Bankruptcy Risk

I'm going to bring up a reminder of something that I wrote about back in the Spring.
The bankruptcy of these sponsors (New Century, American Home Mortgage, Accredited
Home Lenders) could roil the bond markets if these assets are yanked from the REITS.



Bankruptcy of the Depositor or the      The depositor and the sponsor may be
Sponsor May Delay or Reduce             eligible to become a debtor under the
Collections on Loans                    United States Bankruptcy Code. If the
                                       depositor or the sponsor for the
                                       certificates were to become a debtor
                                       under the United States Bankruptcy Code,
                                       the bankruptcy court could be asked to
                                       determine whether the mortgage loans
                                       constitute property of the debtor, or
                                       whether they constitute property of the
                                       issuing entity. If the bankruptcy court
                                       were to determine that the mortgage
                                       loans constitute property of the estate
                                       of the debtor, there could be delays in
                                       payments to certificateholders of
                                       collections on the mortgage loans and/or
                                       reductions in the amount of the payments
                                       paid to certificateholders. The mortgage
                                       loans would not constitute property of
                                       the estate of the depositor or of the
                                       sponsor if the transfer of the mortgage
                                       loans from the sponsor to the depositor
                                       and from the depositor to the issuing
                                       entity are treated as true sales, rather
                                       than pledges, of the mortgage loans.

                                       The transactions contemplated by this
                                       prospectus supplement and the related
                                       prospectus will be structured so that,
                                       if there were to be a bankruptcy
                                       proceeding with respect to the sponsor
                                       or the depositor, the transfers
                                       described above should be treated as
                                       true sales, and not as pledges. The
                                       mortgage loans should accordingly be