ALBA 2007 – 1 plc - Irish Stock Exchange

SALE OF THE MORTGAGE POOL
On or about the Issue Date, the Issuer will purchase the Completion Mortgage Pool pursuant to the
Mortgage Sale Agreement. Each Mortgage Loan in the Completion Mortgage Pool will be a Mortgage
Loan in respect of which the relevant Borrower has made at least one scheduled payment of interest
and/or interest and principal (each a "Monthly Payment") and such Monthly Payment was verified on
the date of the relevant Original Mortgage Sale Agreement. In addition, Further Advances, Retentions
and Ported Mortgage Loans may from time to time be included in the Mortgage Pool and will be
originated in accordance with the Oakwood Lending Criteria or may include other types of Mortgage
Loans if the Rating Agencies have confirmed that the current ratings of the Notes would not be
adversely affected thereby.
Consideration
The initial consideration payable by the Issuer to the Seller for the Completion Mortgage Pool on the
Issue Date consists of an amount equal to the aggregate balances of the Mortgage Loans comprised in
the Completion Mortgage Pool as at the Issue Date together with deferred consideration represented by
the issue of the MERCs and R Certificates by the Issuer to the Initial Instrumentholder. Interest
accruing and all other sums received by the Issuer to which the Seller is entitled in respect of the
Mortgage Loans up to but not including the Issue Date will not be for the account of the Issuer and will
be repaid to the Seller. See "Credit Structure – Permitted Withdrawals from the Issuer Transaction
Account". Interest prepaid and received by the Seller on the Mortgage Loans up to but not including
the Issue Date will not be for the account of the Seller and will be repaid to the Issuer. See "Credit
Structure - Application of Cash Receipts". Interest accruing and all other sums received by the Seller on
the Mortgage Loans on or after the Issue Date will be for the account of the Issuer.
Warranties and Breach of Warranties
The Mortgage Sale Agreement contains the Warranties given by the Seller in relation to the Mortgage
Loans comprising the Completion Mortgage Pool. No searches, enquiries or independent investigations
have been or will be made by the Issuer or the Trustee, each of whom is relying upon the Warranties.
If, upon the occurrence of a breach of Warranty under the Mortgage Sale Agreement, the breach has
not been remedied within the applicable grace period of the Issuer or the Seller becoming aware of the
same, the Seller will repurchase the relevant Mortgage Loan within a specific time period.
Under the Mortgage Sale Agreement, the repurchase price payable by the Seller on the repurchase of
any Mortgage Loan will be the aggregate current balance of such Mortgage Loan as at the close of
business on the date immediately preceding the date of repurchase plus accrued but unpaid interest in
relation to that Mortgage Loan less an amount equal to any sum received by the Issuer under any
assigned insurance policies (other than those sums applied by the Issuer in repaying the Mortgage Loan,
reinstating the relevant Property to which such insurance policy relates, in meeting the Issuer's
reasonable costs or any other reasonable expenditure in relation to which the relevant insurance
provided cover).
The Issuer has no recourse against the Originator for any breach of a representation or warranty given
by the Originator to the Seller under the Original Mortgage Sale Agreements.
The following are certain of the Warranties (or extracts or summaries of certain warranties) given by
the Seller in favour of the Issuer under the Mortgage Sale Agreement on the Issue Date and, to the
extent they are applicable, the date any Further Advance or Ported Mortgage Loa n is made. Certain of
the Warranties are qualified by reference to awareness and/or by reference to materiality.