ALBA 2007 – 1 plc - Irish Stock Exchange

(d) fourth, to the C Principal Deficiency Sub-Ledger so long as the debit balance on such sub-ledger is
less than or equal to the Principal Amount Outstanding of the C Notes (the "C Note Principal
Deficiency Limit"), (e) fifth, to the B Principal Deficiency Sub-Ledger so long as the debit balance on
such sub-ledger is less than or equal to the Principal Amount Outstanding of the B Notes (the "B Note
Principal Deficiency Limit") and (f) sixth, to the A Principal Deficiency Sub-Ledger. For the
avoidance of doubt, the A Principal Deficiency will relate to the A1 Notes, the A2 Notes and the A3
Notes pro rata. A Principal Deficiency will be recorded on the relevant Principal Deficiency Sub-
Ledger in respect of any amount of principal which remains outstanding under any Mortgage Loan after
completion by the Servicer of arrears and default procedures. Amounts allocated to each Principal
Deficiency Sub-Ledger shall be reduced to the extent of Available Revenue Funds available therefor on
any Payment Date in accordance with the Pre-Enforcement Interest Priority of Payments.
Subordination of B Notes, C Notes, D Notes, E Notes and the F Notes
Prior to the enforcement of the Security by the Trustee and other than when the Pro Rata Redemption
Conditions are satisfied (a) the B Notes are subordinated in right of payment of interest and principal to
the A Notes; (b) the C Notes are subordinated in right of payment of interest and principal to the A
Notes and the B Notes; (c) the D Notes are subordinated in right of payment of interest and principal to
the A Notes, the B Notes and the C Notes; (d) the E Notes are subordinated in right of payment of
interest and principal to the A Notes, the B Notes, the C Notes and the D Notes; and (e) the F Notes
are subordinated in right of payment of interest and principal to the A Notes, the B Notes, the C Notes,
the D Notes and the E Notes.
Prior to the enforcement of the Security by the Trustee, holders of each class of Notes which is junior
to the Most Senior Class of Notes will not be entitled to receive any payment of interest, unless and
until all amounts then due to, inter alios, the holders of the Most Senior Class of Notes and all amounts
then due to the Liquidity Facility Provider, the Interest Rate Swap Counterparty (other than Interest
Rate Swap Counterparty Default Payments) and to cure any A Principal Deficiency then existing have
been paid in full, in accordance with the Pre-Enforcement Interest Priority of Payments.
If on any Calculation Date there are insufficient funds available to make payment in full of amounts of
interest due and payable on each class of Notes junior to the Most Senior Class of Notes then, to that
extent, interest on such Notes shall be deferred until the next Payment Date on which there are
sufficient funds available, as more fully described in Condition 4(f). There will be no deferral of any
amounts due and payable on the Most Senior Class of Notes.
Each class of Notes will be constituted by the Trust Deed and will share the same security although,
upon enforcement of the Security by the Trustee, the A Notes will rank in priority to the B Notes, the C
Notes, the D Notes, the E Notes and the F Notes in point of security; the B Notes will rank in priority
to the C Notes, the D Notes, the E Notes and the F Notes in point of security; the C Notes will rank in
priority to the D Notes, the E Notes and the F Notes in point of security; and the D Notes will rank in
priority to the E Notes and the F Notes in point of security; and the E Notes will rank in priority to the
F Notes in point of security. Mortgage Early Repayment Charges (other than Ported Mortgage Early
Repayment Charges) will be paid to MERC Holders. Such amounts will not be available, before or
after enforcement of the Security by the Trustee, for application towards repayment of amounts due to
Noteholders, Subordinated Noteholders or R Certificateholders. Prior to and following the
enforcement of the Security by the Trustee, payment of interest and principal of the Subordinated Notes
will rank behind the Notes as to payment of interest but will rank in priority to payments on the R
Certificates. Prior to and following the enforcement of the Security by the Trustee, payment of
amounts in respect of the R Certificates will rank behind payments on the Notes, the MERCs and the