ALBA 2007 – 1 plc - Irish Stock Exchange

In addition, the Master Servicer will be obliged to identify and the Cash Manager will be obliged to
pay, apply or make provision for amounts to be paid by the Issuer to the Noteholders, the
Instrumentholders and other Secured Parties. See further the sections "Calculation of Available
Revenue Funds" and "Calculation of Actual Redemption Funds" below.
Calculation of Available Revenue Funds
The Mortgage Rates applicable to the Borrowers in respect of the Mortgage Loans may vary in respect
of different Borrowers and different types of Mortgage Loans. It is anticipated that, on the Issue Date,
the revenue generated by applying the weighted average of the Mortgage Rates applicable to the
Mortgage Loans will, assuming that the Mortgage Loans are fully performing and that no extraordinary
expenses have been incurred by the Issuer, exceed items (i) through (xvii) (inclusive) of the Pre-
Enforcement Interest Priority of Payments by an amount, calculated as a percentage of the initial
principal balance of the Mortgage Loans, which, on the Issue Date, will be approximately 23 per cent.
The actual amount of the excess will vary during the life of the Notes. Among the key factors
determining such variations will be the level of delinquencies and defaults experienced, the level of
prepayments, fees payable by the Borrowers, sundry fees payable to the Servicer and the Special
Servicer and the weighted average of the Mortgage Rates applicable to the Mortgage Loans from time
to time.
The Master Servicer is responsible, pursuant to the Cash Management, Master Servicing and Account
Bank Agreement, for determining the amount of the Available Revenue Funds as at the third Business
Day prior to each Payment Date (a "Calculation Date" and a "Calculation Period" is the period
commencing on (and including) a Calculation Date (or in respect of the first Calculation Period, the
Issue Date) to (but excluding) the next following Calculation Date). Each determination so made shall
(in the absence of negligence, wilful default, bad faith or manifest error) be final and binding on the
Issuer, the Cash Manager, the Trustee, all Noteholders, Instrumentholders and all other Secured Parties
and no liability to the Noteholders, Instrumentholders, any other Secured Party or any other person
shall attach to the Issuer, the Cash Manager, the Trustee or (in such absence as aforesaid) the Master
Servicer in connection therewith.
The amount of "Available Revenue Funds" on any Calculation Date will be the aggregate of:
(a)
(b)
(c)
(d)
Revenue Funds received during the three Collection Periods immediately preceding such
Calculation Date;
amounts received under the Guaranteed Investment Contract;
amounts received under the Interest Rate Swap Agreement (including, subject to the paragraph
below, any swap termination payments received from the Interest Rate Swap Counterparty
under the Interest Rate Swap Agreement (the "Interest Rate Swap Termination Amounts")
but excluding amounts paid as collateral in respect of the Interest Rate Swap Agreement (and
any income thereon) other than, following any early termination of the Interest Rate Swap
Agreement, such portion of collateral that is not required to satisfy any interest rate swap
termination payment due to the Interest Rate Swap Counterparty or to enter into replacement
transactions with a replacement interest rate swap counterparty);
amounts received under the Cross Currency Swap Agreement (including, subject to the
paragraph below, any cross currency swap termination payments received from the Cross
Currency Swap Counterparty under the Cross Currency Swap Agreement (the "Cross
Currency Swap Termination Amounts") but excluding principal exchange amounts and
amounts paid as collateral in respect of the Cross Currency Swap Agreement (and any income