ALBA 2007 – 1 plc - Irish Stock Exchange

Agreement and any collateral in relation thereto), to cover any cost in relation to the execution of a
replacement interest rate cap agreement (having first used any Cap Termination Amounts received from
the Cap Provider in respect of termination of the Interest Rate Cap Agreement and any collateral in
relation thereto), to pay amounts under any indemnities for claims by third parties (including the costs
of any Originator taking legal proceedings or any other action against a solicitor or valuer) pursuant to
the terms of the Original Mortgage Sale Agreements and to pay the Seller interest accruing and all other
sums received by it on the Mortgage Loans up to but not including the Issue Date.
Liquidity Facility
The Liquidity Facility shall be a 364-day committed liquidity facility in an initial Liquidity Facility
Amount of £55,832,500. The Issuer will be entitled, only prior to the service of an Enforcement
Notice by the Trustee, on any Payment Date to make drawings up to the Liquidity Facility Amount
under the Liquidity Facility pursuant to the Liquidity Facility Agreement, any such drawing to be
initially credited to the Issuer Transaction Account and recorded in a ledger maintained by the Cash
Manager established for such purposes (the "Liquidity Ledger") to the extent that, after the application
of the Available Revenue Funds, there are insufficient amounts available for distribution to meet the
items set out in paragraphs (i) to (xvi) other than (vii), (ix), (xi), (xiii) and (xv) (inclusive) (the
"Revenue Shortfalls") of the Pre-Enforcement Interest Priority of Payments on a Payment Date,
provided that no drawings from the Liquidity Ledger may be made to meet interest payments on the B
Notes, the C Notes, the D Notes, the E Notes or, as the case may be, the F Notes, to the extent that,
after the application of the Available Revenue Funds, the B Principal Deficiency Sub-Ledger would
have a debit balance equal to or greater than 50 per cent. of the then aggregate Principal Amount
Outstanding of the B Notes or, as the case may be, the C Principal Deficiency Sub-Ledger would have
a debit balance equal to or greater than 50 per cent. of the then aggregate Principal Amount
Outstanding of the C Notes or, as the case may be, the D Principal Deficiency Sub-Ledger would have
a debit balance equal to or greater than 50 per cent. of the aggregate Principal Amount Outstanding of
the D Notes or, as the case may be, the E Principal Deficiency Sub-Ledger would have a debit balance
equal to or greater than 50 per cent. of the aggregate Principal Amount Outstanding of the E Notes or,
as the case may be, the F Principal Deficiency Sub-Ledger would have a debit balance equal to or
greater than 35 per cent. of the aggregate Principal Amount Outstanding of the F Notes. Drawings
credited to the Liquidity Ledger on any Payment Date will be transferred to the Revenue Ledger on that
Payment Date for application in or towards the Revenue Shortfalls on that Payment Date. Likewise,
any amounts in relation to principal due to be paid to the Liquidity Facility Provider in accordance with
the Pre-Enforcement Interest Priority of Payments will be transferred from the Revenue Ledger to the
Liquidity Ledger and the balance adjusted accordingly on the Business Day before the relevant Payment
Date and thereafter (but only prior to the Liquidity Drawdown Date as defined below) will be utilised in
repaying amounts outstanding under the Liquidity Facility.
Drawings under the Liquidity Facility will be of a revolving nature repayable in full on the Payment
Date following the date of such drawing. Interest on each drawing will accrue at a margin above
LIBOR for the relevant period and will be payable together with accrued interest (if any) on the
Payment Date following such drawing. A commitment fee will be payable on the undrawn amount of
the Liquidity Facility on each Payment Date.
If (a) the short-term, unsecured, unsubordinated and unguaranteed credit rating of the Liquidity Facility
Provider falls below F1 by Fitch, (for so long as the A Notes and the B Notes are outstanding) P-1 by
Moody's and A-1+ by S&P (the "Required Liquidity Facility Provider Rating") or (b) the Liquidity
Facility Provider has its short-term rating withdrawn by either Rating Agency and, in the case of either
paragraph (a) or (b), is not replaced within 30 days of notification of such downgrade or withdrawal or