ALBA 2007 – 1 plc - Irish Stock Exchange

RISK FACTORS
The following is a summary of certain aspects of the issue of the Notes and the Instruments about which
prospective investors should be aware. It is not intended to be exhaustive and prospective investors
should carefully consider the risk factors set out in this summary, in addition to the other information
contained in this Prospectus, in evaluating whether to purchase the Notes and/or the Instruments.
Risks Related to the Notes and the Instruments
Non-Recourse Obligations and Limited Resources
The Notes and the Instruments represent obligations of the Issuer, and do not constitute obligations or
responsibilities of, or guarantees by, any other person (including the Seller, the Special Servicer, the
Initial Instrumentholder, the Arranger, the Managers, the Servicer, the Corporate Services Provider,
the Share Trustee, the Trustee, the Cash Manager, the Master Servicer, the Registrar, the Paying
Agents, the Agent Bank, the Transfer Agent, the Liquidity Facility Provider, the Account Bank, the
GIC Provider, the Swap Counterparties, the Cap Provider and the Originator (as to which see in
particular "No Recourse to Originator"), Holdings and the Option Co.).
The Issuer will rely solely on monies received or recovered on the Mortgage Loans (whether by way of
monthly payments, enforcement, disposal of the Mortgage Loans or otherwise), amounts received from
each Swap Counterparty under the Swap Agreements, amounts received from the Cap Provider under
the Interest Rate Cap Agreement, amounts received from the GIC Provider under the Guaranteed
Investment Contract and, in the event that the Issuer is unable on any Payment Date to pay in full (to
the extent required to be paid on any such date) the Revenue Shortfalls, amounts available under the
Liquidity Facility, in each case, to enable it to make payments in respect of the Notes and the
Instruments.
Other than as provided in the Mortgage Sale Agreement, the Issuer and the Trustee will have no
recourse to the Seller or any other entity (see "Risks Related to the Mortgage Loans – Warranties and
Limitation of Seller's Liability" below).
No Recourse to Originator
In particular, neither the Notes nor the Instruments are obligations of, or the responsibility of, or
guaranteed by, the Originator (or any subsidiary or affiliate of the Originator), and the Originator (or
any subsidiary or affiliate of the Originator) has no responsibility for this Prospectus or its contents.
Any information concerning the Originator in this Prospectus comprises only publicly available
information issued by or on behalf of the Originator.
Yield and Prepayment Considerations
The yield to maturity of the Notes and Instruments of each class will depend on, among other things,
the amount and timing of payment of principal (including full and partial prepayments, sale proceeds
arising on enforcement of a Mortgage Loan, repurchases by the Seller due to breaches of warranties
under the Mortgage Sale Agreement or requests by Borrowers to convert their current Mortgage Loan
to one of a different type) on the Mortgage Loans and the price paid by the Noteholders for the Notes
and by the Instrumentholders for the Instruments. Such yield may be adversely affected by a higher or
lower than anticipated rate of prepayments on the Mortgage Loans. The yield to maturity on the
MERCs will be particularly sensitive to the rates of prepayment on the related Mortgage Loans.
The Mortgage Loans may be prepaid in full or in part at any time. Early repayment will generally take
place in one of two possible circumstances. The Borrower may voluntarily redeem the Mortgage Loan