ALBA 2007 – 1 plc - Irish Stock Exchange

There are concentrations of Properties within certain regional areas which may present risk
considerations in addition to those generally present for similar mortgage loan asset backed securities
without such concentrations. See further "Characteristics of the Preliminary Completion Mortgage
Pool".
Realisation of Charged Assets and Liquidity Risk
The ability of the Issuer to redeem all the Notes and Instruments in full and to pay all amounts due to
the Noteholders and Instrumentholders including after the occurrence of an Event of Default under the
Notes, may depend upon whether the Mortgage Loans can be realised to obtain an amount sufficient to
redeem the Notes and Instruments. There is not at present an active and liquid secondary market in the
United Kingdom for loans with characteristics similar to the Mortgage Loans. It may not, therefore, be
possible for the Issuer or, as the case may be, the Trustee or a receiver to sell the Mortgage Loans on
appropriate terms should such a course of action be required.
Enforcement
Costs and delays could be encountered in connection with enforcement of the Mortgages and recovery
of the Mortgage Loans with corresponding delays in the receipt of related proceeds by the Issuer. For
further detail in relation to the enforcement process and related risks, see further "Servicing and Special
Servicing of the Mortgage Pool – Enforcement Procedures".
Servicing and Special Servicing of the Mortgage Loans and Reliance on Third Parties
There may initially be a period, as a result of the Servicer being recently appointed during which
operational and/or technical difficulties arise with the collection or processing of payments from
Borrowers and their subsequent transfer to the Collection Accounts. Such difficulties arising during
this transition period may cause delays. This may on any Payment Date temporarily reduce the
amounts available standing to the credit of the Issuer Transaction Account on each Payment Date to
make payments on the Notes and Instruments.
The Servicer has the ability under the Servicing Agreement to sub-contract its obligations.
Notwithstanding any such sub-contracting to any party or delegation of the performance of any of its
obligations under the Servicing Agreement, the Servicer will remain responsible for the performance of
its obligations under the Servicing Agreement. See "Servicing and Special Servicing of the Mortgage
Pool – Sub-Contracting by the Servicer".
If the appointment of the Servicer is terminated under the Servicing Agreement, it would be necessary
for the Issuer (with the consent of the Trustee) or the Trustee to appoint a substitute servicer with
experience of servicing residential property mortgage loans in the United Kingdom, provided that such
appointment is on substantially the same terms as those set out in the Servicing Agreement and the then
current ratings of the Notes are not adversely affected thereby. The ability of a substitute 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 servicer and the Trustee has no
obligation to act as servicer in such event.
The Special Servicer has the ability under the Special Servicer Agreement to sub-contract its
obligations. Notwithstanding any such sub-contracting to any party or delegation of the performance of
any of its obligations under the Special Servicer Agreements, the Special Servicer will remain
responsible for the performance of its obligations under the Special Servicer Agreement.