ALBA 2007 – 1 plc - Irish Stock Exchange

A2 Notes will rank in priority to the A3 Notes but behind the A1 Notes; and the A3 Notes will rank
behind the A1 Notes and the A2 Notes.
Ranking of the Instruments
Prior to and after the enforcement of the Security by the Trustee, the MERCs will rank pari passu
without preference or priority amongst themselves and payments thereunder will only be made from
Mortgage Early Repayment Charges (other than Ported Mortgage Early Repayment Charges) received
by the Issuer (or, to the extent that, following enforcement of the Security by the Trustee, Mortgage
Early Repayment Charges have been received by the Issuer but not paid to the MERC Holders, then
such MERC Holders will share in the proceeds of the enforcement of the Security in accorda nce with
the Post-Enforcement Priority of Payments). Such amounts will not be available, before or after the
enforcement of the Security by the Trustee, for application towards payment of amounts due to
Noteholders, Subordinated Noteholders or R Certificateholders. See MERC Conditions 2 and 4.
Prior to the enforcement of the Security by the Trustee, the Subordinated Notes will rank pari passu
without preference or priority amongst themselves and payments of interest and principal thereunder
will rank behind payments of interest on the Notes, but will rank in priority to payments on the R
Certificates to the extent described in Subordinated Note Condition 2.
Prior to the enforcement of the Security by the Trustee, the R Certificates will rank pari passu without
preference or priority amongst themselves and payments thereunder will rank behind payments of
interest on the Notes and the Subordinated Notes, to the extent described in R Certificate Conditions 2
and 4.
Upon the enforcement of the Security by the Trustee, the Subordinated Notes will rank pari passu
without preference or priority among themselves and will rank behind the Notes and the MERCs in
point of security but will rank in priority to the R Certificates; and the R Certificates will rank pari
passu without preference or priority among themselves and will rank behind the Notes, the MERCs and
the Subordinated Notes in point of security.
The MERCs
Amounts (if any) received by the Issuer in respect of the obligation of Borrowers to pay early
repayment charges in the event that they repay all or any part of the relevant Mortgage Loan,
voluntarily or to the extent recovered following an enforcement event under the relevant Mortgage
Loan, at any time before the end of the term of the related Mortgage (the "Mortgage Early
Repayment Charges") in the three Collection Periods immediately preceding each Payment Date will
be paid to the holders of the MERCs as MERC Holder Payments on such Payment Date. However, the
MERC Holders will not be entitled to Mortgage Early Redemption Charges received or receivable by
the Issuer in connection with Ported Mortgage Loans (which are waived or refunded to the paying
Borrowers upon completion of the Ported Mortgage Loans (the "Ported Mortgage Early Repayment
Charges")). The MERC Holder Payments will be calculated on the Calculation Date before each
Payment Date.
The MERCs will be secured by the same security as the Notes and other Instruments and constitute an
entitlement to amounts payable to MERC Holders on a pro rata basis from Mortgage Early Repayment
Charges (other than Ported Mortgage Early Repayment Charges) divided by the number of MERCs
existing on the Calculation Date prior to the relevant Payment Date. Following redemption of all the
Notes, or an enforcement of the Security and subsequent disposal of the Charged Assets, no termination
payment or other amount (other than amounts then payable in respect of MERC Holder Payments) will
be payable in respect of the MERCs and, following the payment of any amounts then payable in respect