceptance of this Class A-2 Note or,
in the case of a Note Owner, a beneficial interest in a Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Class A-2 Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Sponsor, the Servicer, the
Indenture Trustee, or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any owner, beneficiary,
agent, officer, director or employee of the Sponsor, the Servicer, the Indenture
Trustee, or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Sponsor, the Servicer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Sponsor, the
Servicer, 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 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.

                                     A-2-2
<PAGE>

         Reference is made to the further provisions of this Class A-2 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-2 Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Class
A-2 Note shall not be entitled to any benefit under the Indenture referred to on
the reverse hereof, or be valid or obligatory for any purpose.

         This Class A-2 Note is one of a duly authorized issue of Notes of the
Issuer, designated as its Class A-2 Variable Rate Asset Backed Notes (herein
called the "Class A-2 Notes"), all issued under an Indenture dated as of
November 1, 2001 (such agreement, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and The Bank of New York, as Indenture
Trustee (the "Indenture Trustee"), which term includes any successor Indenture
Trustee under the Indenture.

         All terms used in this Class A-2 Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them
in or pursuant to the Indenture, as so supplemented or amended. If any such
terms are not defined in the Indenture, as supplemented or amended, then such
terms shall have the meanings assigned to them in or pursuant to the Trust
Agreement dated as of November 1, 2001 (such trust agreement, as supplemented or
amended is herein called the "Trust Agreement"), between GreenPoint Mortgage
Securities, Inc., as sponsor, and Wilmington Trust Company, as Owner Trustee
(the "Owner Trustee," which term includes any successor Owner Trustee under the
Trust Agreement), as so supplemented or amended.

         The Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes
(together, the "Notes") are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

         Principal of the Class A-2 Notes will be payable on each Payment Date
in an amount described in the Indenture. "Payment Date" means the fifteenth day
of each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing December 17, 2001. The term "Payment Date," shall be
deemed to include the Final Scheduled Payment Date.

                                     A-2-3
<PAGE>

         As described above, the entire unpaid principal amount of this Class
A-2 Note shall be due and payable on the earlier of the Final Scheduled Payment
Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture.
Notwithstanding the foregoing, on the date on which a Rapid Amortization Period
as described in Section 5.1(a) shall have occurred and be continuing and, in the
limited instances specified in the Indenture, the Holders representing more than
50% of the Outstanding Amount of the Class A-2 Notes, with the prior written
consent of the Insurer (so long as there is no continuing Insurer Default) shall
have the right among others to direct the Indenture Trustee to sell or liquidate
the Pool II Mortgage Loans as provided in Section 12.1 of the Indenture and pay
such amounts to the Holders of the Class A-2 Notes. All principal payments on
the Class A-2 Notes shall be made pro rata to the Holders of the Class A-2 Notes
entitled thereto.

         Payments of interest on this Class A-2 Note due and payable on each
Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Class A-2 Note, shall be made by check mailed to the
Person whose name appears as the Holder of this Class A-2 Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Class A-2 Note registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of the applicable Record Date without requiring
that this Note be submitted for notation of payment. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Payment Date shall be binding upon all future Holders
of this Class A-2 Note and of any Class A-2 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Class A-2
Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Payment Date by notice mailed prior to such Payment Date and
the amount then due and payable shall be payable only upon presentation and
surrender of this Class A-2 Note at the office designated by the Indenture
Trustee for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-2 Interest Rate to the extent lawful.

         As provided in the Indenture, the Class A-2 Notes may be redeemed
pursuant to Section 10.1 of the Indenture, in whole, but not in part, at the
option of the Sponsor (with the consent of the Insurer under certain
circumstances), on any Payment Date after the Payment Date on which the Class
A-2 Note Principal Balance is less than or equal to 10% of the Original Class
A-2 Note Principal Balance, after taking into account all distributions made on
such Payment Date.

                                     A-2-4
<PAGE>

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Class A-2 Note may be registered on the Note
Register upon surrender of this Class A-2 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, (i)
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his
attorney duly authorized in writing, with such signature guaranteed by an
"eligible guarantor institution" meeting the requirements of the Note Registrar
which requirements include membership or participation in Notes Transfer Agents
Medallion Program ("Stamp") or such other "signature guarantee program" as may
be determined by the Registrar in addition to, or in substitution for, Stamp,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Class A-2
Note, but the transferor may be required to pay a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Sponsor, the Servicer, the Indenture Trustee or the
Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any owner, beneficiary, agent, officer, director
or employee of the Sponsor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Sponsor, the Servicer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Sponsor, the Servicer, 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 owner or beneficiary shall be fully liable, to the extent provided
by applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that by
accepting the benefits of the Indenture and the Trust Agreement that such
Noteholder will not at any time institute against the Sponsor, or the Issuer or
join in any institution against the Sponsor, or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United States Federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, the Trust Agreement,
the Indenture or the Basic Documents.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer,
the Indenture Trustee or the Insurer may treat the Person in whose name this
Note (as of the day of determination or as of such other date as may be
specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Note under the Indenture at any time
by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time
Outstanding. Any such consent or waiver by the Holder of this Note (or any one
of more Predecessor Notes) shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder but with the consent of the Insurer.

                                     A-2-5
<PAGE>

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture or the Trust Agreement.

         The Class A-2 Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations
therein set forth.

         This Note, the Trust Agreement and the Indenture shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws.

         No reference herein to the Trust Agreement or the Indenture and no
provision of this Note, the Trust Agreement or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay
the principal of and interest on this Note at the times, place, and rate, and in
the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Trust Agreement, the Indenture or the Basic Documents, neither
Wilmington Trust Company in its individual capacity, any owner of a beneficial
interest in the Issuer, nor any of their respective beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of
principal of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that said covenants, obligations and
indemnifications have been made by the Issuer for the sole purposes of binding
the interests of the Issuer in the assets of the Issuer. The Holder of this Note
by the acceptance hereof agrees that except as expressly provided in the
Indenture or the Basic Documents in the case of a Rapid Amortization Event with
respect to the Class A-2 Notes under the Indenture, the Holder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.

                                     A-2-6
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date: November 20, 2001     GREENPOINT HOME EQUITY LOAN TRUST 2001-2

                            By:  Wilmington Trust Company, not in its individual
                                 capacity but solely as Owner Trustee

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

                                     A-2-7
<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date:  November 20, 2001            The Bank of New York, not in its individual
                                    capacity but solely as Indenture Trustee

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

                                     A-2-8
<PAGE>

                                                                     EXHIBIT A-3

                                 [Form of Note]

             GREENPOINT HOME EQUITY LOAN TRUST 2001-2 CLASS A-3 NOTE

REGISTERED                                                          $245,000,000

No. A-3-1                                                  CUSIP NO. 395385 AN 7

         Unless this Class A-3 Note is presented by an authorized representative
of The Depository Trust Company, a New York corporation ("DTC"), to the Issuer
or its agent for registration of transfer, exchange or payment, and any Class
A-3 Note issued is registered in the name of Cede & Co. or in such other name as
is requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

         THE PRINCIPAL OF THIS CLASS A-3 NOTE IS PAYABLE IN INSTALLMENTS AS SET
FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS CLASS A-3
NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

<PAGE>

                    GREENPOINT HOME EQUITY LOAN TRUST 2001-2

                   CLASS A-3 VARIABLE RATE ASSET BACKED NOTES

         GreenPoint Home Equity Loan Trust 2001-2, a business trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to CEDE & CO., or
registered assigns, the principal sum of TWO HUNDRED FORTY-FIVE MILLION DOLLARS
($245,000,000), such amount payable on each Payment Date in an amount equal to
the result obtained by multiplying (i) a fraction the numerator of which is
$245,000,000 and the denominator of which is $245,000,000 by (ii) the aggregate
amount, if any, payable from the Collection Account in respect of principal on
the Class A-3 Notes pursuant to Section 8.7 of the Indenture; provided, however,
that the entire unpaid principal amount of this Class A-3 Note shall be due and
payable on the Payment Date in November 2027 (the "Final Scheduled Payment
Date"). The Issuer will pay interest on this Note at the rate per annum provided
in the Indenture on each Payment Date on the principal amount of this Class A-3
Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on the preceding Payment Date). Interest on this
Class A-3 Note will accrue for each Payment Date from the most recent Payment
Date on which interest has been paid to but excluding such Payment Date or, if
no interest has yet been paid, from November 20, 2001. Interest will be computed
on the basis of the actual number of days elapsed in a 360-day year. Such
principal of and interest on this Class A-3 Note shall be paid in the manner
specified on the reverse hereof.

         The principal of and interest on this Class A-3 Note are payable in
such coin or currency of the United States of America as at the time of payment
is legal tender for payment of public and private debts. All payments made by
the Issuer with respect to this Class A-3 Note shall be applied first to
interest due and payable on this Class A-3 Note as provided above and then to
the unpaid principal of this Class A-3 Note.

         The Notes are entitled to the benefits of a financial guaranty
insurance policy (the "Policy") issued by MBIA Insurance Corporation (the
"Insurer"), pursuant to which the Insurer has unconditionally guaranteed
payments of the Insured Payments with respect to the Class A-3 Notes on each
Payment Date, all as more fully set forth in the Policy.

         For purposes of federal income, state and local income and franchise
and any other income taxes, the Issuer will treat the Notes as indebtedness of
the Sponsor and hereby instructs the Indenture Trustee to treat the Notes as
indebtedness of the Sponsor for federal and state tax reporting purposes. Each
Noteholder by acceptance of a Note (and each owner of a beneficial interest in a
Note by acceptance of such beneficial interest) agrees to treat the Notes for
federal income, state and local income and franchise and any other income taxes
as indebtedness of the Sponsor.

                                     A-3-2
<PAGE>

         Each Noteholder or Note Owner, by acceptance of this Class A-3 Note or,
in the case of a Note Owner, a beneficial interest in a Note, covenants and
agrees that no recourse may be taken, directly or indirectly, with respect to
the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Class A-3 Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Sponsor, the Servicer, the
Indenture Trustee, or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any owner, beneficiary,
agent, officer, director or employee of the Sponsor, the Servicer, the Indenture
Trustee, or the Owner Trustee in its individual capacity, any holder of a
beneficial interest in the Issuer, the Sponsor, the Servicer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Sponsor, the
Servicer, 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 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.

         Reference is made to the further provisions of this Class A-3 Note set
forth on the reverse hereof, which shall have the same effect as though fully
set forth on the face of this Class A-3 Note.

         Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Class
A-3 Note shall not be entitled to any benefit under the Indenture referred to on
the reverse hereof, or be valid or obligatory for any purpose.

         This Class A-3 Note is one of a duly authorized issue of Notes of the
Issuer, designated as its Class A-3 Variable Rate Asset Backed Notes (herein
called the "Class A-3 Notes"), all issued under an Indenture dated as of
November 1, 2001 (such agreement, as supplemented or amended, is herein called
the "Indenture"), between the Issuer and the Bank of New York, as Indenture
Trustee (the "Indenture Trustee"), which term includes any successor Indenture
Trustee under the Indenture.

         All terms used in this Class A-3 Note that are defined in the
Indenture, as supplemented or amended, shall have the meanings assigned to them
in or pursuant to the Indenture, as so supplemented or amended. If any such
terms are not defined in the Indenture, as supplemented or amended, then such
terms shall have the meanings assigned to them in or pursuant to the Trust
Agreement dated as of November 1, 2001 (such trust agreement, as supplemented or
amended is herein called the "Trust Agreement"), between GreenPoint Mortgage
Securities, Inc., as sponsor, and Wilmington Trust Company, as Owner Trustee
(the "Owner Trustee," which term includes any successor Owner Trustee under the
Trust Agreement), as so supplemented or amended.

         The Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes
(together, the "Notes") are and will be equally and ratably secured by the
collateral pledged as security therefor as provided in the Indenture.

         Principal of the Class A-3 Notes will be payable on each Payment Date
in an amount described in the Indenture. "Payment Date" means the fifteenth day
of each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing December 17, 2001. The term "Payment Date," shall be
deemed to include the Final Scheduled Payment Date.

                                     A-3-3
<PAGE>

         As described above, the entire unpaid principal amount of this Class
A-3 Note shall be due and payable on the earlier of the Final Scheduled Payment
Date and the Redemption Date, if any, pursuant to Section 10.1 of the Indenture.
Notwithstanding the foregoing, on the date on which a Rapid Amortization Period
as described in Section 5.1(a) shall have occurred and be continuing and, in the
limited instances specified in the Indenture, the Holders representing more than
50% of the Outstanding Amount of the Class A-3 Notes, with the prior written
consent of the Insurer (so long as there is no continuing Insurer Default) shall
have the right among others to direct the Indenture Trustee to sell or liquidate
the Pool III Mortgage Loans as provided in Section 12.1 of the Indenture and pay
such amounts to the Holders of the Class A-3 Notes. All principal payments on
the Class A-3 Notes shall be made pro rata to the Holders of the Class A-3 Notes
entitled thereto.

         Payments of interest on this Class A-3 Note due and payable on each
Payment Date, together with the installment of principal, if any, to the extent
not in full payment of this Class A-3 Note, shall be made by check mailed to the
Person whose name appears as the Holder of this Class A-3 Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each
Record Date, except that with respect to Class A-3 Note registered on the Record
Date in the name of the nominee of the Clearing Agency (initially, such nominee
to be Cede & Co.), payments will be made by wire transfer in immediately
available funds to the account designated by such nominee. Such checks shall be
mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of the applicable Record Date without requiring
that this Note be submitted for notation of payment. Any reduction in the
principal amount of this Note (or any one or more Predecessor Notes) effected by
any payments made on any Payment Date shall be binding upon all future Holders
of this Class A-3 Note and of any Class A-3 Note issued upon the registration of
transfer hereof or in exchange hereof or in lieu hereof, whether or not noted
hereon. If funds are expected to be available, as provided in the Indenture, for
payment in full of the then remaining unpaid principal amount of this Class A-3
Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf
of the Issuer, will notify the Person who was the Holder hereof as of the Record
Date preceding such Payment Date by notice mailed prior to such Payment Date and
the amount then due and payable shall be payable only upon presentation and
surrender of this Class A-3 Note at the office designated by the Indenture
Trustee for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the Class A-3 Interest Rate to the extent lawful.

         As provided in the Indenture, the Class A-3 Notes may be redeemed
pursuant to Section 10.1 of the Indenture, in whole, but not in part, at the
option of the Sponsor (with the consent of the Insurer under certain
circumstances), on any Payment Date after the Payment Date on which the Class
A-3 Note Principal Balance is less than or equal to 10% of the Original Class
A-3 Note Principal Balance, after taking into account all distributions made on
such Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Class A-3 Note may be registered on the Note
Register upon surrender of this Class A-3 Note for registration of transfer at
the office or agency designated by the Issuer pursuant to the Indenture, (i)
duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or his
attorney duly authorized in writing, with such signature guaranteed by an
"eligible guarantor institution" meeting the requirements of the Note Registrar
which requirements include membership or participation in Notes Transfer Agents
Medallion Program ("Stamp") or such other "signature guarantee program" as may
be determined by the Registrar in addition to, or in substitution for, Stamp,
all in accordance with the Exchange Act, and (ii) accompanied by such other
documents as the Indenture Trustee may require, and thereupon one or more new
Notes of authorized denominations and in the same aggregate principal amount
will be issued to the designated transferee or transferees. No service charge
will be charged for any registration of transfer or exchange of this Class A-3
Note, but the transferor may be required to pay a sum sufficient to cover any
tax or other governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

                                     A-3-4
<PAGE>

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Sponsor, the Servicer, the Indenture Trustee or the
Owner Trustee in its individual capacity, (ii) any owner of a beneficial
interest in the Issuer or (iii) any owner, beneficiary, agent, officer, director
or employee of the Sponsor, the Servicer, the Indenture Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the
Issuer, the Sponsor, the Servicer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Sponsor, the Servicer, 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 owner or beneficiary shall be fully liable, to the extent provided
by applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note covenants and agrees that by
accepting the benefits of the Indenture and the Trust Agreement that such
Noteholder will not at any time institute against the Sponsor, or the Issuer or
join in any institution against the Sponsor, or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings, under any United States Federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, the Trust Agreement,
the Indenture or the Basic Documents.

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and the Insurer and any agent of the Issuer,
the Indenture Trustee or the Insurer may treat the Person in whose name this
Note (as of the day of determination or as of such other date as may be
specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Indenture
Trustee nor any such agent shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Note under the Indenture at any time
by the Issuer with the consent of the Insurer and of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time
Outstanding. Any such consent or waiver by the Holder of this Note (or any one
of more Predecessor Notes) shall be conclusive and binding upon such Holder and
upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder but with the consent of the Insurer.

                                     A-3-5
<PAGE>

         The term "Issuer" as used in this Note includes any successor to the
Issuer under the Indenture or the Trust Agreement.

         The Class A-3 Notes are issuable only in registered form in
denominations as provided in the Indenture, subject to certain limitations
therein set forth.

         This Note, the Trust Agreement and the Indenture shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder and thereunder shall be determined in accordance with such
laws.

         No reference herein to the Trust Agreement or the Indenture and no
provision of this Note, the Trust Agreement or of the Indenture shall alter or
impair the obligation of the Issuer, which is absolute and unconditional, to pay
the principal of and interest on this Note at the times, place, and rate, and in
the coin or currency herein prescribed.

         Anything herein to the contrary notwithstanding, except as expressly
provided in the Trust Agreement, the Indenture or the Basic Documents, neither
Wilmington Trust Company in its individual capacity, any owner of a beneficial
interest in the Issuer, nor any of their respective beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally
liable for, nor shall recourse be had to any of them for, the payment of
principal of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that said covenants, obligations and
indemnifications have been made by the Issuer for the sole purposes of binding
the interests of the Issuer in the assets of the Issuer. The Holder of this Note
by the acceptance hereof agrees that except as expressly provided in the
Indenture or the Basic Documents in the case of a Rapid Amortization Event with
respect to the Class A-3 Notes under the Indenture, the Holder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein shall be taken to prevent
recourse to, and enforcement against, the assets of the Issuer for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note.

                                     A-3-6
<PAGE>

         IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed,
manually or in facsimile, by its Authorized Officer.

Date:  November 20, 2001    GREENPOINT HOME EQUITY LOAN TRUST 2001-2

                            By:  Wilmington Trust Company, not in its individual
                                 capacity but solely as Owner Trustee

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

                                     A-3-7
<PAGE>

                INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

         This is one of the Notes designated above and referred to in the
within-mentioned Indenture.

Date:  November 20, 2001            The Bank of New York, not in its individual
                                    capacity but solely as Indenture Trustee

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

                                     A-3-8<PAGE>

                                                                   Exhibit 4.4
                                                                 EXECUTION COPY

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

                        MORTGAGE LOAN PURCHASE AGREEMENT

                                    Between

                       GREENPOINT MORTGAGE FUNDING, INC.,

                                   as Seller

                                      and

                      GREENPOINT MORTGAGE SECURITIES INC.,

                                  as Purchaser

                          Dated as of November 1, 2001

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

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                  Page
                                                                                  ----
<S>                                                                               <C>
ARTICLE I Definitions.................................................................1

ARTICLE II Procedures for Purchase of Mortgage Loans; Conditions Precedent;
           Settlements................................................................1

   Section 2.01. Purchase and Sale....................................................1
   Section 2.02. Delivery of Documents; Purchase of Initial Mortgage Loans............2
   Section 2.03. Delivery of Documents; Purchases of Subsequent Mortgage Loans........3
   Section 2.04. Purchase Requests....................................................3
   Section 2.05. Survival of Representations..........................................3
   Section 2.06. Proceeds of Mortgage Loans...........................................3
   Section 2.07. Defective Mortgage Loans.............................................4

ARTICLE III Intent of Parties; Security Interest......................................4

   Section 3.01. Intent of Parties; Security Interest.................................4

ARTICLE IV Representations and Warranties.............................................4

   Section 4.01. Representations and Warranties of Seller.............................4
   Section 4.02. Representations and Warranties Regarding Mortgage Loans..............6
   Section 4.03. Representations and Warranties of Purchaser.........................19
   Section 4.04. Remedies for Breach of Representations and Warranties;
                 Repurchase Obligation...............................................20

ARTICLE V Covenants and Warranties of Seller.........................................21

   Section 5.01.      Affirmative Covenants..........................................21
   Section 5.02.      Negative Covenants.............................................23

ARTICLE VI Sale of Mortgage Loans from the Purchaser to the Trust....................23

   Section 6.01.      Sale and Servicing Agreement...................................23

ARTICLE VII Seller's Servicing Obligations...........................................25

   Section 7.01.      Seller's Servicing Obligations.................................25

ARTICLE VIII Fees and Expenses.......................................................25

ARTICLE IX Termination; Additional Remedies..........................................25

ARTICLE X Payment of Purchase Price..................................................26

   Section 10.01.     Purchase Price Payments........................................26
   Section 10.02.     The Purchaser Note.............................................26

ARTICLE XI Confidentiality...........................................................27

ARTICLE XII Term.....................................................................27

</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                               <C>

ARTICLE XIII Exclusive Benefit of Parties; Assignment................................27

ARTICLE XIV Amendment; Waivers.......................................................28

ARTICLE XV Execution in Counterparts.................................................28

ARTICLE XVI Effect of Invalidity of Provisions.......................................28

ARTICLE XVII Governing Law...........................................................28

ARTICLE XVIII Notices................................................................29

ARTICLE XIX Entire Agreement.........................................................29

ARTICLE XX Indemnities...............................................................29

ARTICLE XXI RESPA Obligations........................................................30

ARTICLE XXII Survival................................................................31

ARTICLE XXIII Right of Set-off.......................................................31

ARTICLE XXIV Consent to Service......................................................31

ARTICLE XXV Submission to Jurisdiction; Waiver of Trial by Jury......................31

ARTICLE XXVI Construction............................................................32

ARTICLE XXVII Further Agreements.....................................................32

EXHIBIT A     Form of Non-Negotiable GreenPoint Mortgage Securities Inc.
              Promissory Note

EXHIBIT B     Form of Purchase Request

SCHEDULE I:   Mortgage Loan Schedule

</TABLE>

                                       ii
<PAGE>

         MORTGAGE LOAN PURCHASE AGREEMENT ("Agreement") dated as of November 1,
2001 between GreenPoint Mortgage Funding, Inc., a New York corporation
("Seller"), and GreenPoint Mortgage Securities Inc., a Delaware corporation
("Purchaser").

         WHEREAS, Seller desires to sell to Purchaser the Mortgage Loans (as
hereinafter defined), and Purchaser desires to purchase such Mortgage Loans in
accordance with the terms and conditions set forth in this Agreement.

         NOW, THEREFORE, the parties, in consideration of good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound, hereby agree as follows:

                                   ARTICLE I.

                                   Definitions

         All capitalized terms used in this Agreement and not otherwise defined
herein, shall have the meanings assigned thereto in Annex A to the Indenture
dated as of November 1, 2001, between the Issuer and the Indenture Trustee, as
the same may be amended and supplemented from time to time.

                                  ARTICLE II.

         Procedures for Purchase of Mortgage Loans; Conditions Precedent;
Settlements

         Section 2.01. Purchase and Sale(a) (a) On the Closing Date in
consideration for the Purchase Price the Seller hereby sells, transfers,
assigns, sets over and otherwise conveys to the Purchaser, without recourse, all
of its right, title and interest in, to and under, whether now existing or
hereafter created, (i) each Initial Mortgage Loan, including its Principal
Balance (and any Additional Balances) and all collections in respect thereof
received after the Initial Cut-Off Date (excluding Interest Collections due on
or prior to the Initial Cut-off Date); (ii) property that secured an Initial
Mortgage Loan that is acquired by foreclosure or deed in lieu of foreclosure;
(iii) the Seller's rights under the related hazard insurance policies; and (iv)
all proceeds with respect to the foregoing (collectively, the "Initial Purchased
Assets"). The Purchase Price on the Closing Date shall be payable in a
combination of cash and credit for a capital contribution made to the Purchaser
by the Seller.

         (b) On each Subsequent Transfer Date in consideration for the Purchase
Price, the Seller hereby agrees to sell, transfer, assign, set over and
otherwise convey to the Purchaser, without recourse, all of its right, title and
interest in, to and under, whether then existing or thereafter created, (i) each
Subsequent Mortgage Loan, including its Principal Balance (and any Additional
Balances) and all collections in respect thereof received after the related
Subsequent Cut-Off Date (excluding Interest Collections due on or prior to the
related Subsequent Cut-off Date); (ii) property that secured a Subsequent
Mortgage Loan that is acquired by foreclosure or deed in lieu of foreclosure;
(iii) the Seller's rights under the related hazard insurance policies; and (iv)
all proceeds with respect to the foregoing (collectively, the "Subsequent
Purchased Assets" and, together with the Initial Purchased Assets, the
"Purchased Assets"). The Purchase Price on each Subsequent Transfer Date shall
be payable in a combination of cash and credit for a capital contribution made
to the Purchaser by the Seller. Each such purchase with respect to the
Subsequent Mortgage Loans shall be initiated by the Seller pursuant to the
delivery to the Purchaser of a Purchase Request in the manner set forth in
Section 2.04.

<PAGE>

         (c) To the extent that the fair market value of any Additional Balance
or Subsequent Mortgage Loan sold by the Seller to the Purchaser is greater than
the cash consideration paid by the Purchaser for such Additional Balance or
Subsequent Mortgage Loan, the difference between such fair market value and the
amount of such cash consideration shall be deemed to be a combination of a
credit for a capital contribution made to the Purchaser by the Seller and an
increase in the principal amount of the Purchaser Note pursuant to Article X.

         Section 2.02. Delivery of Documents; Purchase of Initial Mortgage
Loans. Prior to the purchase of the Initial Mortgage Loans:

         (a) Seller shall have delivered to the Purchaser or any agent appointed
by the Purchaser the Mortgage File for each of the Mortgage Loans.

         (b) Purchaser shall have received a Mortgage Loan Schedule pertaining
to the related Mortgage Loans.

         (c) Purchaser shall have received copies of the resolutions of the
Board of Directors of Seller, certified by its respective Secretary, approving
this Agreement.

         (d) Purchaser shall have received the Certificate of Incorporation of
Seller certified by the Secretary of State of the State of New York.

         (e) Purchaser shall have received a certificate of the Secretary or
Assistant Secretary of Seller certifying (i) the names and signatures of the
officers authorized on its behalf to execute this Agreement, and any other
documents to be delivered by it hereunder and (ii) a copy of Seller's By-laws.

         (f) Purchaser shall have received an opinion of counsel to Seller as to
the due authorization, execution and delivery by the Seller of this Agreement
and as to the validity and enforceability of the transfers contemplated
hereunder and addressing such other matters as the Purchaser may reasonably
request.

         (g) Seller shall have instructed the applicable debtor, trustee, paying
agent, authenticating agent, transfer agent, registrar, predecessor in interest,
owner (if the Mortgage Loans are in the form of a security agreement), or
servicer, if any, in respect of the related Mortgage Loans to reflect on their
books and records the transfer of such Mortgage Loans to Purchaser, as owner or
secured party (if the Mortgage Loans are in the form of a security agreement).

         (h) Purchaser shall have received the most recent available standard
servicing or lien reports in summary form, if any, with respect to all of the
mortgages in Seller's portfolio similar to the Mortgage Loans.

                                       2
<PAGE>

         (i) The Purchaser shall be permitted to perform its standard loan
review of each Mortgage Loan to be purchased.

         (j) UCC-1 financing statements duly executed by Seller as debtor shall
have been filed in New York naming the Purchaser as secured party and the
Indenture Trustee on behalf of the Trust as assignee.

         Section 2.03. Delivery of Documents; Purchases of Subsequent Mortgage
Loans. Prior to any purchase of Subsequent Mortgage Loans after the purchase of
Initial Mortgage Loans, the actions, conditions and deliveries specified in
Section 2.02 shall have been taken or made, as the case may be with respect to
the Subsequent Mortgage Loans.

         Section 2.04. Purchase Requests. Seller shall deliver to Purchaser a
Purchase Request at least three Business Days prior to the proposed Subsequent
Transfer Date for any purchase of Subsequent Mortgage Loans (unless otherwise
agreed by the parties). Purchaser shall indicate its acceptance or declination
of each Purchase Request by completing the appropriate section of the Purchase
Request and returning the copy thereof to Seller; provided, however, that
Purchaser hereby agrees to accept each Purchase Request if all of the conditions
to such Purchase provided for in this Agreement (including, without limitation,
Section 2.02 hereof and the conditions with respect to the purchase of
Subsequent Mortgage Loans) have been satisfied.

         With respect to all Purchase Requests, if Purchaser does not send a
copy of a completed Purchase Request to Seller within at least three Business
Days prior to the proposed Purchase Date (five Business Days, if the related
Purchase Request was received by Purchaser at least two calendar weeks prior to
the proposed Purchase Date), Purchaser shall be deemed to have accepted such
Purchase Request. Each Purchase Request accepted by Purchaser shall be
irrevocable and binding on Purchaser and Seller. Seller shall indemnify
Purchaser and hold it harmless against any Losses incurred by Purchaser as a
result of any failure by Seller to timely deliver the Subsequent Mortgage Loans
subject to such Purchase. On the applicable Purchase Date, the Purchaser shall
pay Seller the Purchase Price for the related Subsequent Mortgage Loans against
receipt of the documents required to be delivered by Seller pursuant to Section
2.03.

         Section 2.05. Survival of Representations. The terms and conditions of
the purchase of each Mortgage Loan shall be as set forth in this Agreement.
Seller will be deemed on the Closing Date and on each Purchase Date to have made
to Purchaser the representations and warranties set forth in Article IV hereof
and such representations and warranties of Seller shall be true and correct on
and as of the Closing Date and on and as of each Purchase Date. Each Purchase
Request made by Seller shall be deemed to be a restatement of each of the
covenants of Seller made pursuant to Article V of this Agreement. In addition,
Seller shall reaffirm the representations and warranties contained in Article IV
on the date of disposition of the Mortgage Loans by the Purchaser pursuant to
the Sale and Servicing Agreement.

         Section 2.06. Proceeds of Mortgage Loans. The transfer and sale hereby
of all of the Seller's right, title and interest in and to each Mortgage Loan
shall include all proceeds, products and profits derived therefrom, including,
without limitation, all scheduled payments of principal of and interest on such
Mortgage Loans and other amounts due or payable or to become due or payable in
respect thereof and proceeds thereof, including, without limitation, all moneys,
goods and other tangible or intangible property received upon the liquidation or
sale thereof.

                                       3
<PAGE>

         Section 2.07. Defective Mortgage Loans. If any Mortgage Loan is
re-transferred to the Purchaser pursuant to Section 2.03 or 2.05 of the Sale and
Servicing Agreement, the Seller shall, at the Purchaser's option, either (a)
repurchase such Mortgage Loan at the Loan Purchase Price, or (b) provide an
Eligible Substitute Mortgage Loan if the Seller has any such loans available for
sale at the time, subject to the terms and conditions of the Sale and Servicing
Agreement.

                                  ARTICLE III

                      Intent of Parties; Security Interest

         Section 3.01. Intent of Parties; Security Interest. Purchaser and
Seller confirm that the transactions contemplated herein are intended as
purchases and sales rather than as loan transactions. In the event, for any
reason, and solely in such event, any transaction hereunder is construed by any
court or regulatory authority as a loan or other purchase and sale of the
related Purchased Assets, Seller shall be deemed to have hereby pledged to
Purchaser as security for the performance by Seller of all of its obligations
from time to time arising hereunder and under any and all Purchases effected
pursuant thereto, and shall be deemed to have granted to Purchaser a security
interest in, the related Purchased Assets and all distributions in respect
thereof, and the proceeds of any and all of the foregoing whether now owned or
hereafter acquired, (collectively, the "Collateral"). In furtherance of the
foregoing, (i) this Agreement shall constitute a security agreement, (ii)
Purchaser shall have all of the rights of a secured party with respect to the
Collateral pursuant to applicable law and (iii) Seller shall execute all
documents, including, but not limited to, financing statements under the Uniform
Commercial Code as in effect in any applicable jurisdictions, as the Purchaser
may reasonably require to effectively perfect and evidence Purchaser's first
priority security interest in the Collateral. Seller also covenants not to
pledge, assign or grant any security interest to any other party in any Mortgage
Loan sold to Purchaser.

                                   ARTICLE IV

                         Representations and Warranties

         Section 4.01. Representations and Warranties of Seller. The Seller
represents, warrants and covenants to the Purchaser as of the Closing Date and,
with respect to the Subsequent Mortgage Loans as of each related Subsequent
Transfer Date, that:

                  (i) the Seller is duly organized, validly existing and in good
         standing under the laws of the State of New York and is duly authorized
         and qualified to transact any and all business contemplated by this
         Agreement to be conducted by the Seller in any state in which a
         Mortgaged Property is located to the extent necessary to ensure the
         enforceability of each Mortgage Loan and the servicing of the Mortgage
         Loan in accordance with the terms of this Agreement;

                                       4
<PAGE>

                  (ii) the Seller has the full corporate power and authority to
         service each Mortgage Loan, and to execute, deliver and perform, and to
         enter into and consummate the transactions contemplated by this
         Agreement and the execution, delivery and performance of this Agreement
         by the Seller has been duly authorized by all necessary corporate
         action on the part of the Seller; and this Agreement, assuming the due
         authorization, execution and delivery thereof by the Purchaser,
         constitutes a legal, valid and binding obligation of the Seller,
         enforceable against the Seller in accordance with its respective terms,
         except to the extent that (a) the enforceability thereof may be limited
         by federal or state bankruptcy, insolvency, moratorium, receivership
         and other similar laws relating to creditors' rights generally and (b)
         the remedy of specific performance and injunctive and other forms of
         equitable relief may be subject to the equitable defenses and to the
         discretion of the court before which any proceeding therefor may be
         brought;

                  (iii) the execution and delivery of this Agreement by the
         Seller, the servicing of the Mortgage Loans by the Seller hereunder,
         the consummation by the Seller of the transactions herein contemplated,
         and the fulfillment by the Seller of or compliance by the Seller with
         the terms hereof will not (A) result in a breach of any term or
         provision of the charter or by-laws of the Seller or (B) conflict with,
         result in a breach, violation or acceleration of, or result in a
         default under, the terms of any other material agreement or instrument
         to which the Seller is a party or by which it may be bound, or any
         statute, order or regulation applicable to the Seller of any court,
         regulatory body, administrative agency or governmental body having
         jurisdiction over the Seller, which breach, violation, default or
         non-compliance would have a material adverse effect on (a) the
         business, operations, financial condition, properties or assets of the
         Seller taken as a whole or (b) the ability of the Seller to perform its
         obligations under this Agreement; and the Seller is not a party to,
         bound by, or in material breach or violation of any indenture or other
         agreement or instrument, or subject to or in violation of any statute,
         order or regulation of any court, regulatory body, administrative
         agency or governmental body having jurisdiction over it, which
         materially and adversely affects or, to the Seller's knowledge, would
         in the future reasonably be expected to materially and adversely
         affect, (x) the ability of the Seller to perform its obligations under
         this Agreement or (y) the business, operations, financial condition,
         properties or assets of the Seller taken as a whole;

                  (iv) the Seller is, and currently intends to remain, in good
         standing and qualified to do business in each jurisdiction where
         failure to be so qualified or licensed would have a material adverse
         effect on (a) the business, operations, financial condition, properties
         or assets of the Seller taken as a whole or (b) the enforceability of
         any Mortgage Loan or the servicing of the Mortgage Loans in accordance
         with the terms of this Agreement;

                  (v) there is no litigation or administrative proceeding
         pending or, to the Seller's best knowledge, threatened against the
         Seller that would materially and adversely affect the execution,
         delivery or enforceability of this Agreement or the ability of the
         Seller to service the Mortgage Loans or for the Seller to perform any
         of its other obligations hereunder in accordance with the terms hereof;

                                       5
<PAGE>

                  (vi) no consent, approval, authorization or order of any court
         or governmental agency or body is required for the execution, delivery
         and performance by the Seller of, or compliance by the Seller with,
         this Agreement or the consummation of the transactions contemplated
         hereby, or if any such consent, approval, authorization or order not
         relating to a future transaction is required, the Seller has obtained
         the same;

                  (vii) the Seller has caused to be performed any and all acts
         required to preserve the rights and remedies of the Purchaser in any
         insurance policies of the Seller or a mortgagee applicable to the
         Mortgage Loans sold by the Seller; and

                  (viii) the Seller is solvent and will not be rendered
         insolvent by the transactions described herein and, after giving effect
         to the transactions described herein, the Seller will not be left with
         an unreasonably small amount of capital with which to engage in the
         ordinary course of its business, and the Seller does not intend to
         incur, nor does the Seller believe that it has incurred, debts beyond
         its ability to pay as they mature. The Seller does not contemplate the
         commencement of insolvency, liquidation or consolidation proceedings or
         the appointment of a receiver, liquidator, conservator, trustee or
         similar official in respect of the Seller or any of its respective
         assets.

         Section 4.02. Representations and Warranties Regarding Mortgage Loans.
(a) Seller represents and warrants to Purchaser as of the Closing Date with
respect to each Initial Mortgage Loan, and, as of the related Subsequent
Transfer Date, with respect to each Subsequent Mortgage Loan, as follows:

                  (i) As of the Closing Date with respect to the Initial
         Mortgage Loans and as of the related Transfer Date with respect to the
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans
         and with respect to any HELOC Mortgage Loan, as of the date any
         Additional Balance is created, the information set forth in the
         Mortgage Loan Schedule for such Mortgage Loans is true and correct in
         all material respects;

                  (ii) Each Mortgage Loan is being serviced by the Servicer;

                  (iii) The applicable Cut-Off Date Principal Balance has not
         been assigned or pledged, and the Seller is the sole owner and holder
         of such Cut-Off Date Principal Balance free and clear of any and all
         liens, claims, encumbrances, participation interests, equities,
         pledges, charges or security interests of any nature, and has full
         right and authority, under all governmental and regulatory bodies
         having jurisdiction over the ownership of the applicable Mortgage
         Loans, to sell, assign or transfer the same pursuant to this Agreement
         and upon its acquisition of the Initial Mortgage Loans, as of the
         Closing Date, and the Subsequent Mortgage Loans, as of the applicable
         Transfer Date, the Sponsor will be the sole owner and holder of such
         Mortgage Loans free and clear of any and all liens claims,
         encumbrances, participating interests, equities, pledges, charges, or
         security interests of any nature;

                                       6
<PAGE>

                  (iv) Except with respect to liens released immediately prior
         to the transfer herein contemplated, each Credit Line Agreement and
         each Mortgage Note and related Mortgage has not been assigned or
         pledged and immediately prior to the transfer and assignment herein
         contemplated, the Seller held good, marketable and indefeasible title
         to, and was the sole owner and holder of, each Mortgage Loan subject to
         no liens, charges, mortgages, claims, participation interests,
         equities, pledges or security interests of any nature, encumbrances or
         rights of others (collectively, a "Lien"); the Seller has full right
         and authority under all governmental and regulatory bodies having
         jurisdiction over the Seller, subject to no interest or participation
         of, or agreement with, any party, to sell and assign the same pursuant
         to this Agreement; and immediately upon the transfers and assignments
         herein contemplated, the Seller shall have transferred all of its
         right, title and interest in and to each Mortgage Loan and the
         Purchaser will hold good, marketable and indefeasible title, to, and be
         the sole owner of, each Mortgage Loan subject to no Liens;

                  (v) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         the related Mortgage is a valid, enforceable and subsisting first or
         second lien, as set forth on the Mortgage Loan Schedule with respect to
         each related Mortgaged Property, and as of the applicable Cut-Off Date
         the related Mortgaged Property is free and clear of all encumbrances
         and liens having priority over the first or second lien, as applicable,
         of such Mortgage except for liens for (i) real estate taxes and special
         assessments not yet delinquent; (ii) any first mortgage loan secured by
         such Mortgaged Property and specified on the Mortgage Loan Schedule;
         (iii) covenants, conditions and restrictions, rights of way, easements
         and other matters of public record as of the date of recording that are
         acceptable to mortgage lending institutions generally or specifically
         reflected in the appraisals; and (iv) other matters to which like
         properties are commonly subject which do not materially interfere with
         the benefits of the security intended to be provided by such Mortgage;

                  (vi) As of the Closing Date and after the Closing Date with
         respect to the Initial Mortgage Loans and the applicable Transfer Date
         and after the applicable Transfer Date with respect to any Subsequent
         Mortgage Loans and any Eligible Substitute Mortgage Loans, there is no
         valid right to rescission, offset, defense (including the defense of
         usury) or counterclaim of any obligor under any Loan Agreement or
         Mortgage;

                  (vii) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         there is no delinquent recording or other tax or fee or assessment lien
         against any related Mortgaged Property;

                  (viii) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         there is no proceeding pending or threatened for the total or partial
         condemnation of any Mortgaged Property, nor is such a proceeding
         currently occurring, and such property is in good repair and is
         undamaged by waste, fire, earthquake or earth movement, windstorm,
         flood, other types of water damage, tornado or other casualty, so as to
         affect adversely the value of the Mortgaged Property as security for
         the Mortgage Loan or the use for which the premises were intended;

                                       7
<PAGE>

                  (ix) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         there are no mechanics' or similar liens or claims which have been
         filed for work, labor or material affecting the related Mortgaged
         Property which are, or may be, liens prior or equal to the lien of the
         related Mortgage and no rights are outstanding which could give rise to
         such liens, except liens which are fully insured against by the title
         insurance policy or other title protection referred to in clause (xiv);

                  (x) No Minimum Monthly Payment is more than 59 days delinquent
         (measured on a contractual basis);

                  (xi) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         for each Mortgage Loan, the related Mortgage File contains each of the
         documents and instruments specified to be included therein;

                  (xii) The related Loan Agreement and the related Mortgage at
         origination complied in all material respects with applicable state,
         local and federal laws and regulations, including, without limitation,
         usury, truth-in-lending, real estate settlement procedures, consumer
         credit protection, equal credit opportunity, recording or disclosure
         laws applicable to the Mortgage Loans and consummation of the
         transactions contemplated hereby, including without limitation the
         receipt of interest, will not involve the violation or such laws;

                  (xiii) On the Closing Date with respect to the Initial
         Mortgage Loans and to the extent not already included in such filing,
         on the applicable Transfer Date with respect to any Subsequent Mortgage
         Loans and any Eligible Substitute Mortgage Loans, the Seller has filed
         UCC-1 financing statements with respect to such Mortgage Loans;

                  (xiv) A lender's policy of title insurance, expressClose.com
         lender master protection program (standard mortgage guaranty) or a
         commitment (binder) to issue the same or an attorney's certificate or
         opinion of title was effective on the date of the origination of each
         mortgage loan and each such policy or certificate or opinion of title
         is valid and remains in full force and effect;

                  (xv) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         none of the Mortgaged Properties is a mobile home or a manufactured
         housing unit;

                  (xvi) As of the Initial Cut-Off Date for the Mortgage Loans no
         more than (a) approximately 0.73% of the Initial Pool I Mortgage Loans
         (by Initial Pool I Balance), (b) approximately 0.67% of the Initial
         Pool II Mortgage Loans (by Initial Pool II Balance) and (c)
         approximately 2.05% of the Initial Pool III Mortgage Loans (by Initial
         Pool III Balance) are secured by Mortgaged Properties located in one
         United States postal zip code;

                  (xvii) The Combined Loan-to-Value Ratio for each Initial Pool
         I Mortgage Loan was not in excess of 100%, the Combined Loan-to-Value
         Ratio for each Initial Pool II Mortgage Loan was not in excess of 100%
         and the Combined Loan-to-Value Ratio for each Initial Pool III Mortgage
         Loan was not in excess of 100%;

                                       8
<PAGE>

                  (xviii) Each Pool I Mortgage Loan conforms to all applicable
         loan origination standards with respect to loan balances and other
         items as of the date of origination set forth by the Federal Home Loan
         Mortgage Corporation.

                  (xix) Each Pool II Mortgage Loan conforms to all applicable
         loan origination standards with respect to loan balances and other
         items as of the date of origination set forth by the Federal National
         Mortgage Association.

                  (xx) No selection procedure that identified the Mortgage Loans
         as being less desirable or valuable than other comparable Mortgage
         Loans originated or acquired by the Seller was utilized in selecting
         the Mortgage Loans for sale to the Purchaser; provided, however, that
         the Mortgage Loans were selected from the pool of mortgage loans
         originated in connection with the Seller's mortgage loan origination
         program;

                  (xxi) The Seller has not transferred the Mortgage Loans to the
         Purchaser with any intent to hinder, delay or defraud any of its
         creditors;

                  (xxii) The Minimum Monthly Payment with respect to any
         Mortgage Loan is not less than the interest accrued at the applicable
         Loan Rate on the average daily Principal Balance during the interest
         period relating to the date on which such Minimum Monthly Payment is
         due;

                  (xxiii) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         each Loan Agreement and each Mortgage Loan is genuine and is a legal,
         valid, binding and enforceable obligation of the related Mortgagor,
         except as the enforceability thereof may be limited by the bankruptcy,
         insolvency or similar laws affecting creditors' rights generally;

                  (xxiv) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         there has been no default, breach, violation or event of acceleration
         of any senior mortgage loan related to a Mortgaged Property that has
         not been cured by a party other than the Servicer;

                  (xxv) The terms of each Mortgage Note and each Mortgage have
         not been impaired, altered or modified in any respect, except by a
         written instrument which (if such instrument is secured by real
         property) has been recorded, if necessary, to protect the interest of
         the Noteholders and which has been delivered to the Indenture Trustee.
         The substance of any such alteration or modification is reflected on
         the related Mortgage Loan Schedule and has been approved by the primary
         mortgage guaranty insurer, if any;

                  (xxvi) The definition of "prime rate" in each Credit Line
         Agreement relating to a HELOC Mortgage Loan does not differ materially
         from the definition in the form of Credit Line Agreement in Exhibit D
         to the Sale and Servicing Agreement;

                                       9
<PAGE>

                  (xxvii) The weighted average remaining term to maturity of the
         Initial Pool I Mortgage Loans on a contractual basis as of the related
         Initial Cut-Off Date is approximately 210 months. The weighted average
         remaining term to maturity of the Initial Pool II Mortgage Loans on a
         contractual basis as of the related Initial Cut-Off Date is
         approximately 205 months. The weighted average remaining term to
         maturity of the Initial Pool III Mortgage Loans on a contractual basis
         as of the related Initial Cut-Off Date is approximately 202 months. On
         each date that the Loan Rates relating to Initial HELOC Mortgage Loans
         have been adjusted, interest rate adjustments on the Initial HELOC
         Mortgage Loans were made in compliance with the related Mortgages and
         Credit Line Agreement and applicable law and all required notices of
         interest rate adjustments were sent to each Mortgagor on a timely
         basis. Over the term of each Initial HELOC Mortgage Loan, the Loan Rate
         may not exceed the related Loan Rate Cap, if any. With respect to the
         Initial Pool I HELOC Mortgage Loans, the weighted average Loan Rate Cap
         is 18.00%. With respect to the Initial Pool II HELOC Mortgage Loans,
         the weighted average Loan Rate Cap is approximately 18.00%. With
         respect to the Initial Pool III HELOC Mortgage Loans, the weighted
         average Loan Rate Cap is approximately 18.00%. With respect to the
         Initial Pool I HELOC Mortgage Loans, the margins range between 0.00%
         and 6.125% and the weighted average margin is approximately 2.386% as
         of the related Initial Cut-Off Date. With respect to the Initial Pool
         II HELOC Mortgage Loans, the margins range between 0.00% and 8.50% and
         the weighted average margin is approximately 2.322% as of the related
         Initial Cut-Off Date. With respect to the Initial Pool III HELOC
         Mortgage Loans, the margins range between 0.00% and 6.50% and the
         weighted average margin is approximately 2.534% as of the related
         Initial Cut-Off Date. The Loan Rates on the Initial Pool I Mortgage
         Loans range between 5.75% and 12.625%, the Loan Rates on the Initial
         Pool II Mortgage Loans range between 5.5% and 12.25%, the Loan Rates on
         the Initial Pool III Mortgage Loans range between 2.50% and 13.875%,
         and the weighted average Loan Rate is approximately 7.294% for Pool I,
         7.108% for Pool II and 7.678% for Pool III;

                  (xxviii) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loans,
         each Mortgaged Property consists of a single parcel of real property
         with a one-to-four unit single family residence erected thereon, or an
         individual condominium unit, planned unit development unit or
         townhouse;

                  (xxix) No more than approximately 31% (by Initial Pool I
         Balance) of the Initial Pool I Mortgage Loans are secured by real
         property improved by individual condominium units, planned development
         units or two-to-four family residences erected thereon, and
         approximately 69% (by Initial Pool I Balance) of the Initial Pool I
         Mortgage Loans are secured by real property with a one-family residence
         erected thereon. No more than approximately 27.01% (by Initial Pool II
         Balance) of the Initial Pool II Mortgage Loans are secured by real
         property improved by individual condominium units, planned development
         units or two-to-four family residences erected thereon, and
         approximately 72.99% (by Initial Pool II Balance) of the Initial Pool
         II Mortgage Loans are secured by real property with a one-family
         residence erected thereon. No more than approximately 29.69% (by
         Initial Pool III Balance) of the Initial Pool III Mortgage Loans are
         secured by real property improved by individual condominium units,
         planned development units or two-to-four family residences erected
         thereon, and approximately 70.31% (by Initial Pool III Balance) of the
         Initial Pool III Mortgage Loans are secured by real property with a
         one-family residence erected thereon;

                                       10
<PAGE>

                  (xxx) Each Mortgage Note evidencing a Closed End Mortgage Loan
         is comprised of one original promissory note and each such promissory
         note constitutes an "instrument" for purposes of Section 9-102(A)(47)
         of the UCC. There is no obligation on the part of the Seller or any
         other party to make payments in addition to those made by the Mortgagor
         with respect to the Closed End Mortgage Loans;

                  (xxxi) The Credit Limits on the Initial Pool I HELOC Mortgage
         Loans range between $10,000 and $250,000 with an average of
         approximately $60,064. The Credit Limits on the Initial Pool II HELOC
         Mortgage Loans range between $63,000 and $232,000 with an average of
         approximately $40,927. The Credit Limits on the Initial Pool III HELOC
         Mortgage Loans range between $4,800 and $500,000 with an average of
         approximately $71,202. The Principal Balances on the Initial Pool I
         HELOC Mortgage Loans range between approximately $0 and $148,351 with
         an average of approximately $46,763. The Principal Balances on the
         Initial Pool II HELOC Mortgage Loans range between approximately $0 and
         $175,442 with an average of approximately $31,855. The Principal
         Balances on the Initial Pool III HELOC Mortgage Loans range between
         approximately $0 and $494,958 with an average of approximately $49,564.
         The average Credit Limit Utilization Rate (weighted by Credit Limit) of
         the Initial Pool I HELOC Mortgage Loans is approximately 77.86%. The
         average Credit Limit Utilization Rate (weighted by Credit Limit) of the
         Initial Pool II HELOC Mortgage Loans is approximately 77.83%. The
         average Credit Limit Utilization Rate (weighted by Credit Limit) of the
         Initial Pool III HELOC Mortgage Loans is approximately 69.61%;

                  (xxxii) Approximately 97.78% of the Mortgage Loans are second
         liens, and either (A) no consent for each Mortgage Loan was required by
         the holder of the related senior lien, if any, prior to the making of
         such Mortgage Loan or (B) such consent has been obtained and is
         contained in the related Mortgage File;

                  (xxxiii) This Agreement constitutes a valid transfer and
         assignment to the Purchaser of all right, title and interest of the
         Seller in and to the Cut-Off Date Principal Balances with respect to
         the applicable Mortgage Loans, all monies due or to become due with
         respect thereto and all proceeds of such Cut-Off Date Principal
         Balances with respect to the Mortgage Loans and such funds as are from
         time to time deposited in the Collection Account (excluding any
         investment earnings thereon) and all other property specified in the
         definition of "Trust" as being part of the corpus of the Trust conveyed
         to the Trust, and upon payment for the Additional Balances, will
         constitute a valid transfer and assignment to the Purchaser of all
         right, title and interest of the Seller in and to the Additional
         Balances, all monies due or to become due with respect thereto, and all
         proceeds of such Additional Balances and all other property specified
         in the definition of "Trust" relating to the Additional Balances;

                  (xxxiv) As of the Closing Date no Initial Mortgage Loan is the
         subject of foreclosure proceedings and, to the best of the Sponsor's
         knowledge, no obligor of any of the Initial Mortgage Loans has filed
         for bankruptcy protection. As of the applicable Transfer Date, no
         Subsequent Mortgage Loan or Eligible Substitute Mortgage Loan is the
         subject of foreclosure proceedings and, to the best of the Sponsor's
         knowledge, no obligor of any of the Subsequent Mortgage Loans or
         Eligible Substitute Mortgage Loans has filed for bankruptcy protection;

                                       11
<PAGE>

                  (xxxv) The proceeds of each Closed End Mortgage Loan have been
         fully disbursed, and there is no obligation on the part of the
         mortgagee to make future advances thereunder. Any and all requirements
         as to completion of any on-site or off-site improvements and as to
         disbursements of any escrow funds therefor have been complied with. All
         costs, fees and expenses incurred in making or closing or recording
         such Closed End Mortgage Loans were paid;

                  (xxxvi) Each Mortgage contains customary and enforceable
         provisions which render the rights and remedies of the holder thereof
         adequate for the realization against the related Mortgaged Property of
         the benefits of the security, including (A) in the case of a Mortgage
         designated as a deed of trust, by trustee's sale and (B) otherwise by
         judicial foreclosure. Subject to applicable state law, there is no
         homestead or other exemption available to the Mortgagor which would
         materially interfere with the rights to sell the Mortgaged Property at
         a trustee's sale or the right to foreclose upon the related Mortgage;

                  (xxxvii) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loans and any Eligible Substitute Mortgage Loan,
         except for events permissible under Section 4.02(a)(x) of this
         Agreement, there is no default, breach, violation or event of
         acceleration existing under any Mortgage or the related Mortgage Note
         and no event which, with the passage of time or with notice and the
         expiration of any grace or cure period, would constitute a default,
         breach, violation or event of acceleration; and the Seller has not
         waived any default, breach, violation or event of acceleration;

                  (xxxviii) To the best knowledge of the Seller, all parties to
         the Mortgage Note and the Mortgage had legal capacity to execute the
         Mortgage Note and the Mortgage and each Mortgage Note and Mortgage have
         been duly and properly executed by such parties; Each Mortgage and
         Mortgage Note is the legal, valid and binding obligation of the related
         Mortgagor and is enforceable by the Purchaser or any transferor of the
         Purchaser against the Mortgagor in accordance with its terms, except
         only as such enforcement may be limited by bankruptcy, insolvency,
         reorganization, moratorium or other similar laws affecting the
         enforcement of creditors' rights generally and by law; there is only
         one originally executed Mortgage Note or Credit Line Agreement and
         promissory Note, as applicable, for each Mortgage Loan;

                  (xxxix) As of the Initial Cut-Off Date no more than
         approximately 0.34% of the Principal Balance of the Initial Pool I
         Mortgage Loans, none of the Initial Pool II Mortgage Loans, and no more
         than approximately 0.18% of the Principal Balance of the Initial Pool
         III Mortgage Loans represent Mortgage Loans with respect to which the
         related Mortgagor had a Credit Score of 600 or less at the time of
         origination or whose Credit Score was unavailable.

                  (xl) As of the Closing Date with respect to the Initial
         Mortgage Loans and the applicable Transfer Date with respect to any
         Subsequent Mortgage Loan and any Eligible Substitute Mortgage Loan, no
         Mortgagor has been released, in whole or in part, except in connection
         with an assumption agreement which has been approved by the applicable
         title insurer (to the extent required by such title insurer) and which
         is part of the Mortgage File delivered to the Indenture Trustee;

                                       12
<PAGE>

                  (xli) At the time of origination of each Mortgage Loan, the
         related prior lien was not more than 30 days delinquent. Additionally,
         as of the Closing Date, no senior mortgage loan on the related
         Mortgaged Property was more than 59 days delinquent;

                  (xlii) All required inspections, licenses and certificates
         with respect to the use and occupancy of all occupied portions of all
         property securing the Mortgages have been made, obtained or issued, as
         applicable;

                  (xliii) If the improvements securing a Mortgage Loan were in a
         federally designated special flood hazard area as of the date of
         origination, flood insurance to the extent required in Section 3.04 of
         the Sale and Servicing Agreement covers the related Mortgaged Property
         (either by coverage under the federal flood insurance program or by
         coverage by private insurers);

                  (xliv) With respect to each Mortgage Loan, the related prior
         lien does not provide for negative amortization;

                  (xlv) With respect to each Mortgage Loan, the maturity date of
         the Mortgage Loan is prior to the maturity date of the related prior
         lien if such prior lien provides for a balloon payment;

                  (xlvi) All amounts received after the Initial Cut-Off Date
         with respect to the Mortgage Loans to which the Seller is not entitled
         will be deposited into the Collection Account within one Business Day
         after the Closing Date;

                  (xlvii) Each Initial Pool I Mortgage Loan is secured by a
         property having an appraised value as of origination of $2,800,000 or
         less and each Initial Pool II Mortgage Loan is secured by a property
         having an appraised value as of origination of $2,250,000 or less and
         each Initial Pool III Mortgage Loan is secured by a property having an
         appraised value as of origination of $9,000,000 or less;

                  (xlviii) Except for events permissible under Section
         4.02(a)(x) of this Agreement, there are no defaults in complying with
         the terms of the Mortgage, and either (1) any taxes, governmental
         assessments, insurance premiums, water, sewer and municipal charges or
         ground rents which previously became due and owing have been paid, or
         (2) an escrow of funds has been established in an amount sufficient to
         pay for every such item which remains unpaid and which has been
         assessed but is not yet due and payable. There are no defaults in
         complying with the terms of any senior mortgage on the related
         Mortgaged Property that have not been cured by anyone other than the
         Servicer, except for any payment defaults of less than 30 days. Except
         for payments in the nature of escrow payments, including without
         limitation, taxes and insurance payments, the Seller has not advanced
         funds, or induced, solicited or knowingly received any advance of funds
         by a party other than the Mortgagor, directly or indirectly, for the
         payment of any amount required by the Mortgage Note, except for
         interest accruing from the date of the Mortgage Note or date of
         disbursement of the Mortgage proceeds, whichever is greater, to the day
         which precedes by one month the Due Date of the first installment of
         principal and interest;

                                       13
<PAGE>

                  (xlix) With respect to each Mortgage Loan, the improvements
         upon each Mortgaged Property are covered by a valid and existing hazard
         insurance policy with a carrier generally acceptable to the Servicer
         that provides for fire and extended coverage representing coverage not
         less than (a) the Credit Limit of such HELOC Mortgage Loan or (b) the
         Cut-Off Date Principal Balance of such Closed End Mortgage Loan or (c)
         the maximum insurable value of the Mortgaged Property;

                  (l) No misrepresentation of a material fact or fraud in
         respect of the origination, modification or amendment of any Mortgage
         Loan has taken place on the part of any person, including, without
         limitation, the related Mortgagor, any appraiser, any builder or
         developer or any party involved in the origination of such Mortgage
         Loan;

                  (li) With respect to the Initial Mortgage Loans, the terms of
         the Mortgage Note and the Mortgage have not been impaired, altered or
         modified in any material respect, except by a written instrument which
         has been recorded or is in the process of being recorded, if necessary,
         to protect the interests of the Insurer and the Purchaser and which has
         been or will be delivered to the Indenture Trustee on behalf of the
         Purchaser; and no Mortgage has been satisfied, cancelled or rescinded,
         in whole or in part, and the Mortgaged Property securing the Mortgage
         has not been released from the lien of the Mortgage, in whole or in
         part, nor has any instrument been executed that would effect any such
         release, cancellation or rescission;

                  (lii) As of the Initial Cut-Off Date, no Mortgage Loan is more
         than 59 days delinquent in payment of principal and interest;

                  (liii) Except for Mortgage Loans that are delinquent for a
         time period less than that set forth in (lii) above, there is no
         default, breach, violation or event of acceleration existing under any
         Mortgage or the related Mortgage Note and no event which, with the
         passage of time or with notice and the expiration of any grace or cure
         period, would constitute a default, breach, violation or event of
         acceleration; and neither the Seller, nor any other entity involved in
         originating or servicing a Mortgage Loan, has waived any default,
         breach, violation or event of acceleration;

                  (liv) None of the Mortgage Loans are cooperative share
         mortgages;

                  (lv) Each appraisal of a Mortgage Loan that was used to
         determine the appraised value of the related Mortgaged Property was
         conducted generally in accordance with the Seller's mortgage loan
         origination program(s) and customary industry standards and included an
         assessment of the fair market value of the related mortgaged property
         at the time of the appraisal. The Mortgage File contains an appraisal
         of the applicable Mortgaged Property;

                  (lvi) All individual insurance policies contain a standard
         mortgagee clause naming the Servicer, its successors and assigns, as
         mortgagee. All premiums thereon have been paid. Each Mortgage obligates
         the Mortgagor thereunder to maintain all such insurance at the
         Mortgagor's cost and expense, and upon the Mortgagor's failure to do
         so, authorizes the holder of the Mortgage to obtain and maintain such
         insurance at the Mortgagor's cost and expense and to seek reimbursement
         therefor from the Mortgagor;

                                       14
<PAGE>

                  (lvii) Any advances made after the date of origination of a
         Mortgage Loan but prior to the Cut-Off Date have been consolidated with
         the outstanding principal amount secured by the related Mortgage, and
         the secured principal amount, as consolidated, bears a single interest
         rate and single repayment term reflected on the Mortgage Loan Schedule.
         The consolidated principal amount does not exceed the original
         principal amount of the related Mortgage Loan;

                  (lviii) No improvement located on or being part of any
         Mortgaged Property is in violation of any applicable zoning law or
         regulation. All inspections, licenses and certificates required to be
         made or issued with respect to all occupied portions of each Mortgaged
         Property and, with respect to the use and occupancy of the same,
         including but not limited to certificates of occupancy and fire
         underwriting certificates, have been made or obtained from the
         appropriate authorities and such Mortgaged Property is lawfully
         occupied under the applicable law and all improvements which were
         included for the purpose of determining the appraised value of the
         Mortgaged Property lie wholly within the boundaries and building
         restriction lines of such property, and no improvements on adjoining
         property encroach upon the Mortgage Property;

                  (lix) The proceeds of each fixed rate and balloon Mortgage
         Loan have been fully disbursed and there is no obligation on the part
         of the mortgagee to make future advances thereunder and any and all
         requirements as to completion of any on-site or off-site improvements
         and as to disbursement of any escrow funds therefor have been complied
         with. All costs, fees and expenses incurred in making, closing or
         recording the Mortgage Loans were paid and the Mortgagor is not
         entitled to any refund of amounts paid or due under the Mortgage Note;

                  (lx) No Mortgage Loan has a shared appreciation feature, or
         other contingent interest feature;

                  (lxi) All parties which have had any interest in the Mortgage
         Loan, whether as originator, mortgagee, assignee, pledgee or otherwise,
         are (or, during the period in which they held and disposed of such
         interest, were): (A) organized under the laws of such state, or (B)
         qualified to do business in such state, or (C) federal savings and loan
         associations or national banks having principal offices in such state,
         or (D) not doing business in such state so as to require qualification
         or licensing, or (E) not otherwise required or licensed in such state.
         To the best of Seller's knowledge, all parties which have had any
         interest in the Mortgage Loan were in compliance with any and all
         applicable licensing requirements of the laws of the state wherein the
         Mortgaged Property is located or were not required to be licensed in
         such state;

                  (lxii) Each document or instrument in the related Mortgage
         File is in a form generally acceptable to prudent mortgage lenders that
         regularly originate or purchase mortgage loans comparable to the
         Mortgage Loans for sale to prudent investors in the secondary market
         that invest in mortgage loans such as the Mortgage Loans;

                                       15
<PAGE>

                  (lxiii) Each original Mortgage was recorded and all subsequent
         assignments of the original Mortgage (other than the assignment to the
         Purchaser) have been recorded in the appropriate jurisdictions wherein
         such recordation is necessary to perfect the lien thereof as against
         creditors of the Seller, or is in the process of being recorded;

                  (lxiv) No Mortgage Loan was originated under a buydown plan;

                  (lxv) No Mortgage Loan is subject to the requirements of the
         Home Ownership and Equity Protection Act of 1994 ("HOEPA") or is in
         violation of any state or municipal law comparable to HOEPA;

                  (lxvi) The Servicer for each Mortgage Loan will accurately and
         fully report its borrower credit files to all three credit repositories
         in a timely manner;

                  (lxvii) No proceeds from any Mortgage Loan were used to
         purchase single-premium credit insurance policies;

                  (lxviii) No Mortgage Loan has a prepayment penalty term longer
         than five years after its origination;

                  (lxix) Each Mortgage Loan conforms, and all Mortgage Loans in
         the aggregate conform, in all material respects, to the descriptions
         thereof set forth in the Prospectus Supplement;

                  (lxx) Each Mortgage Loan was originated on or after March 7,
         2000;

                  (lxxi) The Seller represents and warrants that the Seller
         currently operates or actively participates in an on-going business (A)
         to originate single family mortgage loans ("Loans"), and/or (B) to make
         periodic purchases of Loans from originators or sellers, and/or (C) to
         issue and/or purchase securities or bonds supported by the Loans, a
         portion of which Loans are made to borrowers who are:

                               (a) low-income families (families with incomes of
                               80% or less of area median income) living in
                               low-income areas (a census tract or block
                               numbering area in which the median income does
                               not exceed 80 percent of the area median income);
                               or

                               (b) very low-income families (families with
                               incomes of 60% or less of area median income).

                  (lxxii) Each Mortgage contains a provision for the
         acceleration of the payment of the unpaid principal balance of the
         related Mortgage Loan in the event the related Mortgaged Property is
         sold or transferred without the prior consent of the mortgagee
         thereunder;

                                       16
<PAGE>

                  (lxxiii) To the best of Seller's knowledge, Pool I does not
         contain the first and second lien mortgage loans relating to a single
         Mortgaged Property if the aggregate original principal balance of such
         mortgage loans exceeds the Federal Home Loan Mortgage Corporation's
         loan limits. To the best of Seller's knowledge, Pool I will not result
         in a violation of the Federal Home Loan Mortgage Corporation's loan
         limitations;

                  (lxxiv) To the best of Seller's knowledge, Pool II does not
         contain the first and second lien mortgage loans relating to a single
         Mortgaged Property if the aggregate original principal balance of such
         mortgage loans exceeds the Federal National Mortgage Association's loan
         limits. To the best of Seller's knowledge, Pool II will not result in a
         violation of the Federal National Mortgage Association's loan
         limitations;

                  (lxxv) Each Mortgage Loan was originated substantially in
         accordance with Seller's underwriting criteria, which conform to the
         underwriting criteria set forth in the Prospectus Supplement;

                  (lxxvi) There exists no violation of any local, state or
         federal environmental law, rule or regulation in respect of any
         Mortgaged Property which violation has or could have a material adverse
         effect on the market value of such Mortgaged Property. Seller has no
         knowledge of any pending action or proceeding directly involving any
         such Mortgaged Property in which compliance with any environmental law,
         rule or regulation is in issue; and, to the best of Seller's knowledge,
         nothing further remains to be done to satisfy in full all requirements
         of each such law, rule or regulation constituting a prerequisite to the
         use and enjoyment of any such Mortgaged Property;

                  (lxxvii) The Seller has caused or will cause to be performed
         any and all acts required to be performed to preserve the rights and
         remedies of the Indenture Trustee in any insurance policies applicable
         to the Mortgage Loans including, without limitation, any necessary
         notifications of insurers, assignment of policies or interests therein,
         and establishments of co-insured, joint loss payee and mortgagee rights
         in favor of the Indenture Trustee;

                  (lxxviii) The related Mortgage Note is not and has not been
         secured by any collateral, pledged account or other security except the
         lien of the corresponding Mortgage;

                  (lxxix) There is no obligation on the part of the Seller or
         any other party to make payments in addition to those made by the
         Mortgagor;

                  (lxxx) With respect to each Mortgage constituting a deed of
         trust, a trustee, duly qualified under existing law to serve as such,
         has been properly designated and currently so serves and is named in
         such Mortgage, and no fees or expenses are or will become payable by
         the Noteholders or the Trust to the trustee under the deed of trust,
         except in connection with a trustee's sale after default by the
         Mortgagor;

                  (lxxxi) Each Mortgagor has executed a statement to the effect
         that such Mortgagor has received all disclosure materials including the
         notice of the right of cancellation or rescission required by
         applicable law with respect to the making of the Mortgage Loan and any
         waiver of any right of cancellation or rescission exercised by the
         Mortgagor was in accordance with applicable law and is binding on the
         Mortgagor;

                                       17
<PAGE>

                  (lxxxii) Each Subsequent Mortgage Loan was or will be
         originated in accordance with the same underwriting standards that were
         used to originate the Initial Mortgage Loans in the relevant Pool;

                  (lxxxiii) The security interest created pursuant to Section
         3.01 hereof is a valid and continuing security interest (as defined in
         the UCC) in favor of the Purchaser in the property sold, transferred,
         assigned, set over and otherwise conveyed from the Seller to the
         Purchaser pursuant to this Agreement, which security interest is prior
         to all other Liens and is enforceable as such against creditors of and
         purchasers from the Seller;

                  (lxxxiv) The Seller has not authorized the filing of and is
         not aware of any financing statements against the Seller that include a
         description of collateral covering the property sold, transferred,
         assigned, set over and otherwise conveyed from the Seller to the
         Purchaser pursuant to this Agreement other than any financing statement
         relating to the security interest granted to the Purchaser hereunder
         that has not been terminated;

                  (lxxxv) The Seller is not aware of any judgment or tax lien
         filings against it;

                  (lxxxvi) None of the Mortgage Notes has any marks or notations
         indicating that they have been pledged, assigned or otherwise conveyed
         to any Person other than the Issuer.

                  (lxxxvii) The pool tape from which the selection of the
         Mortgage Loans being acquired on the Closing Date was made available to
         the accountants that are providing a comfort letter to the Issuer in
         connection with the Prospectus Supplement and with respect to the
         Initial Mortgage Loans as of the Closing Date and Subsequent Mortgage
         Loans as of the applicable Subsequent Transfer Date, the information on
         the related pool tape was complete and accurate as of its date and
         included a description of the same Mortgage Loans that are described on
         the Schedule of Mortgage Loans and the payments due thereunder as of
         the Closing Date or the Subsequent Transfer Date, as applicable;

                  (lxxxviii) With respect to each Mortgage Loan, the payments
         required of the related Mortgagor will be such that the Mortgage Loan
         will fully amortize over its amortization term; and

                  (lxxxix) The Sale, transfer, assignment and conveyance of the
         Mortgage Loans by the Seller to the Purchaser pursuant to the Mortgage
         Loan Purchase Agreement is not subject to and will not result in any
         tax, fee or governmental charge payable by the Seller, the Sponsor, the
         Issuer or the Indenture Trustee to any federal, state or local
         governments ("Transfer Taxes") other than Transfer Taxes which have or
         will have been paid by the Sponsor as due; provided, that in the event
         that the Trust or the Indenture Trustee receives actual notice of any
         Transfer Taxes arising out of the transfer, assignment or conveyance of
         the Mortgage Loans, on written demand by the Issuer or the Indenture
         Trustee, or upon the Seller's otherwise being given notice thereof by
         the Issuer or the Indenture Trustee, the Seller shall pay, and
         otherwise indemnify and hold the Issuer, the Indenture Trustee and the
         Insurer harmless, on an after-tax basis, from and against any and all
         Transfer Taxes, it being understood that the Noteholders, the Class S
         Certificateholders, the Issuer, the Indenture Trustee and the Insurer
         shall have no obligation to pay any such Transfer Taxes.

                                       18
<PAGE>

With respect to the representations and warranties set forth in this Section
4.02 that are made to the best of the Seller's knowledge or as to which the
Seller has no knowledge, if it is discovered by the Purchaser, the Servicer, the
Insurer or a Responsible Officer of the Indenture Trustee that the substance of
such representation and warranty is inaccurate and such inaccuracy materially
and adversely affects the value of the related Mortgage Loan then,
notwithstanding the Seller's lack of knowledge with respect to the substance of
such representation and warranty being inaccurate at the time the representation
or warranty was made, such inaccuracy shall be deemed a breach of the applicable
representation or warranty. Notwithstanding the foregoing, a breach of any of
the representations and warranties set forth in clauses (lxv) through (lxviii)
of this Section 4.02 will be deemed to materially and adversely affect the value
of the related Mortgage Loan.

         Section 4.03. Representations and Warranties of Purchaser. Purchaser
hereby makes the following representations and warranties, each of which
representations and warranties (i) is material and being relied upon by Seller
and (ii) is true in all respects as of the date of this Agreement:

                  (i) Purchaser has been duly organized and is validly existing
         as a corporation under the laws of the State of Delaware.

                  (ii) Purchaser has the requisite power and authority and legal
         right to execute and deliver, engage in the transactions contemplated
         by, and perform and observe the terms and conditions of, this Agreement
         to be performed by it.

                  (iii) This Agreement has been duly authorized and executed by
         Purchaser, is valid, binding and enforceable against Purchaser in
         accordance with its terms, and the execution, delivery and performance
         by Purchaser of this Agreement does not conflict with any material term
         or provision of any other agreement to which Purchaser is a party or
         any term or provision of the Certificate of Incorporation or the
         By-laws of the Purchaser, or any law, rule, equation, order, judgment,
         writ, injunction or decree applicable to Purchaser of any court,
         regulatory body, administrative agency or governmental body having
         jurisdiction over Purchaser.

                  (iv) No consent, approval, authorization or order of,
         registration or filing with, or notice to any governmental authority or
         court is required under applicable law in connection with the execution
         and delivery by Purchaser of this agreement.

                  (v) There is no action, proceeding or investigation pending
         or, to the best knowledge of Purchaser, threatened against Purchaser
         before any court, administrative agency or other tribunal (i) asserting
         the invalidity of this Agreement, (ii) seeking to prevent the
         consummation of any of the transactions contemplated by this Agreement,
         or (iii) which is likely to materially and adversely affect the
         performance by Purchaser of its obligations under, or the validity or
         enforceability of, this Agreement.

                                       19
<PAGE>

                  (vi) Each purchase of Initial Mortgage Loans and Subsequent
         Mortgage Loans hereunder shall constitute a representation by Purchaser
         to Seller that Purchaser understands, and that Purchaser has such
         knowledge and experience in financial and business matters that it is
         capable of evaluating the merits and risks of, its investment in the
         relevant Mortgage Loans.

         Section 4.04. Remedies for Breach of Representations and Warranties;
Repurchase Obligation. It is understood and agreed that the representations and
warranties set forth in Sections 4.01 and 4.02 shall survive each sale of
Mortgage Loans to the Purchaser and shall inure to the benefit of the Purchaser
and subsequent transferees and assignees notwithstanding any restrictive or
qualified endorsement on any Mortgage Note or Assignment of Mortgage or the
examination or failure to examine any Mortgage File. With respect to the
representations and warranties contained in Sections 4.01 and 4.02 which are
made to the best of the Seller's knowledge or to the actual knowledge of the
Seller, if it is discovered by either the Seller, the Indenture Trustee or the
Issuer, or the Purchaser that the substance of such representation and warranty
is inaccurate and such inaccuracy materially and adversely affects the value of
the related Mortgage Loan or the Purchaser's interest therein, then
notwithstanding the Seller's lack of knowledge with respect to the inaccuracy at
the time the representation or warranty was made, the Seller shall repurchase
the related Mortgage Loan in accordance with this Section 4.04 as if the
applicable representation or warranty was breached, subject to the terms and
conditions of the Sale and Servicing Agreement. Upon discovery by either the
Seller, the Indenture Trustee, the Issuer or the Purchaser of a breach of any of
the foregoing representations and warranties which materially and adversely
affects the value of the Mortgage Loans or the interest of the Purchaser (or
which materially and adversely affects the interests of the Purchaser in the
related Mortgage Loan in the case of a representation and warranty relating to a
particular Mortgage Loan), the party discovering such breach shall give prompt
written notice to the others.

                  Within 60 days of the earlier of either discovery by or notice
to the Seller of any breach of a representation or warranty which materially and
adversely affects the value of any Mortgage Loan or the Purchaser's interest
therein, the Seller shall use its best efforts promptly to cure such breach in
all material respects and, if such breach cannot be cured or is not cured or is
not being diligently pursued as evidenced by a notice acceptable to the
Purchaser, as evidenced by the Purchaser's agreement thereto, at the end of such
60-day period, the Seller shall, at the Purchaser's option, either (a)
repurchase such Mortgage Loan at the Loan Purchase Price or (b) provide an
Eligible Substitute Mortgage Loan, if the Seller has any such loans available
for sale at the time subject to the terms and conditions of the Sale and
Servicing Agreement.

                  At the time of repurchase or substitution, the Purchaser and
the Seller shall arrange for the assignment of such Mortgage Loan to the Seller
and the delivery by the Purchaser to the Seller of the related Mortgage Files.

                  In addition to such cure and repurchase obligation, the Seller
shall indemnify the Purchaser and hold it harmless against any losses, damages,
penalties, fines, forfeitures, reasonable and necessary legal fees and related
costs, judgments, and other costs and expenses resulting from any claim, demand,
defense or assertion based on or grounded upon, or resulting from, a breach of
the representations and warranties contained in this Article IV (notwithstanding
any limitation in such representation and warranty as to the Seller's
knowledge). It is understood and agreed that the obligations of the Seller set
forth in this Section 4.04 to cure or repurchase a defective Mortgage Loan and
to indemnify the Purchaser as provided in this Section 4.04 constitute the sole
remedies of the Purchaser respecting a breach of the foregoing representations
and warranties.

                                       20
<PAGE>

                  Any cause of action against the Seller relating to or arising
out of the breach of any representations and warranties made in Sections 4.01 or
4.02 shall accrue as to any Mortgage Loan upon (i) discovery of such breach by
the Purchaser, the Indenture Trustee or the Insurer, or notice thereof by the
Seller to the Purchaser, the Indenture Trustee or the Insurer, (ii) failure by
the Seller to cure such breach or repurchase such Mortgage Loan as specified
above, and (iii) demand upon the Seller by the Purchaser, the Indenture Trustee
or the Insurer, for compliance with the relevant provisions of this Agreement.

                                   ARTICLE V

                       Covenants and Warranties of Seller

         So long as this Agreement remains in effect or Seller shall have any
obligations hereunder, Seller hereby covenants and agrees with Purchaser as
follows:

         Section 5.01. Affirmative Covenants.

         (a) Until the later to occur of (i) the discharge and payment of all of
Seller's obligations under this Agreement and (ii) the Termination Date of this
Agreement, Seller shall, promptly upon preparation, but in no event later than
60 days following the end of each such party's first three fiscal quarters,
deliver to Purchaser its unaudited company-prepared financial statements as of
the end of each such fiscal quarter, prepared in accordance with GAAP. Seller
shall, promptly upon preparation, but in no event later than 90 days following
the end of such party's fourth fiscal quarter, deliver to Purchaser its audited
and certified financial statements, prepared in accordance with GAAP, as of the
end of the most recently ended fiscal year, which audits and certifications
shall each be prepared by a nationally recognized independent accounting firm or
by a regionally recognized independent accounting firm with the prior written
consent of Purchaser, which consent shall not be unreasonably withheld. In all
cases, financial statements shall include, without limitation, a balance sheet,
a profit and loss statement and a statement of cash flows. Notwithstanding
anything in this Agreement to the contrary, if (x) the audited and certified
financial statements described in the immediately preceding sentence are not
delivered within the above-specified 90 days, (y) Seller is diligently using its
best efforts to deliver such financial statements, and (z) Seller provides
Purchaser with a notice specifying the reason for the delay and a date, within a
reasonable time period (as determined by Purchaser), on which such financial
statements will be delivered, and they are so delivered; then failure to deliver
such financial statements within the above-specified 90 days, as the case may
be, shall not be deemed to be an Event of Termination of this Agreement.

         (b) Upon request of Purchaser, Seller shall, to the extent lawful,
promptly upon filing, deliver to Purchaser copies of all material public filings
made by Seller with any governmental or quasi-governmental body.

                                       21
<PAGE>

         (c) Seller shall (i) with respect to any Mortgage Loans serviced by
Seller or any of its affiliates or otherwise use its best efforts to cause to be
delivered to Purchaser monthly, the report, if any, prepared by the relevant
trustee or servicer setting forth payment activity, defaults and delinquencies
with respect to each Mortgage Loan acquired by Purchaser and (ii) prepare and
deliver reports each month, detailing, with respect to all Purchases, such
information as the Purchaser may from time to time reasonably request.

         (d) Seller shall do all things necessary to remain duly incorporated,
validly existing and in good standing as a domestic corporation in its
jurisdiction of incorporation and maintain all requisite authority to conduct
its business in each jurisdiction in which its business is conducted except
where failure to maintain such authority would not have a material adverse
effect on the ability of Seller to conduct its business or to perform its
obligations under this Agreement.

         (e) At all times during this Agreement, Seller shall possess sufficient
net capital and liquid assets (or ability to access the same) to satisfy its
obligations as they become due in the normal course of business.

         (f) Seller will notify Purchaser in writing of any of the following
promptly upon learning of the occurrence thereof, describing the same and, if
applicable, any remedial steps being taken with respect thereto;

                  (i) The occurrence or likelihood of occurrence of an Event of
         Termination hereunder;

                  (ii) The institution of any litigation, arbitration proceeding
         or governmental proceeding which, in the opinion of counsel to Seller,
         will have a material adverse effect on Seller or the Mortgage Loans;

                  (iii) The entry of any judgment or decree against Seller if
         the aggregate amount of all judgments and decrees then outstanding
         against Seller exceeds $10,000,000 after deducting (A) the amount with
         respect to which Seller is insured and with respect to which the
         insurer has assumed responsibility in writing, and (B) the amount for
         which Seller is otherwise indemnified if the terms of such
         indemnification are reasonably satisfactory to Purchaser; or

                  (iv) The occurrence or likelihood of any event which would
         allow the obligee under any material loan agreement to which Seller is
         bound to declare an event of default or accelerate the obligations of
         Seller thereunder.

         (g) Seller shall permit the Purchaser or its accountants, attorneys or
other agents access to all of the books and records relating to Mortgage Loans
purchased and retained by Purchaser for inspection and copying during normal
business hours at all places where Seller conducts business.

         (h) Seller shall satisfy the obligation under any Credit Line Agreement
that provides for the funding of all future Draws thereunder.

                                       22
<PAGE>

         Section 5.02. Negative Covenants.

         (a) Seller shall not assign or attempt to assign this Agreement or any
rights hereunder, without first obtaining the specific written consent of
Purchaser.

         (b) Seller shall not amend its Articles of Incorporation or By-laws,
which amendment shall have or is likely to have an adverse effect upon Purchaser
or its interests under this Agreement, without the prior written consent of
Purchaser.

         (c) During the term of this Agreement, Seller shall not engage in any
business other than as a consumer and mortgage finance lender and servicer,
except with the prior written consent of Purchaser.

         (d) Seller shall not (i) dissolve or terminate its existence or (ii)
transfer any assets to any affiliate except as otherwise expressly permitted or
contemplated hereby.

         (e) Except with the written consent of the Purchaser, the Seller shall
not guarantee, endorse or otherwise in any way become or be responsible for any
obligations of any other person, entity or affiliate, including, without
limitation, whether directly or indirectly by agreement to purchase the
indebtedness of any other person or through the purchase of goods, supplies or
services, or maintenance of working capital or other balance sheet covenants or
conditions, or by way of stock purchase, capital contribution, advance or loan
for the purposes of paying or discharging any indebtedness or obligation of such
other person or otherwise; provided, however, that nothing contained herein
shall prevent Seller from indemnifying its officers, directors and agents
pursuant to its By-laws and its Articles of Incorporation.

         (f) Seller will not commit any act in violation of applicable laws, or
regulations promulgated pursuant thereto that relate to the Mortgage Loans or
that materially and adversely affect the operations or financial conditions of
Seller.

         (g) Seller, by entering into this Agreement, hereby covenants and
agrees that it will not at any time institute against the Issuer, or join in any
institution against the Issuer of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any United
States federal or State bankruptcy or similar law in connection with any
obligations relating to the Notes or any of the Basic Documents.

                                   ARTICLE VI

             Sale of Mortgage Loans from the Purchaser to the Trust

         Section 6.01. Sale and Servicing Agreement. It is the intent of the
Seller and the Purchaser that with respect to the Mortgage Loans, the Purchaser
shall concurrently sell all of its right, title and interest to the Mortgage
Loans and all other property conveyed to it hereunder to the Trust pursuant to
the Sale and Servicing Agreement.

                  With respect to such sale, the Seller agrees:

                                       23
<PAGE>

                  (i) to cooperate fully with the Purchaser and the Trust with
         respect to all reasonable requests and due diligence procedures
         including participating in meetings with Rating Agencies, the Insurer
         and such other parties as the Purchaser shall designate and
         participating in meetings with the Trust and providing information
         reasonably requested by the Trust;

                  (ii) to execute the Sale and Servicing Agreement and all other
         necessary documents to effect the transactions contemplated therein;

                  (iii) the Seller shall make the representations and warranties
         set forth herein regarding the Seller and the Mortgage Loans as of the
         date of the transfer to the Trust;

                  (iv) to deliver to the Purchaser for inclusion in any
         prospectus or other offering material such publicly available
         information regarding the Seller, its financial condition and the
         mortgage loan delinquency, foreclosure and loss experience of its
         portfolio as is customarily set forth in a prospectus supplement with
         respect to a comparable mortgage pool, the underwriting of mortgage
         loans, the servicer, the servicing and collection of mortgage loans,
         lending activities and loan sales of the servicer, regulatory matters
         and delinquency and loss experience and any additional information
         reasonably requested by the Purchaser, and to deliver to the Purchaser
         unaudited consolidated financial statements of the Seller, in which
         case the Purchaser shall bear the cost of having such statements
         audited by certified public accountants if the Purchaser desires such
         an audit, or as is otherwise reasonably requested by the Purchaser and
         which the Seller is capable of providing without unreasonable effort or
         expense, and to indemnify the Purchaser and its affiliates for material
         misstatements or omissions contained in such information;

                  (v) to deliver to the Purchaser and to any person designated
         by the Purchaser, at the Purchaser's expense, such statements and audit
         letters issued by reputable, certified public accountants pertaining to
         information provided by the Seller pursuant to clause (iv) above as
         shall be reasonably requested by the Purchaser (it being acknowledged
         by Purchaser that the delivery of such statements and letters is
         subject to the consent of such accountants);

                  (vi) to deliver to the Purchaser, and to any Person designated
         by the Purchaser, such legal documents and in-house opinions of counsel
         as are customarily delivered by originators or servicers, as the case
         may be, and reasonably determined by the Purchaser to be necessary in
         connection with the transactions contemplated by the Sale and Servicing
         Agreement, it being understood that the cost of any opinions of outside
         special counsel that may be required shall be the responsibility of the
         Seller;

                  (vii) to cooperate fully with the Purchaser and any
         prospective Purchaser with respect to the preparation of Mortgage Loan
         documents and other documents and with respect to servicing
         requirements reasonably requested by the Rating Agencies and the
         Insurer; and

                  (viii) to negotiate and execute one or more custodial and
         servicing agreements among the Purchaser, the Seller and a third party
         custodian/trustee which is generally considered to be a prudent
         custodian/trustee in the secondary mortgage market designated by the
         Purchaser in its sole discretion after consultation with the Seller, in
         either case for the purpose of securitizing the Mortgage Loans.

                                       24
<PAGE>

                                  ARTICLE VII

                         Seller's Servicing Obligations

         Section 7.01. Seller's Servicing Obligations. The Seller, as an
independent contract servicer, shall service and administer the Mortgage Loans
in accordance with the terms and provisions set forth in Articles III, IV, V,
VII and VIII of the Sale and Servicing Agreement which sections are hereby
incorporated in this Agreement in their entirety (with, however, the changes and
adjustments as provided in this Agreement) as if the same were contained in this
Article VII.

         To the extent any provision of any definition set forth in the Sale and
Servicing Agreement shall conflict with any provision set forth in this
Agreement, the provision or definition in this Agreement shall govern.

                                  ARTICLE VIII

                                Fees and Expenses

                  The Purchaser shall pay any salaries and other compensation
due its employees and the legal fees and expenses of its attorneys and
accountants. All other costs and expenses incurred in connection with the
transfer and delivery of the Mortgage Loans pursuant to this Agreement or the
Sale and Servicing Agreement, including, without limitation, recording fees,
fees for title policy endorsements and continuations, and fees for recording
intervening assignments of Mortgage, shall be paid by the Seller. To the extent
not paid out of the Trust pursuant to Section 8.7(d)(i) of the Indenture, the
Seller shall pay the on-going fees of any custodian or trustee under the Sale
and Servicing Agreement, the Trust Agreement or the Indenture. The Seller shall
pay (i) the acceptance and file review fees of any custodian or trustee under
this Agreement, the Indenture, the Trust Agreement or the Sale and Servicing
Agreement and (ii) the costs of legal counsel and legal opinions, accounting
comfort letters and fees, printing of disclosure documents, rating agency fees,
Insurer up-front fees, SEC filing fees and the costs of any and all related
document preparations associated with the Sale and Servicing Agreement, the
Trust Agreement, the Indenture or this Agreement. The Seller also agrees to pay
the fees and other amounts for which the Seller or Servicer is obligated under
the Insurance Agreement.

                                   ARTICLE IX

                        Termination; Additional Remedies

                  Upon the occurrence of a Rapid Amortization Event due to an
act or omission of the Seller (an "Event of Termination"), the Purchaser and its
assignees shall have, in addition to all other rights and remedies under this
Agreement or otherwise, all other rights and remedies provided under the UCC of
each applicable jurisdiction and other applicable laws, which rights shall be
cumulative. Without limiting the foregoing, the occurrence of an Event of
Termination shall not deny to the Purchaser or its assignees any remedy in
addition to termination of its obligations to make purchases hereunder to which
the Purchaser or its assignee may be otherwise appropriately entitled, whether
by statute or applicable law, at law or in equity.

                                       25
<PAGE>

                                   ARTICLE X

                            Payment of Purchase Price

         Section 10.01. Purchase Price Payments. On the Closing Date and each
Subsequent Transfer Date and on the next Business Day following each other day
on which any Additional Balances relating to Mortgage Loans are funded by the
Seller, on the terms and subject to the conditions of this Agreement, the
Purchaser shall pay to the Seller the applicable Purchase Price by (i) making or
causing to be made a cash payment to the Seller or its designee in such amount
determined by the Purchaser, (ii) crediting the Seller with an additional
capital contribution to the Purchaser, (iii) automatically increasing the
principal amount outstanding under the Purchaser Note by the amount of the
excess of the Purchase Price to be paid to the Seller for such purchased assets
over the amount of any cash payment made on such day to the Seller and/or any
capital contribution made by the Seller to the Purchaser, subject to a cap on
such note at any time equal to $30 million or (iv) any combination of the
foregoing.

         Section 10.02. The Purchaser Note.

         (a) On the Closing Date, the Purchaser shall deliver to the Seller a
promissory note, substantially in the form of Exhibit A, payable to the order of
the Seller (such promissory note, as the same has been or hereafter may be
amended, supplemented, endorsed or otherwise modified from time to time,
together with any promissory note issued from time to time in substitution
therefor or renewal thereof in accordance with this Agreement, being herein
called the "Purchaser Note"), which Purchaser Note shall, in accordance with its
terms, be subordinated to all interests of the Trust, all claims to the cash
flows from Trust assets and all obligations of the Purchaser, of any nature, now
or hereafter arising under or in connection with the Sale and Servicing
Agreement. The Purchaser Note shall evidence all amounts incurred thereunder
subsequent to the Closing Date as provided in this Agreement. Subject to the
foregoing, the Purchaser Note shall be payable in full on the date which is one
year and one day after the Termination Date. The Purchaser Note shall bear
interest at the "prime rate" as determined by the Indenture Trustee from time to
time in effect. The Purchaser may prepay all or part of the outstanding balance
of the Purchaser Note and interest accrued thereon from time to time without any
premium or penalty, unless an Event of Default has occurred and is continuing or
would result from such prepayment or payment.

         (b) The Servicer shall hold the Purchaser Note for the benefit of the
Seller, and shall make all appropriate recordkeeping entries with respect to the
Purchaser Note or otherwise to reflect the payments on and adjustments of the
Purchaser Note. The Servicer's books and records shall constitute rebuttable
presumptive evidence of the principal amount of and accrued interest on the
Purchaser Note at any time. The Seller hereby irrevocably authorizes the
Servicer to mark the Purchaser Note "CANCELLED" and to return the Purchaser Note
to the Purchaser upon the full and final payment thereof after the Termination
Date.

                                       26
<PAGE>

         (c) The Seller hereby agrees not to transfer, assign, exchange or
otherwise convey or pledge, hypothecate or otherwise grant a security interest
in the Purchaser Note or any interest represented thereby, and any attempt to
transfer, assign, exchange, convey, pledge, hypothecate or grant a security
interest in the Purchaser Note or any interest represented thereby shall be void
and of no effect.

                                   ARTICLE XI

                                 Confidentiality

                  Purchaser and Seller each acknowledges that the information
heretofore provided to them pursuant to the operation of this Agreement, is
highly confidential, proprietary information of Seller or Purchaser, as the case
may be. Purchaser and Seller each agrees that it will hold such information in
strict confidence and will not disclose any part of such information to any
person or entity, other than to its accountants and lawyers to the extent
necessary for the performance of their duties and as required by law and other
than to such other persons to the extent necessary, as determined by the
Purchaser in its sole discretion, to complete the transactions contemplated
hereunder and in the Sale and Servicing Agreement including the offering and
issuance of the Notes; provided, however, that copies of this Agreement may be
included as part of any filing made pursuant to the Securities Act of 1933 and
the Securities Exchange Act of 1934 and any regulations promulgated thereunder.
In furtherance of the foregoing, Purchaser and Seller each covenants that it
will adhere to its established procedures for the maintenance of confidentiality
with respect to such information. Purchaser and Seller each further agrees that
it will not distribute such information within its own organization except to
persons with a need to know such information in connection with the transactions
contemplated by this Agreement.

                                  ARTICLE XII

                                      Term

                  This Agreement shall terminate on the Termination Date.

                                  ARTICLE XIII

                    Exclusive Benefit of Parties; Assignment

                  This Agreement is for the exclusive benefit of the parties
hereto and their respective successors and assigns and shall not be deemed to
give any legal or equitable right to any other person except the Sponsor, the
Trust, the Noteholders and the Insurer. Notwithstanding the foregoing, the
Seller covenants and agrees that the representations and warranties contained in
this Agreement and the rights of the Purchaser hereunder are intended to benefit
the Trust, the Noteholders and the Insurer. This Agreement may not be assigned
by any party hereto without the prior written consent of the other party hereto
except to the Trust.

                                       27
<PAGE>

                                  ARTICLE XIV

                               Amendment; Waivers

                  This Agreement may be amended from time to time only by
written agreement of Seller and Purchaser with the prior written consent of the
Insurer, which consent shall not be unreasonably withheld. Any forbearance,
failure, or delay by a party in exercising any right, power, or remedy hereunder
shall not be deemed to be a waiver thereof, and any single or partial exercise
by a party of any right, power or remedy hereunder shall not preclude the
further exercise thereof. Every right, power and remedy of a party shall
continue in full force and effect until specifically waived by it in writing. No
right, power or remedy shall be exclusive, and each such right, power or remedy
shall be cumulative and in addition to any other right, power or remedy, whether
conferred hereby or hereafter available at law or in equity or by statute or
otherwise.

                                   ARTICLE XV

                            Execution in Counterparts

                  This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original, and all of which shall constitute one
and the same instrument.

                                  ARTICLE XVI

                       Effect of Invalidity of Provisions

                  In case any one or more of the provisions contained in this
Agreement should be or become invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein shall in no way be affected, prejudiced or disturbed thereby.

                                  ARTICLE XVII

                                  Governing Law

                  This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to its rules
regarding conflict of laws.

                                       28
<PAGE>

                                 ARTICLE XVIII

                                     Notices

                  Any notices, consents, directions, demands and other
communications given under this Agreement (unless otherwise specified herein)
shall be in writing and shall be deemed to have been duly given when personally
delivered at or telecopied to the respective addresses or facsimile numbers, as
the case may be, set forth on the signature page hereof for Seller and
Purchaser, or to such other address or facsimile number as either party shall
give notice to the other party pursuant to this Section. In the case of the
Insurer, notices shall be provided to MBIA Insurance Corporation, 113 King
Street, Armonk, NY 10504, Attention: (IPM-SF) (GreenPoint Home Equity Loan Trust
2001-2) (Telephone No. (914) 273-4545) (Telecopier No. (914) 765-3810). Notices,
consents, etc., may also be effected by first class mail, postage prepaid sent
to the foregoing addresses and will be effective upon receipt by the intended
recipient.

                                  ARTICLE XIX

                                Entire Agreement

                  This Agreement, including the Exhibits and Schedules hereto,
contains the entire agreement of the parties hereto with respect to the subject
matter hereof, and supersedes all prior and contemporaneous agreements between
them, whether oral or written, of any nature whatsoever with respect to the
subject matter hereof.

                                   ARTICLE XX

                                   Indemnities

                  Without limiting any other rights which Purchaser or Seller
may have hereunder or under applicable law, and in addition to any other
indemnity provided hereunder, Seller hereby agrees to indemnify Purchaser and
its respective officers, directors, agents and employees (each, an "Indemnified
Party") from and against any and all Losses incurred by any of them relating to
or resulting from:

                  (1) any representation or warranty made by Seller (or any
         officers, employees or agents of Seller) under or in connection with
         this Agreement, any periodic report required to be furnished thereunder
         or any other information or document delivered by Seller pursuant
         hereto, which shall have been false or incorrect in any material
         respect when made or deemed made;

                  (2) the failure by Seller to (a) comply with any applicable
         law, rule or regulation with respect to any Purchase or (b) perform or
         observe any material obligation or covenant hereunder; or

                  (3) the failure by Seller (if so requested by Purchaser) to
         execute and properly file, or any delay in executing and properly
         filing, financing statements or other similar instruments or documents
         under the Uniform Commercial Code of any applicable jurisdiction or
         other applicable laws with respect to the Mortgage Loans.

                                       29
<PAGE>

                  Promptly after receipt by an Indemnified Party under this
Article XX of notice of the commencement of any action, such Indemnified Party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Article XX, notify the indemnifying party in writing of the
commencement thereof; but the omission so to notify the indemnifying party will
not relieve it from any liability that it may have to any Indemnified Party
otherwise than under this Article XX. In case any such action is brought against
any Indemnified Party and it notifies the indemnifying party of the commencement
thereof, the indemnifying party will be entitled to participate therein, and to
the extent that it may elect by written notice delivered to the Indemnified
Party promptly after receiving the aforesaid notice from such Indemnified Party,
to assume the defense thereof, with counsel satisfactory to such Indemnified
Party; provided, however, that if the defendants in any such action include both
the Indemnified Party and the indemnifying party and the Indemnified Party or
parties shall have reasonably concluded that there may be legal defenses
available to it or them and/or other Indemnified Parties that are different from
or additional to those available to the indemnifying party, the Indemnified
Party or parties shall have the right to elect separate counsel to assert such
legal defenses and to otherwise participate in the defense of such action on
behalf of such Indemnified Party or parties. Upon receipt of notice from the
indemnifying party to such Indemnified Party of its election so to assume the
defense of such action and approval by the Indemnified Party of counsel, the
indemnifying party will not be liable for any legal or other expenses
subsequently incurred by such Indemnified Party in connection with the defense
thereof, unless (i) the Indemnified Party shall have employed separate counsel
in connection with the assertion of legal defenses in accordance with the
proviso to the next preceding sentence (it being understood, however, that the
indemnifying party shall not be liable for the expenses of more than one
separate counsel, approved by you in the case of Article XX, representing the
Indemnified Parties under this Article XX, who are parties to such action), (ii)
the indemnifying party shall not have employed counsel satisfactory to the
Indemnified Party to represent the Indemnified Party within a reasonable time
after notice of commencement of the action or (iii) the indemnifying party has
authorized the employment of counsel for the Indemnified Party at the expense of
the indemnifying party; and except that, if clause (i) or (iii) is applicable,
such liability shall only be in respect of the counsel referred to in such
clause (i) or (iii).

                                  ARTICLE XXI

                                RESPA Obligations

                  Seller agrees to discharge on Purchaser's behalf all
obligations, including, without limitation, all disclosure obligations, which
Purchaser may have under the Real Estate Settlement Procedures Act of 1974, as
amended, in connection with Purchaser's purchases of Mortgage Loans hereunder.
Purchaser agrees to provide Seller with such information as is reasonably
necessary for Seller to discharge such obligations and hereby appoints Seller as
its agent in its name for the purposes of, and only for the purposes of,
performing such obligations. Seller hereby agrees to indemnify Purchaser and its
respective officers, directors, agents and employees from any losses suffered by
any such party in connection with Seller's obligations under this Article XXI.

                                       30
<PAGE>

                                  ARTICLE XXII

                                    Survival

                  All indemnities and undertakings of Seller and Purchaser
hereunder shall survive the termination of this Agreement.

                                 ARTICLE XXIII

                                Right of Set-off

                  Upon the occurrence of any event or circumstance which
requires Seller to make a payment hereunder, Purchaser is hereby authorized then
or at any time or times thereafter, without notice to Seller (any such notice
being expressly waived by Seller), to set-off and apply any and all deposits
(general or special, time or demand, provisional or final), at any time held and
other indebtedness at any time owing by Purchaser to or for the credit or the
account of Seller against any and all of the obligations of Seller now or
hereafter existing hereunder, irrespective of whether or not Purchaser shall
have made any demand hereunder. Purchaser agrees promptly to notify Seller after
any such set-off and application made by Purchaser; provided that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of Purchaser under this Article XXIII are in addition to other rights
and remedies which Purchaser may have.

                                  ARTICLE XXIV

                               Consent to Service

                  Each party irrevocably consents to the service of process by
registered or certified mail, postage prepaid, to it at its address given
pursuant to Article XVIII hereof.

                                  ARTICLE XXV

               Submission to Jurisdiction; Waiver of Trial by Jury

                  With respect to any claim arising out of this Agreement each
party irrevocably submits to the exclusive jurisdiction of the courts of the
State of New York and the United States District Court located in the Borough of
Manhattan, City of New York, and each party irrevocably waives any objection
which it may have at any time to the laying of venue of any suit, action or
proceeding arising out of or relating hereto brought in any such court,
irrevocably waives any claim that any such suit, action or proceeding brought in
any such court has been brought in any inconvenient forum and further
irrevocably waives the right to object, with respect to such claim, suit, action
or proceeding brought in any such court, that such court does not have
jurisdiction over such party; provided that service of process is made as set
forth in Article XXIV hereof, or by any other lawful means. To the extent
permitted by applicable law, Purchaser and Seller each irrevocably waive all
right of trial by jury in any action, proceeding or counterclaim arising out of
or in connection with this Agreement or any matter arising hereunder.

                                       31
<PAGE>

                                  ARTICLE XXVI

                                  Construction

                  The headings in this Agreement are for convenience only and
are not intended to influence its construction. References to Articles,
Sections, Schedules and Exhibits in this Agreement are to the Articles, Sections
of and Schedules and Exhibits to this Agreement. The Schedules and Exhibits are
hereby incorporated into and form a part of this Agreement. In this Agreement,
the singular includes the plural, the plural the singular, the words "and" and
"or" are used in the conjunctive or disjunctive as the sense and circumstances
may require and the word "including" means "including, but not limited to."
Unless otherwise stated in this Agreement, in the computation of a period of
time from a specified date to a later specified date, the word "from" means
"from and including" and the words "to" and "until" each means "to but
excluding."

                                 ARTICLE XXVII

                               Further Agreements

                  The Seller and the Purchaser each agree to execute and deliver
to the other such reasonable and appropriate additional documents, instruments
or agreements as may be necessary or appropriate to effectuate the purposes of
this Agreement.

                                       32
<PAGE>

                  IN WITNESS WHEREOF, the Purchaser and the Seller have caused
their names to be signed hereto by their respective officers thereunto duly
authorized, all as of the date first written above.

                                GREENPOINT MORTGAGE SECURITIES INC.,
                                  as Purchaser

                                100 Wood Hollow Drive
                                Doorstop # 32210
                                Novato, California  94945

                                By:  /s/ Nathan Hieter
                                    ----------------------------------------
                                    Name:  Nathan Hieter
                                    Title:  Vice President

                                GREENPOINT MORTGAGE FUNDING, INC.,
                                   as Seller

                                100 Wood Hollow Drive
                                Novato, California  94945

                                By:  /s/ Robert Bernstein
                                    -------------------------------
                                    Name: Robert Bernstein
                                    Title:  Senior Vice President

                       [Mortgage Loan Purchase Agreement]

<PAGE>

                                                                      EXHIBIT A

                             FORM OF NON-NEGOTIABLE
                       GREENPOINT MORTGAGE SECURITIES INC.
                                 PROMISSORY NOTE

                                                              November 20, 2001

EXCEPT TO THE EXTENT PROVIDED IN THE PURCHASE AGREEMENT REFERRED TO BELOW, THIS
PROMISSORY NOTE AND ANY INTEREST REPRESENTED HEREBY SHALL NOT BE TRANSFERRED,
ASSIGNED, EXCHANGED, CONVEYED, PLEDGED, HYPOTHECATED OR OTHERWISE THE SUBJECT OF
THE GRANT OF A SECURITY INTEREST AND ANY ATTEMPT TO TRANSFER, ASSIGN, EXCHANGE,
CONVEY, PLEDGE, HYPOTHECATE OR GRANT A SECURITY INTEREST IN THIS PROMISSORY NOTE
OR ANY INTEREST REPRESENTED HEREBY SHALL BE VOID AND OF NO EFFECT.

         For VALUE RECEIVED, the undersigned, GREENPOINT MORTGAGE SECURITIES
INC., a Delaware corporation (the "Purchaser"), promises to pay to GREENPOINT
MORTGAGE FUNDING, INC., a California corporation (the "Seller"), on the terms
and subject to the conditions set forth herein and in the Purchase Agreement
referred to below, the aggregate unpaid Purchase Price of all assets purchased
and to be purchased by the Purchaser pursuant to the Purchase Agreement;
provided that such amount shall in no event exceed $30,000,000. Such amount as
shown in the records of the Seller will be rebuttable presumptive evidence of
the principal amount owing under this Note.

         1. Purchase and Sale Agreement. This Note is the Purchaser Note
described in, and is subject to the terms and conditions set forth in, that
certain Mortgage Loan Purchase Agreement dated as of November 1, 2001 (as the
same may be amended, supplemented, restated or otherwise modified in accordance
with its terms, the "Purchase Agreement"), between the Seller and the Purchaser.
Reference is hereby made to the Purchase Agreement for a statement of certain
other rights and obligations of the Purchaser and the Seller.

         2. Definitions. Capitalized terms used (but not defined) herein have
the meanings ascribed thereto in the Purchase Agreement. In addition, as used
herein, the following terms have the following meanings:

                  "Bankruptcy Proceedings" has the meaning set forth in clause
(a) of paragraph 7 hereof.

                  "Final Maturity Date" means the date that falls one year and
one day after the Termination Date.

                  "Junior Liabilities" means all obligations of the Purchaser to
the Seller under this Note and under all similar notes issued by the Purchaser
to the Seller in connection with any previous or future securitization
transactions.

<PAGE>

                  "Senior Liabilities" means all obligations of the Purchaser to
the Trust and any other obligations of the Purchaser arising under or in
connection with the Sale and Servicing Agreement, howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, now or thereafter
existing, or due or to become due on or before the Final Maturity Date.

                  "Subordination Provisions" means, collectively, clauses (a)
through (j) of paragraph 7 hereof.

         3. Interest. Subject to the Subordination Provisions and paragraph 10
hereof, the Purchaser promises to pay interest on the aggregate unpaid principal
amount of this Note outstanding on each day, at a variable rate equal to the
rate publicly announced by the Indenture Trustee from time to time as its "prime
lending rate."

         4. Interest Payment Dates. Subject to the Subordination Provisions,
paragraph 10 hereof and Section 10.02 of the Purchase Agreement, the Purchaser
shall pay accrued interest on this Note on each Payment Date and on the Final
Maturity Date. The Purchaser also shall pay accrued interest on the principal
amount of each prepayment hereof on the date of each such prepayment.

         5. Basis of Computation. Interest accrued hereunder shall be computed
for the actual number of days elapsed on the basis of a 360-day year.

         6. Principal Payment Dates. Subject to the Subordination Provisions,
any unpaid principal of this Note shall be paid on the Final Maturity Date (or,
if such date is not a Business Day, the next succeeding Business Day). Subject
to the Subordination Provisions, paragraph 10 hereof and Section 10.02 of the
Purchase Agreement, the principal amount of and accrued interest on this Note
may be prepaid on any Business Day without premium or penalty.

         7. Subordination Provisions. The Purchaser covenants and agrees, and
the Seller, by its acceptance of this Note, likewise covenants and agrees, that
the payment of all Junior Liabilities is hereby expressly subordinated in right
of payment to the payment and performance of the Senior Liabilities to the
extent and in the manner set forth in the following clauses of this paragraph 7:

                  (a) (i) In the event of any dissolution, winding up,
liquidation, readjustment, reorganization or other similar event relating to the
Purchaser, whether voluntary or involuntary, partial or complete, and whether in
bankruptcy, insolvency, receivership or other similar proceedings, or upon an
assignment for the benefit of creditors, or any other marshalling of the assets
and liabilities of the Purchaser or any sale of all or substantially all of the
assets of the Purchaser except pursuant to the Sale and Servicing Agreement
(such proceedings being herein collectively called "Bankruptcy Proceedings"),
and (ii) on and after the occurrence of an Event of Default, the Senior
Liabilities shall first be paid and performed in full and in cash before the
Seller shall be entitled to receive and to retain any payment or distribution in
respect of the Junior Liabilities. In order to implement the foregoing: (x) all
payments and distributions of any kind or character in respect of the Junior
Liabilities to which the Seller would be entitled except for this clause (a)
shall be made directly to the Indenture Trustee (for the benefit of the
Noteholders, the Class S Certificateholders, and the Insurer); and (y) the
Seller hereby irrevocably agrees that the Indenture Trustee (on behalf of the
Noteholders), in the name of the Seller or otherwise, may demand, sue for,
collect, receive and receipt for any and all such payments or distributions, and
file, prove and vote or consent in any such Bankruptcy Proceedings with respect
to any and all claims of the Seller relating to the Junior Liabilities, in each
case until the Senior Liabilities shall have been paid and performed in full and
in cash.
                                      A-2

<PAGE>

                  (b) Following the occurrence of any of the events described in
clause (a)(i) or (ii), in the event that the Seller receives any payment or
other distribution of any kind or character from the Purchaser or from any other
source whatsoever, in respect of the Junior Liabilities, such payment or other
distribution shall be received in trust for the Indenture Trustee and shall be
turned over by the Seller to the Indenture Trustee (for the benefit of the
Noteholders, the Class S Certificateholders, and the Insurer) forthwith. All
payments and distributions received by the Indenture Trustee in respect of this
Note, to the extent received in or converted into cash, may be applied by the
Indenture Trustee (for the benefit of the Noteholders, the Class S
Certificateholders, and the Insurer) first to the payment of any and all
reasonable expenses (including reasonable attorneys' fees and legal expenses)
paid or incurred by the Indenture Trustee, the Noteholders, the Class S
Certificateholders, or the Insurer in enforcing these Subordination Provisions,
or in endeavoring to collect or realize upon the Junior Liabilities, and any
balance thereof shall, solely as between the Seller and the Noteholders, the
Class S Certificateholders, and the Insurer, be applied by the Indenture Trustee
toward the payment of the Senior Liabilities in a manner determined by the
Indenture Trustee to be in accordance with the Indenture; but as between the
Purchaser and its creditors, no such payments or distributions of any kind or
character shall be deemed to be payments or distributions in respect of the
Senior Liabilities.

                  (c) Upon the final payment in full and in cash of all Senior
Liabilities, the Seller shall be subrogated to the rights of the Indenture
Trustee to receive payments or distributions from the Purchaser that are
applicable to the Senior Liabilities until the Junior Liabilities are paid in
full.

                  (d) These Subordination Provisions are intended solely for the
purpose of defining the relative rights of the Seller, on the one hand, and the
Indenture Trustee (on behalf of Noteholders, the Class S Certificateholders, and
the Insurer), on the other hand. Nothing contained in these Subordination
Provisions or elsewhere in this Note (subject to paragraph 10 hereof) is
intended to or shall impair, as between the Purchaser, its creditors (other than
the Noteholders, the Class S Certificateholders, and the Insurer) and the
Seller, the Purchaser's obligation, which is unconditional and absolute, to pay
the Junior Liabilities as and when the same shall become due and payable in
accordance with the terms hereof (subject to paragraph 10 hereof) and of the
Purchase Agreement or to affect the relative rights of the Seller and creditors
of the Purchaser (other than the Noteholders, the Class S Certificateholders,
and the Insurer).

                  (e) The Seller shall not, until the Senior Liabilities have
been finally paid and performed in full and in cash, (i) cancel, waive, forgive,
transfer or assign, or commence legal proceedings to enforce or collect, or
subordinate to any obligation of the Purchaser, howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, or now or
thereafter existing, or due or to become due (other than the Senior
Liabilities), the Junior Liabilities or any rights in respect hereof or (ii)
convert the Junior Liabilities into an equity interest in the Purchaser, unless,
in the case of each of clauses (i) and (ii) above, the Seller shall have
received the prior written consent of the Indenture Trustee and the Insurer in
each case.

                                      A-3

<PAGE>

                  (f) The Seller shall not, except without the advance written
consent of the Indenture Trustee and the Insurer commence, or join with any
other Person in commencing, any Bankruptcy Proceedings with respect to the
Purchaser until at least one year and one day have passed since the Termination
Date.

                  (g) If, at any time, any of the payment (in whole or in part)
made with respect to any Senior Liabilities is rescinded or must be restored or
returned by the Indenture Trustee or Noteholders, the Class S
Certificateholders, or the Insurer (whether in connection with any Bankruptcy
Proceedings or otherwise), these Subordination Provisions shall continue to be
effective or shall be reinstated, as the case may be, as though such payment had
not been made.

                  (h) The Indenture Trustee (on behalf of Noteholders, the Class
S Certificateholders, and the Insurer) may, from time to time, with the consent
of the Insurer without notice to the Seller, and without waiving any of its
rights under these Subordination Provisions, take any or all of the following
actions: retain or obtain an interest in any property to secure any of the
Senior Liabilities; (ii) retain or obtain the primary or secondary obligations
of any other obligor or obligors with respect to any of the Senior Liabilities;
(iii) extend or renew for one or more periods (whether or not longer than the
original period), alter or exchange any of the Senior Liabilities, or release or
compromise any obligation of any nature with respect to any of the Senior
Liabilities; (iv) amend, supplement, amend and restate, or otherwise modify the
Sale and Servicing Agreement or any related document; and (v) release its
security interest in or surrender, release or permit any substitution or
exchange for all or any part of any rights or property securing any of the
Senior Liabilities, or extend or renew for one or more periods (whether or not
longer than the original period) or release, compromise, alter or exchange any
obligations of any nature of any obligor with respect to any such rights or
property.

                  (i) The Seller hereby waives: (i) notice of acceptance of
these Subordination Provisions by any of the Noteholders, the Class S
Certificateholders, and the Insurer, (ii) notice of the existence, creation,
non-payment or non-performance of all or any of the Senior Liabilities; and
(iii) all diligence in enforcement, collection or protection of, or realization
upon, the Senior Liabilities, or any thereof, or any security therefor.

                  (j) These Subordination Provisions constitute a continuing
offer from the Purchaser to all Persons who become the holders of, or who
continue to hold, Senior Liabilities; and these Subordination Provisions are
made for the benefit of the Noteholders, the Class S Certificateholders and the
Insurer, and the Indenture Trustee may proceed to enforce such provisions on
behalf of each of such Persons.

         8. General. No failure or delay on the part of the Seller in exercising
any power or right hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power or right preclude any other or
further exercise thereof or the exercise of any other power or right. No
amendment, modification or waiver of, or consent with respect to, any provision
of this Note shall in any event be effective unless (a) the same shall be in
writing and signed and delivered by the Purchaser and the Seller, and (b) all
consents required for such actions under the Purchase Agreement and the Sale and
Servicing Agreement shall have been received by the appropriate Persons. The
rights and remedies granted hereunder to the Indenture Trustee and the
Noteholders are subject to exercise as provided in the Purchase Agreement and
the Sale and Servicing Agreement.

                                      A-4

<PAGE>

         9. Limitation on Interest. Notwithstanding anything in this Note to the
contrary, the Purchaser shall never be required to pay unearned interest on any
amount outstanding hereunder, and shall never be required to pay interest on the
principal amount outstanding hereunder at a rate in excess of the maximum
interest rate that may be contracted for, charged or received without violation
of applicable federal or state law.

         10. Acknowledgment. The Seller acknowledges and agrees that it has no
rights to payment under this Note, and will not make any claim for payment
hereunder, unless funds are available for payment by the Purchaser in excess of
amounts due and payable by it at the time under the Sale and Servicing Agreement
and under all similar notes issued by the Purchaser to the Seller in connection
with any previous or future securitizations.

         11. No Negotiation. This Note is not negotiable.

         12. Governing Law. THIS NOTE SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CONFLICT OF LAWS PRINCIPLES.

         13. Captions. Paragraph captions used in this Note are provided solely
for convenience of reference only and shall not affect the meaning or
interpretation of any provision of this Note.

                                 GREENPOINT MORTGAGE SECURITIES INC.

                                 By:_________________________________

                                 Name:______________________________

                                 Title:_______________________________

                                      A-5

<PAGE>

                                                                     SCHEDULE I

                             MORTGAGE LOAN SCHEDULE

                        [On file with Indenture Trustee]

<PAGE>

                                                                      EXHIBIT B

                        Mortgage Loan Purchase Agreement

                           [Form of Purchase Request]

GreenPoint Mortgage Securities Inc.
100 Wood Hollow Drive
Doorstop #32210
Novato, California 94945

                  Pursuant to Section 2.04 of the Mortgage Loan Purchase
Agreement dated as of November 1, 2001 (the "Purchase Agreement") between
GreenPoint Mortgage Funding, Inc. and you, we hereby offer to sell, transfer and
assign to you all of GreenPoint Mortgage Funding, Inc.'s right, title and
interest in and to the Subsequent Mortgage Loans identified in the attached
schedule on the following date (the "Subsequent Transfer Date"): ____________,
including any Additional Balances thereto, in accordance with the terms of the
Purchase Agreement.

                  Please acknowledge your acceptance of such offer by executing
this Purchase Request in the space provided below and returning it to GreenPoint
Mortgage Funding, Inc. at ___________ by facsimile with an original acceptance
to follow by first class mail.

                  The failure of GreenPoint Mortgage Securities Inc. to return
this Purchase Request after execution by GreenPoint Mortgage Securities Inc., to
GreenPoint Mortgage Funding, Inc. in the manner provided above within three
Business Days prior to the Purchase Date (five business days, if this Purchase
Request was received by you at least two calendar weeks prior to the
above-referenced Purchase Date) shall constitute an acceptance of the offer
communicated hereby.

                                            Very truly yours,

                                            GreenPoint Mortgage Funding, Inc.

                                            By:_______________________________
                                               Name:
                                               Title:

Agreed to and acknowledged
this ____ day of, ____________, _____.

GreenPoint Mortgage Securities Inc.

By:____________________________
   Name:
   Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00032-of-00352.parquet"}]]