PRUDENTIAL SECURITIES SECURED FINANCING CORPORATION, Depositor ABFS 1996-2, INC., Unaffiliated Seller and AMERICAN BUSINESS CREDIT, INC. AND HOMEAMERICAN CREDIT, INC., D/B/A UPLAND MORTGAGE, Originators

EXHIBIT 4.2

PRUDENTIAL SECURITIES SECURED FINANCING CORPORATION,
Depositor

ABFS 1996-2, INC.,
Unaffiliated Seller

and

AMERICAN BUSINESS CREDIT, INC. AND
HOMEAMERICAN CREDIT, INC., D/B/A UPLAND MORTGAGE,
Originators

___________________________

UNAFFILIATED SELLER'S AGREEMENT

Dated as of September 27, 1996

TABLE OF CONTENTS

Page

ARTICLE ONE DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . 1

Section 1.01. Definitions . . . . . . . . . . . . . . . . . . . . . . 1

ARTICLE TWO PURCHASE, SALE AND CONVEYANCE OF MORTGAGE LOANS . . . . 5

Section 2.01. Agreement to Purchase the Initial Mortgage Loans. . . . 5
Section 2.02. Agreement to Purchase the Subsequent Mortgage Loans . . 5
Section 2.03. Purchase Price. . . . . . . . . . . . . . . . . . . . 7
Section 2.04. Conveyance of Mortgage Loans; Possession of
Mortgage Files. . . . . . . . . . . . . . . . . . . . . 7
Section 2.05. Delivery of Mortgage Loan Documents . . . . . . . . . . 8
Section 2.06. Acceptance of Mortgage Loans. . . . . . . . . . . . . . 9
Section 2.07. Transfer of Mortgage Loans; Assignment of
Agreement . . . . . . . . . . . . . . . . . . . . . . . 11
Section 2.08. Examination of Mortgage Files . . . . . . . . . . . . . 11
Section 2.09. Books and Records . . . . . . . . . . . . . . . . . . . 11
Section 2.10. Cost of Delivery and Recordation of Documents . . . . . 12

ARTICLE THREE REPRESENTATIONS AND WARRANTIES. . . . . . . . . . . . . 12

Section 3.01. Representations and Warranties as to the
Originators . . . . . . . . . . . . . . . . . . . . . . 12
Section 3.02. Representations and Warranties as to the
Unaffiliated Seller . . . . . . . . . . . . . . . . . . 14
Section 3.03. Representations and Warranties Relating to the
Mortgage Loans. . . . . . . . . . . . . . . . . . . . . 16
Section 3.04. Representations and Warranties of the Depositor . . . . 23
Section 3.05. Repurchase Obligation for Defective Documentation
and for Breach of a Representation or Warranty. . . . . 24

ARTICLE FOUR THE UNAFFILIATED SELLER . . . . . . . . . . . . . . . . 27

Section 4.01. Covenants of the Originators and the
Unaffiliated Seller . . . . . . . . . . . . . . . . . . 27
Section 4.02. Merger or Consolidation . . . . . . . . . . . . . . . . 27
Section 4.03. Costs . . . . . . . . . . . . . . . . . . . . . . . . . 28
Section 4.04. Indemnification . . . . . . . . . . . . . . . . . . . . 28

ARTICLE FIVE CONDITIONS OF CLOSING . . . . . . . . . . . . . . . . . 30

Section 5.01. Conditions of Depositor's Obligations . . . . . . . . . 30
Section 5.02. Conditions of Unaffiliated Seller's Obligations . . . . 32
Section 5.03. Termination of Depositor's Obligations. . . . . . . . . 32

ARTICLE SIX MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . 33

Section 6.01. Notices . . . . . . . . . . . . . . . . . . . . . . . . 33
Section 6.02. Severability of Provisions. . . . . . . . . . . . . . . 33
Section 6.03. Agreement of Unaffiliated Seller. . . . . . . . . . . . 33
Section 6.04. Survival. . . . . . . . . . . . . . . . . . . . . . . . 33

Section 6.05. Effect of Headings and Table of Contents. . . . . . . . 33
Section 6.06. Successors and Assigns. . . . . . . . . . . . . . . . . 34
Section 6.07. Confirmation of Intent; Grant of Security
Interest. . . . . . . . . . . . . . . . . . . . . . . . 34
Section 6.08. Miscellaneous . . . . . . . . . . . . . . . . . . . . . 34
Section 6.09. Amendments. . . . . . . . . . . . . . . . . . . . . . . 34
Section 6.10. Third-Party Beneficiaries . . . . . . . . . . . . . . . 35
Section 6.11. GOVERNING LAW; CONSENT TO JURISDICTION;
WAIVER OF JURY TRIAL. . . . . . . . . . . . . . . . . . 35
Section 6.12. Execution in Counterparts . . . . . . . . . . . . . . . 36

Exhibit A - Mortgage Loan Schedule
Exhibit B - Officer's Certificate
Exhibit C - Opinion of Counsel to Unaffiliated Seller

This Unaffiliated Seller's Agreement, dated as of September 27, 1996,
by and among PRUDENTIAL SECURITIES SECURED FINANCING CORPORATION, a Delaware
corporation, its successors and assigns (the "Depositor"), ABFS 1996-2, INC., a
Delaware corporation and its successors (the "Unaffiliated Seller"), AMERICAN
BUSINESS CREDIT, INC., a Pennsylvania corporation ("ABC") and HOMEAMERICAN
CREDIT, INC. D/B/A UPLAND MORTGAGE ("Upland" and together with ABC, the
"Originators").

WHEREAS, Exhibit A attached hereto and made a part hereof lists
certain fixed rate business and consumer purpose first and second lien mortgage
loans (the "Mortgage Loans") owned by the Originators that the Originators
desire to sell to the Unaffiliated Seller and the Unaffiliated Seller desires to
sell to the Depositor and that the Depositor desires to purchase;

WHEREAS, it is the intention of the Unaffiliated Seller and the
Depositor that simultaneously with the Originators' conveyance of the Mortgage
Loans to the Unaffiliated Seller and the Unaffiliated Seller's conveyance of the
Mortgage Loans to the Depositor on the Closing Date, (a) the Depositor shall
deposit the Mortgage Loans in a trust pursuant to a Pooling and Servicing
Agreement to be dated as of August 31, 1996 (the "Pooling and Servicing
Agreement"), to be entered into by and among the Depositor, as depositor,
American Business Credit, Inc., as servicer and The Chase Manhattan Bank, as
trustee (the "Trustee") and (b) the Trustee shall issue certificates evidencing
beneficial ownership interests in the property of the trust fund formed by the
Pooling and Servicing Agreement to the Depositor;

NOW, THEREFORE, in consideration of the premises and the mutual
agreements hereinafter set forth, the parties hereto agree as follows:

ARTICLE ONE

DEFINITIONS

Section 1.01. DEFINITIONS. Whenever used herein, the following words
and phrases, unless the context otherwise requires, shall have the meanings
specified in this Article:

"ACCEPTED SERVICING PRACTICES" means the Servicer's normal servicing
practices, which in general will conform to the mortgage servicing practices of
prudent mortgage lending institutions which service their own account mortgage
loans of the same type as the Mortgage Loans in the jurisdictions in which the
related Mortgaged Properties are located.

"AGREEMENT" means this Unaffiliated Seller's Agreement, as amended or
supplemented in accordance with the provisions hereof.

"APPRAISED VALUE" means the appraised value of the Mortgaged Property
based upon the appraisal made by or on behalf of the Originators.

"CERTIFICATE INSURER" means Financial Security Assurance Inc., a stock
insurance company organized and created under the laws of the State of New York,
and any successors thereto.

"CLOSING DATE" shall have the meaning ascribed thereto in
Section 2.01(c).

"COMMISSION" means the Securities and Exchange Commission.

"CUT-OFF DATE" means, with respect to the Initial Mortgage Loans, the
Initial Cut-Off Date, and with respect to the Subsequent Mortgage Loans, the
Subsequent Cut-Off Date.

"CUT-OFF DATE AGGREGATE PRINCIPAL BALANCE" means the aggregate unpaid
principal balance of the Initial Mortgage Loans as of the Cut-Off Date (or, with
respect to Initial Mortgage Loans which were originated after the Cut-Off Date
as of the date of origination). The Cut-Off Date Aggregate Principal Balance is
$26,915,932.68.

"CUT-OFF DATE PRINCIPAL BALANCE" means as to each Mortgage Loan, its
unpaid principal balance as of the Cut-Off Date (or, with respect to Initial
Mortgage Loans which were originated after the Cut-Off Date as of the date of
origination).

"DELETED MORTGAGE LOAN" means a Mortgage Loan replaced by or to be
replaced by a Qualified Substitute Mortgage Loan pursuant to the terms of the
Pooling and Servicing Agreement.

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

"INITIAL CUT-OFF DATE" means the close of business on August 30, 1996.

"INITIAL MORTGAGE LOANS" means the Mortgage Loans transferred and
assigned to the Depositor on the Closing Date.

"MONTHLY PAYMENT" means, as to any Mortgage Loan (including any REO
Mortgage Loan) and any Due Date, the payment of principal and interest due
thereon in accordance with the amortization schedule at the time applicable
thereto (after adjustment for any Curtailments and Deficient Valuations
occurring prior to such Due Date but before any adjustment to such amortization
schedule by reason of any bankruptcy, other than Deficient Valuations or similar
proceeding or any moratorium or similar waiver or grace period).

"MORTGAGE" means the mortgage or deed of trust creating a first or
second lien on an estate in fee simple in real property, and securing a Mortgage
Note, as amended or modified.

"MORTGAGE INTEREST RATE" means, as to any Mortgage Loan, the fixed per
annum rate at which interest accrues on the unpaid principal balance thereof.

"MORTGAGE LOANS" means such of the mortgage loans to be sold,
transferred and assigned to the Depositor on the Closing Date and each
Subsequent Transfer Date pursuant to Article Two hereof (including the related
Mortgage Notes and related Mortgages), all as identified in the Mortgage Loan
Schedule, and including any mortgage loan substituting or replacing a Mortgage
Loan pursuant to the terms of the Pooling and Servicing Agreement.

"MORTGAGE LOAN SCHEDULE" shall have the meaning ascribed thereto in
Section 2.01(b).

"MORTGAGE NOTE" means the note or other evidence of indebtedness
evidencing the indebtedness of a Mortgagor under a Mortgage Loan, as amended or
modified.

"MORTGAGED PROPERTY" means the property subject to a Mortgage.

"MORTGAGOR" means the obligor on a Mortgage Note.

"POOLING AND SERVICING AGREEMENT" shall have the meaning ascribed
thereto in the recitals hereof.

"PROSPECTUS" means the Prospectus dated August 4, 1995 relating to the
offering by the Depositor from time to time of its Pass-Through Certificates
(Issuable in Series) in the form in which it was or will be filed with the
Securities Exchange Commission pursuant to Rule 424(b) under the Securities Act
with respect to the offer and sale of the Certificates.

"PROSPECTUS SUPPLEMENT" means the Prospectus Supplement dated
September 12, 1996, relating to the offering of the Certificates in the form in
which it was or will be filed with the Commission pursuant to Rule 424(b) under
the Securities Act with respect to the offer and sale of the Certificates.

"QUALIFIED APPRAISER" means an appraiser, duly appointed by the
Unaffiliated Seller, who had no interest, direct or indirect, in the Mortgaged
Property or in any loan made on the security thereof, and whose compensation is
not affected by the approval or disapproval of the Mortgage Loan, and such
appraiser and the appraisal made by such appraiser both satisfy the requirements
of Title XI of the Federal Institutions Reform, Recovery and Enforcement Act of
1989 and the regulations promulgated thereunder, all as in effect on the date
the Mortgage Loan was originated.

"REGISTRATION STATEMENT" means that certain registration statement on
Form S-3, as amended (Registration No. 33-51148) relating to the offering by the
Depositor from time to time of its Pass-Through Certificates (Issuable in
Series) as heretofore declared effective by the Commission.

"SECURITIES ACT" means the Securities Act of 1933, as amended.

"SUBSEQUENT CUT-OFF DATE" means the date specified in the Addition
Notice relating to Subsequent Mortgage Loans.

"SUBSEQUENT MORTGAGE LOANS" means the Mortgage Loans hereafter
transferred and assigned to the Depositor on a Subsequent Transfer Date.

"TERMINATION EVENT" means the existence of any one or more of the
following conditions:

(a) a stop order suspending the effectiveness of the Registration
Statement shall have been issued or a proceeding for that purpose shall have
been initiated or threatened by the Commission; or

(b) subsequent to the execution and delivery of this Agreement, a
downgrading, or public notification of a possible change, without indication of
direction, shall have occurred in the rating afforded any of the debt securities
or claims paying ability of any person providing any form of credit enhancement
for any of the Certificates, by any "nationally recognized statistical rating
organization," as that term is defined by the Commission for purposes of Rule
436(g)(2) under the Securities Act; or

(c) subsequent to the execution and delivery of this Agreement, there
shall have occurred an adverse change in the condition, financial or otherwise,
earnings, affairs, regulatory situation or business prospects of the Certificate
Insurer or the Unaffiliated Seller reasonably determined by the Depositor to be
material; or

(d) subsequent to the date of this Agreement there shall have
occurred any of the following: (i) a suspension or material limitation in
trading in securities substantially similar to the Certificates; (ii) a general
moratorium on commercial banking activities in New York declared by either
Federal or New York State authorities; or (iii) the engagement by the United
States in hostilities, or the escalation of such hostilities, or any calamity or
crisis, if the effect of any such event specified in this clause (iii) in the
reasonable judgment of the Depositor makes it impracticable or inadvisable to
proceed with the public offering or the delivery of the Certificates on the
terms and in the manner contemplated in the Prospectus Supplement.

"UNAFFILIATED SELLER" means ABFS 1996-2, Inc., in its capacity as
Unaffiliated Seller of the Mortgage Loans under this Agreement and any successor
to ABFS 1996-2, Inc., whether through merger, consolidation, purchase and
assumption of ABFS 1996-2, Inc. or all or substantially all of its assets or
otherwise.

Capitalized terms used herein that are not otherwise defined shall
have the respective meanings ascribed thereto in the Pooling and Servicing
Agreement.

ARTICLE TWO

PURCHASE, SALE AND CONVEYANCE OF MORTGAGE LOANS

Section 2.01. AGREEMENT TO PURCHASE THE INITIAL MORTGAGE LOANS. (a)
Subject to the terms and conditions of this Agreement, the Originators agree to
sell, and the Unaffiliated Seller agrees to purchase on the Closing Date and
immediately subsequent thereto, the Unaffiliated Seller agrees to sell, and the
Depositor agrees to purchase, the Mortgage Loans having the Cut-Off Date
Aggregate Principal Balance or, in accordance with Section 2.08, such other
balance as is evidenced by the actual Cut-Off Date Aggregate Principal Balance
of the Mortgage Loans accepted by the Depositor on the Closing Date and listed
in the Mortgage Loan Schedule.

(b) Subject to Section 2.08, the Depositor and the Unaffiliated
Seller have agreed upon which of the Unaffiliated Seller's Mortgage Loans are to
be purchased by the Depositor on the Closing Date pursuant to this Agreement,
and the Unaffiliated Seller has prepared a schedule describing the Mortgage
Loans (the "Mortgage Loan Schedule") setting forth all of the Mortgage Loans to
be purchased under this Agreement, which schedule is attached hereto as Exhibit
A. The Mortgage Loan Schedule shall conform to the requirements of the
Depositor and to the definition of "Mortgage Loan Schedule" under the Pooling
and Servicing Agreement.

(c) The closing for the purchase and sale of the Mortgage Loans shall
take place at the offices of ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇, New York, New York, at
10:00 a.m., New York time, on September 27, 1996 or such other place and time as
the parties shall agree (such time being herein referred to as the "Closing
Date").

Section 2.02. AGREEMENT TO PURCHASE THE SUBSEQUENT MORTGAGE LOANS.
(a) Subject to the terms and conditions of this Agreement, the Originators
agree to sell, and the Unaffiliated Seller agrees to purchase on the each
Subsequent Transfer Date and immediately subsequent thereto, the Unaffiliated
Seller agrees to sell, and the Depositor agrees to purchase, Subsequent Mortgage
Loans, having an Aggregate Principal Balance of up to $13,084,067.32 as listed
in the Mortgage Loan Schedule attached to the related Addition Notice.

(b) Subject to Section 2.08, the Depositor and the Unaffiliated
Seller have agreed upon which of the Unaffiliated Seller's Mortgage Loans are to
be purchased by the Depositor on a Subsequent Transfer Date pursuant to this
Agreement, and the Unaffiliated Seller has prepared a schedule describing the
Mortgage Loans (the "Mortgage Loan Schedule") setting forth all of the Mortgage
Loans to be purchased under this Agreement, which schedule is attached hereto as
Exhibit A. The Mortgage Loan Schedule shall conform to the requirements of the
Depositor and to the definition of "Mortgage Loan Schedule" under the Pooling
and Servicing Agreement.

(c) Subject to the satisfaction of the conditions set forth in
paragraph (d) below, (i) in consideration of the Unaffiliated Seller's delivery
on the related Subsequent Transfer Dates to or upon the order of the Originators
of the purchase price, the Originators shall on any Subsequent Transfer Date
sell, transfer, assign, set over and convey to the Trustee without recourse but
subject to terms and provisions of this Agreement, all of the right, title and
interest of the Originators in and to the Subsequent Mortgage Loans, and all
other assets included or to

be included in the Trust Fund for the benefit of the Certificateholders and the
Certificate Insurer and (ii) in consideration of the Depositor's delivery on the
related Subsequent Transfer Dates to or upon the order of the Unaffiliated
Seller of the purchase price, the Unaffiliated Seller shall on any Subsequent
Transfer Date sell, transfer, assign, set over and convey to the Trustee without
recourse but subject to terms and provisions of this Agreement, all of the
right, title and interest of the Originators in and to the Subsequent Mortgage
Loans, and all other assets included or to be included in the Trust Fund for the
benefit of the Certificateholders.

(d) The Subsequent Mortgage Loans and the other property and rights
related thereto described in paragraph (c) above shall be transferred by the
Depositor to the Trust only upon the satisfaction of each of the following
conditions on or prior to the related Subsequent Transfer Date:

(i) the Unaffiliated Seller shall have provided the Trustee, the
Rating Agencies and the Certificate Insurer with a timely Addition Notice,
which shall include a Mortgage Loan Schedule listing the Subsequent
Mortgage Loans and shall have provided any other information reasonably
requested by any of the foregoing with respect to the Subsequent Mortgage
Loans;

(ii) The Unaffiliated Seller shall have deposited in the Collection
Account all collections of (x) principal in respect of the Subsequent
Mortgage Loans received after the related Subsequent Cut-Off Date and (y)
interest due on the Subsequent Mortgage Loans after the related Subsequent
Cut-Off Date;

(iii) as of each Subsequent Transfer Date, the Depositor was not
insolvent nor will be made insolvent by such transfer nor is the Depositor
aware of any pending insolvency;

(iv) such addition will not result in a material adverse tax
consequence to the Trust or the Holders of the Certificates;

(v) the Pre-Funding Period shall not have terminated;

(vi) the Unaffiliated Seller shall have delivered to the Trustee an
Officer's Certificate confirming the satisfaction of each condition
precedent specified in this paragraph (b) and that the Subsequent Mortgage
Loans comply with the provisions of this Section 2.03; and

(vii) there shall have been delivered to the Certificate Insurer, the
Rating Agencies and the Trustee, independent Opinions of Counsel with
respect to the transfer of the Subsequent Mortgage Loans substantially in
the form of the Opinions of Counsel delivered to the Certificate Insurer
and the Trustee on the Startup Date (bankruptcy, corporate and tax
opinions).

(e) The obligation of the Depositor to purchase a Subsequent Mortgage
Loan on any Subsequent Transfer Date is subject to the requirements set forth in
Section 2.03(c) of the Pooling and Servicing Agreement.

Section 2.03. PURCHASE PRICE. (a) On the Closing Date, as full
consideration for the Unaffiliated Seller's sale of the Initial Mortgage Loans
to the Depositor, the Depositor will deliver to the Unaffiliated Seller (i) an
amount in cash equal to the sum of (A) 99.453125% of the aggregate principal
balance as of the Closing Date of the Class A Certificates, and (B) accrued
interest on such principal balance at the rate of 7.525% per annum from (and
including) September 1, 1996 to (but not including) September 27, 1996, payable
by wire transfer of same day funds and (ii) the Class R Certificates to be
issued pursuant to the Pooling and Servicing Agreement.

On the Closing Date, as full consideration for the Originators' sale
of the Initial Mortgage Loans to the Unaffiliated Seller, the Unaffiliated
Seller will deliver to the Originators an amount in cash equal to the sum of (A)
99.453125% of the aggregate principal balance as of the Closing Date of the
Class A Certificates, and (B) accrued interest on such principal balance at the
rate of 7.525% per annum from (and including) September 1, 1996 to (but not
including) September 27, 1996, payable by wire transfer of same day funds.

(b) On each Subsequent Transfer Date, as full consideration for
Originators' sale to the Unaffiliated Seller and the Unaffiliated Seller's sale
of the Subsequent Mortgage Loans to the Depositor, the Depositor will deliver to
the Unaffiliated Seller and the Unaffiliated Seller will deliver to the
Originators an amount in cash equal to the sum of 100% of the aggregate
principal balance as of the related Subsequent Cut-Off Date of the Subsequent
Mortgage Loans.

Section 2.04. CONVEYANCE OF MORTGAGE LOANS; POSSESSION OF MORTGAGE
FILES. (a) On the Closing Date and on each Subsequent Transfer Date, the
Originators shall sell, transfer, assign, set over and convey to the
Unaffiliated Seller, without recourse but subject to the terms of this
Agreement, all right, title and interest in and to the applicable Mortgage
Loans, the insurance policies relating to each such Mortgage Loan and all right,
title and interest in and to the proceeds of such insurance policies from and
after the Closing Date and the Unaffiliated Seller shall sell, transfer, assign,
set over and convey to the Depositor, without recourse but subject to the terms
of this Agreement, all right, title and interest in and to the applicable
Mortgage Loans, the insurance policies relating to each such Mortgage Loan and
all right, title and interest in and to the proceeds of such insurance policies
from and after the Closing Date. Upon payment of the purchase price for such
Mortgage Loans as provided in Section 2.03 of this Agreement, the Originators
and the Unaffiliated Seller shall have hereby, and shall be deemed to have,
sold, transferred, assigned, set over and conveyed such Mortgage Loans, the
insurance policies relating to each such Mortgage Loan and all right, title and
interest in and to the proceeds of such insurance policies from and after the
Closing Date.

(b) Upon the sale of such Mortgage Loans, the ownership of each
related Mortgage Note, each related Mortgage and the contents of the related
Mortgage File shall immediately vest in the Depositor and the ownership of all
related records and documents with respect to each Mortgage Loan prepared by or
which come into the possession of the Originators or the Unaffiliated Seller
shall immediately vest in the Depositor. The contents of any Mortgage File in
the possession of the Originators or the Unaffiliated Seller at any time after
such sale, and any scheduled payments of principal and interest on the Mortgage
Loans due after the Cut-Off Date and received by the Originators or the
Unaffiliated Seller, shall be held in trust by the Originators or the
Unaffiliated Seller for the benefit of the Depositor as the owner thereof, and
shall be promptly delivered by the Originators or the Unaffiliated Seller to or
upon the order of the Depositor.

(c) Pursuant to the Pooling and Servicing Agreement, the Depositor
shall, on the Closing Date, assign all of its right, title and interest in and
to the applicable Mortgage Loans to the Trustee for the benefit of the
Certificateholders and the Certificate Insurer.

Section 2.05. DELIVERY OF MORTGAGE LOAN DOCUMENTS. (a) On or prior
to the Closing Date or Subsequent Transfer Date, as applicable, the Unaffiliated
Seller shall deliver to the Trustee (as assignee of the Depositor pursuant to
the Pooling and Servicing Agreement), each of the following documents for each
applicable Mortgage Loan:

(i) The original Mortgage Note, endorsed without recourse in blank by
the Unaffiliated Seller, including all intervening endorsements showing a
complete chain of endorsement;

(ii) The related Mortgage with evidence of recording indicated
thereon or a copy thereof certified by the applicable recording office;

(iii) The recorded mortgage assignment, or copy thereof certified by
the applicable recording office, if any, showing a complete chain of
assignment from the originator of the related Mortgage Loan to the
Unaffiliated Seller (which assignment may, at Seller's option, be combined
with the assignment referred to in subpart (iv) hereof);

(iv) A mortgage assignment in recordable form (which, if acceptable
for recording in the relevant jurisdiction, may be included in a blanket
assignment or assignments) of each Mortgage from the Unaffiliated Seller to
the Trustee;

(v) Originals of all assumption, modification and substitution
agreements in those instances where the terms or provisions of a Mortgage
or Mortgage Note have been modified or such Mortgage or Mortgage Note has
been assumed; and

(vi) Evidence of title insurance (which may consist of (A) a copy of
the title insurance policy, or (B) a binder thereof or copy of such binder)
together with a certificate from the Unaffiliated Seller that the original
Mortgage has been delivered to the title insurance company that issued such
binder for recordation.

In instances where the original recorded Mortgage and a completed
assignment thereof in recordable form cannot be delivered by the Unaffiliated
Seller to the Trustee prior to or concurrently with the execution and delivery
of this Agreement (or, with respect to Subsequent Mortgage Loans, prior to or on
the Subsequent Transfer Date), due to a delay in connection with recording, the
Unaffiliated Seller may:

(x) In lieu of delivering such original recorded Mortgage, deliver to
the Trustee a copy thereof provided that the Unaffiliated Seller certifies
that the original Mortgage has been delivered to a title insurance company
for recordation after receipt of its policy of title insurance or binder
therefor; and

(y) In lieu of delivering the completed assignment in recordable
form, deliver to the Trustee the assignment in recordable form, otherwise
complete except for recording information.

(b) Pursuant to the Pooling and Servicing Agreement, the Unaffiliated
Seller shall be required to promptly submit for recording in the appropriate
public office for real property records, each assignment referred to in (a)
above. The Trustee shall be required to retain a copy of each assignment
submitted for recording. In the event that any such assignment is lost or
returned unrecorded because of a defect therein, the Unaffiliated Seller shall
promptly prepare a substitute assignment or cure such defect, as the case may
be, and thereafter the Unaffiliated Seller shall be required to submit each such
assignment for recording.

(c) The Unaffiliated Seller shall, within five Business Days after
the receipt thereof, and in any event, no later than 120 days after the Closing
Date, deliver or cause to be delivered to the Trustee (as assignee of the
Depositor pursuant to the Pooling and Servicing Agreement): (i) the original
recorded Mortgage and related power of attorney, if any, in those instances
where a copy thereof certified by the Unaffiliated Seller was delivered to the
Trustee (as assignee of the Depositor pursuant to the Pooling and Servicing
Agreement); (ii) the original recorded assignment of Mortgage from the
Unaffiliated Seller to the Trustee (as assignee of the Depositor pursuant to the
Pooling and Servicing Agreement), which, together with any intervening
assignments of Mortgage, evidences a complete chain of assignment from the
originator of the Mortgage Loan to the Trustee in those instances where copies
of such assignments certified by the Unaffiliated Seller were delivered to the
Trustee (as assignee of the Depositor pursuant to the Pooling and Servicing
Agreement); and (iii) the title insurance policy or title opinion required in
clause (a)(vi) above. Notwithstanding anything to the contrary contained in
this Section 2.05, in those instances where the public recording office retains
the original Mortgage, power of attorney, if any, assignment or assignment of
Mortgage after it has been recorded or such original has been lost, the
Unaffiliated Seller shall be deemed to have satisfied its obligations hereunder
upon delivery to the Trustee (as assignee of the Depositor pursuant to the
Pooling and Servicing Agreement) of a copy of such Mortgage, power of attorney,
if any, assignment or assignment of Mortgage certified by the public recording
office to be a true copy of the recorded original thereof. From time to time
the Unaffiliated Seller may forward or cause to be forwarded to the Trustee (as
assignee of the Depositor pursuant to the Pooling and Servicing Agreement)
additional original documents evidencing an assumption or modification of a
Mortgage Loan.

(d) All original documents relating to the Mortgage Loans that are
not delivered to the Trustee (as assignee of the Depositor pursuant to the
Pooling and Servicing Agreement) as permitted by Section 2.05 (a) are and shall
be held by the Unaffiliated Seller in trust for the benefit of the Trustee on
behalf of the Certificateholders and the Certificate Insurer. In the event that
any such original document is required pursuant to the terms of this Section
2.05 to be a part of a Mortgage File, such document shall be delivered promptly
to the Trustee (as assignee of the Depositor pursuant to the Pooling and
Servicing Agreement). From and after the sale of the Mortgage Loans to the
Depositor pursuant hereto, to the extent that the Unaffiliated Seller retains
legal title of record to any Mortgage Loans prior to the vesting of legal title
in the Trustee (as assignee of the Depositor pursuant to the Pooling and
Servicing Agreement), such title shall be retained in trust for the Depositor as
the owner of the Mortgage Loans and the Trustee, as the Depositor's assignee.

Section 2.06. ACCEPTANCE OF MORTGAGE LOANS. (a) Pursuant to the
Pooling and Servicing Agreement, the Trustee has agreed to execute and deliver
on or prior to the Closing Date an acknowledgment of receipt of, for each
Mortgage Loan, the original Mortgage Note with respect to each Mortgage Loan
(with any exceptions noted), in the form attached as Exhibit E to the Pooling
and Servicing Agreement and declares that it will hold such documents and any

amendments, replacements or supplements thereto, as well as any other assets
included in the definition of Trust Fund in the Pooling and Servicing Agreement
and delivered to the Trustee, as Trustee in trust upon and subject to the
conditions set forth in the Pooling and Servicing Agreement for the benefit of
the Certificateholders and the Certificate Insurer. Pursuant to the Pooling and
Servicing Agreement, the Trustee has agreed, for the benefit of the
Certificateholders and the Certificate Insurer, to review (or cause to be
reviewed) each Trustee's Mortgage File within 30 days after the Closing Date
(or, with respect to any Qualified Substitute Mortgage Loan, within 30 days
after the receipt by the Trustee thereof) and to deliver to the initial
Certificateholders, the Unaffiliated Seller, the Servicer and the Certificate
Insurer a certification in the form attached to the Pooling and Servicing
Agreement as Exhibit F to the effect that, as to each Mortgage Loan listed in
the Mortgage Loan Schedule (other than any Mortgage Loan paid in full or any
Mortgage Loan specifically identified in such certification as not covered by
such certification), (i) all documents required to be delivered to it pursuant
to the Pooling and Servicing Agreement are in its possession, (ii) each such
document has been reviewed by it and has not been mutilated, damaged, torn or
otherwise physically altered (handwritten additions, changes or corrections
shall not constitute physical alteration if initialled by the Mortgagor),
appears regular on its face and relates to such Mortgage Loan, and (iii) based
on its examination and only as to the foregoing documents, the information set
forth on the Mortgage Loan Schedule accurately reflects the information set
forth in the Trustee's Mortgage File delivered on such date. Pursuant to the
Pooling and Servicing Agreement, the Trustee shall be under no duty or
obligation to inspect, review or examine any such documents, instruments,
certificates or other papers to determine that they are genuine, enforceable, or
appropriate for the represented purpose or that they are other than what they
purport to be on their face. Pursuant to the Pooling and Servicing Agreement,
within 270 days after the Closing Date, the Trustee shall be required to deliver
(or cause to be delivered) to the Servicer, the Unaffiliated Seller, the initial
Certificateholders and the Certificate Insurer a final certification in the form
attached to the Pooling and Servicing Agreement as Exhibit G to the effect that,
as to each Mortgage Loan listed in the Mortgage Loan Schedule (other than any
Mortgage Loan paid in full or any Mortgage Loan specifically identified in such
certification as not covered by such certification), (i) all documents required
to be delivered to it pursuant to the Pooling and Servicing Agreement are in its
possession, (ii) each such document has been reviewed by it and has not been
mutilated, damaged, torn or otherwise physically altered (handwritten additions,
changes or corrections shall not constitute physical alteration if initialled by
the Mortgagor), appears regular on its face and relates to such Mortgage Loan,
and (iii) based on its examination and only as to the foregoing documents, the
information set forth on the Mortgage Loan Schedule accurately reflects the
information set forth in the Trustee's Mortgage File delivered on such date.

(b) The Pooling and Servicing Agreement provides that, if the Trustee
during the process of reviewing the Trustee's Mortgage Files finds any document
constituting a part of a Trustee's Mortgage File which is not executed, has not
been received, is unrelated to the Mortgage Loan identified in the Mortgage Loan
Schedule, or does not conform to the requirements of Section 2.05 or the
description thereof as set forth in the Mortgage Loan Schedule, the Trustee
shall promptly so notify the Servicer, the Unaffiliated Seller, the Certificate
Insurer and the Trustee. The Unaffiliated Seller agrees that in performing any
such review, the Trustee may conclusively rely on the Unaffiliated Seller as to
the purported genuineness of any such document and any signature thereon. The
Unaffiliated Seller agrees to use reasonable efforts to remedy a material defect
in a document constituting part of a Mortgage File of which it is notified. If,
however, within 60 days after such notice the Unaffiliated Seller has not
remedied the defect and the defect materially and adversely affects the interest
of the Certificateholders in

the related Mortgage Loan or the interests of the Certificate Insurer, then the
Unaffiliated Seller shall either substitute in lieu of such Mortgage Loan a
Qualified Substitute Mortgage Loan or purchase such Mortgage Loan in the manner
and subject to the conditions set forth in Section 3.05.

(c) The failure of the Trustee or the Certificate Insurer to give any
notice contemplated herein within the time periods specified above shall not
affect or relieve the Unaffiliated Seller's obligation to repurchase for any
Mortgage Loan pursuant to this Section 2.06 or Section 3.05 of this Agreement.

Section 2.07. TRANSFER OF MORTGAGE LOANS; ASSIGNMENT OF AGREEMENT.
The Unaffiliated Seller hereby acknowledges and agrees that the Depositor may
assign its interest under this Agreement to the Trustee as may be required to
effect the purposes of the Pooling and Servicing Agreement, without further
notice to, or consent of, the Unaffiliated Seller, and the Trustee shall succeed
to such of the rights and obligations of the Depositor hereunder as shall be so
assigned. The Depositor shall, pursuant to the Pooling and Servicing Agreement,
assign all of its right, title and interest in and to the Mortgage Loans and its
right to exercise the remedies created by Sections 2.06 and 3.05 hereof for
breaches of the representations, warranties, agreements and covenants of the
Unaffiliated Seller contained in Sections 2.05, 2.06, 3.02 and 3.03 hereof to
the Trustee for the benefit of the Certificateholders and the Certificate
Insurer. The Unaffiliated Seller agrees that, upon such assignment to the
Trustee, such representations, warranties, agreements and covenants will run to
and be for the benefit of the Trustee and the Trustee may enforce, without
joinder of the Depositor, the repurchase obligations of the Unaffiliated Seller
set forth herein with respect to breaches of such representations, warranties,
agreements and covenants.

Section 2.08. EXAMINATION OF MORTGAGE FILES. Prior to the Closing
Date and each Subsequent Transfer Date, as applicable, the Unaffiliated Seller
shall make the Mortgage Files available to the Depositor or its designee for
examination at the Unaffiliated Seller's offices or at such other place as the
Unaffiliated Seller shall reasonably specify. Such examination may be made by
the Depositor or its designee at any time on or before the Closing Date or
Subsequent Transfer Date, as the case may be. If the Depositor or its designee
makes such examination prior to the Closing Date or Subsequent Transfer Date, as
the case may be, and identifies any Mortgage Loans that do not conform to the
requirements of the Depositor as described in this Agreement, such Mortgage
Loans shall be deleted from the Mortgage Loan Schedule and may be replaced,
prior to the Closing Date or Subsequent Transfer Date, as the case may be, by
substitute Mortgage Loans acceptable to the Depositor. The Depositor may, at
its option and without notice to the Unaffiliated Seller, purchase all or part
of the Mortgage Loans without conducting any partial or complete examination.
The fact that the Depositor or the Trustee has conducted or has failed to
conduct any partial or complete examination of the Mortgage Files shall not
affect the rights of the Depositor or the Trustee to demand repurchase or other
relief as provided in this Agreement.

Section 2.09. BOOKS AND RECORDS. The sale of each Mortgage Loan
shall be reflected on each of the Originators' and the Unaffiliated Seller's
accounting and other records, balance sheet and other financial statements as a
sale of assets by the Originators to the Unaffiliated Seller and by the
Unaffiliated Seller to the Depositor. Each of the Originators and the
Unaffiliated Seller shall be responsible for maintaining, and shall maintain, a
complete set of books and records for each Mortgage Loan which shall be clearly
marked to reflect the ownership

of each Mortgage Loan by the Trustee for the benefit of the Certificateholders
and the Certificate Insurer.

Section 2.10. COST OF DELIVERY AND RECORDATION OF DOCUMENTS. The
costs relating to the delivery and recordation of the documents specified in
this Article Two in connection with the Mortgage Loans shall be borne by the
Unaffiliated Seller.

ARTICLE THREE

REPRESENTATIONS AND WARRANTIES

Section 3.01. REPRESENTATIONS AND WARRANTIES AS TO THE ORIGINATORS.
Each of the Originators hereby represents and warrants to the Unaffiliated
Seller and the Depositor, as of the Closing Date, that:

(a) The Originator is a corporation duly organized, validly existing
and in good standing under the laws of the State of Pennsylvania and has all
licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in each state where a Mortgaged
Property is located if the laws of such state require licensing or qualification
in order to conduct business of the type conducted by the Originator and to
perform its obligations as the Originator hereunder, and in any event the
Originator is in compliance with the laws of any such state to the extent
necessary to ensure the enforceability of the related Mortgage Loan; the
Originator has the full power and authority, corporate and otherwise, to execute
and deliver this Agreement and to perform in accordance herewith; the execution,
delivery and performance of this Agreement (including all instruments of
transfer to be delivered pursuant to this Agreement) by the Originator and the
consummation of the transactions contemplated hereby have been duly and validly
authorized; this Agreement evidences the valid, binding and enforceable
obligation of the Originator; and all requisite corporate action has been taken
by the Originator to make this Agreement valid and binding upon the Originator
in accordance with its terms;

(b) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Originator of, or compliance by the Originator with, this
Agreement or the sale of the Mortgage Loans pursuant to the terms of this
Agreement or the consummation of the transactions contemplated by this
Agreement, or if required, such approval has been obtained prior to the Closing
Date;

(c) Neither the execution and delivery of this Agreement, the
acquisition or origination of the Mortgage Loans by the Originator or the
transactions contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement, has or will conflict with or result in a
breach of any of the terms, conditions or provisions of the Originator's charter
or by-laws or any legal restriction or any agreement or instrument to which the
Originator is now a party or by which it is bound or to which its property is
subject, or constitute a default or result in an acceleration under any of the
foregoing, or result in the violation of any law, rule, regulation, order,
judgment or decree to which the Originator or its property is subject, or impair
the ability of the Trustee (or the Servicer as the agent of the Trustee) to
realize on the Mortgage Loans, or impair the value of the Mortgage Loans;

(d) Neither this Agreement nor the information contained in the
Prospectus Supplement under the captions "The Mortgage Pool", "The Originators,
the Seller and the Servicer" and "Servicing of the Mortgage Loans" nor any
statement, report or other document prepared by the Originator and furnished or
to be furnished pursuant to this Agreement or in connection with the
transactions contemplated hereby contains any untrue statement or alleged untrue
statement of any material fact or omits to state a material fact necessary to
make the statements contained herein or therein, in light of the circumstances
under which they were made, not misleading;

(e) There is no action, suit, proceeding or investigation pending or,
to the knowledge of the Originator, threatened before a court, administrative
agency or government tribunal against the Originator which, either in any one
instance or in the aggregate, may result in any material adverse change in the
business, operations, financial condition, properties or assets of the
Originator, or in any material impairment of the right or ability of the
Originator to carry on its business substantially as now conducted, or in any
material liability on the part of the Originator, or which would draw into
question the validity of this Agreement, the Mortgage Loans, or of any action
taken or to be taken in connection with the obligations of the Originator
contemplated herein, or which would impair materially the ability of the
Originator to perform under the terms of this Agreement or that might prohibit
its entering into this Agreement or the consummation of any of the transactions
contemplated hereby;

(f) The Originator is not in violation of or in default with respect
to, and the execution and delivery of this Agreement by the Originator and its
performance of and compliance with the terms hereof will not constitute a
violation or default with respect to, any order or decree of any court or any
order, regulation or demand of any federal, state, municipal or governmental
agency, which violation or default might have consequences that would materially
and adversely affect the condition (financial or other) or operations of the
Originator or its properties or might have consequences that would materially
and adversely affect its performance hereunder or under any Subservicing
Agreement;

(g) Upon the receipt of each Trustee's Mortgage File by the Depositor
under this Agreement, the Depositor will have good title on behalf of the Trust
Fund to each related Mortgage Loan and such other items comprising the corpus of
the Trust Fund free and clear of any lien created by the Originator (other than
liens which will be simultaneously released);

(h) The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Originator, and the
transfer, assignment and conveyance of the Mortgage Notes and the Mortgages by
the Originator pursuant to this Agreement are not subject to the bulk transfer
or any similar statutory provisions in effect in any applicable jurisdiction;

(i) With respect to any Mortgage Loan purchased by the Originator,
the Originator acquired title to the Mortgage Loan in good faith, without notice
of any adverse claim;

(j) The Originator does not believe, nor does it have any reason or
cause to believe, that it cannot perform each and every covenant contained in
this Agreement. The Originator is solvent and the sale of the Mortgage Loans by
the Originator pursuant to the terms of this Agreement will not cause the
Originator to become insolvent. The sale of the Mortgage

Loans by the Originator pursuant to the terms of this Agreement was not
undertaken with the intent to hinder, delay or defraud any of the Originator's
creditors;

(k) The Mortgage Loans are not intentionally selected in a manner so
as to affect adversely the interests of the Depositor or of any transferee of
the Depositor (including the Trustee);

(l) The Originator has determined that it will treat the disposition
of the Mortgage Loans pursuant to this Agreement as a sale for accounting and
tax purposes;

(m) The Originator has not dealt with any broker or agent or anyone
else that may be entitled to any commission or compensation in connection with
the sale of the Mortgage Loans to the Depositor other than to the Depositor or
an affiliate thereof; and

(n) The consideration received by the Originator upon the sale of the
Mortgage Loans under this Agreement constitutes fair consideration and
reasonably equivalent value for the Mortgage Loans.

Section 3.02. REPRESENTATIONS AND WARRANTIES AS TO THE UNAFFILIATED
SELLER. The Unaffiliated Seller hereby represents and warrants to the
Depositor, as of the Closing Date, that:

(a) The Unaffiliated Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
all licenses necessary to carry on its business as now being conducted and is
licensed, qualified and in good standing in each state where a Mortgaged
Property is located if the laws of such state require licensing or qualification
in order to conduct business of the type conducted by the Unaffiliated Seller
and to perform its obligations as the Unaffiliated Seller hereunder, and in any
event the Unaffiliated Seller is in compliance with the laws of any such state
to the extent necessary to ensure the enforceability of the related Mortgage
Loan; the Unaffiliated Seller has the full power and authority, corporate and
otherwise, to execute and deliver this Agreement and to perform in accordance
herewith; the execution, delivery and performance of this Agreement (including
all instruments of transfer to be delivered pursuant to this Agreement) by the
Unaffiliated Seller and the consummation of the transactions contemplated hereby
have been duly and validly authorized; this Agreement evidences the valid,
binding and enforceable obligation of the Unaffiliated Seller; and all requisite
corporate action has been taken by the Unaffiliated Seller to make this
Agreement valid and binding upon the Unaffiliated Seller in accordance with its
terms;

(b) No consent, approval, authorization or order of any court or
governmental agency or body is required for the execution, delivery and
performance by the Unaffiliated Seller of or compliance by the Unaffiliated
Seller with this Agreement or the sale of the Mortgage Loans pursuant to the
terms of this Agreement or the consummation of the transactions contemplated by
this Agreement, or if required, such approval has been obtained prior to the
Closing Date;

(c) Neither the execution and delivery of this Agreement, the
acquisition or origination of the Mortgage Loans by the Unaffiliated Seller or
the transactions contemplated hereby, nor the fulfillment of or compliance with
the terms and conditions of this Agreement, has or will conflict with or result
in a breach of any of the terms, conditions or provisions of the Unaffiliated
Seller's charter or by-laws or any legal restriction or any agreement or
instrument to which the Unaffiliated Seller is now a party or by which it is
bound or to which its property is

subject, or constitute a default or result in an acceleration under any of the
foregoing, or result in the violation of any law, rule, regulation, order,
judgment or decree to which the Unaffiliated Seller or its property is subject,
or impair the ability of the Trustee (or the Servicer as the agent of the
Trustee) to realize on the Mortgage Loans, or impair the value of the Mortgage
Loans;

(d) Neither this Agreement nor the information contained in the
Prospectus Supplement under the captions "The Mortgage Pool", "The Originators,
the Seller and the Servicer" and "Servicing of the Mortgage Loans" nor any
statement, report or other document prepared by the Unaffiliated Seller and
furnished or to be furnished pursuant to this Agreement or in connection with
the transactions contemplated hereby contains any untrue statement or alleged
untrue statement of any material fact or omits to state a material fact
necessary to make the statements contained herein or therein, in light of the
circumstances under which they were made, not misleading;

(e) There is no action, suit, proceeding or investigation pending or,
to the knowledge of the Unaffiliated Seller, threatened before a court,
administrative agency or government tribunal against the Unaffiliated Seller
which, either in any one instance or in the aggregate, may result in any
material adverse change in the business, operations, financial condition,
properties or assets of the Unaffiliated Seller, or in any material impairment
of the right or ability of the Unaffiliated Seller to carry on its business
substantially as now conducted, or in any material liability on the part of the
Unaffiliated Seller, or which would draw into question the validity of this
Agreement, the Mortgage Loans, or of any action taken or to be taken in
connection with the obligations of the Unaffiliated Seller contemplated herein,
or which would impair materially the ability of the Unaffiliated Seller to
perform under the terms of this Agreement or that might prohibit its entering
into this Agreement or the consummation of any of the transactions contemplated
hereby;

(f) The Unaffiliated Seller is not in violation of or in default with
respect to, and the execution and delivery of this Agreement by the Unaffiliated
Seller and its performance of and compliance with the terms hereof will not
constitute a violation or default with respect to, any order or decree of any
court or any order, regulation or demand of any federal, state, municipal or
governmental agency, which violation or default might have consequences that
would materially and adversely affect the condition (financial or other) or
operations of the Unaffiliated Seller or its properties or might have
consequences that would materially and adversely affect its performance
hereunder or under any Subservicing Agreement;

(g) Upon the receipt of each Trustee's Mortgage File by the Depositor
under this Agreement, the Depositor will have good title on behalf of the Trust
Fund to each related Mortgage Loan and such other items comprising the corpus of
the Trust Fund free and clear of any lien created by the Unaffiliated Seller
(other than liens which will be simultaneously released);

(h) The consummation of the transactions contemplated by this
Agreement are in the ordinary course of business of the Unaffiliated Seller, and
the transfer, assignment and conveyance of the Mortgage Notes and the Mortgages
by the Unaffiliated Seller pursuant to this Agreement are not subject to the
bulk transfer or any similar statutory provisions in effect in any applicable
jurisdiction;

(i) With respect to any Mortgage Loan purchased by the Unaffiliated
Seller, the Unaffiliated Seller acquired title to the Mortgage Loan in good
faith, without notice of any adverse claim;

(j) The Unaffiliated Seller does not believe, nor does it have any
reason or cause to believe, that it cannot perform each and every covenant
contained in this Agreement. The Unaffiliated Seller is solvent and the sale of
the Mortgage Loans by the Unaffiliated Seller pursuant to the terms of this
Agreement will not cause the Unaffiliated Seller to become insolvent. The sale
of the Mortgage Loans by the Unaffiliated Seller pursuant to the terms of this
Agreement was not undertaken with the intent to hinder, delay or defraud any of
the Unaffiliated Seller's creditors;

(k) The Mortgage Loans are not intentionally selected in a manner so
as to affect adversely the interests of the Depositor or of any transferee of
the Depositor (including the Trustee);

(l) The Unaffiliated Seller has determined that it will treat the
disposition of the Mortgage Loans pursuant to this Agreement as a sale for
accounting and tax purposes;

(m) The Unaffiliated Seller has not dealt with any broker or agent or
anyone else that may be entitled to any commission or compensation in connection
with the sale of the Mortgage Loans to the Depositor other than to the Depositor
or an affiliate thereof; and

(n) The consideration received by the Unaffiliated Seller upon the
sale of the Mortgage Loans under this Agreement constitutes fair consideration
and reasonably equivalent value for the Mortgage Loans.

Section 3.03. REPRESENTATIONS AND WARRANTIES RELATING TO THE MORTGAGE
LOANS. The Originators represent and warrant to the Unaffiliated Seller and the
Unaffiliated Seller represents to the Depositor that, as of the Closing Date, as
to each Initial Mortgage Loan, and as of the Subsequent Transfer Date, as to
each Subsequent Mortgage Loan, immediately prior to the sale and transfer of
such Mortgage Loan by the Unaffiliated Seller to the Depositor:

(a) The information set forth in each Mortgage Loan Schedule is
complete, true and correct;

(b) The information to be provided by the Unaffiliated Seller to the
Depositor in connection with a Subsequent Mortgage Loan will be true and correct
in all material respects at the date or dates respecting which such information
is furnished;

(c) Each Mortgage is a valid first or second lien on a fee simple (or
its equivalent under applicable state law) estate in the real property securing
the amount owed by the Mortgagor under the Mortgage Note subject only to (i) the
lien of current real property taxes and assessments which are not delinquent,
(ii) any related first mortgage loan, (iii) covenants, conditions and
restrictions, rights of way, easements and other matters of public record as of
the date of recording of such Mortgage, such exceptions appearing of record
being acceptable to mortgage lending institutions generally in the area wherein
the property subject to the Mortgage is located or specifically reflected in the
appraisal obtained in connection with the origination of the related Mortgage
Loan obtained by the Unaffiliated Seller 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;

(d) Immediately prior to the transfer and assignment by the
Unaffiliated Seller to the Trustee, the Unaffiliated Seller had good title to,
and was the sole owner of each Mortgage Loan, free of any interest of any other
Person, and the Unaffiliated Seller has transferred all right, title and
interest in each Mortgage Loan to the Trustee;

(e) As of the Cut-Off Date, no payment of principal or interest on or
in respect of any Mortgage Loan remains unpaid for 30 or more days past the date
the same was due in accordance with the related Mortgage Note without regard to
applicable grace periods;

(f) No Mortgage Loan has a Loan Rate less than 6.99% per annum and
the weighted average interest rate of the Mortgage Loans is 12.91%;

(g) At origination, no Mortgage Loan had an original term to maturity
of greater than 360 months;

(h) As of the Cut-Off Date, the weighted average maturity of the
Mortgage Loans is 183 months;

(i) To the best knowledge of the Unaffiliated Seller, there is no
mechanics' lien or claim for work, labor or material (and no rights are
outstanding that under law could give rise to such lien) affecting the premises
subject to any Mortgage which is or may be a lien prior to, or equal or
coordinate with, the lien of such Mortgage, except those which are insured
against by the title insurance policy referred to in (af) below;

(j) To the best knowledge of the Unaffiliated Seller, there is no
delinquent tax or assessment lien against any Mortgaged Property;

(k) Such Mortgage Loan, the Mortgage, and the Mortgage Note,
including, without limitation, the obligation of the Mortgagor to pay the unpaid
principal of and interest on the Mortgage Note, are each not subject to any
right of rescission (or any such rescission right has expired in accordance with
applicable law), set-off, counterclaim, or defense, including the defense of
usury, nor will the operation of any of the terms of the Mortgage Note or the
Mortgage, or the exercise of any right thereunder, render either the Mortgage
Note or the Mortgage unenforceable, in whole or in part, or subject to any right
of rescission, set-off, counterclaim, or defense, including the defense of
usury, and no such right of rescission, set-off, counterclaim, or defense has
been asserted with respect thereto.

(l) To the best knowledge of the Unaffiliated Seller, the Mortgaged
Property is free of material damage and is in good repair, and there is no
pending or threatened proceeding for the total or partial condemnation of the
Mortgaged Property;

(m) The Unaffiliated Seller has not received a notice of default of
any first mortgage loan secured by the Mortgaged Property which has not been
cured by a party other than the Unaffiliated Seller;

(n) Each Mortgage Note and Mortgage are in substantially the forms
previously provided to the Trustee on behalf of the Unaffiliated Seller;

(o) No Mortgage Loan had, at the date of origination, a Combined
Loan-to-Value Ratio in excess of 90.00%, and the weighted average Combined Loan-
to-Value ratio of all Mortgage Loans is 67.63%;

(p) The Mortgage Loan was not originated in a program in which the
amount of documentation in the underwriting process was limited in comparison to
the originator's normal documentation requirements;

(q) No more than the following percentages of the Mortgage Loans by
Principal Balance as of the Cut-Off Date are secured by Mortgaged Properties
located in the following states;

State Percent of
Principal Balance
----------------- ------------------
Delaware 3.68%
Maryland 3.74
New Jersey 33.82
New York 7.71
Pennsylvania 47.23
Virginia 3.81
------
100.00%
------
------

(r) The Mortgage Loans were not selected by the Unaffiliated Seller
for inclusion in the Trust Fund on any basis adverse to the Trust Fund relative
to the portfolio of similar mortgage loans of the Unaffiliated Seller;

(s) None of the Mortgage Loans constitutes a lien on leasehold
interests;

(t) 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. To the best of the
Unaffiliated Seller's knowledge, there is no homestead or other exemption
available to the related Mortgagor which would materially interfere with the
right to sell the related Mortgaged Property at a trustee's sale or the right to
foreclose the related Mortgage. The Mortgage contains customary and enforceable
provisions for the acceleration of the payment of the Principal Balance of such
Mortgage Loan in the event all or any part of the related Mortgaged Property is
sold or otherwise transferred without the prior written consent of the holder
thereof;

(u) The proceeds of such Mortgage Loan have been fully disbursed,
including reserves set aside by the Unaffiliated Seller, there is no requirement
for, and the Unaffiliated Seller shall not make any, future advances thereunder.
Any future advances made prior to the Cut-Off Date have been consolidated with
the principal balance secured by the Mortgage, and such principal balance, as
consolidated, bears a single interest rate and single repayment term reflected
on the applicable Mortgage Loan Schedule. The Principal Balance as of the Cut-
Off Date does not exceed the original principal amount of such Mortgage Loan.
Except with respect

to approximately $45,000.00 of escrow funds, 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 recording such Mortgage Loan have been paid;

(v) All Mortgage Loans were originated in compliance with the
Originators' Underwriting Guidelines;

(w) The terms of the Mortgage and Mortgage Note have not been
impaired, waived, altered, or modified in any respect, except by a written
instrument which has been recorded, if necessary, to protect the interest of the
Trustee and which has been delivered to the Trustee. The substance of any such
alteration or modification is or as to Subsequent Mortgage Loans will be
reflected on the applicable Mortgage Loan Schedule and, to the extent necessary,
has been or will be approved by (i) the insurer under the applicable mortgage
title insurance policy, and (ii) the insurer under any other insurance policy
required hereunder for such Mortgage Loan where such insurance policy requires
approval and the failure to procure approval would impair coverage under such
policy;

(x) No instrument of release, waiver, alteration, or modification has
been executed in connection with such Mortgage Loan, and no Mortgagor has been
released, in whole or in part, except in connection with an assumption agreement
which has been approved by the insurer under any insurance policy required
hereunder for such Mortgage Loan where such policy requires approval and the
failure to procure approval would impair coverage under such policy, and which
is part of the Mortgage File and has been delivered to the Trustee, and the
terms of which are reflected in the applicable Mortgage Loan Schedule;

(y) Other than delinquencies described in clause (e) above, there is
no default, breach, violation, or event of acceleration existing under the
Mortgage or the 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
such a default, breach, violation or event of acceleration, and the Unaffiliated
Seller has not waived any such default, breach, violation or event of
acceleration. All taxes, governmental assessments (including assessments
payable in future installments), insurance premiums, water, sewer, and municipal
charges, leaseholder payments, or ground rents which previously became due and
owing in respect of or affecting the related Mortgaged Property have been paid.
The Unaffiliated 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
or the Mortgage Note;

(z) All of the improvements which were included for the purposes of
determining the Appraised Value of the Mortgaged Property were completed at the
time that such Mortgage Loan was originated and lie wholly within the boundaries
and building restriction lines of such Mortgaged Property. Except for DE
MINIMIS encroachments, no improvements on adjoining properties encroach upon the
Mortgaged Property. To the best of the Unaffiliated Seller's knowledge, no
improvement located on or being part of the 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 the Mortgaged Property (including all such improvements which were included
for the purpose of determining such Appraised Value) and, with respect to the
use and occupancy of the same, including but not limited to certificates of
occupancy and fire underwriters certificates, have been made or obtained

from the appropriate authorities and the Mortgaged Property is lawfully occupied
under applicable law;

(aa) To the best of the Unaffiliated Seller's knowledge, there do not
exist any circumstances or conditions with respect to the Mortgage, the
Mortgaged Property, the Mortgagor, or the Mortgagor's credit standing that can
be reasonably expected to cause such Mortgage Loan to become delinquent or
adversely affect the value or marketability of such Mortgage Loan, other than
any such circumstances or conditions permitted under the Originator's
Underwriting Guidelines;

(ab) All parties which have had any interest in the Mortgage, whether
as mortgagee, assignee, pledgee or otherwise, are (or, during the period in
which they held and disposed of such interest, were) (i) in compliance with any
and all applicable licensing requirements of the laws of the state wherein the
Mortgaged Property is located and (ii) (A) organized under the laws of such
state, (B) qualified to do business in such state, (C) federal savings and loan
associations or national banks having principal offices in such state, (D) not
doing business in such state, or (E) not required to qualify to do business in
such state;

(ac) The Mortgage Note and the Mortgage are genuine, and each is the
legal, valid and binding obligation of the maker thereof, enforceable in
accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium, or other similar laws
affecting the enforcement of creditors' rights generally and except that the
equitable remedy of specific performance and other equitable remedies are
subject to the discretion of the courts. All parties to the Mortgage Note and
the Mortgage had legal capacity to execute the Mortgage Note and the Mortgage
and convey the estate therein purported to be conveyed, and the Mortgage Note
and the Mortgage have been duly and properly executed by such parties or
pursuant to a valid power-of-attorney that has been recorded with the Mortgage;

(ad) The transfer of the Mortgage Note and the Mortgage as and in the
manner contemplated by this Agreement is sufficient either (i) fully to transfer
to the Depositor all right, title, and interest of the Unaffiliated Seller
thereto as note holder and mortgagee or (ii) to grant to the Depositor the
security interest referred to in Section 6.07 hereof. The Mortgage has been
duly assigned and the Mortgage Note has been duly endorsed. The assignment of
Mortgage delivered to the Trustee pursuant to Section 2.04(a)(iv) is in
recordable form and is acceptable for recording under the laws of the applicable
jurisdiction. The endorsement of the Mortgage Note, the delivery to the Trustee
of the endorsed Mortgage Note, and such assignment of Mortgage, and the delivery
of such assignment of Mortgage for recording to, and the due recording of such
assignment of Mortgage in, the appropriate public recording office in the
jurisdiction in which the Mortgaged Property is located are sufficient to permit
the Trustee to avail itself of all protection available under applicable law
against the claims of any present or future creditors of the Unaffiliated
Seller, and are sufficient to prevent any other sale, transfer, assignment,
pledge, or hypothecation of the Mortgage Note and Mortgage by the Unaffiliated
Seller from being enforceable;

(ae) Any and all requirements of any federal, state, or local law
including, without limitation, usury, truth-in-lending, real estate settlement
procedures, consumer credit protection, equal credit opportunity, or disclosure
laws applicable to such Mortgage Loan have been complied with, and the Servicer
shall maintain in its possession, available for the Trustee's inspection, and
shall deliver to the Trustee or its designee upon demand, evidence of compliance

with all such requirements. The consummation of the transactions contemplated
by this Agreement will not cause the violation of any such laws;

(af) Such Mortgage Loan is covered by an ALTA mortgage title
insurance policy or such other generally used and acceptable form of policy,
issued by and the valid and binding obligation of a title insurer qualified to
do business in the jurisdiction where the Mortgaged Property is located,
insuring the Unaffiliated Seller, and its successors and assigns, as to the
first or second priority lien, as applicable, of the Mortgage in the original
principal amount of such Mortgage Loan. The assignment to the Trustee of the
Unaffiliated Seller's interest in such mortgage title insurance policy does not
require the consent of or notification to the insurer. Such mortgage title
insurance policy is in full force and effect and will be in full force and
effect and inure to the benefit of the Trustee upon the consummation of the
transactions contemplated by this Agreement. No claims have been made under
such mortgage title insurance policy and neither the Unaffiliated Seller nor any
prior holder of the Mortgage has done, by act or omission, anything which would
impair the coverage of such mortgage title insurance policy;

(ag) All improvements upon the Mortgaged Property are insured against
loss by fire, hazards of extended coverage, and such other hazards as are
customary in the area where the Mortgaged Property is located pursuant to
insurance policies conforming to the requirements of Section 3.05 hereof. If
the Mortgaged Property at origination was located in an area identified on a
flood hazard boundary map or flood insurance rate map issued by the Federal
Emergency Management Agency as having special flood hazards (and such flood
insurance has been made available), such Mortgaged Property was covered by flood
insurance at origination. Each individual insurance policy is the valid and
binding obligation of the insurer, is in full force and effect, and will be in
full force and effect and inure to the benefit of the Trustee upon the
consummation of the transactions contemplated by this Agreement, and contain a
standard mortgage clause naming the originator of such Mortgage Loan, and its
successors and assigns, as mortgagee and loss payee. All premiums thereon have
been paid. The Mortgage obligates the Mortgagor 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, and neither the Unaffiliated Seller nor any prior holder of the
Mortgage has acted or failed to act so as to impair the coverage of any such
insurance policy or the validity, binding effect, and enforceability thereof;

(ah) If the Mortgage constitutes a deed of trust, a trustee, duly
qualified under applicable law to serve as such, has been properly designated
and currently so serves and is named in such Mortgage, as no fees or expenses
are or will become payable by the Trustee or the Certificateholders to the
trustee under the deed of trust, except in connection with a trustee's sale
after default by the Mortgagor;

(ai) The Mortgaged Property consists of one or more parcels of real
property separately assessed for tax purposes. To the extent there is erected
thereon a detached or an attached one-family residence or a detached two-to six-
family dwelling, or an individual condominium unit in a low-rise condominium, or
an individual unit in a planned unit development, or a commercial property, or a
mixed use or multiple purpose property, such residence, dwelling or unit is not
(i) a unit in a cooperative apartment, (ii) a property constituting part of a
syndication, (iii) a time share unit, (iv) a property held in trust, (v) a
mobile home, (vi) a manufactured dwelling, (vii) a log-constructed home, or
(viii) a recreational vehicle;

(aj) There exist no material deficiencies with respect to escrow
deposits and payments, if such are required, for which customary arrangements
for repayment thereof have not been made or which the Unaffiliated Seller
expects not to be cured, and no escrow deposits or payments of other charges or
payments due the Unaffiliated Seller have been capitalized under the Mortgage or
the Mortgage Note;

(ak) Such Mortgage Loan was not originated at a below market interest
rate. Such Mortgage Loan does not have a shared appreciation feature, or other
contingent interest feature;

(al) The origination and collection practices used by the
Unaffiliated Seller or the Servicer with respect to such Mortgage Loan have been
in all respects legal, proper, prudent, and customary in the mortgage
origination and servicing business;

(am)The Mortgagor has, to the extent required by applicable law,
executed a statement to the effect that the Mortgagor has received all
disclosure materials, if any, required by applicable law with respect to the
making of fixed-rate mortgage loans. The Servicer shall maintain or cause to be
maintained such statement in the Mortgage File;

(an) All amounts received by the Unaffiliated Seller with respect to
such Mortgage Loan after the Cut-Off Date and required to be deposited in the
Certificate Account have been so deposited in the Certificate Account and are,
as of the Closing Date, or will be as of the Subsequent Transfer Date, as
applicable, in the Certificate Account;

(ao) The appraisal report with respect to the Mortgaged Property
contained in the Mortgage File was signed prior to the approval of the
application for such Mortgage Loan by a qualified appraiser, duly appointed by
the originator of such Mortgage Loan, who had no interest, direct or indirect,
in the Mortgaged Property or in any loan made on the security thereof and whose
compensation is not affected by the approval or disapproval of such application;

(ap) When measured by the Cut-Off Date Balances as of the Cut-Off
Date, the Mortgagors with respect to at least 85.31% of the Mortgage Loans
represented at the time of origination that the Mortgagor would occupy the
Mortgaged Property as the Mortgagor's primary residence;

(aq) The Unaffiliated Seller has no knowledge with respect to the
Mortgaged Property of any governmental or regulatory action or third party claim
made, instituted or threatened in writing relating to a violation of any
applicable federal, state or local environmental law, statute, ordinance,
regulation, order, decree or standard;

(ar) Each Mortgage Loan is a "qualified mortgage" within the meaning
of Section 860G(a)(3) of the Code;

(as) With respect to second lien Mortgage Loans:

(i) the Unaffiliated Seller has no knowledge that the Mortgagor has
received notice from the holder of the prior mortgage that such prior
mortgage is in default,

(ii) no consent from the holder of the prior mortgage is needed for
the creation of the second lien Mortgage or, if required, has been obtained
and is in the related Mortgage File,

(iii) if the prior mortgage has a negative amortization, the Combined
Loan-to-Value Ratio was determined using the maximum loan amount of such
prior mortgage, and

(iv) the related first mortgage loan encumbering the related
Mortgaged Property does not have a mandatory future advance provision,

(v) the Mortgage Loans conform in all material respects to the
description thereof in the Prospectus Supplement.

(at) The Unaffiliated Seller further represents and warrants to the
Trustee and the Certificateholders that as of the Subsequent Cut-Off Date all
representations and warranties set forth in clauses (a) through (as) above will
be correct in all material respects as to each Subsequent Mortgage Loan, and the
representations so made in this subsection (at) as to the following matters will
be deemed to be correct if: (i) each Subsequent Mortgage Loan is not 30 or more
days contractually delinquent as of the related Subsequent Cut-Off Date; (ii)
the original term to maturity of each Subsequent Mortgage Loan does not exceed
360 months; (iii) each Subsequent Mortgage Loan has a Mortgage Rate of at least
8.75%; (iv) the purchase of the Subsequent Mortgage Loans is consented to by the
Certificate Insurer and the Rating Agencies; (v) the principal balance of any
Subsequent Mortgage Loan does not exceed $350,000.00; (vi) no more than 35% of
the Subsequent Mortgage Loans are second liens; (vii) no Subsequent Mortgage
Loan has a CLTV of more than, (A) for consumer purpose loans, 85%, and (B) for
business purpose loans, 75%; (viii) no more than 20% of the Subsequent Mortgage
Loans are Balloon Loans; (ix) no more than 20% of the Subsequent Mortgage Loans
are secured by mixed-use properties, commercial properties, or four or more unit
multifamily properties; (x) no more than 5% of the Subsequent Mortgage Loans are
secured by commercial properties; and (xi) following the purchase of the
Subsequent Mortgage Loans by the Trust, the Mortgage Loans (including the
Subsequent Mortgage Loans) (A) will have a weighted average Mortgage Rate, (I)
for consumer purpose loans, of at least 11.35% and (II) for business purpose
loans, of at least 15.75%; and (B) will have a weighted average LTV of not more
than 72%;

(au) to the best of the Unaffiliated Seller's knowledge, no error,
omission, misrepresentation, negligence, fraud or similar occurrence with
respect to a Mortgage Loan has taken place on the part of any person, including
without limitation the Mortgagor, any appraiser, an builder or developer, or an
other party involved in the origination of the Mortgage Loan or in the
application of any insurance in relation to such Mortgage Loan.

Section 3.04. REPRESENTATIONS AND WARRANTIES OF THE DEPOSITOR. The
Depositor hereby represents, warrants and covenants to the Unaffiliated Seller,
as of the date of execution of this Agreement and the Closing Date, that:

(a) The Depositor is a corporation duly organized, validly existing
and in good standing under the laws of the State of Delaware;

(b) The Depositor has the corporate power and authority to purchase
each Mortgage Loan and to execute, deliver and perform, and to enter into and
consummate all the transactions contemplated by this Agreement;

(c) This Agreement has been duly and validly authorized, executed and
delivered by the Depositor, and, assuming the due authorization, execution and
delivery hereof by the Unaffiliated Seller, constitutes the legal, valid and
binding agreement of the Depositor, enforceable against the Depositor in
accordance with its terms, except as such enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws
relating to or affecting the rights of creditors generally, and by general
equity principles (regardless of whether such enforcement is considered in a
proceeding in equity or at law);

(d) No consent, approval, authorization or order of or registration
or filing with, or notice to, any governmental authority or court is required
for the execution, delivery and performance of or compliance by the Depositor
with this Agreement or the consummation by the Depositor of any of the
transactions contemplated hereby, except such as have been made on or prior to
the Closing Date;

(e) The Depositor has filed or will file the Prospectus and
Prospectus Supplement with the Commission in accordance with Rule 424(b) under
the Securities Act; and

(f) None of the execution and delivery of this Agreement, the
purchase of the Mortgage Loans from the Unaffiliated Seller, the consummation of
the other transactions contemplated hereby, or the fulfillment of or compliance
with the terms and conditions of this Agreement, (i) conflicts or will conflict
with the charter or bylaws of the Depositor or conflicts or will conflict with
or results or will result in a breach of, or constitutes or will constitute a
default or results or will result in an acceleration under, any term, condition
or provision of any indenture, deed of trust, contract or other agreement or
other instrument to which the Depositor is a party or by which it is bound and
which is material to the Depositor, or (ii) results or will result in a
violation of any law, rule, regulation, order, judgment or decree of any court
or governmental authority having jurisdiction over the Depositor.

Section 3.05. REPURCHASE OBLIGATION FOR DEFECTIVE DOCUMENTATION AND
FOR BREACH OF A REPRESENTATION OR WARRANTY. (a) Each of the representations and
warranties contained in Sections 3.01, 3.02 and 3.03 shall survive the purchase
by the Depositor of the Mortgage Loans and the subsequent transfer thereof by
the Depositor to the Trustee and shall continue in full force and effect,
notwithstanding any restrictive or qualified endorsement on the Mortgage Notes
and notwithstanding subsequent termination of this Agreement or the Pooling and
Servicing Agreement.

(b) With respect to any representation or warranty contained in
Section 3.01 that is made to the best of the Originators' knowledge or contained
in Sections 3.02 or 3.03 hereof that is made to the best of the Unaffiliated
Seller's knowledge, if it is discovered by the Servicer, any Subservicer, the
Trustee, the Certificate Insurer or any Certificateholder that the substance of
such representation and warranty was inaccurate as of the Closing Date and such
inaccuracy materially and adversely affects the value of the related Mortgage
Loan, then notwithstanding the Originators' or the Unaffiliated Seller's lack of
knowledge with respect to the inaccuracy at the time the representation or
warranty was made, such inaccuracy shall be deemed a breach of the applicable
representation or warranty. Upon discovery by the Originators, the Unaffiliated
Seller,

the Servicer, any Subservicer, the Trustee, the Certificate Insurer or any
Certificateholder of a breach of any of such representations and warranties
which materially and adversely affects the value of Mortgage Loans or the
interest of the Certificateholders, or which materially and adversely affects
the interests of the Certificate Insurer or the Certificateholders in the
related Mortgage Loan in the case of a representation and warranty relating to a
particular Mortgage Loan (notwithstanding that such representation and warranty
was made to the Originators' or the Unaffiliated Seller's best knowledge), the
party discovering such breach shall give pursuant to Section 3.03 of the Pooling
and Servicing Agreement prompt written notice to the others. Subject to the
next to last paragraph of this Section 3.05, within 60 days of the earlier of
its discovery or its receipt of notice of any breach of a representation or
warranty, the Unaffiliated Seller and the Originators shall (a) promptly cure
such breach in all material respects, or (b) purchase such Mortgage Loan at a
purchase price equal to the Principal Balance of such Mortgage Loan as of the
date of purchase, plus the greater of (i) all accrued and unpaid interest on
such Principal Balance and (ii) 30 days' interest on such Principal Balance,
computed at the Mortgage Interest Rate, net of the Servicing Fee if the
Unaffiliated Seller is the Servicer, plus the amount of any unreimbursed
Servicing Advances made by the Servicer with respect to such Mortgage Loan, or
(c) remove such Mortgage Loan from the Trust Fund (in which case it shall become
a Deleted Mortgage Loan) and substitute one or more Qualified Substitute
Mortgage Loans; provided, that, such substitution is effected not later than the
date which is 2 years after the Startup Day or at such later date, if the
Trustee and the Certificate Insurer receive an Opinion of Counsel to the effect
set forth below in this Section. Any such substitution shall be accompanied by
payment by the Unaffiliated Seller of the Substitution Adjustment, if any, to be
deposited in the Certificate Account pursuant to the Pooling and Servicing
Agreement. The Originators shall cooperate with the Unaffiliated Seller to cure
any breach and shall reimburse the Unaffiliated Seller for the costs and
expenses related to any cure, substitution (including any Substitution
Adjustment) or repurchase incurred by the Unaffiliated Seller pursuant to this
Section 3.05.

(c) As to any Deleted Mortgage Loan for which the Unaffiliated Seller
substitutes a Qualified Substitute Mortgage Loan or Loans, the Unaffiliated
Seller shall effect such substitution by delivering to the Trustee a
certification in the form attached to the Pooling and Servicing Agreement as
Exhibit H, executed by a Servicing Officer and the documents described in
Section 2.06(a) for such Qualified Substitute Mortgage Loan or Loans. Pursuant
to the Pooling and Servicing Agreement, upon receipt by the Trustee of a
certification of a Servicing Officer of such substitution or purchase and, in
the case of a substitution, upon receipt of the related Trustee's Mortgage File,
and the deposit of certain amounts in the Certificate Account pursuant to
Section 2.07(b) of the Pooling and Servicing Agreement (which certification
shall be in the form of Exhibit H to the Pooling and Servicing Agreement), the
Trustee shall be required to release to the Servicer for release to the
Unaffiliated Seller the related Trustee's Mortgage File and shall be required to
execute, without recourse, and deliver such instruments of transfer furnished by
the Unaffiliated Seller as may be necessary to transfer such Mortgage Loan to
the Unaffiliated Seller.

(d) Pursuant to the Pooling and Servicing Agreement, the Servicer
shall deposit in the Certificate Account all payments received in connection
with such Qualified Substitute Mortgage Loan or Loans after the date of such
substitution. Monthly Payments received with respect to Qualified Substitute
Mortgage Loans on or before the date of substitution will be retained by the
Unaffiliated Seller. The Trust Fund will own all payments received on the
Deleted Mortgage Loan on or before the date of substitution, and the
Unaffiliated Seller shall thereafter be entitled to retain all amounts
subsequently received in respect of such Deleted Mortgage Loan.

Pursuant to the Pooling and Servicing Agreement, the Servicer shall be required
to give written notice to the Trustee and the Certificate Insurer that such
substitution has taken place and shall amend the Mortgage Loan Schedule to
reflect the removal of such Deleted Mortgage Loan from the terms of the Pooling
and Servicing Agreement and the substitution of the Qualified Substitute
Mortgage Loan. The parties hereto agree to amend the Mortgage Loan Schedule
accordingly. Upon such substitution, such Qualified Substitute Mortgage Loan or
Loans shall be subject to the terms of the Pooling and Servicing Agreement and
this Agreement in all respects, and the Unaffiliated Seller shall be deemed to
have made with respect to such Qualified Substitute Mortgage Loan or Loans, as
of the date of substitution, the representations and warranties set forth in
Sections 3.02 and 3.03 herein. On the date of such substitution, the
Unaffiliated Seller will remit to the Servicer and pursuant to the Pooling and
Servicing Agreement the Servicer will deposit into the Certificate Account an
amount equal to the Substitution Adjustment, if any.

(e) It is understood and agreed that the obligations of the
Unaffiliated Seller set forth in Section 2.06 and this Section 3.05 to cure,
purchase or substitute for a defective Mortgage Loan as provided in Section 2.06
and this Section 3.05 constitute the sole remedies of the Depositor, the
Trustee, the Certificate Insurer and the Certificateholders respecting a breach
of the foregoing representations and warranties.

(f) Any cause of action against the Unaffiliated Seller relating to
or arising out of the breach of any representations and warranties or covenants
made in Sections 2.06, 3.02 or 3.03 shall accrue as to any Mortgage Loan upon
(i) discovery of such breach by any party and notice thereof to the Unaffiliated
Seller, (ii) failure by the Unaffiliated Seller to cure such breach or purchase
or substitute such Mortgage Loan as specified above, and (iii) demand upon the
Unaffiliated Seller by the Trustee for all amounts payable in respect of such
Mortgage Loan.

(g) Notwithstanding any contrary provision of this Agreement, with
respect to any Mortgage Loan which is not in default or as to which no default
is imminent, no purchase, or substitution pursuant to Section 2.06(b) or this
Section 3.04 shall be made unless the Unaffiliated Seller provides to the
Trustee and the Certificate Insurer an Opinion of Counsel to the effect that
such purchase or substitution would not (i) result in the imposition of taxes on
"prohibited transactions" of the REMIC Trust, as defined in Section 860F of the
Code or a tax on contributions to the REMIC Trust under the REMIC Provisions, or
(ii) cause the REMIC Fund to fail to qualify as a REMIC at any time that any
Certificates are outstanding. Any Mortgage Loan as to which purchase or
substitution was delayed pursuant to this paragraph shall be purchased or
substituted (subject to compliance with Section 2.06 and this Section 3.05) upon
the earlier of (a) the occurrence of a default or imminent default with respect
to such loan and (b) receipt by the Trustee and the Certificate Insurer of an
Opinion of Counsel to the effect that such purchase or substitution will not
result in the events described in clauses (i) and (ii) of the preceding
sentence.

(h) Pursuant to the Pooling and Servicing Agreement, upon discovery
by the Unaffiliated Seller, the Servicer, the Trustee, the Certificate Insurer
or any Certificateholder that any Mortgage Loan does not constitute a Qualified
Mortgage, the party discovering such fact shall promptly (and in any event
within 5 days of the discovery) give written notice thereof to the other
parties. In connection therewith, the Unaffiliated Seller shall repurchase or
substitute a Qualified Substitute Mortgage Loan for the affected Mortgage Loan
within 90 days of the earlier of such discovery by any of the foregoing parties,
or the Trustee's or the Unaffiliated Seller's receipt of notice, in the same
manner as it would a Mortgage Loan for a breach of representation or

warranty contained in Sections 3.02 or 3.03. Pursuant to the Pooling and
Servicing Agreement the Trustee shall reconvey to the Unaffiliated Seller the
Mortgage Loan to be released pursuant hereto in the same manner, and on the same
terms and conditions, as it would a Mortgage Loan repurchased for breach of a
representation or warranty contained in Sections 3.02 or 3.03.

(i) Notwithstanding anything in this Agreement or the Pooling and
Servicing Agreement to the contrary, the Unaffiliated Seller's repurchase
obligations hereunder shall not include failure of the Trustee to record
assignments of the Mortgage Loans referenced in clause (a)(iii) in Section 2.05.
All parties hereto acknowledge and agree that the Trustee has the responsibility
to record all such assignments of the Mortgage Loans to the Trustee.

ARTICLE FOUR

THE UNAFFILIATED SELLER

Section 4.01. COVENANTS OF THE ORIGINATORS AND THE UNAFFILIATED
SELLER. Each of the Originators and the Unaffiliated Seller covenants to the
Depositor as follows:

(a) The Originators and the Unaffiliated Seller shall cooperate with
the Depositor and the firm of independent certified public accountants retained
with respect to the issuance of the Certificates in making available all
information and taking all steps reasonably necessary to permit the accountants'
letters required hereunder to be delivered within the times set for delivery
herein.

(b) The Unaffiliated Seller agrees to satisfy or cause to be
satisfied on or prior to the Closing Date, all of the conditions to the
Depositor's obligations set forth in Section 5.01 hereof that are within the
Unaffiliated Seller's (or its agents') control.

(c) The Originators and the Unaffiliated Seller hereby agree to do
all acts, transactions, and things and to execute and deliver all agreements,
documents, instruments, and papers by and on behalf of the Originators or the
Unaffiliated Seller as the Depositor or its counsel may reasonably request in
order to consummate the transfer of the Mortgage Loans to the Depositor and the
subsequent transfer thereof to the Trustee, and the rating, issuance and sale of
the Certificates.

Section 4.02. MERGER OR CONSOLIDATION. Each of the Originators and
the Unaffiliated Seller will keep in full effect its existence, rights and
franchises as a corporation and will obtain and preserve its qualification to do
business as a foreign corporation, in each jurisdiction necessary to protect the
validity and enforceability of this Agreement or any of the Mortgage Loans and
to perform its duties under this Agreement. Any Person into which the any of
the Originators or the Unaffiliated Seller may be merged or consolidated, or any
corporation resulting from any merger, conversion or consolidation to which the
Originators or the Unaffiliated Seller shall be a party, or any Person
succeeding to the business of the Originators or the Unaffiliated Seller, shall
be approved by the Certificate Insurer which approval shall not be unreasonably
withheld. If the approval of the Certificate Insurer is not required, the
successor shall be an established mortgage loan servicing institution that is a
Permitted Transferee and in all events shall be the successor of the Originators
or the Unaffiliated Seller without the execution or filing of any paper or any
further act on the part of any of the parties hereto, anything herein

to the contrary notwithstanding. The Originators and the Unaffiliated Seller
shall send notice of any such merger or consolidation to the Trustee and the
Certificate Insurer.

Section 4.03. COSTS. In connection with the transactions
contemplated under this Agreement and the Pooling and Servicing Agreement, the
Unaffiliated Seller shall promptly pay (or shall promptly reimburse the
Depositor to the extent that the Depositor shall have paid or otherwise
incurred): (a) the fees and disbursements of the Depositor's counsel; (b) the
fees of Standard & Poor's Ratings Group and ▇▇▇▇▇'▇ Investors Service, Inc.; (c)
any of the fees of the Trustee and the fees and disbursements of the Trustee's
counsel; (d) expenses incurred in connection with printing the Prospectus, the
Prospectus Supplement, any amendment or supplement thereto, any preliminary
prospectus and the Certificates; (e) fees and expenses relating to the filing of
documents with the Securities and Exchange Commission (including without
limitation periodic reports under the Exchange Act); (f) the shelf registration
amortization fee (which fee shall equal 1/29th of 1% of the amount of the
Certificates plus $7,500) paid in connection with the issuance of Certificates;
and (g) all of the initial expenses (not to exceed $40,000) of the Certificate
Insurer including, without limitation, legal fees and expenses, accountant fees
and expenses and expenses in connection with due diligence conducted on the
Mortgage Files. For the avoidance of doubt, the parties hereto acknowledge that
it is the intention of the parties that the Depositor shall not pay any of the
Trustee's fees and expenses in connection with the transactions contemplated by
the Pooling and Servicing Agreement. All other costs and expenses in connection
with the transactions contemplated hereunder shall be borne by the party
incurring such expenses.

Section 4.04. INDEMNIFICATION. (a) (i) The Originators and the
Unaffiliated Seller, jointly and severally, agree to indemnify and hold harmless
the Depositor, each of its directors, each of its officers who have signed the
Registration Statement, and each of its directors and each person or entity who
controls the Depositor or any such person, within the meaning of Section 15 of
the Securities Act, against any and all losses, claims, damages or liabilities,
joint and several, to which the Depositor or any such person or entity may
become subject, under the Securities Act or otherwise, and will reimburse the
Depositor and each such controlling person for any legal or other expenses
incurred by the Depositor or such controlling person in connection with
investigating or defending any such loss, claim, damage, liability or action,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Prospectus Supplement or any
amendment or supplement to the Prospectus Supplement or the omission or the
alleged omission to state therein a material fact required to be stated therein
or necessary to make the statements in the Prospectus Supplement or any
amendment or supplement to the Prospectus Supplement approved in writing by the
Originators or the Unaffiliated Seller, in light of the circumstances under
which they were made, not misleading, but only to the extent that such untrue
statement or alleged untrue statement or omission or alleged omission relates to
the information contained in the Prospectus Supplement referred to in
Section 3.01(d). This indemnity agreement will be in addition to any liability
which the Originators and the Unaffiliated Seller may otherwise have.

(ii) The Originators and the Unaffiliated Seller, jointly and severally,
agree to indemnify and to hold the Depositor harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related
costs, judgments, and any other costs, fees and expenses that the Depositor
may sustain in any way related to the failure of any of the Originators or
the Unaffiliated Seller to perform its duties in compliance with the terms
of this Agreement. The Originators or the Unaffiliated Seller shall
immediately notify the Depositor if a claim is made by a third party with
respect to this Agreement, and the Originators or the Unaffiliated Seller
shall assume the defense of any such claim and pay

all expenses in connection therewith, including reasonable counsel fees,
and promptly pay, discharge and satisfy any judgment or decree which may be
entered against the Depositor in respect of such claim. Pursuant to the
Pooling and Servicing Agreement, the Trustee shall reimburse the
Unaffiliated Seller in accordance with the Pooling and Servicing Agreement
for all amounts advanced by the Unaffiliated Seller pursuant to the
preceding sentence except when the claim relates directly to the failure of
the Unaffiliated Seller to perform its duties in compliance with the terms
of this Agreement.

(b) The Depositor agrees to indemnify and hold harmless each of the
Originators and the Unaffiliated Seller, each of their respective directors and
each person or entity who controls the Originators or the Unaffiliated Seller or
any such person, within the meaning of Section 15 of the Securities Act, against
any and all losses, claims, damages or liabilities, joint and several, to which
the Originators or the Unaffiliated Seller or any such person or entity may
become subject, under the Securities Act or otherwise, and will reimburse the
Originators and the Unaffiliated Seller and any such director or controlling
person for any legal or other expenses incurred by such party or any such
director or controlling person in connection with investigating or defending any
such loss, claim, damage, liability or action, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact
contained in the Registration Statement, the Prospectus, the Prospectus
Supplement, any amendment or supplement to the Prospectus or the Prospectus
Supplement or the omission or the alleged omission to state therein a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading, but
only to the extent that such untrue statement or alleged untrue statement or
omission or alleged omission is other than a statement or omission relating to
the information set forth in subsection (a)(i) of this Section 4.04. This
indemnity agreement will be in addition to any liability which the Depositor may
otherwise have.

(c) Promptly after receipt by an indemnified party under this
Section 4.04 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 Section 4.04, notify the indemnifying party in writing of the
commencement thereof, but the omission to so notify the indemnifying party will
not relieve the indemnifying party from any liability which the indemnifying
party may have to any indemnified party hereunder except to the extent such
indemnifying party has been prejudiced thereby. 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 reasonably
satisfactory to such indemnified party. After notice from the indemnifying
party to such indemnified party of its election to assume the defense thereof,
the indemnifying party will not be liable to such indemnified party under this
Section 4.04 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation; provided, however, if the defendants in any such action
include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it that are different from or additional to those
available to the indemnifying party, the indemnified party or parties shall have
the right to select 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. The indemnifying party shall not be liable for
the expenses of more than one separate counsel.

(d) In order to provide for just and equitable contribution in
circumstances in which the indemnity agreement provided for in the preceding
parts of this Section 4.04 is for any

reason held to be unavailable to or insufficient to hold harmless an indemnified
party under subsection (a) or subsection (b) of this Section 4.04 in respect of
any losses, claims, damages or liabilities (or actions in respect thereof)
referred to therein, the indemnifying party shall contribute to the amount paid
or payable by the indemnified party as a result of such losses, claims, damages
or liabilities (or actions in respect thereof); provided, however, that no
person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. In determining
the amount of contribution to which the respective parties are entitled, there
shall be considered the relative benefits received by the Originators and the
Unaffiliated Seller on the one hand, and the Depositor on the other, the
Originators', the Unaffiliated Seller's and the Depositor's relative knowledge
and access to information concerning the matter with respect to which the claim
was asserted, the opportunity to correct and prevent any statement or omission,
and any other equitable considerations appropriate in the circumstances. The
Originators, the Unaffiliated Seller and the Depositor agree that it would not
be equitable if the amount of such contribution were determined by pro rata or
per capita allocation. For purposes of this Section 4.04, each director of the
Depositor, each officer of the Depositor who signed the Registration Statement,
and each person, if any who controls the Depositor within the meaning of Section
15 of the Securities Act, shall have the same rights to contribution as the
Depositor, and each director of the Originators or the Unaffiliated Seller, and
each person, if any who controls the Originators or the Unaffiliated Seller
within the meaning of Section 15 of the Securities Act, shall have the same
rights to contribution as the Originators and the Unaffiliated Seller.

ARTICLE FIVE

CONDITIONS OF CLOSING

Section 5.01. CONDITIONS OF DEPOSITOR'S OBLIGATIONS. The obligations
of the Depositor to purchase the Mortgage Loans will be subject to the
satisfaction on the Closing Date of the following conditions. Upon payment of
the purchase price for the Mortgage Loans, such conditions shall be deemed
satisfied or waived.

(a) Each of the obligations of the Unaffiliated Seller required to be
performed by it on or prior to the Closing Date pursuant to the terms of this
Agreement shall have been duly performed and complied with and all of the
representations and warranties of the Unaffiliated Seller under this Agreement
shall be true and correct as of the Closing Date and no event shall have
occurred which, with notice or the passage of time, would constitute a default
under this Agreement, and the Depositor shall have received a certificate to the
effect of the foregoing signed by an authorized officer of the Unaffiliated
Seller.

(b) The Depositor shall have received a letter dated the date of this
Agreement, in form and substance acceptable to the Depositor and its counsel,
prepared by Deloitte & Touche LLP, independent certified public accountants,
regarding the numerical information contained in the Prospectus Supplement under
the captions "Prepayment Yield Considerations" and "The Mortgage Pool."

(d) The Depositor shall have received the following additional
closing documents, in form and substance satisfactory to the Depositor and its
counsel:

(i) the Mortgage Loan Schedule;

(ii) the Pooling and Servicing Agreement dated as of August 31, 1996
and the Underwriting Agreement dated as of September 12, 1996 between the
Depositor and Prudential Securities Incorporated and all documents required
thereunder, duly executed and delivered by each of the parties thereto
other than the Depositor;

(iii) officer's certificates of an officer of each of the Originators
and the Unaffiliated Seller, dated as of the Closing Date, in the form of
Exhibit B hereto, and attached thereto resolutions of the board of
directors and a copy of the charter and by-laws;

(iv) copy of each of the Originators and the Unaffiliated Seller's
charter and all amendments, revisions, and supplements thereof, certified
by a secretary of each entity;

(v) an opinion of the counsel for the Originators and the
Unaffiliated Seller as to various corporate matters substantially in the
form attached hereto as Exhibit C (it being agreed that the opinion shall
expressly provide that the Trustee shall be entitled to rely on the
opinion);

(vi) opinions of counsel for the Unaffiliated Seller, in forms
acceptable to the Depositor, its counsel, S&P and Moody's as to such
matters as shall be required for the assignment of a rating to the Class A
Certificates of AAA by S&P, and Aaa by Moody's (it being agreed that such
opinions shall expressly provide that the Trustee shall be entitled to rely
on such opinions);

(vii) a letter from Moody's that it has assigned a rating of Aaa to
the Class A Certificates;

(viii) a letter from S&P that it has assigned a rating of AAA to the
Class A Certificates;

(ix) an opinion of counsel for the Trustee in form and substance
acceptable to the Depositor, its counsel, Moody's and S&P (it being agreed
that the opinion shall expressly provide that the Unaffiliated Seller shall
be entitled to rely on the opinion);

(x) an opinion or opinions of counsel for the Servicer, in form and
substance acceptable to the Depositor, its counsel, Moody's and S&P (it
being agreed that the opinion shall expressly provide that the Unaffiliated
Seller shall be entitled to rely on the opinion); and

(xi) an opinion or opinions of counsel for the Certificate Insurer,
in each case in form and substance acceptable to the Depositor, its
counsel, Moody's and S&P (it being agreed that the opinion shall expressly
provide that the Unaffiliated Seller shall be entitled to rely on the
opinion).

(e) The Certificate Insurance Policies shall have been duly executed,
delivered and issued with respect to the Certificates.

(f) All proceedings in connection with the transactions contemplated
by this Agreement and all documents incident hereto shall be satisfactory in
form and substance to the Depositor and its counsel.

(g) The Unaffiliated Seller shall have furnished the Depositor with
such other certificates of its officers or others and such other documents or
opinions as the Depositor or its counsel may reasonably request.

Section 5.02. CONDITIONS OF UNAFFILIATED SELLER'S OBLIGATIONS. The
obligations of the Unaffiliated Seller under this Agreement shall be subject to
the satisfaction, on the Closing Date, of the following conditions:

(a) Each of the obligations of the Depositor required to be performed
by it at or prior to the Closing Date pursuant to the terms of this Agreement
shall have been duly performed and complied with and all of the representations
and warranties of the Depositor contained in this Agreement shall be true and
correct as of the Closing Date and the Unaffiliated Seller shall have received a
certificate to that effect signed by an authorized officer of the Depositor.

(b) The Unaffiliated Seller shall have received the following
additional documents:

(i) the Pooling and Servicing Agreement, and all documents required
thereunder, in each case executed by the Depositor as applicable; and

(ii) a copy of a letter from Moody's to the Depositor to the effect
that it has assigned a rating of Aaa to the Class A Certificates and a copy
of a letter from S&P to the Depositor to the effect that it has assigned a
rating of AAA to the Class A Certificates.

(iii) an opinion of counsel for the Trustee in form and substance
acceptable to the Unaffiliated Seller and its counsel;

(iv) an opinion or opinions of counsel for the Certificate Insurer,
in each case in form and substance acceptable to the Unaffiliated Seller
and its counsel;

(v) an opinion of the counsel for the Depositor as to securities and
tax matters; and

(vi) an opinion of the counsel for the Depositor as to true sale
matters.

(c) The Depositor shall have furnished the Unaffiliated Seller with
such other certificates of its officers or others and such other documents to
evidence fulfillment of the conditions set forth in this Agreement as the
Unaffiliated Seller may reasonably request.

Section 5.03. TERMINATION OF DEPOSITOR'S OBLIGATIONS. The Depositor
may terminate its obligations hereunder by notice to the Unaffiliated Seller at
any time before delivery of and payment of the purchase price for the Mortgage
Loans if: (a) any of the conditions set forth in Section 5.01 are not satisfied
when and as provided therein; (b) there shall have been the entry of a decree or
order by a court or agency or supervisory authority having jurisdiction in the
premises for the appointment of a conservator, receiver or liquidator in any
insolvency, readjustment of debt, marshalling of assets and liabilities or
similar proceedings of or relating to the Unaffiliated Seller, or for the
winding up or liquidation of the affairs of the Unaffiliated Seller; (c) there
shall have been the consent by the Unaffiliated Seller to the appointment of a
conservator or receiver or liquidator in any insolvency, readjustment of debt,
marshalling of assets and liabilities or similar proceedings of or relating to
the Unaffiliated Seller or of or relating to

substantially all of the property of the Unaffiliated Seller; (d) any purchase
and assumption agreement with respect to the Unaffiliated Seller or the assets
and properties of the Unaffiliated Seller shall have been entered into; or (e) a
Termination Event shall have occurred. The termination of the Depositor's
obligations hereunder shall not terminate the Depositor's rights hereunder or
its right to exercise any remedy available to it at law or in equity.

ARTICLE SIX

MISCELLANEOUS

Section 6.01. NOTICES. All demands, notices and communications
hereunder shall be in writing and shall be deemed to have been duly given if
personally delivered to or mailed by registered mail, postage prepaid, or
transmitted by telex or telegraph and confirmed by a similar mailed writing, if
to the Depositor, addressed to the Depositor at Prudential Securities Secured
Financing Corporation, ▇▇▇ ▇▇▇ ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇
▇▇▇▇▇, Attention: Asset Finance Group, or to such other address as the
Depositor may designate in writing to the Unaffiliated Seller and if to the
Unaffiliated Seller, addressed to the Unaffiliated Seller at ABFS 1996-2, Inc.,
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, Attention: ▇▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇., or to such other
address as the Unaffiliated Seller may designate in writing to the Depositor.

Section 6.02. SEVERABILITY OF PROVISIONS. Any part, provision,
representation, warranty or covenant of this Agreement which is prohibited or
which is held to be void or unenforceable shall be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof. Any part, provision, representation, warranty or covenant of
this Agreement which is prohibited or unenforceable or is held to be void or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction as to any Mortgage Loan shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereto waive any provision of law which prohibits
or renders void or unenforceable any provision hereof.

Section 6.03. AGREEMENT OF UNAFFILIATED SELLER. The Unaffiliated
Seller agrees to execute and deliver such instruments and take such actions as
the Depositor may, from time to time, reasonably request in order to effectuate
the purpose and to carry out the terms of this Agreement.

Section 6.04. SURVIVAL. The parties to this Agreement agree that the
representations, warranties and agreements made by each of them herein and in
any certificate or other instrument delivered pursuant hereto shall be deemed to
be relied upon by the other party hereto, notwithstanding any investigation
heretofore or hereafter made by such other party or on such other party's
behalf, and that the representations, warranties and agreements made by the
parties hereto in this Agreement or in any such certificate or other instrument
shall survive the delivery of and payment for the Mortgage Loans.

Section 6.05. 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 6.06. SUCCESSORS AND ASSIGNS. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns. Except as expressly permitted by the terms
hereof, this Agreement may not be assigned, pledged or hypothecated by any party
hereto to a third party without the written consent of the other party to this
Agreement and the Certificate Insurer; provided, however, that the Depositor may
assign its rights hereunder without the consent of the Unaffiliated Seller.

Section 6.07. CONFIRMATION OF INTENT; GRANT OF SECURITY INTEREST. It
is the express intent of the parties hereto that the conveyance of the Mortgage
Loans by the Originators to the Unaffiliated Seller and by the Unaffiliated
Seller to the Depositor as contemplated by this Unaffiliated Seller's Agreement
be, and be treated for all purposes as, a sale of the Mortgage Loans. It is,
further, not the intention of the parties that such conveyance be deemed a
pledge of the Mortgage Loans by Originator to the Unaffiliated Seller or by the
Unaffiliated Seller to the Depositor to secure a debt or other obligation of the
Originators or the Unaffiliated Seller, as the case may be. However, in the
event that, notwithstanding the intent of the parties, the Mortgage Loans are
held to continue to be property of the Originators or the Unaffiliated Seller
then (a) this Unaffiliated Seller's Agreement shall also be deemed to be a
security agreement within the meaning of Articles 8 and 9 of the Uniform
Commercial Code; (b) the transfer of the Mortgage Loans provided for herein
shall be deemed to be a grant by the Originators to the Unaffiliated Seller and
by the Unaffiliated Seller to the Depositor of a security interest in all of
such parties' right, title and interest in and to the Mortgage Loans and all
amounts payable on the Mortgage Loans in accordance with the terms thereof and
all proceeds of the conversion, voluntary or involuntary, of the foregoing into
cash, instruments, securities or other property; (c) the possession by the
Depositor of Mortgage Notes and such other items of property as constitute
instruments, money, negotiable documents or chattel paper shall be deemed to be
"possession by the secured party" for purposes of perfecting the security
interest pursuant to Section 9--305 of the Uniform Commercial Code; and (d)
notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed notifications
to, or acknowledgments, receipts or confirmations from, financial
intermediaries, bailees or agents (as applicable) of the Depositor for the
purpose of perfecting such security interest under applicable law. Any
assignment of the interest of the Depositor pursuant to any provision hereof
shall also be deemed to be an assignment of any security interest created
hereby. The Originators, the Unaffiliated Seller and the Depositor shall, to
the extent consistent with this Unaffiliated Seller's Agreement, take such
actions as may be necessary to ensure that, if this Unaffiliated Seller's
Agreement were deemed to create a security interest in the Mortgage Loans, such
security interest would be deemed to be a perfected security interest of first
priority under applicable law and will be maintained as such throughout the term
of this Agreement.

Section 6.08. MISCELLANEOUS. This Agreement supersedes all prior
agreements and understandings relating to the subject matter hereof.

Section 6.09. AMENDMENTS. (a) This Agreement may be amended from time
to time by the Originators, the Unaffiliated Seller and the Depositor by written
agreement, upon the prior written consent of the Certificate Insurer, without
notice to or consent of the Certificateholders to cure any ambiguity, to correct
or supplement any provisions herein, to comply with any changes in the Code, or
to make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with the provisions of this
Agreement; provided, however, that such action shall not, as evidenced by an
Opinion of Counsel, at the expense of the party requesting the change, delivered
to the Trustee, adversely affect in any material respect the interests of any
Certificateholder; and provided further, that no such amendment shall reduce in
any manner the amount of, or delay the timing of, payments received on Mortgage
Loans which are required to be distributed on any Certificate without the
consent

of the Holder of such Certificate, or change the rights or obligations of any
other party hereto without the consent of such party.

(b) This Agreement may be amended from time to time by the
Unaffiliated Seller and the Depositor with the consent of the Certificate
Insurer, the Majority Certificateholders and the Holders of the majority of the
Percentage Interest in the Class R Certificates for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Holders;
provided, however, that no such amendment shall be made unless the Trustee
receives an Opinion of Counsel, at the expense of the party requesting the
change, that such change will not adversely affect the status of the REMIC Trust
as a REMIC or cause a tax to be imposed on the REMIC, and provided further, that
no such amendment shall reduce in any manner the amount of, or delay the timing
of, payments received on Mortgage Loans which are required to be distributed on
any Certificate without the consent of the Holder of such Certificate or reduce
the percentage for each Class the Holders of which are required to consent to
any such amendment without the consent of the Holders of 100% of each Class of
Certificates affected thereby.

(c) It shall not be necessary for the consent of Holders under this
Section to approve the particular form of any proposed amendment, but it shall
be sufficient if such consent shall approve the substance thereof.

Section 6.10. THIRD-PARTY BENEFICIARIES. The parties agree that each
of the Certificate Insurer and the Trustee is an intended third-party
beneficiary of this Agreement to the extent necessary to enforce the rights and
to obtain the benefit of the remedies of the Depositor under this Agreement
which are assigned to the Trustee for the benefit of the Certificateholders and
the Certificate Insurer pursuant to the Pooling and Servicing Agreement and to
the extent necessary to obtain the benefit of the enforcement of the obligations
and covenants of the Unaffiliated Seller under Section 4.01 and 4.04(a)(ii) of
this Agreement. The parties further agree that Prudential Securities
Incorporated and each of its directors and each person or entity who controls
Prudential Securities Incorporated or any such person, within the meaning of
Section 15 of the Securities Act (each, an "Underwriter Entity") is an intended
third-party beneficiary of this Agreement to the extent necessary to obtain the
benefit of the enforcement of the obligations and covenants of the Unaffiliated
Seller with respect to each Underwriter Entity under Section 4.04(a)(i) of this
Agreement.

SECTION 6.11. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY
TRIAL. (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS (AS OPPOSED TO CONFLICT OF LAWS PROVISIONS) OF THE STATE
OF NEW YORK.

(b) THE DEPOSITOR AND THE UNAFFILIATED SELLER EACH HEREBY SUBMIT TO
THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE
UNITED STATES DISTRICT COURT LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK
CITY, AND EACH WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO
THE ADDRESS SET FORTH IN SECTION 6.01 OF THIS AGREEMENT AND SERVICE SO MADE
SHALL BE DEEMED TO BE COMPLETED FIVE DAYS AFTER THE SAME SHALL HAVE BEEN
DEPOSITED IN THE U.S. MAIL, POSTAGE PREPAID. THE DEPOSITOR AND THE UNAFFILIATED
SELLER EACH HEREBY WAIVE ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY
OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER AND

CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY THE COURT. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF THE
DEPOSITOR AND THE UNAFFILIATED SELLER TO SERVE LEGAL PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW OR AFFECT EITHER'S RIGHT TO BRING ANY ACTION OR PROCEEDING IN
THE COURTS OF ANY OTHER JURISDICTION.

(C) THE DEPOSITOR AND THE UNAFFILIATED SELLER EACH HEREBY WAIVE ANY
RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN
CONTRACT, TORT, OR OTHERWISE ARISING OUT OF, CONNECTED WITH, RELATED TO, OR IN
CONNECTION WITH THIS AGREEMENT. INSTEAD, ANY DISPUTE RESOLVED IN COURT WILL BE
RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

Section 6.12. EXECUTION IN COUNTERPARTS. This Agreement 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.

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the parties hereto have caused their names to be
signed by their respective officers thereunto duly authorized as of the date
first above written.

PRUDENTIAL SECURITIES SECURED
FINANCING CORPORATION

By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Title: Vice President

ABFS 1996-2, INC.

By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇.
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇.
Title: President

AMERICAN BUSINESS CREDIT, INC.

By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Title: President

HOMEAMERICAN CREDIT, INC., D/B/A
UPLAND MORTGAGE

By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
--------------------------------
Name: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Senior Vice President

[Signature Page to Unaffiliated Seller's Agreement]

STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )

On September 27, 1996 before me, the undersigned, a Notary Public in
and for said County and State, personally appeared ▇▇▇▇▇▇ ▇▇▇▇▇▇▇, personally
known to me (or proved to me on the basis of satisfactory evidence) to be a Vice
President of Prudential Securities Secured Financing Corporation, a Delaware
corporation, the corporation that executed the within Unaffiliated Seller's
Agreement on behalf of said corporation, and acknowledged to me that said
corporation executed it.

/s/ ▇▇▇▇ ▇▇▇▇ Constant
---------------------------------
Notary Public

My Commission expires:

▇▇▇▇ ▇▇▇▇ CONSTANT
Notary Public, State of New York
No. 01C04960883
Qualified in New York County
Commission Expires Jan. 2

STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )

On September 27, 1996 before me, the undersigned, a Notary Public in
and for said County and State, personally appeared ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇,
personally known to me (or proved to me on the basis of satisfactory evidence)
to be President of ABFS 1996-2, Inc., the entity that executed the within
Unaffiliated Seller's Agreement; on behalf of said corporation, and acknowledged
to me that said corporation executed it.

/s/ ▇▇▇▇ ▇▇▇▇ Constant
---------------------------------
Notary Public

My Commission expires:

▇▇▇▇ ▇▇▇▇ CONSTANT
Notary Public, State of New York
No. 01C04960883
Qualified in New York County
Commission Expires Jan. 2

STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )

On September 27, 1996 before me, the undersigned, a Notary Public in
and for said County and State, personally appeared ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇, personally
known to me (or proved to me on the basis of satisfactory evidence) to be
President of American Business Credit, Inc., the entity that executed the within
Unaffiliated Seller's Agreement; on behalf of said corporation, and acknowledged
to me that said corporation executed it.

/s/ ▇▇▇▇ ▇▇▇▇ Constant
---------------------------------
Notary Public

My Commission expires:

▇▇▇▇ ▇▇▇▇ CONSTANT
Notary Public, State of New York
No. 01C04960883
Qualified in New York County
Commission Expires Jan. 2

STATE OF NEW YORK )
) ss.
COUNTY OF NEW YORK )

On September 27, 1996 before me, the undersigned, a Notary Public in
and for said County and State, personally appeared ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, personally
known to me (or proved to me on the basis of satisfactory evidence) to be a
Senior Vice President of HomeAmerican Credit, Inc., d/b/a Upland Mortgage the
entity that executed the within Unaffiliated Seller's Agreement; on behalf of
said corporation, and acknowledged to me that said corporation executed it.

/s/ ▇▇▇▇ ▇▇▇▇ Constant
---------------------------------
Notary Public

My Commission expires:

▇▇▇▇ ▇▇▇▇ CONSTANT
Notary Public, State of New York
No. 01C04960883
Qualified in New York County
Commission Expires Jan. 2

EXHIBIT A

MORTGAGE LOAN SCHEDULE

A-1

EXHIBIT B

FORM OF
OFFICER'S CERTIFICATE

B-1

EXHIBIT C

FORM OF
OPINION OF COUNSEL
TO UNAFFILIATED SELLER

C-1

PRUDENTIAL SECURITIES SECURED FINANCING CORPORATION, Depositor ABFS 1996-2, INC., Unaffiliated Seller and AMERICAN BUSINESS CREDIT, INC. AND HOMEAMERICAN CREDIT, INC., D/B/A UPLAND MORTGAGE, Originators

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