ALBA 2007 – 1 plc - Irish Stock Exchange

The Mortgage Sale Agreement contains various restrictions and limits (including financial/monetary
limits and time limits) on the Seller's liability and, in connection with its obligation to repurchase the
Mortgage Loans, provide that the Issuer shall have no claim or remedy in respect of any breaches of
the Warranties where such restrictions or limits apply. Accordingly, the Issuer may suffer loss in
respect of matters referred to in the Warranties. Further, the Issuer may not have any direct rights
(under general law or in contract) against any solicitors or valuers who, when acting for the Originators
in relation to the origination of any Mortgage Loan, may have been negligent or fraudulent. However,
and notwithstanding the absence of any such direct rights, the Seller has, to the extent assignable,
assigned its causes and rights of actions against third parties to the Issuer pursuant to the Mortgage Sale
Agreement. To the extent that such causes and rights of actions against solicitors and valuers prove to
be unassignable or that the assignment is not binding on the relevant solicitors or valuers or that the
relevant solicitors or valuers do not owe a duty of care to the Issuer, the Seller has undertaken to both
indemnify the Issuer for any losses incurred by it as a result of any negligence or breach of contract by
a solicitor or valuer as well as to instigate action (including, if possible, legal proceedings by the
Originator) against such solicitor or valuer as the Issuer (through the Seller) instructs, provided that the
Issuer first indemnifies the Seller for the costs of taking such action. Notwithstanding this, the Seller is
not required to pay the Issuer any more than received by it from the Originator as a result of taking any
such action.