ALBA 2007 – 1 plc - Irish Stock Exchange

If the appointment of the Special Servicer is terminated under the Special Servicer Agreement, it would
be necessary for the Issuer (with the consent of the Trustee) or the Trustee, 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 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 and the Trustee has no obligation to act as special servicer in such
event.
The Issuer is party to contracts with a number of other third parties who have agreed to perform
services in relation to the Notes and the Instruments. In particular, but without limitation, the Liquidity
Facility Provider has agreed to provide the Issuer with the Liquidity Facility pursuant to the Liquidity
Facility Agreement and the GIC Provider under the Guaranteed Investment Contract, the Cash
Manager, the Master Servicer and the Account Bank under the Cash Management, Master Servicing
and Account Bank Agreement, the Paying Agents, the Agent Bank, the Registrar and the Transfer
Agent under the Paying Agency Agreement, the Cap Provider under the Interest Rate Cap Agreement
and the Swap Counterparties under the Swap Agreements have all agreed to provide services with
respect to the Notes and the Instruments. If any of the above parties were to fail to perform their
obligations under the respective agreements to which they are a party, Noteholders, none of whom
individually have any right to consent to, or approve, any actions set forth in these aforementioned
agreements (including the Servicing Agreement and the Special Servicer Agreement), may be adversely
affected.
Buildings Insurance Policy
According to the GMAC-RFC Lending Criteria or its lending/underwriting policy, each Property
should have been, at the time of the origination of the relevant Mortgage Loan, insured with an
acceptable insurance company. However, in relation to each Property, such insurance policies were
taken out by the relevant Borrowers and not under a block buildings insurance policy of the Seller. The
Seller may therefore be unaware of any lapse in any such insurance policy and may only receive notice
of the loss or damage to the relevant Property and may not have the ability to influence how any money
received under the claim is spent. The Seller has therefore purchased block contingency insurance in
relation to such Properties to mitigate this risk. See "Mortgage Pool – Insurance".
Title of the Issuer
Legal title to all of the Mortgage Loans and (subject to registration at the Land Registry) their related
Mortgages are currently vested in the Seller.
Legal title to the Mortgage Loans and their related Mortgages will only be transferred to the Issuer in
the limited circumstances described under "Title to the Mortgage Pool". Prior to the Issuer obtaining
legal title to the Mortgages, a bona fide purchaser from the Seller for value of any of such Mortgage
Loans without notice of any of the interests of the Issuer or the Trustee might obtain a good title free of
any such interest. However, the risk of third party claims obtaining priority to the interests of the
Issuer or the Trustee in this way is likely to be limited to circumstances arising from a breach by the
Seller of its contractual obligations or fraud, gross negligence or mistake on the part of the Seller or the
Issuer or their respective personnel or agents. Further, the rights of the Issuer and the Trustee may be
or become subject to the direct rights of the Borrowers against the Seller. Such rights may include the
rights of set off which arise in relation to transactions made between certain Borrowers and the Seller