ALBA 2007 – 1 plc - Irish Stock Exchange

Under the Servicing Agreement, the Servicer will be responsible for handling the procedures connected
with the redemption of Mortgage Loans and is authorised by the Trustee and the Issuer to release the
relevant Mortgage Loan documents to the person or persons entitled thereto upon redemption. The
Servicer may charge a fixed fee for the procedures in connection with the redemption.
The Special Servicer and the Special Services
The Special Servicer will be appointed on behalf of, and as agent for, the Issuer and, if so appointed
following the service of an Enforcement Notice, the Trustee under the Special Servicer Agreement to
provide certain specialist servicing and administration functions in relation to the Mortgage Loans.
The duties of the Special Servicer include setting or procuring setting the interest rate for the Mortgage
Loans, notifying the Servicer, the Issuer and the Trustee of any changes in the Bank of England repo
rate, the exercise of discretions required to be exercised in relation to the settlement and related
administration of the Mortgage Loans, considering any request by a Borrower to convert any Mortgage
Loan and directing the Servicer to release one or more of joint Borrowers from any liability under a
Mortgage Loan and Related Security, where, for example, the relevant Lending Criteria are satisfied.
The Servicer will be obliged under the Servicing Agreement to act upon the instructions of the Special
Servicer in relation to certain aspects of the administration of the Mortgage Loans and the Mortgages,
including with regard to the conversion of Mortgage Loans. The Special Servicer will notify the
Issuer, the Servicer and the Trustee of any change to the Bank of England repo rate.
The Special Servicer will also be granted, under the Special Servicer Agreement, the right to acquire
from the Issuer all (but not some only) of the Mortgage Loans and their Related Security on any date on
which the Issuer, in fulfilment of an instruction from either (i) the holders of a majority of the then
Principal Amount Outstanding of the Subordinated Notes or (ii) the Special Servicer (and in each case,
in accordance with Condition 5(d) of the Notes), redeems all of the Notes in accordance with Condition
5(d) of the Notes. The consideration payable by the Special Servicer to the Issuer in respect of the
acquisition of such Mortgage Loans and their Related Security shall be an amount equal to the
aggregate of (i) the amount which, together with the Actual Redemption Funds (and any amounts from
the Available Revenue Fund) available to be applied in redemption of the Notes on the date of the
acquisition of such Mortgage Loans and their Related Security, is sufficient to redeem the Notes in full
on such date and (ii) the amount (if any) which, together with the Available Revenue Funds available to
be applied in accordance with the Pre-Enforcement Interest Priority of Payments on such date, is
sufficient to pay all interest on the Notes payable on such date and all prior ranking items in the
Pre-Enforcement Interest Priority of Payments.
If the appointment of the Special Servicer is terminated under the Special Servicer Agreement, it would
be necessary for the Issuer or the Trustee, as the case may be, to appoint a substitute special servicer
with special servicing experience of residential property mortgage loans in the United Kingdom,
provided that such appointment is on substantially the same terms as those set out in the Special
Servicer Agreement and the then current ratings of the Notes are not adversely affected thereby. The
Special Servicer is not released from its obligations under the Special Servicer Agreement until a
substitute special servicer has been appointed. The ability of a substitute special servicer to fully
perform the required services would depend on the information, software and records available at the
time of the relevant appointment. Further, no assurance can be given that upon termination, the Issuer
and the Trustee will be able to appoint a suitable substitute special servicer. The Trustee is under no
obligation to act as Special Servicer upon such termination.
Information and Reporting by Servicer and the Special Servicer