ALABAMA POWER CO
35-CERT, 1996-02-08
ELECTRIC SERVICES
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                           CERTIFICATE OF NOTIFICATION

                                    Filed by

                              ALABAMA POWER COMPANY

Pursuant to orders of the Securities and Exchange Commission dated December
15, 1994 and January 17, 1996 in the matter of File No. 70-8461.

                                                   --------------

Alabama Power Company (the "Company")  hereby  certifies to said  Commission,
pursuant to Rule 24, as follows with respect to the transactions described
particularly in Amendment No. 7 (Post-Effective No. 4) herein:

         1. On January 24, 1996 the issuance and sale by Alabama Power Capital
Trust I ("the Trust"), a Delaware business trust, of 3,880,000 of its 7.375%
Trust Preferred Securities (Liquidation amount $25 per Preferred Security) and
all transactions relating thereto were carried out in accordance with the terms
and conditions of and for the purposes represented by the application, as
amended, and of said orders with respect thereto.

         2. The issuance by the Company of $100,000,000 aggregate principal
amount of its Series A 7.375% Junior Subordinated Notes (the "Junior
Subordinated Notes") due March 31, 2026, pursuant to the First Supplemental
Indenture dated as of January 1, 1996, supplementing the Subordinated Note
Indenture dated as of January 1, 1996, between the Company and Chemical Bank, as
Trustee, was carried out in accordance with the terms and conditions of and for
the purposes represented by the application, as amended, and of said orders with
respect thereto.

         3. The execution by the Company of the Guarantee Agreement, dated as of
January 1, 1996, providing for the guarantee by the Company of certain
obligations of the Trust, in respect of the Trust Preferred Securities, was
carried out in accordance with the terms and conditions of and for the purposes
represented by the application, as amended, and of said orders with respect
thereto.


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                                       -2-

         4.       Filed herewith are the following exhibits:

                  Exhibit  A - Copy of the prospectus with respect to
                               the Trust Preferred Securities, dated
                               January 17, 1996. (Filed electronically
                               January 19, 1996, in File Nos. 33-6 4125 and
                               33-64125-01.)

                  Exhibit  B - Underwriting Agreement.

                  Exhibit  C - Trust Agreement, dated as of November 8, 1995.

                  Exhibit  D - Amended and Restated Trust Agreement, dated as of
                               January 1, 1996.

                  Exhibit  E - Subordinated Note Indenture dated as of January
                               1, 1996, between the Company and Chemical Bank,
                               as trustee.

                  Exhibit  F - Supplemental Indenture to the Subordinated Note
                               Indenture dated as of January 1, 1996, between
                               the Company and Chemical Bank, as trustee.

                  Exhibit  G - Guarantee Agreement, dated as of January 1, 1996,
                               with respect to Trust Preferred Securities.

                  Exhibit H - Opinion of Balch & Bingham dated February 5, 1996.




Dated    February 8, 1996                   ALABAMA POWER COMPANY



                                             By  /s/Wayne Boston
                                                    Wayne Boston
                                                Assistant Secretary











                                                               Exhibit B


                                 Preferred Securities

                             ALABAMA POWER CAPITAL TRUST I
                                  (a Delaware Trust)

                          7.375 % Trust Preferred Securities
                    (Liquidation Amount $25 Per Preferred Security)

                                UNDERWRITING AGREEMENT



                                                         January 17, 1996



             Lehman Brothers Inc.
             3 World Financial Center
             New York, New York 10285

             Ladies and Gentlemen:

                       Alabama Power Capital Trust I (the "Trust"), a
             statutory business trust organized under the Business Trust
             Act (the "Delaware Act") of the State of Delaware (Chapter
             38, Title 12, of the Delaware Code, 12 Del. C. (Sec) 3801 et
             seq.), and Alabama Power Company, an Alabama corporation
             (the "Company" and, together with the Trust, the
             "Offerors"), confirm their agreement (the "Agreement") with
             you and each of the other Underwriters named in Schedule I
             hereto (collectively, the "Underwriters", which term shall
             also include any underwriter substituted as hereinafter
             provided in Section 10 hereof), for whom you are acting as
             representative (in such capacity, you shall hereinafter be
             referred to as the "Representative"), with respect to the
             sale by the Trust and the purchase by the Underwriters,
             acting severally and not jointly, of the respective numbers
             of 7.375% Trust Preferred Securities (liquidation amount $25
             per preferred security) of the Trust ("Preferred
             Securities") set forth in Schedule I.  The Preferred
             Securities will be guaranteed by the Company with respect to
             distributions and payments upon liquidation, redemption and
             otherwise (the "Guarantee") pursuant to the Preferred
             Securities Guarantee Agreement (the "Guarantee Agreement"),
             dated as of January 1, 1996, between the Company and
             Chemical Bank, as trustee (the "Guarantee Trustee").  The
             Preferred Securities and the related Guarantee are referred
             to herein as the "Securities."

                       The Offerors have filed with the Securities and
             Exchange Commission (the "Commission") a registration
             statement on Form S-3 (File Nos. 33-64125 and 33-64125-01)
             for the registration under the Securities Act of 1933, as
             amended (the "1933 Act") of (i) the Preferred Securities,
             (ii) the Guarantee, and (iii) the Junior Subordinated Notes
<PAGE>






             (as defined below). Such registration statement, as it may
             have been amended through the time the same first became
             effective, including the financial statements, the documents
             incorporated or deemed incorporated therein by reference,
             pursuant to Item 12 of Form S-3 under the 1933 Act, the
             exhibits thereto and the information deemed to be part
             thereof pursuant to Rule 430A(b) of the Commission's General
             Rules and Regulations under the 1933 Act (the "1933 Act
             Regulations"), being herein called the "Registration
             Statement", the prospectus included in the Registration
             Statement when the same became effective that omits the
             information, if any, deemed to be a part thereof pursuant to
             Rule 430A(b) of the 1933 Act Regulations, being herein
             called the "Preliminary Prospectus", and the prospectus,
             including the price and terms of the offering, the interest
             rate, maturity date and certain other information filed with
             the Commission in accordance with Rule 430A and pursuant to
             Rule 424(b) of the 1933 Act Regulations, including all
             documents then incorporated or deemed to have been
             incorporated therein by reference, being herein called the
             "Prospectus."  Any reference herein to the Preliminary
             Prospectus or the Prospectus shall be deemed to refer to and
             include the documents incorporated by reference therein
             pursuant to Item 12 or Form S-3 under the 1933 Act, as of
             the date of such Preliminary Prospectus or Prospectus, as
             the case may be.  Any reference to any amendment or
             supplement to the Preliminary Prospectus or the Prospectus
             shall be deemed to refer to and include any documents filed
             after the date of such Preliminary Prospectus or Prospectus,
             as the case may be, under the Securities Exchange Act of
             1934, as amended (the "1934 Act") and incorporated by
             reference in such Preliminary Prospectus or Prospectus, as
             the case may be.  Any reference to any amendment to the
             Registration Statement shall be deemed to refer to and
             include any annual report of the Company filed pursuant to
             Section 13(a) or 15(d) of the 1934 Act after the effective
             date of the Registration Statement that is incorporated by
             reference in the Registration Statement.  The documents
             filed under the 1934 Act, including the financial statements
             and schedules and other information contained or
             incorporated by reference therein, that are or are deemed to
             be incorporated by reference in the Registration Statement,
             Preliminary Prospectus or the Prospectus are herein called
             the "Incorporated Documents."

                       The Offerors understand that the Underwriters
             propose to make a public offering of the Securities as soon
             as the Representative deems advisable after this Agreement
             has been executed and delivered.  The entire proceeds from
             the sale of the Securities will be combined with the entire
             proceeds from the sale by the Trust to the Company of its
             common securities (the "Common Securities") and will be used
             by the Trust to purchase the $100,000,000 of 7.375% Junior
             Subordinated Notes (the "Junior Subordinated Notes") to be

                                           2
<PAGE>






             issued by the Company.  The Preferred Securities and the
             Common Securities will be issued pursuant to the Amended and
             Restated Trust Agreement, dated as of January 1, 1996 (the
             "Trust Agreement"), among the Company, as Depositor, J.
             Randy DeRieux and William E. Zales, Jr. (the "Administrative
             Trustees"), Chemical Bank Delaware, a Delaware banking
             corporation (the "Delaware Trustee") and Chemical Bank, a
             New York banking corporation (the "Property Trustee" and,
             together with the Delaware Trustee and the Administrative
             Trustees, the "Trustees"), as trustees, and the holders from
             time to time of undivided beneficial interests in the assets
             of the Trust.  The Junior Subordinated Notes will be issued
             pursuant to an indenture, dated as of January 1, 1996 (the
             "Base Indenture"), between the Company and Chemical Bank, as
             trustee (the "Debt Trustee"), and a first supplemental
             indenture to the Base Indenture, dated as of January 1, 1996
             (the "Supplemental Indenture," and together with the Base
             Indenture and any other amendments or supplements thereto,
             the "Indenture"), between the Company and the Debt Trustee.

                       SECTION 1.  REPRESENTATIONS AND WARRANTIES.   The
             Offerors jointly and severally represent and warrant to each
             Underwriter as follows:

                       (a)  The Registration Statement as heretofore
                  filed with the Commission, a copy of which as so filed
                  has been delivered to the Underwriters, has been
                  declared effective.

                       (b)  No order suspending the effectiveness of the
                  Registration Statement or otherwise preventing or
                  suspending the use of the Preliminary Prospectus or the
                  Prospectus has been issued by the Commission and is in
                  effect and no proceedings for that purpose are pending
                  before or, to the knowledge of the Company, threatened
                  by, the Commission.  The Registration Statement, the
                  Preliminary Prospectus and the Prospectus comply in all
                  material respects, in form and in substance, with the
                  provisions of the 1933 Act, 1934 Act, the Trust
                  Indenture Act of 1939 (the "1939 Act"), the 1933 Act
                  Regulations, rules and regulations under the 1934 Act
                  (the "1934 Act Regulations"), and the rules and
                  regulations under the 1939 Act (the "1939 Act
                  Regulations"), and neither the Registration Statement
                  nor the Prospectus contains an untrue statement of a
                  material fact or omits to state a material fact
                  required to be stated therein or necessary to make the
                  statements therein not misleading; all Incorporated
                  Documents subsequently filed with the Commission, will
                  comply in all material respects with the applicable
                  provisions of the 1934 Act and the 1934 Act Regulations
                  and, when read together with the Prospectus as it
                  otherwise may be amended or supplemented, will not
                  contain an untrue statement of a material fact or omit

                                           3
<PAGE>






                  to state a material fact required to be stated therein
                  or necessary to make the statements therein not
                  misleading, provided, that the foregoing representa-
                  tions and warranties in this subsection (b) shall not
                  apply to statements in or omissions from the Registra-
                  tion Statement or the Prospectus made in reliance upon
                  information furnished herein or in writing to the
                  Offerors by the Underwriters or on the Underwriters'
                  behalf for use in the Registration Statement or
                  Prospectus; and provided, further, that the foregoing
                  representations and warranties are given on the basis
                  that any statement contained in an Incorporated
                  Document shall be deemed to be modified or superseded
                  for purposes of the Registration Statement or
                  Prospectus to the extent that the statement has been
                  modified or superseded by any statement in a
                  subsequently filed Incorporated Document or in the
                  Registration Statement or Prospectus.

                       (c)  With respect to the Registration Statement,
                  the conditions for use of Form S-3, as set forth in the
                  General Instructions thereof, have been satisfied.

                       (d)  Since the respective dates as of which
                  information is given in the Registration Statement and
                  the Prospectus, except as otherwise stated therein,
                  there has been no material adverse change in the
                  business, properties or financial condition of the
                  Company.

                       (e)  Since the respective dates as of which
                  information is given in the Registration Statement and
                  the Prospectus, except as otherwise stated therein,
                  there has not been any material adverse change or, to
                  the best of the Company's knowledge, any development
                  involving a prospective material adverse change in or
                  affecting the business, properties or financial
                  condition of the Trust.

                       (f)  The Company is a corporation duly organized
                  and existing under the laws of the State of Alabama,
                  and has due corporate authority to carry on the public
                  utility business in which it is engaged and to own and
                  operate the properties used by it in such business, to
                  enter into and perform its obligations under this
                  Agreement, the Trust Agreement, the Indenture and the
                  Guarantee Agreement and to purchase, own, and hold the
                  Common Securities issued by the Trust and to issue and
                  deliver the Junior Subordinated Notes and the
                  Guarantee.

                       (g)  The Trust has been duly created and is
                  validly existing and in good standing as a business
                  trust under the Delaware Act with the power and

                                           4
<PAGE>






                  authority to own property and to conduct its business
                  as described in the Registration Statement and
                  Prospectus and to enter into and perform its
                  obligations under this Agreement and the Trust
                  Agreement; the Trust is duly qualified to transact
                  business as a foreign company and is in good standing
                  in any other jurisdiction in which such qualification
                  is necessary, except to the extent that the failure to
                  so qualify or be in good standing would not have a
                  material adverse effect on the Trust; the Trust is not
                  a party to or otherwise bound by any agreement other
                  than those described in the Prospectus; the Trust is
                  and will be classified for United States federal income
                  tax purposes as a grantor trust and not as an
                  association taxable as a corporation; and the Trust is
                  and will be treated as a consolidated subsidiary of the
                  Company pursuant to generally accepted accounting
                  principles.

                       (h)  The Common Securities have been duly
                  authorized by the Trust Agreement and, when issued and
                  delivered by the Trust to the Company against payment
                  therefor as described in the Registration Statement and
                  Prospectus, will be validly issued and (subject to the
                  terms of the Trust Agreement) fully paid and
                  non-assessable undivided beneficial interests in the
                  Trust and will conform in all material respects to all
                  statements relating thereto contained in the
                  Prospectus; the issuance of the Common Securities is
                  not subject to preemptive or other similar rights; and,
                  on the Closing Date (as defined herein), all of the
                  issued and outstanding Common Securities of the Trust
                  will be directly owned by the Company, free and clear
                  of any security interest, mortgage, pledge, lien,
                  encumbrance, claim or equity.  

                       (i)  This Agreement has been duly authorized,
                  executed and delivered by each of the Offerors.

                       (j)  The Trust Agreement has been duly authorized
                  by the Company and, on the Closing Date, will have been
                  duly executed and delivered by the Company and the
                  Administrative Trustees, and assuming due
                  authorization, execution and delivery of the Trust
                  Agreement by the Delaware Trustee and the Property
                  Trustee, the Trust Agreement will, on the Closing Date,
                  be a valid and binding obligation of the Company and
                  the Administrative Trustees, enforceable against the
                  Company and the Administrative Trustees in accordance
                  with its terms, except to the extent that enforcement
                  thereof may be limited by (1) bankruptcy, insolvency,
                  reorganization, receivership, liquidation, fraudulent
                  conveyance, moratorium or other similar laws affecting
                  creditors, rights generally or (2) general principles

                                           5
<PAGE>






                  of equity (regardless of whether enforcement is
                  considered in a proceeding at law or in equity) (the
                  "Enforceability Exceptions") and will conform in all
                  material respects to all statements relating thereto in
                  the Prospectus; and, on the Closing Date, the Trust
                  Agreement will have been duly qualified under the 1939
                  Act.

                       (k)  The Guarantee Agreement has been duly
                  authorized by the Company and, on the Closing Date,
                  will have been duly executed and delivered by the
                  Company, and, assuming due authorization, execution and
                  delivery of the Guarantee Agreement by the Guarantee
                  Trustee, the Guarantee Agreement will, on the Closing
                  Date, constitute a valid and binding obligation of the
                  Company, enforceable against the Company in accordance
                  with its terms except to the extent that enforcement
                  thereof may be limited by the Enforceability
                  Exceptions, and each of the Guarantee and the Guarantee
                  Agreement will conform in all material respects to all
                  statements relating thereto contained in the
                  Prospectus; and, on the Closing Date, the Guarantee
                  Agreement will have been duly qualified under the 1939
                  Act.

                       (l)  The Preferred Securities have been duly
                  authorized by the Trust Agreement and, when issued and
                  delivered by the Trust pursuant to this Agreement
                  against payment of the consideration set forth herein,
                  will be validly issued and (subject to the terms of the
                  Trust Agreement) fully paid and non-assessable
                  undivided beneficial interests in the Trust, will be
                  entitled to the benefits of the Trust Agreement and
                  will conform in all material respects to all statements
                  relating thereto contained in the Prospectus; the
                  issuance of the Preferred Securities is not subject to
                  preemptive or other similar rights; (subject to the
                  terms of the Trust Agreement) holders of Preferred
                  Securities will be entitled to the same limitation of
                  personal liability under Delaware law as extended to
                  stockholders of private corporations for profit.

                       (m)  The Indenture has been duly authorized by the
                  Company and, on the Closing Date, will have been duly
                  executed and delivered by the Company, and, assuming
                  due authorization, execution and delivery of the
                  Indenture by the Debt Trustee, the Indenture will, on
                  the Closing Date, constitute a valid and binding
                  obligation of the Company, enforceable against the
                  Company in accordance with its terms except to the
                  extent that enforcement thereof may be limited by the
                  Enforceability Exceptions; the Indenture will conform
                  in all material respects to all statements relating
                  thereto contained in the Prospectus; and, on the

                                           6
<PAGE>






                  Closing Date, the Indenture will have been duly
                  qualified under the 1939 Act.

                       (n)  The issuance and delivery of the Junior
                  Subordinated Notes have been duly authorized by the
                  Company and, on the Closing Date, will have been duly
                  executed by the Company and, when authenticated in the
                  manner provided for in the Indenture and delivered
                  against payment therefor as described in the
                  Prospectus, will constitute valid and legally binding
                  obligations of the Company, enforceable against the
                  Company in accordance with their terms, except to the
                  extent that enforcement thereof may be limited by the
                  Enforceability Exceptions, will be in the form
                  contemplated by, and entitled to the benefits of, the
                  Indenture and will conform in all material respects to
                  all statements relating thereto in the Prospectus.

                       (o)  The Company's obligations under the Guarantee
                  (i) are subordinate and junior in right of payment to
                  all liabilities of the Company, except those obliga-
                  tions or liabilities made pari passu or subordinate by
                  their terms, (ii) are pari passu with the preferred
                  stock issued by the Company and (iii) are senior to all
                  common stock of the Company.

                       (p)  The Junior Subordinated Notes are
                  subordinated and junior in right of payment to all
                  "senior indebtedness" (as defined in the Indenture) of
                  the Company.

                       (q)  Each of the Administrative Trustees of the
                  Trust is an employee of the Company and has been duly
                  authorized by the Company to execute and deliver the
                  Trust Agreement.

                       (r)  Neither the Trust nor the Company nor any of
                  the Company's other subsidiaries is and, after giving
                  effect to the offering and sale of the Preferred
                  Securities, will be an "investment company" or an
                  entity "controlled" by an "investment company" within
                  the meaning of the Investment Company Act of 1940, as
                  amended (the "1940 Act").

                       (s)  The execution, delivery and performance by
                  the Offerors of this Agreement, the Trust Agreement,
                  the Preferred Securities, the Common Securities, the
                  Indenture, the Junior Subordinated Notes, the Guarantee
                  Agreement and the Guarantee and the consummation by the
                  Offerors of the transactions contemplated herein and
                  therein and compliance by the Offerors with their
                  respective obligations hereunder and thereunder shall
                  have been duly authorized by all necessary action
                  (corporate or otherwise) on the part of the Offerors

                                           7
<PAGE>






                  and do not and will not result in any violation of the
                  charter or bylaws of the Company, or the Trust
                  Agreement or related Certificate of Trust and do not
                  and will not conflict with, or result in a breach of
                  any of the terms or provisions of, or constitute a
                  default under, or result in the creation or imposition
                  of any lien, charge or encumbrance upon any property or
                  assets of the Trust or the Company under (A) any
                  contract, indenture, mortgage, loan agreement, note,
                  lease or other agreement or instrument to which the
                  Trust or the Company is a party or by which either of
                  them may be bound or to which any of their properties
                  may be subject (except for conflicts, breaches or
                  defaults which would not, individually or in the
                  aggregate, be materially adverse to the Trust or the
                  Company or materially adverse to the transactions
                  contemplated by this Agreement), or (B) any existing
                  applicable law, rule, regulation, judgment, order or
                  decree of any government, governmental instrumentality
                  or court, domestic or foreign, or any regulatory body
                  or administrative agency or other governmental body
                  having jurisdiction over the Trust or the Company, or
                  any of their respective properties.

                       (t)  No authorization, approval, consent or order
                  of any court or governmental authority or agency is
                  necessary in connection with the issuance and sale of
                  the Common Securities or the offering of the Preferred
                  Securities, the Junior Subordinated Notes or the
                  Guarantee or the transactions contemplated in this
                  Agreement, except (A) such as may be required under the
                  1933 Act or the 1933 Act Regulations; (B) such as may
                  be required under the Public Utility Holding Company
                  Act of 1935, as amended (the "1935 Act"); (C) the
                  qualification of the Trust Agreement, the Guarantee
                  Agreement and the Indenture under the 1939 Act; (D) the
                  approval of the Alabama Commission; and (E) such
                  consents, approvals, authorizations, registrations or
                  qualifications as may be required under state
                  securities or Blue Sky laws in connection with the
                  purchase of the Preferred Securities and the
                  distribution of the Preferred Securities by the
                  Underwriters.

                       SECTION 2.  SALE AND DELIVERY TO UNDERWRITERS;
             CLOSING.

                       (a)  On the basis of the representations and
             warranties herein contained and subject to the terms and
             conditions herein set forth, the Trust agrees to sell to
             each Underwriter, severally and not jointly, and each
             Underwriter, severally and not jointly, agrees to purchase
             from the Trust, at the price per security set forth in
             Schedule II hereto, the number of Preferred Securities set

                                           8
<PAGE>






             forth in Schedule I opposite the name of such Underwriter,
             plus any additional number of Preferred Securities that such
             Underwriter may become obligated to purchase pursuant to the
             provisions of Section 10 hereof.

                       The purchase price per security to be paid by the
             several Underwriters for the Preferred Securities shall be
             an amount equal to the initial public offering price set
             forth on Schedule II, which is a fixed price determined by
             agreement between the Representative and the Offerors.  As
             compensation to the Underwriters for their commitments
             hereunder and in view of the fact that the proceeds of the
             sale of the Preferred Securities will be used to purchase
             the Junior Subordinated Notes of the Company, the Company
             hereby agrees to pay on the Closing Date (as defined below)
             to the Representative, for the accounts of the several
             Underwriters, a commission per Preferred Security as set
             forth on Schedule II for the Preferred Securities to be
             delivered by the Trust hereunder on the Closing Date.

                       (b)  Payment of the purchase price for, and
             delivery of certificates for, the Preferred Securities shall
             be made at the offices of Dewey Ballantine, 1301 Avenue of
             the Americas, New York, New, York or at such other place as
             shall be agreed upon by the Representative and the Trust, at
             10:00 A.M., New York time, on January 24, 1996 (unless
             postponed in accordance with the provisions of Section 10)
             or such other time, place or date as shall be agreed upon by
             the Representative, the Trust and the Company (such time and
             date of payment and delivery being herein called the
             "Closing Date").  Payment shall be made to the Trust by
             check or checks in federal funds at the Closing Date,
             against delivery to the Representative for the respective
             accounts of the Underwriters of certificates for the
             Preferred Securities to be purchased by them.  Certificates
             for the Preferred Securities shall be in such denominations
             and registered in such names as the Representative may
             request in writing at least two business days before the
             Closing Date.  It is understood that each Underwriter has
             authorized the Representative, for its account, to accept
             delivery of, receipt for, and make payment of the purchase
             price for, the Preferred Securities which it has agreed to
             purchase.  The Representative, individually and not as
             Representative of the Underwriters, may (but shall not be
             obligated to) make payment of the purchase price for the
             Preferred Securities to be purchased by any Underwriter
             whose check has not been received by the Closing Date, but
             such payment shall not relieve such Underwriter from its
             obligations hereunder.

                       The certificate(s) for the Preferred Securities
             will be made available for examination and packaging by the
             Representative not later than 12:00 Noon, New York time, on
             the last business day prior to the Closing Date.

                                           9
<PAGE>






                       On the Closing Date, the Company will pay, or
             cause to be paid, the commission payable at such time to the
             Underwriters under Section 2 hereof by check or checks
             payable to the Representative in federal funds.

                       SECTION 3.  COVENANTS OF THE OFFERORS.  Each of
             the Offerors jointly and severally covenants with each
             Underwriter as follows:

                       (a)  The Offerors, on or prior to the Closing
                  Date, will deliver to the Underwriters conformed copies
                  of the Registration Statement as originally filed and
                  of all amendments thereto, heretofore or hereafter
                  made, including any post-effective amendment (in each
                  case including all exhibits filed therewith, and
                  including unsigned copies of each consent and
                  certificate included therein or filed as an exhibit
                  thereto, except exhibits incorporated by reference,
                  unless specifically requested).  As soon as the Company
                  is advised thereof, it will advise the Representative
                  orally of the issuance of any stop order under the 1933
                  Act with respect to the Registration Statement, or the
                  institution of any proceedings therefor, of which the
                  Company shall have received notice, and will use its
                  best efforts to prevent the issuance of any such stop
                  order and to secure the prompt removal thereof, if
                  issued.  The Offerors will deliver to the Underwriters
                  sufficient conformed copies of the Registration
                  Statement, the Preliminary Prospectus and Prospectus
                  and of all amendments thereto (in each case without
                  exhibits) for distribution to each Underwriter and,
                  from time to time, as many copies of the Preliminary
                  Prospectus and Prospectus as the Underwriters may
                  reasonably request for the purposes contemplated by the
                  1933 Act or the 1934 Act.

                       (b)  The Offerors will furnish the Underwriters
                  with copies of each amendment and supplement to the
                  Preliminary Prospectus and Prospectus relating to the
                  offering of the Preferred Securities in such quantities
                  as the Underwriters may from time to time reasonably
                  request.  If, during the period when the delivery of a
                  prospectus shall be required by law in connection with
                  the sale of any Preferred Securities by an Underwriter
                  or dealer, any event relating to or affecting the
                  Company, or of which the Company shall be advised in
                  writing by the Underwriters, shall occur, which in the
                  opinion of the Company or of Underwriters' counsel
                  should be set forth in a supplement to or an amendment
                  of the Preliminary Prospectus or Prospectus, as the
                  case may be, in order to make the Preliminary
                  Prospectus or Prospectus not misleading in the light of
                  the circumstances when it is delivered, or if for any
                  other reason it shall be necessary during such period

                                          10
<PAGE>






                  to amend or supplement the Preliminary Prospectus or
                  Prospectus or to file under the 1934 Act any document
                  incorporated by reference in the Preliminary Prospectus
                  or Prospectus in order to comply with the 1933 Act or
                  the 1934 Act, the Company forthwith will (i) notify the
                  Underwriters to suspend solicitation of purchases of
                  the Preferred Securities and (ii) at its expense, make
                  any such filing or prepare and furnish to the
                  Underwriters a reasonable number of copies of a
                  supplement or supplements or an amendment or amendments
                  to the Preliminary Prospectus or Prospectus which will
                  supplement or amend the Preliminary Prospectus or
                  Prospectus so that, as supplemented or amended, it will
                  not contain any untrue statement of a material fact or
                  omit to state any material fact necessary in order to
                  make the statements therein, in the light of the
                  circumstances when the Preliminary Prospectus or
                  Prospectus is delivered, not misleading or which will
                  effect any other necessary compliance.  In case any
                  Underwriter is required to deliver a prospectus in
                  connection with the sale of any Preferred Securities
                  after the expiration of the period specified in the
                  preceding sentence, the Company, upon the request of
                  such Underwriter, will furnish to such Underwriter, at
                  the expense of such Underwriter, a reasonable quantity
                  of a supplemented or amended prospectus, or supplements
                  or amendments to the Preliminary Prospectus or
                  Prospectus, complying with Section 10(a) of the 1933
                  Act.  During the period specified in the second
                  sentence of this subsection, the Company will continue
                  to prepare and file with the Commission on a timely
                  basis all documents or amendments required under the
                  1934 Act and the 1934 Act Regulations; provided, that
                  the Company shall not file such documents or amendments
                  without also furnishing copies thereof prior to such
                  filing to the Underwriters and Dewey Ballantine.

                       (c)  The Offerors will endeavor, in cooperation
                  with the Underwriters, to qualify the Preferred
                  Securities and, to the extent required or advisable,
                  the Guarantee and the Junior Subordinated Notes, for
                  offering and sale under the applicable securities laws
                  of such states and the other jurisdictions of the
                  United States as the Representative may designate;
                  provided, however, that neither of the Offerors shall
                  be obligated to qualify as a foreign corporation in any
                  jurisdiction in which it is not so qualified or to file
                  a consent to service of process or to file annual
                  reports or to comply with any other requirements in
                  connection with such qualification deemed by the
                  Company to be unduly burdensome.

                       (d)  The Company will make generally available to
                  its security holders as soon as practicable but not

                                          11
<PAGE>






                  later than 45 days after the close of the period
                  covered thereby, an earnings statement of the Company
                  (in form complying with the provisions of Rule 158 of
                  the 1933 Act Regulations) covering a twelve-month
                  period beginning not later than the first day of the
                  Company's fiscal quarter next following the "effective
                  date" (as defined in Rule 158) of the Registration
                  Statement.

                       (e)  The Offerors will use best efforts to effect
                  the listing of the Preferred Securities on the New York
                  Stock Exchange; if the Preferred Securities are
                  exchanged for Junior Subordinated Notes, the Company
                  will use its best efforts to effect the listing of the
                  Junior Subordinated Notes on the exchange on which the
                  Preferred Securities were then listed.

                       (f)  During a period of 30 days from the date of
                  this Agreement, neither the Trust nor the Company will,
                  without the Representative's prior written consent,
                  directly or indirectly, sell, offer to sell, grant any
                  option for the sale of, or otherwise dispose of, any
                  Preferred Securities, any security convertible into or
                  exchangeable into or exercisable for Preferred
                  Securities or the Junior Subordinated Notes or any debt
                  securities substantially similar to the Junior
                  Subordinated Notes or equity securities substantially
                  similar to the Preferred Securities (except for the
                  Junior Subordinated Notes and the Preferred Securities
                  issued pursuant to this Agreement).

                       SECTION 4.  PAYMENT OF EXPENSES.  The Company will
             pay all expenses incident to the performance of each
             Offerors obligations under this Agreement, including but not
             limited to, the expenses of (i) the printing and filing of
             the Registration Statement as originally filed and of each
             amendment thereto, (ii) the preparation, issuance and
             delivery of the certificate(s) for the Preferred Securities
             to the Underwriters, (iii) the fees and disbursements of the
             Company's and the Trust's counsel and accountants, (iv) the
             qualification of the Preferred Securities and, to the extent
             required or advisable, the Guarantee and the Junior
             Subordinated Notes, under securities laws in accordance with
             the provisions of Section 3(c) hereof, including filing fees
             and the reasonable fees and disbursements of counsel for the
             Underwriters in connection therewith and in connection with
             the preparation of any blue sky survey (such fees and
             disbursements of counsel shall not exceed $3,500), (v) the
             printing and delivery to the Underwriters of copies of the
             Registration Statement as originally filed and of each
             amendment thereto, of the Preliminary Prospectus, and of the
             Prospectus and any amendments or supplements to the
             Preliminary Prospectus or Prospectus, (vi) the printing and
             delivery to the Underwriters of copies of any blue sky

                                          12
<PAGE>






             survey, (vii) the fee of the National Association of
             Securities Dealers, Inc. in connection with its review of
             the offering contemplated by this Agreement, if applicable,
             (viii) the fees and expenses of the Debt Trustee, including
             the fees and disbursements of counsel for the Debt Trustee
             in connection with the Indenture and the Junior Subordinated
             Notes, (ix) the fees and expenses of the Delaware Trustee,
             the Property Trustee and the Guarantee Trustee, including
             the fees and disbursements of counsel for the Delaware
             Trustee in connection with the Trust Agreement and the
             related Certificate of Trust, (x) the fees and disbursements
             of Delaware counsel to the Trust, (xi) any fees payable in
             connection with the rating of the Preferred Securities and
             Junior Subordinated Notes, (xii) the fees and expenses
             incurred in connection with the listing of the Preferred
             Securities and, if applicable, the Junior Subordinated Notes
             on the New York Stock Exchange, and (xiii) the cost and
             charges of any transfer agent or registrar and (xiv) the
             cost of qualifying the Preferred Securities with The
             Depository Trust Company.

                       Except as otherwise provided in Section 9 hereof,
             the Underwriters shall pay all other expenses incurred by
             them in connection with their offering of the Preferred
             Securities, including fees and disbursements of their
             counsel, Dewey Ballantine.

                       SECTION 5.  CONDITIONS OF UNDERWRITERS'
             OBLIGATIONS.  The obligations of the Underwriters to
             purchase and pay for the Preferred Securities are subject to
             the following conditions:

                       (a)  No stop order suspending the effectiveness of
                  the Registration Statement shall be in effect on the
                  Closing Date and no proceedings for that purpose shall
                  be pending before, or to the knowledge of the Company
                  threatened by, the Commission on such date.  If filing
                  of the Preliminary Prospectus or Prospectus, or any
                  supplement thereto, is required pursuant to Rule 424,
                  the Preliminary Prospectus or Prospectus, and any such
                  supplement, shall have been filed in the manner and
                  within the time period required by Rule 424.  The
                  Underwriters shall have received, prior to payment for
                  the Preferred Securities, the certificate required
                  under Section 5(c)(7) hereof.

                       (b)  Orders of the Alabama Commission and the
                  Commission permitting the transactions contemplated
                  hereby substantially in accordance with the terms and
                  conditions hereof shall be in full force and effect and
                  shall contain no provision unacceptable to the
                  Underwriters or the Company (but all provisions of such
                  order or orders heretofore entered, copies of which
                  have heretofore been delivered to the Representative,

                                          13
<PAGE>






                  are deemed acceptable to the Underwriters and the
                  Company and all provisions of such order or orders
                  hereafter entered shall be deemed acceptable to the
                  Underwriters and the Company unless within 24 hours
                  after receiving a copy of any such order any party to
                  this Agreement shall give notice to the other parties
                  to the effect that such order contains an unacceptable
                  provision).

                       (c)  On the Closing Date the Representative shall
                  have received:

                            (1)  The opinion, dated the Closing Date, of
                  Balch & Bingham, general counsel for the Company,
                  substantially in the form attached hereto as Schedule
                  III-A.

                            (2)  The opinion, dated the Closing Date, of
                  Troutman Sanders LLP, counsel for the Company,
                  substantially in the form attached hereto as Schedule
                  III-B.

                            (3)  The opinion, dated the Closing Date, of
                  Richards, Layton & Finger, Delaware counsel to the
                  Trust, substantially in the form attached hereto as
                  Schedule IV.

                            (4)  The opinion, dated the Closing Date, of
                  Richards, Layton & Finger, Delaware counsel to Chemical
                  Bank Delaware, as Delaware Trustee under the Trust
                  Agreement, substantially in the form attached hereto as
                  Schedule V.

                            (5)  The opinion, dated the Closing Date, of
                  Cravath, Swaine & Moore, counsel to the Property
                  Trustee, the Guarantee Trustee and the Debt Trustee,
                  substantially in the form attached hereto as Schedule
                  VI.

                            (6)  The favorable opinion, dated as of the
                  Closing Date, of Dewey Ballantine, counsel for the
                  Underwriters, substantially in the form attached hereto
                  as Schedule VII.

                            (7)  At the Closing Date, there shall not
                  have been, since the date hereof or since the
                  respective dates as of which information is given in
                  the Registration Statement and the Prospectus, any
                  material adverse change in the business, properties or
                  financial condition of the Trust or the Company,
                  whether or not arising in the ordinary course of
                  business, and the Representative shall have received a
                  certificate of the Chairman of the Board, the President
                  or any Vice President of the Company and a certificate

                                          14
<PAGE>






                  of the Administrative Trustees of the Trust, and dated
                  as of the Closing Date, to the effect that (i) there
                  has been no such material adverse change, (ii) the
                  representations and warranties in Section 1 hereof are
                  true and correct with the same force and effect as
                  though expressly made at and as of the Closing Date,
                  (iii) the Trust and the Company have complied with all
                  agreements and satisfied all conditions on its part to
                  be performed or satisfied on or prior to the Closing
                  Date, and (iv) no stop order suspending the
                  effectiveness of the Registration Statement has been
                  issued and no proceedings for that purpose have been
                  initiated or, to the knowledge of the Company,
                  threatened by the Commission.

                            (8)  On this Closing Date, the Representative
                  shall have received from Arthur Andersen LLP a letter
                  dated the Closing Date to the effect that: (A) they are
                  independent public accountants with respect to the
                  Company within the meaning of the 1933 Act and the 1933
                  Act Regulations; (B) in their opinion, the financial
                  statements audited by them and incorporated by
                  reference in the Prospectus comply as to form in all
                  material respects with the applicable accounting
                  requirements of the 1934 Act and the 1934 Act
                  Regulations, and (C) on the basis of certain limited
                  procedures performed through a specified date not more
                  than five business days prior to the date of such
                  letter, namely (i) reading the minute books of the
                  Company; (ii) performing the procedures specified by
                  the American Institute of Certified Public Accountants
                  ("AICPA") for a review of interim financial information
                  as described in Statement on Auditing Standards No. 71,
                  "Interim Financial Information", on the unaudited
                  financial statements, if any, of the Company
                  incorporated in the Prospectus and of the latest
                  available unaudited financial statements of the
                  Company, if any, as of a date subsequent to the date of
                  those incorporated in the Prospectus; and (iii) making
                  inquiries of certain officials of the Company who have
                  responsibility for financial and accounting matters
                  regarding such unaudited financial statements or any
                  specified unaudited amounts derived therefrom (it being
                  understood that the foregoing procedures do not
                  constitute an audit performed in accordance with
                  generally accepted auditing standards and they would
                  not necessarily reveal matters of significance with
                  respect to the comments made in such letters, and
                  accordingly  that Arthur Andersen LLP make no
                  representations as to the sufficiency of such
                  procedures for the Underwriters' purposes), nothing
                  came to their attention that caused them to believe
                  that:  (1) any material modifications should be made to
                  the unaudited condensed financial statements, if any,

                                          15
<PAGE>






                  incorporated in the Prospectus, for them to be in
                  conformity with generally accepted accounting
                  principles; (2) such unaudited condensed financial
                  statements do not comply as to form in all material
                  respects with the applicable accounting requirements of
                  the 1934 Act as it applies to Form 10-Q and the related
                  published rules and regulations thereunder; (3) the
                  unaudited amounts for Operating Revenues, Income Before
                  Interest Charges and Net Income After Dividends on
                  Preferred Stock and the unaudited Ratios of Earnings to
                  Fixed Charges and Earnings to Fixed Charges Plus
                  Preferred Dividend Requirements (Pre-Income Tax Basis)
                  set forth in the Prospectus do not agree with the
                  amounts set forth in or derived from the unaudited
                  financial statements for the same period or were not
                  determined on a basis substantially consistent with
                  that of the corresponding audited amounts or ratios
                  included or incorporated by reference in the
                  Registration Statement; (4) as of a specified date not
                  more than five business days prior to the date of
                  delivery of such letter, there has been any change in
                  the capital stock or long-term debt of the Company or
                  any decrease in net assets as compared with amounts
                  shown in the latest audited balance sheet incorporated
                  in the Prospectus, except in each case for changes or
                  decreases which (i) the Prospectus discloses have
                  occurred or may occur, (ii) are occasioned by the
                  declaration of dividends, (iii) are occasioned by draw-
                  downs under existing pollution control financing
                  arrangements, (iv) are occasioned by draw-downs and
                  regularly scheduled payments of capitalized lease
                  obligations, (v) are occasioned by the purchase or
                  redemption of bonds or stock to satisfy mandatory or
                  optional redemption provisions relating thereto, or
                  (vi) are disclosed in such letter; and (5) the
                  unaudited amounts for Operating Revenues, Income Before
                  Interest Charges and Net Income After Dividends on
                  Preferred Stock and the unaudited Ratios of Earnings to
                  Fixed Charges and Earnings to Fixed Charges Plus
                  Preferred Dividend Requirements (Pre-Income Tax Basis)
                  for any period subsequent to those set forth in (3)
                  above, which if available shall be set forth in such
                  letter do not agree with the amounts set forth in or
                  derived from the unaudited financial statements for the
                  same period or were not determined on a basis
                  substantially consistent with that of the corresponding
                  audited amounts or ratios included or incorporated by
                  reference in the Prospectus.

                            (9)  On the Closing Date, counsel for the
                  Underwriters shall have been furnished with such
                  documents and opinions as they may require for the
                  purpose of enabling them to pass upon the issuance and
                  sale of the Preferred Securities as herein contemplated

                                          16
<PAGE>






                  and related proceedings, or in order to evidence the
                  accuracy of any of the representations or warranties,
                  or the fulfillment of any of the conditions, herein
                  contained; and all proceedings taken by the Offerors,
                  in connection with the issuance and sale of the
                  Preferred Securities as herein contemplated shall be
                  satisfactory in form and substance to the
                  Representative and Dewey Ballantine, counsel for the
                  Underwriters.

                            (10) On the Closing Date, the Preferred
                  Securities shall have been approved for listing on the
                  New York Stock Exchange upon notice of issuance.

                            (11) A Special Event (as defined in the
                  Prospectus) shall not have occurred and be continuing.

                            (12) That no amendment or supplement to the
                  Registration Statement or the Prospectus filed
                  subsequent to the date of this Agreement (including any
                  filing made by the Company pursuant to Section 13 or 14
                  of the Exchange Act) shall be unsatisfactory in form to
                  Dewey Ballantine or shall contain information (other
                  than with respect to an amendment or supplement
                  relating solely to the activity of any Underwriter or
                  Underwriters) which, in the reasonable judgment of the
                  Representative, shall materially impair the market-
                  ability of the Preferred Securities.

                            (13) The Company and the Trust shall have
                  performed such of its obligations when and as provided
                  under this Agreement.

                            If any condition specified in this Section
             shall not have been fulfilled when and as required to be
             fulfilled, this Agreement may be terminated by the
             Representative by notice to the Offerors at any time prior
             to the Closing Date, and such termination shall be without
             liability of any party to any other party except as provided
             in Sections 4, 7 and 9(b) hereof.

                       SECTION 6.  CONDITIONS OF THE OBLIGATION OF
                                   THE OFFERORS.                  

                        The obligations of the Offerors shall be subject
             to the conditions set forth in the first sentence of Section
             5(a) and in Section 5(b).  In case such conditions shall not
             have been fulfilled, this Agreement may be terminated by the
             Company by mailing or delivering written notice thereof to
             the Underwriters.  Any such termination shall be without
             liability of any party to any other party except as
             otherwise provided in Sections 4, 7 and 9(b) hereof.



                                          17
<PAGE>






                       SECTION 7.  INDEMNIFICATION.

                       (a)  The Offerors jointly and severally agree to
             indemnify and hold harmless each of the Underwriters and
             each person, if any, who controls any such Underwriter
             within the meaning of Section 15 of the 1933 Act or Section
             20(a) of the 1934 Act, against any and all losses, claims,
             damages or liabilities, joint or several, to which they or
             any of them may become subject under the 1933 Act, 1934 Act
             or otherwise, and, promptly after receipt of invoices
             therefrom for any legal and other expenses reasonably
             incurred by any Underwriter or controlling person in
             investigating or defending or preparing to defend against
             any such loss, claim, damage or liability, to reimburse the
             Underwriters and such controlling person or persons, if any,
             for any legal or other expenses incurred by them in
             connection with defending any actions, insofar as such
             losses, claims, damages, liabilities or actions arise out of
             or are based upon any untrue statement or alleged untrue
             statement of a material fact contained in a the Preliminary
             Prospectus, or in the Registration Statement, or in the
             Prospectus or, if the Offerors shall furnish to the
             Underwriters any amendments or any supplements thereto, or
             shall make any filings pursuant to Section 13 or 14 of the
             1934 Act which are incorporated therein by reference, in the
             Preliminary Prospectus or Prospectus as so amended or
             supplemented, or arise out of or are based upon any omission
             or alleged omission to state therein a material fact
             required to be stated therein or necessary to make the
             statements therein not misleading, except insofar as such
             losses, claims, damages, liabilities or actions arise out of
             or are based upon any such untrue statement or alleged
             untrue statement or omission or alleged omission which was
             made in such Registration Statement, Preliminary Prospectus
             or Prospectus in reliance upon and in conformity with
             information furnished in writing to the Company by, or
             through the Representative on behalf of, any Underwriter for
             use therein and except that this indemnity with respect to
             the Preliminary Prospectus and the Prospectus, if the
             Offerors shall have furnished any amendment or supplement
             thereto, shall not inure to the benefit of any Underwriter
             (or of any person controlling such Underwriter) on account
             of any losses, claims, damages, liabilities or actions
             arising from the sale of the Preferred Securities to any
             person if a copy of the Preliminary Prospectus or Prospectus
             (exclusive of documents incorporated therein by reference
             pursuant to Item 12 of Form S-3), as the same may then be
             amended or supplemented, shall not have been sent or given
             by or on behalf of such Preferred Securities to such person
             with or prior to the written confirmation of the sale
             involved and the untrue statement or alleged untrue
             statement or omission or alleged omission was corrected in
             the Preliminary Prospectus or Prospectus as supplemented or
             amended at the time of such confirmation.  Each Underwriter

                                          18
<PAGE>






             agrees, within ten days after the receipt by it of notice of
             the commencement of any action in respect of which indemnity
             may be sought by it, or by any person controlling it, from
             the Offerers on account of its agreement contained in this
             Section 7, to notify the Offerors in writing of the
             commencement thereof, provided, however, that the failure to
             notify the Offerors shall not relieve it from any liability
             which it may have to an Underwriter or controlling person
             under this Section, except to the extent that it has been
             materially prejudiced by such failure. In case any such
             action shall be brought against the Underwriters or any such
             person controlling such Underwriters and such Underwriter
             shall notify the Offerors of the commencement thereof as
             above provided, the Offerors shall be entitled to
             participate in (and, to the extent that they shall wish,
             including the selection of counsel, to direct) the defense
             thereof, at their own expense.  In case the Offerors elect
             to direct such defense and select such counsel, any
             Underwriter or controlling person shall have the right to
             employ its own counsel, but, in any such case, the fees and
             expenses of such counsel shall be at the expense of such
             Underwriter or controlling person unless (i) the employment
             of such counsel has been authorized in writing by the
             Offerors in connection with defending such action or (ii)
             the named parties to any such action (including any
             impleaded parties) include both any Underwriter or any
             controlling person and the Offerors, and any Underwriter or
             any controlling person shall have been advised by its
             counsel that a conflict of interest between the Offerors and
             any Underwriter or any controlling person may arise (and the
             Company's counsel shall have concurred with such advice) and
             for this reason it is not desirable for the Company's
             counsel to represent both the indemnifying party and the
             indemnified party (it being understood, however, that the
             Company shall not, in connection with any one such action or
             separate but substantially similar or related actions in the
             same jurisdiction arising out of the same general
             allegations or circumstances, be liable for the reasonable
             fees and expenses of more than one separate firm of
             attorneys for any Underwriter or any controlling person
             (plus any local counsel retained by any Underwriter or any
             controlling person in their reasonable judgement) which firm
             or firms shall be designated in writing by any Underwriter
             or any controlling person.  No indemnifying party shall,
             without the written consent of the indemnified party, effect
             the settlement or compromise of, or consent to the entry of
             any judgment with respect to, any pending or threatened
             action or claim in respect of which indemnification may be
             sought hereunder (whether or not the indemnified party is an
             actual or potential party to such action or claim) unless
             such settlement, compromise or judgment (i) includes an
             unconditional release of the indemnified party from all
             liability arising out of such action or claim and (ii) does
             not include any statement as to, or an admission of, fault,

                                          19
<PAGE>






             culpability or a failure to act, by or on behalf of any
             indemnified party.

                       (b)  The Company agrees to indemnify the Trust
             against all loss, liability, claim, damage and expense
             whatsoever, as due from the Trust under Section 7(a)
             hereunder.

                       (c)  Each Underwriter agrees, severally and not
             jointly, to indemnify and hold harmless the Company,its
             directors and such of its officers as have been signed the
             Registration Statement, and each other Underwriter and each
             person, if any, who controls the Offerors or any such other
             Underwriter within the meaning of Section 15 of the 1933 Act
             or Section 20(a) of the 1934 Act to the same extent and upon
             the same terms as the indemnity agreement of the Offerors
             set forth in Section 7(a) hereof, but only with respect to
             alleged untrue statements or omissions made in the
             Registration Statement, the Preliminary Prospectus or the
             Prospectus, or the Preliminary Prospectus or Prospectus as
             amended or supplemented, in reliance upon and in conformity
             with information furnished in writing to the Offerors by, or
             through the Representative on behalf of, such Underwriter
             for use therein.

                       Each Underwriter represents and warrants that its
             commitment to buy the Preferred Securities will not result
             in a violation of the financial responsibility requirements
             of Rule l5c3-l under the 1934 Act.

                       SECTION 8.  REPRESENTATIONS, WARRANTIES AND
                                   AGREEMENTS TO SURVIVE DELIVERY. 

                       All representationes, warranties and agreements
             contained in this Agreement, or contained in certificates of
             officers or Trustees of the Offerors submitted pursuant
             hereto, shall remain operative and in full force and effect,
             regardless of any investigation made by or on behalf of any
             Underwriter or controlling person, or by, or on behalf of
             the Offerors and shall survive delivery of the Preferred
             Securities to the Underwriters.

                       SECTION 9.  TERMINATION OF AGREEMENT.

                       (a)  The Representative may terminate this
             Agreement, by notice to the Offerors, at any time at or
             prior to the Closing Date if (i) trading in securities on
             the New York Stock Exchange shall has been generally
             suspended, (ii) minimum or maximum ranges for prices shall
             have been generally the established on the New York Stock
             Exchange by the Commission or by to New York Stock Exchange,
             (iii) a general banking moratorium shall have been declared
             by federal or New York State authorities, (iv) there shall
             have occurred any outbreak or escalation of major

                                          20
<PAGE>






             hostilities in which the United States is involved, any
             declaration of war by the United States Congress or any
             other substantial national or international calamity or
             emergency affecting the United States, in any such case
             provided for in clauses (i) through (iv) with the result
             that, in the reasonable judgement of the Representative, the
             marketability of the Preferred Securities shall have been
             materially impaired.

                       (b)  If this Agreement shall be terminated by the
             Underwriters pursuant to subsection (a) above or because of
             any failure or refusal on the part of the Offerors to comply
             with the terms or to fulfill any of the conditions of this
             Agreement, or if for any reason the Offerors shall be unable
             to perform their obligations under this Agreement, then in
             any such case, the Company will reimburse the Underwriters,
             severally, for the reasonable fees and disbursements of
             Dewey Ballantine and for the out of pocket expenses (in an
             amount not exceeding $10,000) reasonably incurred by the
             Underwriters in making preparations for the purchase, sale
             and delivery of the Preferred Securities and, upon such
             reimbursement, the Offerors shall be absolved from any
             further liability hereunder, except as provided in Sections
             4 and 7.

                       SECTION 10. DEFAULT BY ONE OR MORE OF THE
             UNDERWRITERS.  If one or more of the Underwriters shall fail
             on the Closing Date to purchase the Preferred Securities
             that it or they are obligated to purchase under this
             Agreement (the "Defaulted Securities"), the Representative
             shall have the right, within 24 hours thereafter, to make
             arrangements for one or more of the non-defaulting
             Underwriters, or any other underwriters, to purchase all,
             but not less than all, of the Defaulted Securities in such
             amounts as may be agreed upon and upon the terms herein set
             forth; if, however, the Representative shall not have
             completed such arrangements within such 24-hour period,
             then:

                            (a)  if the number of Defaulted Securities
                  does not exceed 10% of the Preferred Securities, each
                  of the non-defaulting Underwriters shall be obligated,
                  severally and not jointly, to purchase the full amount
                  thereof in the proportions that their respective
                  underwriting obligations hereunder bear to the
                  underwriting obligations of all non-defaulting
                  Underwriters, or

                            (b)  if the number of Defaulted Securities
                  exceeds 10% of the Preferred Securities, this Agreement
                  shall terminate without liability on the part of any
                  non-defaulting Underwriter.



                                          21
<PAGE>






                       No action taken pursuant to this Section shall
             relieve any defaulting Underwriter from liability in respect
             of its default.

                       In the event of any such default which does not
             result in a termination of this Agreement, either the
             Representative or the Offerors shall have the right to
             postpone the Closing Date for a period not exceeding seven
             days in order to effect any required changes in the
             Registration Statement or Prospectus or in any other
             documents or arrangements.

                       SECTION 11. NOTICES.  All notices and other
             communications hereunder shall be in writing and shall be
             deemed to have been duly given if mailed or transmitted by
             any standard form of telecommunication.  Notices to the
             Underwriters shall be directed to the Representative at 3
             World Financial Center, New York, New York 10285, Attention:
             Managing Director, Utilities Investment Banking; notices to
             the Trust, and the Company shall be directed to them at 600
             North 18th Street, Birmingham, Alabama 35291, Attention: 
             Art P. Beattie.

                       SECTION 12. PARTIES.  This Agreement shall inure
             to the benefit of and be binding upon the Underwriters, the
             Trust, the Company and their respective successors.  Nothing
             expressed or mentioned in this Agreement is intended or
             shall be construed to give any person, firm or corporation,
             other than the Underwriters and the Trust and the Company
             and their respective successors and the controlling persons
             and officers, directors and trustees referred to in Section
             7 and their heirs and legal representatives, any legal or
             equitable right, remedy or claim under or in respect of this
             Agreement or any provision herein contained.  This Agreement
             and all conditions and provisions hereof are intended to be
             for the sole and exclusive benefit of the Underwriters and
             the Trust and the Company and their respective successors,
             and said controlling persons and officers, directors and
             trustees and their heirs and legal representatives, and for
             the benefit of no other person, firm or corporation.  No
             purchaser of Preferred Securities from any Underwriter shall
             be deemed to be a successor by reason merely of such
             purchase.

                       SECTION 13. GOVERNING LAW AND TIME.  This
             Agreement shall be governed by and construed in accordance
             with the laws of the State of New York applicable to
             agreements made and to be performed in said State.  Except
             as otherwise set forth herein, specified times of day refer
             to New York City time.

                       SECTION 14. COUNTERPARTS. This Agreement may be
             executed by any one or more of the parties hereto in any
             number of counterparts, each of which shall be deemed to be

                                          22
<PAGE>






             an original, but all such respective counterparts shall
             together constitute one and the same instrument.





















































                                          23
<PAGE>






                       If the foregoing is in accordance with your
             understanding of our agreement, please sign and return to
             the Trust and the Company a counterpart hereof, whereupon
             this instrument, along with all counterparts, will become a
             binding agreement between the Underwriters and the Trust and
             the Company in accordance with its terms.

                                        Very truly yours,

                                        ALABAMA POWER COMPANY


                                        By:______________________________
                                        Title:___________________________


                                        ALABAMA POWER CAPITAL TRUST I


                                        By:  Alabama Power Company, as
                                             Depositor

                                        _________________________________
                                        Name:  
                                        Title:  Administrative Trustee


             CONFIRMED AND ACCEPTED,
             as of the date first above written

             LEHMAN BROTHERS INC.


             By:_________________________________________
                            Authorized Signatory

             For itself and as Representative of the other
             Underwriters named in Schedule I hereto.

















                                          24
<PAGE>






                                      SCHEDULE I


             NAME OF UNDERWRITER                     NUMBER OF SECURITIES

             Lehman Brothers Inc.                         548,000
             Dean Witter Reynolds Inc.                    548,000
             A.G. Edwards & Sons, Inc.                    548,000
             Prudential Securities Incorporated           548,000
             The Robinson-Humphrey Company, Inc.          548,000
             J.C. Bradford & Co.                           80,000
             Edward D. Jones & Co. L.P.                    80,000
             Legg Mason Wood Walker, Incorporated          80,000
             Morgan Keegan & Company, Inc.                 80,000
             PaineWebber Incorporated                      80,000
             Regions Investment Company, Inc.              80,000
             Sterne, Agee & Leach, Inc.                    80,000
             Wheat, First Securities, Inc.                 80,000
             Cowen & Company                               20,000
             Craigie Incorporated                          20,000
             Dain Bosworth Incorporated                    20,000
             Davenport & Co. of Virginia, Inc.             20,000
             Doft & Co., Inc.                              20,000
             Everen Securities, Inc.                       20,000
             Fahnestock & Co. Inc.                         20,000
             First Albany Corporation                      20,000
             Furman Selz LLC                               20,000
             J.J.B. Hilliard, W.L. Lyons, Inc.             20,000
             Interstate/Johnson Lane Corporation           20,000
             Janney Montgomery Scott Inc.                  20,000
             McDonald & Company Securities, Inc.           20,000
             McGinn, Smith & Co., Inc.                     20,000
             Olde Discount Corporation                     20,000
             Parker/Hunter Incorporated                    20,000
             Piper Jaffray Inc.                            20,000
             Principal Financial Securities, Inc.          20,000
             Pryor, McClendon, Counts & Co., Inc.          20,000
             Rauscher Pierce Refsnes, Inc.                 20,000
             Raymond James & Associates, Inc.              20,000
             Roney & Co.                                   20,000
             Muriel Siebert & Co., Inc.                    20,000
             Stifel, Nicolaus & Company, Incorporated      20,000
             U.S. Clearing Corp.                           20,000

             TOTAL                                      3,880,000
<PAGE>






                                      SCHEDULE II


             Initial public offering price per 
             Preferred Security (and purchase 
             price per security to be paid by 
             the several Underwriters): $25.00

             Compensation per Preferred Security 
             to be paid by the Company to the 
             several Underwriters in respect of
             their commitments: $.50 for
             Preferred Securities sold to certain
             institutions; $.7875 for Preferred
             Securities sold to other purchasers
<PAGE>






                                                           Schedule III-A


                            [Letterhead of BALCH & BINGHAM]


                                                     January __, 1996


             Lehman Brothers Inc., as Representative 
             3 World Financial Center
             New York, New York 10285


                             ALABAMA POWER CAPITAL TRUST I
                            ___% TRUST PREFERRED SECURITIES

             Dear Sirs:

                       We have acted as general counsel to Alabama Power
             Company (the "Company") in connection with (i) its formation
             of Alabama Power Capital Trust I (the "Trust"), a Delaware
             statutory business trust, pursuant to the amended and
             restated trust agreement dated as of January 1, 1996 among
             the Company and the trustees named therein (the "Trust
             Agreement"); (ii) the Trust's issuance and sale of Preferred
             Securities evidencing approximately a 97% undivided interest
             in the Trust (the "Preferred Securities"); (iii) the Trust's
             issuance and sale of Common Securities evidencing
             approximately a 3% undivided interest in the Trust; (iv) the
             Company's issuance and sale to the Trust of approximately
             $100,000,000 of its ___% Junior Subordinated Notes (the
             "Notes") pursuant to a Subordinated Note Indenture dated as
             of January 1, 1996, by and between the Company and Chemical
             Bank, as trustee, as supplemented by the First Supplemental
             Indenture dated as of January 1, 1996 (collectively, the
             "Indenture"); and (v) its issuance of a guarantee (the
             "Guarantee") of the Preferred Securities pursuant to a
             Preferred Securities Guarantee Agreement dated as of January
             1, 1996 (the "Guarantee Agreement") between the Company and
             Chemical Bank Delaware, as trustee.  The Preferred
             Securities are being sold to you today pursuant to the terms
             of an Underwriting Agreement dated January __, 1996, among
             the Company, the Trust and the underwriters named in
             Schedule I thereto (the "Underwriters") for whom you are
             acting as Representative (the "Underwriting Agreement"). 
             This opinion is being delivered to you as Representative
             pursuant to Section 5(c)(1) thereof.

                  All capitalized terms not otherwise defined herein
             shall have the meanings set forth in the Underwriting
             Agreement.

                  In rendering the opinions expressed below, we have
             examined the registration statement on Form S-3 (Nos. 33-
             64125 and 33-64125-01) pertaining to the Preferred
             Securities (the "Registration Statement"), filed under the
             Securities Act of 1933, as amended (the "Act"), and the
<PAGE>






             prospectus dated _______ ___, 1996 filed with the Securities
             and Exchange Commission on _______ ___, 1996 (the
             "Prospectus"), which pursuant to Form S-3 incorporates by
             reference the Annual Report on Form 10-K of the Company for
             the fiscal year ended December 31, 1994, the Quarterly
             Reports on Form 10-Q of the Company for the quarters ended
             March 31, 1995, June 30, 1995 and September 30, 1995 and the
             Current Report on Form 8-K of the Company, dated February
             15, 1995 (the "Exchange Act Documents"), each as filed under
             the Securities Exchange Act of 1934, as amended (the
             "Exchange Act").

                  In addition, we have examined, and have relied as to
             matters of fact upon, the documents delivered to you at the
             closing (except the certificates representing the Preferred
             Securities and the Notes, of which we have examined
             specimens), and we have made such other and further
             investigations as we deemed necessary to express the
             opinions hereinafter set forth.

                  The Trust Agreement, Indenture, Guarantee Agreement and
             the Underwriting Agreement are herein referred to as the
             "Agreements".

                  We are of the opinion, relying as to matters of New
             York law upon the opinion dated hereof rendered to you by
             Dewey Ballantine, and as to matters of Delaware law upon the
             opinion dated hereof rendered to you by Richards, Layton &
             Finger, that:

                  1.   The Company has been duly organized and is validly
             existing and in good standing as a corporation under the
             laws of the State of Alabama and has due corporate authority
             to carry on the public utility business in which it is
             engaged and to own and operate the properties used by it in
             such business and to enter into and perform its obligations
             under the Agreements and the Notes.

                  2.   The execution, delivery and performance by the
             Company of the Underwriting Agreement have been duly
             authorized by all necessary corporate action, and the
             Underwriting Agreement has been duly executed and delivered
             by the Company.

                  3.   All orders, consents, or other authorizations or
             approvals of the Alabama Public Service Commission and the
             Commission legally required for the issuance and delivery of
             the Notes and the Guarantee and the issuance and sale of the
             Preferred Securities have been obtained; such orders are
             sufficient for the issuance and the delivery of the Notes
             and the Guarantee and the issuance and sale of the Preferred
             Securities; the issuance and delivery of the Notes and the
             Guarantee and the issuance and sale of the Preferred
             Securities conform in all material respects with the terms

                                           2
<PAGE>






             of such orders; and no other order, consent or other
             authorization or approval of any Alabama or United States
             governmental body (other than in connection or in compliance
             with the provisions of the securities or "blue sky" laws of
             any jurisdiction, as to which we express no opinion) is
             legally required for the issuance and delivery of the Notes
             and the Guarantee and the issuance and sale of the Preferred
             Securities in accordance with the terms of the Underwriting
             Agreement.

                  4.   The Indenture has been duly authorized, executed
             and delivered by the Company and, assuming the due
             authorization, execution and delivery thereof by the Debt
             Trustee, constitutes a valid and legally binding instrument
             of the Company, enforceable against the Company in
             accordance with its terms, subject to the qualifications
             that the enforceability of the Company's obligations under
             the Indenture may be limited by bankruptcy, insolvency,
             reorganization, moratorium and other similar laws relating
             to or affecting creditors' rights generally and by general
             principles of equity (regardless of whether such
             enforceability is considered in a proceeding in equity or at
             law); and the Indenture conforms as to legal matters in all
             material respects to the description thereof in the
             Prospectus.

                  5.   The Notes have been duly authorized and executed
             by the Company and, when authenticated by the Debt Trustee
             in the manner provided in the Indenture and delivered
             against payment therefor, will constitute valid and binding
             obligations of the Company, enforceable against the Company
             in accordance with their terms, subject to the
             qualifications that the enforceability of the Company's
             obligations under the Notes may be limited by bankruptcy,
             insolvency, reorganization, moratorium and other similar
             laws relating to or affecting creditors' rights generally
             and by general principles of equity; and the Notes conform
             as to legal matters in all material respects to the
             description thereof in the Prospectus.

                  6.   The Guarantee has been duly authorized, executed
             and delivered by the Company and constitutes a valid and
             legally binding instrument of the Company, enforceable
             against the Company in accordance with its terms, subject to
             the qualifications that the enforceability of the Company's
             obligations under the Guarantee may be limited by
             bankruptcy, insolvency, reorganization, moratorium and other
             similar laws relating to or affecting creditors' rights
             generally and by general principles of equity (regardless of
             whether such enforceability is considered in a proceeding in
             equity or at law); and the Guarantee conforms as to legal
             matters in all material respects to the description thereof
             in the Prospectus.


                                           3
<PAGE>






                  7.   The Trust Agreement has been duly authorized,
             executed and delivered by the Company, and, assuming due
             authorization, execution and delivery by the Trustees, the
             Trust Agreement constitutes a valid and binding obligation
             of the Company, enforceable against the Company in
             accordance with its terms, subject to the qualifications
             that the enforceability of the Company's obligations under
             the Trust Agreement may be limited by bankruptcy,
             insolvency, reorganization, moratorium and other similar
             laws relating to or affecting creditor's rights generally,
             and by general principles of equity.

                  8.   Each of the Indenture, the Guarantee Agreement and
             the Trust Agreement has been duly qualified under the Trust
             Indenture Act of 1939, as amended.

                  9.   Neither the Company nor the Trust is and, after
             giving effect to the offering and sale of the Preferred
             Securities, will be an "investment company" or a company
             "controlled" by an "investment company" within the meaning
             of the Investment Company Act of 1940, as amended.

                  10.  The statements and legal conclusions contained in
             the Prospectus under the caption "Certain Federal Income Tax
             Considerations" are correct in all material respects.

                  11.  To the best of our knowledge, all of the issued
             and outstanding Common Securities of the Trust are directly
             owned by the Company, free and clear of any security
             interest, mortgage pledge, lien, encumbrance, claim or
             equitable right.

                  12.  The execution, delivery and performance by the
             Trust of the Underwriting Agreement and the Trust Agreement;
             the issuance of the Preferred Securities and the Common
             Securities; the consummation of the transactions
             contemplated thereby; and the compliance by the Trust with
             its obligations thereunder do not and will not result in any
             violation of the Trust Agreement or related Certificate of
             Trust, and do not and will not conflict with, or result in,
             a breach of any of the terms or provisions of, or constitute
             a default under, or result in the creation of imposition or
             any lien, charge or encumbrance upon any property or assets
             of the Trust under (A) any contract, indenture, mortgage,
             loan agreement, note, lease or any other agreement or
             instrument known to us to which the Trust is a party or by
             which it may be bound or to which any of its properties may
             be subject (except for such conflicts, breaches or defaults
             or liens, charges or encumbrances that would not have a
             material adverse effect on the condition (financial or
             otherwise), or the Trust, (B) any existing applicable law,
             rule or regulation applicable to the Trust (other than the
             securities or blue sky laws of any jurisdiction, as to which
             we express no opinion) or (C) any judgment, order or decree

                                           4
<PAGE>






             known to us of any government, governmental instrumentality,
             or court, domestic or foreign, or any regulatory body or
             administrative agency or other governmental body having
             jurisdiction over the Trust or any of its properties; and
             the Trust is not a party to or otherwise bound by any
             agreement other than those which are exhibits (or included
             in exhibits) to the Registration Statement.

                  13.  The Common Securities have been duly authorized by
             the Trust Agreement and (subject to the terms of the Trust
             Agreement), when issued and delivered by the Trust to the
             Company against payment therefor as described in the
             Prospectus, will be validly issued and (subject to the terms
             of the Trust Agreement) fully paid and non-assessable
             beneficial interests in the assets of the Trust; and the
             issuance of the Common Securities is not subject to
             preemptive or other similar rights.

                  14.  The Preferred Securities have been duly authorized
             by the Trust Agreement and (subject to the terms of the
             Trust Agreement), when delivered to and paid for the
             Underwriters pursuant to the Underwriting Agreement, will be
             validly issued, fully paid and nonassessable beneficial
             interests in the assets of the Trust; the holders of the
             Preferred Securities will (subject to the terms of the Trust
             Agreement) be entitled to the same limitation of personal
             liability under Delaware law as is extended to stockholders
             of private corporations for profit organized under the
             general corporation law of the State of Delaware; the
             issuance of the Preferred Securities is not subject to
             preemptive or other similar rights; and the Preferred
             Securities conform as to legal matters in all material
             respects to the description thereof in the Prospectus.

                       We have not independently verified the accuracy,
             completeness or fairness of the statements made or included
             in the Registration Statement, the Prospectus or the
             Exchange Act Documents and take no responsibility therefor,
             except as and to the extent set forth in paragraphs 4, 5, 6,
             10 and 14 above and in the Prospectus in the second and
             third paragraphs under the caption "Experts".  In the course
             of the preparation by the Company of the Registration
             Statement, the Prospectus and the Exchange Act Documents, we
             participated in conferences with certain officers and
             employees of the Company, with other counsel for the Company
             and with representatives of Arthur Andersen LLP.  Based upon
             our examination of the Registration Statement, the
             Prospectus and the Exchange Act Documents, our investiga-
             tions made in connection with the preparation of the
             Registration Statement, the Prospectus and the Exchange Act
             Documents and our participation in the conferences referred
             to above, (i) we are of the opinion that the Registration
             Statement, as of its effective date, and the Prospectus, as
             of                     , complied as to form in all material

                                           5
<PAGE>






             respects with the requirements of the Act and the applicable
             rules and regulations of the Commission thereunder and that
             the Exchange Act Documents, as of their respective dates of
             filing with the Commission, complied as to form in all
             material respects with the relevant requirements of the
             Exchange Act and the applicable rules and regulations of the
             Commission thereunder, except that in each case we express
             no opinion as to the financial statements or other financial
             or statistical data contained or incorporated by reference
             in the Registration Statement, the Prospectus or the
             Exchange Act Documents, and (ii) nothing came to our
             attention which gives us reason to believe that the
             Registration Statement, as of its effective date (including
             the Exchange Act Documents on file with the Commission as of
             such date), contained any untrue statement of a material
             fact or omitted to state any material fact required to be
             stated therein or necessary in order to make the statements
             therein not misleading, or that the Prospectus (including
             the Exchange Act Documents) contains any untrue statement
             therein of a material fact or omits to state a material fact
             necessary in order to make the statements therein, in the
             light of the circumstances under which they were made, not
             misleading, except that in each case we express no opinion
             or belief with respect to the financial statements or other
             financial or statistical data contained or incorporated by
             reference in the Registration Statement, the Prospectus or
             the Exchange Act Documents.

                       We are members of the State Bar of Alabama and we
             do not express any opinion herein concerning any law other
             than the law of the State of Alabama and the federal law of
             the United States and, to the extent set forth herein, the
             laws of the States of Delaware and New York.

                                           Yours very truly,


                                           BALCH & BINGHAM

















                                           6
<PAGE>






                                                           Schedule III-B



                         [Letterhead of TROUTMAN SANDERS LLP]


                                                January __, 1996

             Lehman Brothers Inc., as Representative 
             3 World Financial Center
             New York, New York 10285


                             ALABAMA POWER CAPITAL TRUST I
                            ___% TRUST PREFERRED SECURITIES

             Dear Sirs:

                       We have acted as counsel to Alabama Power Company
             (the "Company") in connection with (i) its formation of
             Alabama Power Capital Trust I (the "Trust"), a Delaware
             statutory business trust, pursuant to the amended and
             restated trust agreement dated as of January 1, 1996 among
             the Company and the trustees named therein (the "Trust
             Agreement"); (ii) the Trust's issuance and sale of Preferred
             Securities evidencing approximately a 97% undivided interest
             therein (the "Preferred Securities"); (iii) the Trust's
             issuance and sale of Common Securities evidencing
             approximately a 3% undivided interest in the Trust; (iv) its
             issuance and sale to the Trust of approximately $100,000,000
             of its ___% Junior Subordinated Notes (the "Notes") pursuant
             to a Subordinated Note Indenture dated as of January 1,
             1996, by and between the Company and Chemical Bank, as
             trustee, as supplemented by the First Supplemental Indenture
             dated as of January 1, 1996 (collectively, the "Indenture");
             and (v) its issuance of a guarantee (the "Guarantee") of the
             Preferred Securities pursuant to a Preferred Securities
             Guarantee Agreement dated as of January 1, 1996 (the
             "Guarantee Agreement") between the Company and Chemical
             Bank, as trustee.  The Preferred Securities are being sold
             to you today pursuant to the terms of an Underwriting
             Agreement dated January __, 1996, among the Company, the
             Trust and the underwriters named in Schedule I thereto (the
             "Underwriters") for whom you are acting as Representative
             (the "Underwriting Agreement").  This opinion is being
             delivered to you as Representative pursuant to Section
             5(c)(2) thereof.

                  All capitalized terms not otherwise defined herein
             shall have the meanings set forth in the Underwriting
             Agreement.

                  In rendering the opinions expressed below, we have
             examined the registration statement on Form S-3 (Nos. 33-
             64125 and 33-64125-01) pertaining to the Preferred
             Securities (the "Registration Statement") filed under the
             Securities Act of 1933, as amended (the "Act"), and the
<PAGE>






             prospectus dated _______ ___, 1996 filed with the Securities
             and Exchange Commission on _______ ___, 1996 (the
             "Prospectus"), which pursuant to Form S-3 incorporates by
             reference the Annual Report on Form 10-K of the Company for
             the fiscal year ended December 31, 1994, the Quarterly
             Reports on Form 10-Q of the Company for the quarters ended
             March 31, 1995, June 30, 1995 and September 30, 1995 and the
             Current Report on Form 8-K of the Company, dated February
             15, 1995 (the "Exchange Act Documents"), each as filed under
             the Securities Exchange Act of 1934, as amended (the
             "Exchange Act").

                  In addition, we have examined, and have relied as to
             matters of fact upon, the documents delivered to you at the
             closing (except the certificates representing the Preferred
             Securities and the Notes, of which we have examined
             specimens), and we have made such other and further
             investigations as we deemed necessary to express the
             opinions hereinafter set forth.

                  The Trust Agreement, Indenture, Guarantee Agreement and
             the Underwriting Agreement are herein referred to as the
             "Agreements".

                  We are of the opinion, relying as to matters of Alabama
             law upon the opinion dated hereof rendered to you by Balch &
             Bingham, general counsel for the Company, as to matters of
             New York law upon the opinion dated hereof rendered to you
             by Dewey Ballantine and as to matters of Delaware law upon
             the opinion dated hereof rendered to you by Richards, Layton
             & Finger, that:

                  1.   The Company has been duly organized and is validly
             existing and in good standing as a corporation under the
             laws of the State of Alabama and has due corporate authority
             to carry on the public utility business in which it is
             engaged and to own and operate the properties used by it in
             such business and to enter into and perform its obligations
             under the Agreements and the Notes.

                  2.   The execution, delivery and performance by the
             Company of the Underwriting Agreement have been duly
             authorized by all necessary corporate action, and the
             Underwriting Agreement has been duly executed and delivered
             by the Company.

                  3.   All orders, consents or other authorizations or
             approvals of the Alabama Public Service Commission and the
             Commission legally required for the issuance and delivery of
             the Notes and the Guarantee and the issuance and sale of the
             Preferred Securities have been obtained; such orders are
             sufficient for the issuance and delivery of the Notes and
             the Guarantee and the issuance and sale of the Preferred
             Securities; the issuance and delivery of the Notes and the

                                           2
<PAGE>






             Guarantee and the issuance and sale of the Preferred
             Securities conform in all material respects with the terms
             of such orders and no other order, consent or other
             authorization or approval of any Alabama or United States
             governmental body (other than in connection or in compliance
             with the provisions of the securities or "blue sky" laws of
             any jurisdiction, as to which we express no opinion) is
             legally required for the issuance and delivery of the Notes
             and the Guarantee and the issuance and sale of the Preferred
             Securities in accordance with the terms of the Underwriting
             Agreement.

                  4.   The Indenture has been duly authorized, executed
             and delivered by the Company and, assuming the due
             authorization, execution and delivery thereof by the Debt
             Trustee, constitutes a valid and legally binding instrument
             of the Company, enforceable against the Company in
             accordance with its terms, subject to the qualifications
             that the enforceability of the Company's obligations under
             the Indenture may be limited by bankruptcy, insolvency,
             reorganization, moratorium and other similar laws relating
             to or affecting creditors' rights generally and by general
             principles of equity (regardless of whether such
             enforceability is considered in a proceeding in equity or at
             law); and the Indenture conforms as to legal matters in all
             material respects to the description thereof in the
             Prospectus.

                  5.   The Notes have been duly authorized and executed
             by the Company and, when authenticated by the Debt Trustee
             in the manner provided in the Indenture and delivered
             against payment therefor, will constitute valid and binding
             obligations of the Company, enforceable against the Company
             in accordance with their terms, subject to the
             qualifications that the enforceability of the Company's
             obligations under the Notes may be limited by bankruptcy,
             insolvency, reorganization, moratorium and other similar
             laws relating to or affecting creditors' rights generally
             and by general principles of equity; and the Notes conform
             as to legal matters in all material respects to the
             description thereof in the Prospectus.

                  6.   The Guarantee has been duly authorized, executed
             and delivered by the Company and constitutes a valid and
             legally binding instrument of the Company, enforceable
             against the Company in accordance with its terms, subject to
             the qualifications that the enforceability of the Company's
             obligations under the Guarantee may be limited by
             bankruptcy, insolvency, reorganization, moratorium and other
             similar laws relating to or affecting creditors' rights
             generally and by general principles of equity (regardless of
             whether such enforceability is considered in a proceeding in
             equity or at law); and the Guarantee conforms as to legal


                                           3
<PAGE>






             matters in all material respects to the description thereof
             in the Prospectus.

                  7.   Each of the Indenture, the Guarantee Agreement and
             the Trust Agreement has been duly qualified under the Trust
             Indenture Act of 1939, as amended.

                  8.   Neither the Company nor the Trust is and, after
             giving effect to the offering and sale of the Preferred
             Securities, will be an "investment company" or a company
             "controlled" by an "investment company" within the meaning
             of the Investment Company Act of 1940, as amended.

                  9.   The Preferred Securities have been duly authorized
             by the Trust Agreement and (subject to the terms of the
             Trust Agreement), when delivered to and paid for the
             Underwriters pursuant to the Underwriting Agreement, will be
             validly issued, fully paid and nonassessable beneficial
             interests in the assets of the Trust; and the Preferred
             Securities conform as to legal matters in all material
             respects to the description thereof in the Prospectus.

                       We have not independently verified the accuracy,
             completeness or fairness of the statements made or included
             in the Registration Statement, the Prospectus or the
             Exchange Act Documents and take no responsibility therefor,
             except as and to the extent set forth in paragraphs 4, 5, 6
             and 9 above.  In the course of the preparation by the
             Company of the Registration Statement, the Prospectus and
             the Exchange Act Documents, we participated in conferences
             with certain officers and employees of the Company, with
             other counsel for the Company and with representatives of
             Arthur Andersen LLP.  Based upon our examination of the
             Registration Statement, the Prospectus and the Exchange Act
             Documents, our investigations made in connection with the
             preparation of the Registration Statement, the Prospectus
             and the Exchange Act Documents and our participation in the
             conferences referred to above, (i) we are of the opinion
             that the Registration Statement, as of its effective date,
             and the Prospectus, as of                     , complied as
             to form in all material respects with the requirements of
             the Act and the applicable rules and regulations of the
             Commission thereunder and that the Exchange Act Documents,
             as of their respective dates of filing with the Commission,
             complied as to form in all material respects with the
             relevant requirements of the Exchange Act and the applicable
             rules and regulations of the Commission thereunder, except
             that in each case we express no opinion as to the financial
             statements or other financial or statistical data contained
             or incorporated by reference in the Registration Statement,
             the Prospectus or the Exchange Act Documents, and (ii)
             nothing came to our attention which gives us reason to
             believe that the Registration Statement, as of its effective
             date (including the Exchange Act Documents on file with the

                                           4
<PAGE>






             Commission as of such date), contained any untrue statement
             of a material fact or omitted to state any material fact
             required to be stated therein or necessary in order to make
             the statements therein not misleading, or that the
             Prospectus (including the Exchange Act Documents) contains
             any untrue statement therein of a material fact or omits to
             state a material fact necessary in order to make the
             statements therein, in the light of the circumstances under
             which they were made, not misleading, except that in each
             case we express no opinion or belief with respect to the
             financial statements or other financial or statistical data
             contained or incorporated by reference in the Registration
             Statement, the Prospectus or the Exchange Act Documents.

                       We are members of the State Bar of Georgia and we
             do not express any opinion herein concerning any law other
             than the law of the State of Georgia and the federal law of
             the United States and, to the extent set forth herein, the
             laws of the States of Delaware and New York.

                                           Yours very truly,


                                           TROUTMAN SANDERS LLP































                                           5
<PAGE>






                                                              Schedule IV



                       [Letterhead of RICHARDS, LAYTON & FINGER]


                                                January __, 1996


             Lehman Brothers Inc., as Representative
             3 World Financial Center
             New York, New York  10285

                          Re:  Alabama Power Capital Trust I


             Ladies and Gentlemen:

                       We have acted as special Delaware counsel for
             Alabama Power Company, an Alabama corporation (the
             "Company"), and Alabama Power Capital Trust I, a Delaware
             business trust (the "Trust"), in connection with the matters
             set forth herein.  This opinion is being furnished to you
             pursuant to Section 5(c)(3) of the Underwriting Agreement,
             dated January __, 1996 (the "Underwriting Agreement"), among
             the Company, the Trust, Lehman Brothers Inc. and the other
             Underwriters listed in Schedule I thereto.

                       For purposes of giving the opinions hereinafter
             set forth, our examination of documents has been limited to
             the examination of originals or copies of the following:

                       (a)  The Certificate of Trust of the Trust, dated
             November __, 1995 (the "Certificate"), as filed in the
             office of the Secretary of State of the State of Delaware
             (the "Secretary of State") on November __, 1995;

                       (b)  The Trust Agreement of the Trust, dated as of
             November __, 1995, among the Company and the trustees of the
             Trust named therein, as amended and restated pursuant to an
             Amended and Restated Trust Agreement (including Exhibits A,
             C and E thereto), dated of January 1, 1996, among the
             Company, the trustees of the Trust named therein (the
             "Trustees"), and the holders, from time to time, of the
             undivided beneficial interests in the assets of the Trust
             (collectively, the "Trust Agreement"); 

                       (c)  The Underwriting Agreement;

                       (d)  The Prospectus, dated January __, 1996 (the
             "Prospectus"), relating to the __% Preferred Securities of
             the Trust representing preferred undivided beneficial
             interests in the assets of the Trust (each, a "Preferred
             Security" and collectively, the "Preferred Securities"); and
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 2

                       (e)  A Certificate of Good Standing for the Trust,
             dated ___________ __, 1996, obtained from the Secretary of
             State.

                       Initially capitalized terms used herein and not
             otherwise defined are used as defined in the Trust
             Agreement.

                       For purposes of this opinion, we have not reviewed
             any documents other than the documents listed in paragraphs
             (a) through (e) above.  In particular, we have not reviewed
             any document (other than the documents listed in paragraphs
             (a) through (e) above) that is referred to in or
             incorporated by reference into the documents reviewed by us. 
             We have assumed that there exists no provision in any
             document that we have not reviewed that is inconsistent with
             the opinions stated herein.  We have conducted no
             independent factual investigation of our own but rather have
             relied solely upon the foregoing documents, the statements
             and information set forth therein and the additional matters
             recited or assumed herein, all of which we have assumed to
             be true, complete and accurate in all material respects.

                       With respect to all documents examined by us, we
             have assumed (i) the authenticity of all documents submitted
             to us as authentic originals, (ii) the conformity with the
             originals of all documents submitted to us as copies or
             forms, and (iii) the genuineness of all signatures.

                       For purposes of this opinion, we have assumed (i)
             the Trust Agreement constitutes the entire agreement among
             the parties thereto with respect to the subject matter
             thereof, including with respect to the creation, operation
             and termination of the Trust, and the Trust Agreement and
             the Certificate are in full force and effect and have not
             been amended, (ii) except to the extent provided in
             paragraph 1 below, the due organization or due formation, as
             the case may be, and valid existence in good standing of
             each party to the documents examined by us under the laws of
             the jurisdiction governing its organization or formation,
             (iii) the legal capacity of natural persons who are parties
             to the documents examined by us, (iv) except to the extent
             provided in paragraph 2 below, the power and authority of
             each of the parties to the documents examined by us to
             execute and deliver, and to perform its obligations under,
             such documents, (v) except to the extent provided in
             paragraphs 3 and 4 below, the due authorization, execution
             and delivery by all parties thereto of all documents
             examined by us, (vi) the receipt by each Person to whom a
             Trust Security is to be issued by the Trust (collectively,
             the "Trust Security Holders") of a Trust Securities
             Certificate for such Trust Security and the payment for the
             Trust Security acquired by it, in accordance with the Trust
             Agreement and the Prospectus, and (vii) the issuance and
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 3

             sale of the Trust Securities to the Trust Security Holders
             in accordance with the Trust Agreement and the Prospectus. 
             We have not participated in the preparation of the
             Prospectus and assume no responsibility for its contents.

                       This opinion is limited to the laws of the State
             of Delaware (excluding the securities laws of the State of
             Delaware), and we have not considered and express no opinion
             on the laws of any other jurisdiction, including federal
             laws and rules and regulations relating thereto.  Our
             opinions are rendered only with respect to Delaware laws and
             rules, regulations and orders thereunder which are currently
             in effect.

                       Based upon the foregoing, and upon our examination
             of such questions of law and statutes of the State of
             Delaware as we have considered necessary or appropriate, and
             subject to the assumptions, qualifications, limitations and
             exceptions set forth herein, we are of the opinion that:

                       1.   The Trust has been duly created and is
             validly existing in good standing as a business trust under
             the Delaware Business Trust Act, 12 Del. C. Sec 3801, et seq.
             (the "Business Trust Act"), and all filings required under
             the laws of the State of Delaware with respect to the
             creation and valid existence of the Trust as a business
             trust have been made.

                       2.   Under the Business Trust Act and the Trust
             Agreement, the Trust has the power and authority to (i) own
             property and conduct its business as described in the
             Prospectus, (ii) execute and deliver, and to perform its
             obligations under, the Underwriting Agreement, (iii) issue
             and perform its obligations under the Trust Securities, and
             (iv) perform its obligations under the Trust Agreement.

                       3.   The Trust Securities have been duly
             authorized by the Trust Agreement and will be duly and
             validly issued and, subject to the qualifications set forth
             in paragraph 6 below, fully paid and nonassessable undivided
             beneficial interests in the assets of the Trust, not subject
             to any preemptive or other similar rights.

                       4.   The Underwriting Agreement has been duly
             authorized by the Trust.

                       5.   No authorization, approval, consent or order
             of any Delaware court or governmental authority or agency is
             required to be obtained by the Trust solely in connection
             with the issuance and sale of the Preferred Securities.

                       6.   The Trust Security Holders, as beneficial
             owners of the Trust, will be entitled to the same limitation
             of personal liability extended to stockholders of private
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 4

             corporations for profit organized under the General
             Corporation Law of the State of Delaware.  We note that the
             Trust Security Holders may be obligated, pursuant to the
             Trust Agreement, to (i) provide indemnity and/or security in
             connection with and pay taxes or governmental charges
             arising from transfers or exchanges of Trust Securities
             Certificates and the issuance of replacement Trust
             Securities Certificates and (ii) provide security or
             indemnity in connection with requests of or directions to
             the Property Trustee to exercise its rights and powers under
             the Trust Agreement.  We also note that the Company, in its
             capacity as Depositor and not in its capacity as a Holder,
             has undertaken certain payment obligations as set forth in
             the Trust Agreement and the Expense Agreement.

                       7.   The Trust Agreement constitutes a valid and
             binding obligation of the Company, and is enforceable
             against the Company, in accordance with its terms.

                       8.   The issuance and sale by the Trust of the
             Trust Securities, the execution, delivery and performance by
             the Trust of the Underwriting Agreement, the consummation by
             the Trust of the transactions contemplated by the
             Underwriting Agreement and the Trust Agreement and
             compliance by the Trust with its obligations thereunder will
             not violate (i) any of the provisions of the Certificate or
             the Trust Agreement or (ii) any applicable Delaware law or
             administrative regulation.

                       9.   We have reviewed the statements in the
             Prospectus under the caption "Alabama Power Capital Trust I"
             and, insofar as it contains statements of Delaware law, such
             statements are fairly presented.

                       The opinion expressed in paragraph 7 above is
             subject as to enforcement, to the effect upon the Trust
             Agreement of (i) bankruptcy, insolvency, moratorium,
             receivership, reorganization, liquidation, fraudulent
             conveyance and other similar laws relating to or affecting
             the rights and remedies of creditors generally, and (ii)
             principles of equity, including applicable law relating to
             fiduciary duties (regardless of whether considered and
             applied in a proceeding in equity or at law).

                       We consent to your relying as to matters of
             Delaware law upon this opinion in connection with the
             Underwriting Agreement.  We consent to the law firms of
             Balch & Bingham, Troutman Sanders L.L.P. and Dewey
             Ballantine relying as to matters of Delaware law upon this
             opinion in connection with opinions to be rendered by them
             pursuant to the Underwriting Agreement.  Except as stated
             above, without our prior written consent, this opinion may
             not be furnished or quoted to, or relied upon by, any other
             person for any purpose.
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 5

                                           Very truly yours,



                                           RICHARDS, LAYTON & FINGER
<PAGE>






                                                               Schedule V

                       [Letterhead of RICHARDS, LAYTON & FINGER]


                                                January __, 1996


             Lehman Brothers Inc., 
                  as Representative 
             3 World Trade Center 
             New York, New York 10285

                          Re:  Alabama Power Capital Trust I

             Ladies and Gentlemen:

                       We have acted as counsel to Chemical Bank
             Delaware, a Delaware banking corporation ("CBD"), in
             connection with the formation of Alabama Power Capital Trust
             I, a business trust existing under the laws of the State of
             Delaware (the "Trust") pursuant to the Amended and Restated
             Trust Agreement, dated as of January __, 1996, by and
             between CBD, not in its individual capacity but solely as
             trustee (the "Trustee"), and Alabama Power Company (the
             "Company"), as amended and restated pursuant to an Amended
             and Restated Trust Agreement dated as of January __, 1996,
             among the Company, the Trustee, the other trustees named
             therein and the holders from time to time of the undivided
             beneficial interests in the assets of the Trust
             (collectively, the "Trust Agreement").  This opinion is
             being delivered to you pursuant to Section 5(c)(4) of the
             Underwriting Agreement, dated January __, 1996 (the
             "Underwriting Agreement"), among Lehman Brothers Inc., the
             several Underwriters named in Schedule II thereto, Alabama
             Power Company and the Trust, pursuant to which the
             $97,000,000 ___% Preferred Securities of the Trust will be
             sold.  All capitalized terms used herein and not otherwise
             defined shall have the respective meanings set forth in the
             Underwriting Agreement.

                       We have examined an original or a copy of the
             Trust Agreement.  We have also examined originals or copies
             of such other documents and such corporate records,
             certificates and other statements of governmental officials
             and corporate officers and other representatives of the
             corporations or entities referred to herein as we have
             deemed necessary or appropriate for the purposes of the
             opinions expressed herein.  Moreover, as to certain facts
             material to the opinions expressed herein, we have relied
             upon the representations and warranties contained in the
             documents referred to in this paragraph.

                       Based upon the foregoing and upon an examination
             of such questions of law as we have deemed necessary or
             appropriate, and subject to the assumptions, exceptions and
             qualifications set forth below, we advise you that, in our
             opinion:
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 2

                       1.   CBD is duly incorporated, validly existing in
             good standing as a banking corporation under the laws of the
             State of Delaware and has the power and authority to
             execute, deliver and perform its obligations under the Trust
             Agreement.

                       2.   The Trust Agreement has been duly authorized,
             executed and delivered by CBD and constitutes a legal, valid
             and binding obligation of CBD, enforceable against CBD, in
             accordance with its terms.

                       3.   The execution and delivery of, and
             performance of the terms of, the Trust Agreement by CBD,
             does not conflict with or constitute a breach of, or default
             under, the charter or by-laws of CBD.

                       4.   No consent, approval or authorization of, or
             registration, declaration or filing with, any court or
             governmental agency or body having jurisdiction in the
             premises is required under Delaware law for the execution,
             delivery or performance by CBD of the Trust Agreement.

                       The foregoing opinions are subject to the
             following exceptions, qualifications and assumptions:

                       (A)  We are admitted to practice in the State of
             Delaware and we do not hold ourselves out as being experts
             on the law of any other jurisdiction.  The foregoing
             opinions are limited to the laws of the State of Delaware
             and the federal laws of the United States of America
             governing the banking and trust powers of CBD (except that
             we express no opinion with respect to (i) state securities
             or blue sky laws and (ii) federal securities laws,
             including, without limitation, the Securities Act of 1933,
             as amended, the Securities Exchange Act of 1934, as amended,
             the Trust Indenture Act of 1939, as amended, and the
             Investment Company Act of 1940, as amended, and we have not
             considered and express no opinion on the laws, rules and
             regulations of any other jurisdiction.

                       (B)  The foregoing opinions regarding
             enforceability are subject to (i) applicable bankruptcy,
             insolvency, moratorium, receivership, reorganization,
             fraudulent conveyance and similar laws relating to and
             affecting the rights and remedies of creditors generally,
             (ii) principles of equity (regardless of whether considered
             and applied in a proceeding in equity or at law), and (iii)
             the effect of federal or state securities laws on the
             enforceability of provisions relating to indemnification or
             contribution.

                       (C)  We have assumed the due authorization,
             execution and delivery by each of the parties thereto, other
             than CBD, of the Trust Agreement, and that each of such
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 3

             parties has the full power, authority and legal right to
             execute, delivery and perform such document.

                       (D)  We have assumed that all signatures (other
             than those of CBD) on documents examined by us are genuine,
             that all documents submitted to us as originals are
             authentic, and that all documents submitted to us as copies
             or specimens conform with the originals, which facts we have
             not independently verified.

                       This opinion may be relied upon by you in
             connection with the matters set forth herein, and without
             our prior written consent, may not be furnished or quoted
             to, or relied upon by, any other person or entity for any
             purpose.

                                           Very truly yours,



                                           RICHARDS, LAYTON & FINGER
<PAGE>






                                                              Schedule VI


                        [Letterhead of CRAVATH, SWAINE & MOORE]



                                                January __, 1996



             Lehman Brothers Inc., 
                  as Representative 
             3 World Trade Center 
             New York, New York 10285

                             ALABAMA POWER CAPITAL TRUST I
                           ____% Trust Preferred Securities

             Dear Sirs:

                  We have acted as counsel to Chemical Bank (the "Bank")
             in connection with (a) the Subordinated Note Indenture,
             dated as of ________ ______, 1995 (the "Original
             Indenture"), between Alabama Power Company (the "Company")
             and the Bank, as Trustee, (b) the First Supplemental
             Indenture dated as of ___________ (together with the
             original Indenture, herein called the "Indenture"), between
             the Company and the Bank, as Trustee, (c) the Guarantee
             Agreement dated as of __________ ______, 1995 (the
             "Guarantee Agreement"), between the Company, as Guarantor
             and the Bank, as Trustee, and (d) the Amended and Restated
             Trust Agreement, dated as of _________ ______, 1995 (the
             "Trust Agreement") among the Company, the Bank, as Property
             Trustee, Chemical Bank Delaware, as Delaware Trustee, and
             _______________ and _______________, as Administrative
             Trustees.

                       In that connection, we have examined originals, or
             copies certified or otherwise identified to our
             satisfaction, of such documents, records and other
             instruments as we have deemed necessary or appropriate for
             the purpose of this opinion, including copies of the
             Indenture, the Trust Agreement, the Guarantee Agreement and
             certain resolutions adopted by the Board of Directors of the
             Bank.

                       Based upon the foregoing, we are of the opinion
             that:

                            i)   the Bank has been duly incorporated and
                  is validly existing as a banking corporation in good
                  standing under the laws of the State of New York;

                            ii)  the Bank has the corporate trust power
                  and authority to execute, deliver and perform its
                  duties under the Indenture, the Trust Agreement and the
                  Guarantee Agreement, has duly executed and delivered
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 2

                  the Indenture, the Trust Agreement and the Guarantee
                  Agreement, and, insofar as the laws governing the trust
                  powers of the Bank are concerned and assuming due
                  authorization, execution and delivery thereof by the
                  other parties thereto, each of the Indenture, the Trust
                  Agreement and the Guarantee Agreement constitutes a
                  legal, valid and binding agreement of the Bank,
                  enforceable against the Bank in accordance with its
                  terms (subject to applicable bankruptcy, insolvency,
                  fraudulent transfer, reorganization, moratorium or
                  other laws affecting creditors' rights generally from
                  time to time in effect and subject, as to
                  enforceability, to general principles of equity,
                  regardless of whether such enforceability is considered
                  in a proceeding in equity or at law).

                            iii) the execution, delivery and performance
                  by the Bank of the Indenture, the Trust Agreement and
                  the Guarantee Agreement do not conflict with or
                  constitute a breach of the charter or bylaws of the
                  Bank.

                            iv)  no approval, authorization or other
                  action by, or filing with, any governmental authority
                  of the United States of America or the State of New
                  York having jurisdiction over the trust powers of the
                  Bank is required in connection with the execution and
                  delivery by the Bank of the Indenture, the Trust
                  Agreement or the Guarantee Agreement or the performance
                  by the Bank of its duties thereunder, except such as
                  have been obtained, taken or made.

                       We are admitted to practice in the State of New
             York, and we express no opinion as to matters governed by
             any laws other than the laws of the State of New York and
             the Federal law of the United States of America.  We are
             furnishing this opinion to you solely for your benefit. 
             This opinion is not to be used, circulated, quoted or
             otherwise referred to for any other purpose.

                                           Very truly yours,



                                           CRAVATH, SWAINE & MOORE
<PAGE>






                                                             Schedule VII



                           [Letterhead of DEWEY BALLANTINE]



                                                January __, 1996

             Lehman Brothers Inc., as Representative
             3 World Financial Center
             New York, New York 10285-1600

                             ALABAMA POWER CAPITAL TRUST I
                          ______% Trust Preferred Securities

             Ladies and Gentlemen:

                       In connection with (i) the formation by Alabama
             Power Company (the "Company") of Alabama Power Capital Trust
             I (the "Trust"), a Delaware statutory business trust,
             pursuant to the amended and restated trust agreement dated
             as of January 1, 1996 among the Company and the trustees
             named therein (the "Trust Agreement"); (ii) the Trust's
             issuance and sale of Preferred Securities evidencing
             approximately a 97% undivided interest in the Trust (the
             "Preferred Securities"); (iii) the Trust's issuance and sale
             of Common Securities evidencing approximately a 3% undivided
             interest in the Trust; (iv) the Company's issuance and sale
             to the Trust of approximately $100,000,000 of its ___%
             Junior Subordinated Notes (the "Notes") pursuant to a
             Subordinated Note Indenture dated as of January 1, 1996, by
             and between the Company and Chemical Bank, as trustee, as
             supplemented by the First Supplemental Indenture dated as of
             January 1, 1996 (collectively, the "Indenture"); and (v) its
             issuance of a guarantee (the "Guarantee") of the Preferred
             Securities pursuant to a Preferred Securities Guarantee
             Agreement dated as of January 1, 1996 (the "Guarantee
             Agreement") between the Company and Chemical Bank Delaware,
             as trustee, we have acted as counsel to you and the other
             underwriters named in the Schedule I (the "Underwriters") of
             the Underwriting Agreement dated January __, 1996, among the
             Company, the Trust and the Underwriters for whom you are
             acting as Representative (the "Underwriting Agreement"). 
             This opinion is being delivered to you as Representative
             pursuant to Section 5(c)(6) thereof.

                  All capitalized terms not otherwise defined herein
             shall have the meanings set forth in the Underwriting
             Agreement.

                  In rendering the opinions expressed below, we have
             examined the registration statement on Form S-3 (No. 33-
             _______) pertaining to the Preferred Securities (the
             "Registration Statement"), filed under the Securities Act of
             1933, as amended (the "Act"), and the prospectus dated
             _______ ___, 1995 filed with the Securities and Exchange
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 2

             Commission on _______ ___, 1995 (the "Prospectus"), which
             pursuant to Form S-3 incorporates by reference the Annual
             Report on Form 10-K of the Company for the fiscal year ended
             December 31, 1994, the Quarterly Reports on Form 10-Q of the
             Company for the quarters ended March 31, 1995, June 30, 1995
             and September 30, 1995 and the Current Report on Form 8-K of
             the Company, dated February 15, 1995 (the "Exchange Act
             Documents"), each as filed under the Securities Exchange Act
             of 1934, as amended (the "Exchange Act").

                  In addition, we have examined, and have relied as to
             matters of fact upon, the documents delivered to you at the
             closing (except the certificates representing the Preferred
             Securities and the Notes, of which we have examined
             specimens), and we have made such other and further
             investigations as we deemed necessary to express the
             opinions hereinafter set forth.

                  The Trust Agreement, Indenture, Guarantee Agreement and
             the Underwriting Agreement are herein referred to as the
             "Agreements".

                       We are of the opinion, relying as aforesaid and as
             to all matters covered hereby which are governed by or
             dependent upon the laws of the State of Alabama upon the
             opinion of Balch & Bingham and which are governed by or
             dependent upon the laws of State of Georgia upon the opinion
             of Troutman Sanders LLP, and as to all matters covered
             hereby which are governed by or dependent upon the laws of
             the State of Delaware upon the opinion of Richards, Layton &
             Finger, that:

                       1.   The Company has been duly organized and is
             validly existing and in good standing as a corporation under
             the laws of the State of Alabama and has due corporate
             authority to carry on the public utility business in which
             it is engaged and to own and operate the properties used by
             it in such business and to enter into and perform its
             obligations under the Agreements and the Notes.

                       2.   The execution, delivery and performance by
             the Company of the Underwriting Agreement have been duly
             authorized by all necessary corporate action, and the
             Underwriting Agreement has been duly executed and delivered
             by the Company.

                       3.   All orders, consents, or other authorizations
             or approvals of the Alabama Public Service Commission and
             the Commission legally required for the issuance and
             delivery of the Notes and the Guarantee and the issuance and
             sale of the Preferred Securities have been obtained; such
             orders are sufficient for the issuance and delivery of the
             Notes and the Guarantee and the issuance and sale of the
             Preferred Securities; the issuance and delivery of the Notes
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 3

             and the Guarantee and the issuance and sale of the Preferred
             Securities conform in all material respects with the terms
             of such orders; and no other order, consent or other
             authorization or approval of any Alabama or United States
             governmental body (other than in connection or in compliance
             with the provisions of the securities or "blue sky" laws of
             any jurisdiction, as to which we express no opinion) is
             legally required for the issuance and delivery of the Notes
             and the Guarantee and the issuance and sale of the Preferred
             Securities in accordance with the terms of the Underwriting
             Agreement.

                       4.   The Indenture has been duly authorized,
             executed and delivered by the Company and, assuming the due
             authorization, execution and delivery thereof by the Debt
             Trustee, constitutes a valid and legally binding instrument
             of the Company, enforceable against the Company in
             accordance with its terms, subject to the qualifications
             that the enforceability of the Company's obligations under
             the Indenture may be limited by bankruptcy, insolvency,
             reorganization, moratorium and other similar laws relating
             to or affecting creditors' rights generally and by general
             principles of equity (regardless of whether such
             enforceability is considered in a proceeding in equity or at
             law); and the Indenture conforms as to legal matters in all
             material respects to the description thereof in the
             Prospectus.

                       5.   The Notes have been duly authorized and
             executed by the Company and, when authenticated by the Debt
             Trustee in the manner provided in the Indenture and
             delivered against payment therefor, will constitute valid
             and binding obligations of the Company enforceable against
             the Company in accordance with their terms, subject to the
             qualifications that the enforceability of the Company's
             obligations under the Notes may be limited by bankruptcy,
             insolvency, reorganization, moratorium and other similar
             laws relating to or affecting creditors' rights generally
             and by general principles of equity; the Notes conform as to
             legal matters in all material respects to the description
             thereof in the Prospectus.

                       6.   The Guarantee has been duly authorized,
             executed and delivered by the Company and constitutes a
             valid and legally binding instrument of the Company,
             enforceable against the Company in accordance with its
             terms, subject to the qualifications that the enforceability
             of the Company's obligations under the Guarantee may be
             limited by bankruptcy, insolvency, reorganization,
             moratorium and other similar laws relating to or affecting
             creditors' rights generally or general principles of equity
             (regardless of whether such enforceability is considered in
             a proceeding in equity or at law); and the Guarantee
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 4

             conforms as to legal matters in all material respects to the
             description thereof in the Prospectus.

                       7.   Each of the Indenture, the Guarantee
             Agreement and the Trust Indenture has been duly qualified
             under the Trust Indenture Act of 1939, as amended.

                       8.   The Preferred Securities have been duly
             authorized by the Trust Agreement and (subject to the terms
             of the Trust Agreement), when delivered to and paid for the
             Underwriters pursuant to the Underwriting Agreement, will be
             validly issued, fully paid and nonassessable beneficial
             interests in the assets of the Trust; and the Preferred
             Securities conform as to legal matters in all material
             respects to the description thereof in the Prospectus.

                       We have not independently verified the accuracy,
             completeness or fairness of the statements made or included
             in the Registration Statement, the Prospectus or the
             Exchange Act Documents and take no responsibility therefor,
             except as and to the extent set forth in paragraphs 4, 5, 6
             and 8 above.  In the course of the preparation by the
             Company of the Registration Statement, the Prospectus and
             the Exchange Act Documents, we participated in conferences
             with certain officers and employees of the Company, with
             representatives of Arthur Andersen LLP and with counsel to
             the Company.  Based upon our examination of the Registration
             Statement, the Prospectus and the Exchange Act Documents,
             our investigations made in connection with the preparation
             of the Registration Statement and the Prospectus and our
             participation in the conferences referred to above, (i) we
             are of the opinion that the Registration Statement, as of
             its effective date, and the Prospectus, as of ___________,
             complied as to form in all material respects with the
             requirements of the Act and the applicable rules and
             regulations of the Commission thereunder and that the
             Exchange Act Documents, as of their respective dates of
             filing with the Commission, complied as to form in all
             material respects with the relevant requirements of the
             Exchange Act and the applicable rules and regulations of the
             Commission thereunder, except that in each case we express
             no opinion as to the financial statements or other financial
             or statistical data contained or incorporated by reference
             in the Registration Statement, the Prospectus or the
             Exchange Act Documents, and (ii) nothing came to our
             attention which gives us reason to believe that the
             Registration Statement, as of its effective date (including
             the Exchange Act Documents on file with the Commission as of
             such date, contained any untrue statement of a material fact
             or omitted to state any material fact required to be stated
             therein or necessary in order to make the statements therein
             not misleading, or that the Prospectus (including the
             Exchange Act Documents) contains any untrue statement of a
             material fact or omits to state a material fact necessary in
<PAGE>






             Lehman Brothers Inc.
             January __, 1996
             Page 5

             order to make the statements therein, in the light of the
             circumstances under which they were made, not misleading,
             except that in each case we express no opinion or belief
             with respect to the financial statements or other financial
             or statistical data contained or incorporated by reference
             in the Registration Statement, the Prospectus or the
             Exchange Act Documents.

                       We are members of the State Bar of New York and we
             do not express any opinion herein concerning any law other
             than the law of the State of New York and the federal law of
             the United States, and to the extent set forth herein, the
             laws of the States of Delaware, Georgia and Alabama.

                       This opinion is rendered solely to you in
             connection with the above matter.  This opinion may not be
             relied upon by you for any other purpose or relied upon by
             or furnished to any other person without our prior written
             consent except that Balch & Bingham and Troutman Sanders LLP
             may rely on this opinion in giving their opinions pursuant
             to Section 5(c) of the Underwriting Agreement, insofar as
             such opinions relate to matters of New York law.

                                           Very truly yours,


                                           DEWEY BALLANTINE
<PAGE>









                                                       Exhibit C


                                   TRUST AGREEMENT

                    THIS TRUST AGREEMENT is made as of November 8, 1995, by
          and  between Alabama  Power Company,  an Alabama  corporation, as
          Depositor  (the "Depositor"),  and Chemical  Bank Delaware,  duly
          organized  and existing in the State of Delaware, as Trustee (the
          "Trustee").  The  Depositor  and  the  Trustee  hereby  agree  as
          follows:

                    1.   The  trust   created  hereby  shall  be  known  as
          "Alabama  Power Capital Trust I",  in which name  the Trustee, or
          the  Depositor to  the extent  provided  herein, may  conduct the
          business of the Trust, make and execute contracts, and sue and be
          sued.

                    2.   The Depositor hereby  assigns, transfers,  conveys
          and sets over to the Trustee the sum  of $10.  The Trustee hereby
          acknowledges receipt of such amount  in trust from the Depositor,
          which  amount  shall constitute  the initial  trust estate.   The
          Trustee hereby declares  that it  will hold the  trust estate  in
          trust for  the Depositor.   It  is the intention  of the  parties
          hereto that the  Trust created hereby constitute a business trust
          under Chapter  38 of Title  12 of the  Delaware Code, 12  Dec. C.
          Sec 3801, et  seq. (the  "Business  Trust  Act"), and  that  this
          document constitute  the governing instrument of the  Trust.  The
          Trustee is hereby authorized  and directed to execute and  file a
          certificate  of  trust  with  the  Delaware  Secretary  of  State
          substantially in the form  attached hereto or in such  other form
          as the Trustee may approve.

                    3.   The Depositor  and the Trustee will  enter into an
          amended and  restated Trust  Agreement satisfactory to  each such
          party and substantially in  the form included as Exhibit  4(d) to
          the   Registration  Statement   on  Form   S-3  (the   "1933  Act
          Registration Statement") referred to below, or in such other form
          as the Trustee and the Depositor may approve, to provide  for the
          contemplated  operation  of  the  Trust created  hereby  and  the
          issuance  of  the  Preferred  Securities  and  Common  Securities
          referred to therein.  Prior to the execution and delivery of such
          amended and restated  Trust Agreement, the Trustee shall not have
          any duty or  obligation hereunder  or with respect  of the  trust
          estate,  except as otherwise required by applicable law or as may
          be necessary to obtain  prior to such execution and  delivery any
          licenses,  consents or  approvals required  by applicable  law or
          otherwise.  However, notwithstanding  the foregoing, the  Trustee
          may take all actions deemed proper as are necessary to effect the
          transactions contemplated herein.

                    4.   The Depositor and the Trustee hereby authorize and
          direct the  Depositor, as the sponsor  of the Trust, (i)  to file
          with the Securities  and Exchange  Commission (the  "Commission")
<PAGE>






          and execute, in the  case of the 1933 Act  Registration Statement
          and 1934 Act Registration Statement (as herein defined) on behalf
          of the Trust,  (a) the 1933 Act  Registration Statement including
          pre-effective or post-effective  amendments to such  Registration
          Statement, relating to the  registration under the Securities Act
          of  1933, as amended, of  the Preferred Securities  of the Trust,
          (b)  any preliminary  prospectus  or prospectus  relating to  the
          Preferred Securities  required to be  filed pursuant to  Rule 424
          under the 1933 Act, and (c)  a Registration Statement on Form 8-A
          (the  "1934  Act  Registration Statement")  (including  all  pre-
          effective  and post-effective amendments thereto) relating to the
          registration  of  the Preferred  Securities  of  the Trust  under
          Section 12(b) of the Securities Exchange Act of 1934, as amended;
          (ii) to  file with  the New  York Stock  Exchange and execute  on
          behalf   of  the  Trust  a  listing  application  and  all  other
          applications,  statements,  certificates,  agreements  and  other
          instruments  as shall  be  necessary or  desirable  to cause  the
          Preferred Securities to be listed on the New York Stock Exchange;
          (iii)  to  file  and   execute  on  behalf  of  the   Trust  such
          applications,  reports,  surety   bonds,  irrevocable   consents,
          appointments of attorney for service  of process and other papers
          and  documents as shall be necessary or desirable to register the
          Preferred  Securities under the securities or  "Blue Sky" laws of
          such  jurisdictions as the Depositor, on behalf of the Trust, may
          deem necessary  or desirable;  and (iv)  to execute, deliver  and
          perfect the Underwriting Agreement  on behalf of the Trust.   The
          Trustee further  hereby ratifies and approves  all actions having
          previously  been taken  with respect  to the  foregoing.   In the
          event that any filing  referred to in clauses (i)-(iii)  above is
          required  by the rules and regulations of the Commission, the New
          York Stock Exchange  or state securities or Blue Sky  laws, to be
          executed on behalf  of the  Trust by the  Trustee, Chemical  Bank
          Delaware  in  its capacity  as Trustee  of  the Trust,  is hereby
          authorized and directed to join in any such filing and to execute
          on behalf  of the Trust  any and all  of the foregoing,  it being
          understood that Chemical Bank Delaware in its capacity as Trustee
          of the Trust, shall not be required to join in any such filing or
          execute  on behalf of the Trust any such document unless required
          by  the rules  and regulations  of the  Commission, the  New York
          Stock Exchange or state securities or Blue Sky laws.

                    5.   This  Trust Agreement  may be  executed in  one or
          more counterparts.

                    6.   The number of Trustees  initially shall be one (1)
          and thereafter the  number of  Trustees shall be  such number  as
          shall  be fixed from time to time  by a written instrument signed
          by the Depositor  which may  increase or decrease  the number  of
          Trustees; provided, however, that  to the extent required  by the
          Business  Trust Act, one Trustee shall either be a natural person
          who is a resident  of the State of Delaware or,  if not a natural
          person,  an entity which has  its principal place  of business in

                                         -2-
<PAGE>






          the State of Delaware.   Subject to the foregoing,  the Depositor
          is entitled to appoint or remove without cause any Trustee at any
          time.  Any Trustee  may resign upon thirty  days prior notice  to
          the Depositor.

















































                                         -3-
<PAGE>






                    IN WITNESS WHEREOF, the parties hereto have caused this
          Trust Agreement to be duly executed  as of the day and year first
          above written.

                                   ALABAMA POWER COMPANY,
                                        as Depositor

                                   By:                                     
                                        Name:  Art P. Beattie
                                        Title:  Vice President, Secretary
                                                  and Treasurer

                                   CHEMICAL BANK DELAWARE,
                                        as Trustee


                                   By:                                     
                                        Name:
                                        Title:  Senior Trust Officer


































                                         -4-
<PAGE>






          ATTACHMENT

          Form of Certificate of Trust


















































                                         -5-
<PAGE>









                                                            Exhibit D





                            ALABAMA POWER CAPITAL TRUST I




                                 AMENDED AND RESTATED

                                   TRUST AGREEMENT


                                        among


                         ALABAMA POWER COMPANY, as Depositor,

                          CHEMICAL BANK, as Property Trustee

                     CHEMICAL BANK DELAWARE, as Delaware Trustee


                                         and


                     WILLIAM E. ZALES, JR. and J. RANDY DERIEUX,
                              as Administrative Trustees



                             Dated as of January 1, 1996
<PAGE>






                            ALABAMA POWER CAPITAL TRUST I

                 Certain Sections of this Trust Agreement relating to
                           Sections 310 through 318 of the
                             Trust Indenture Act of 1939:

             Trust Indenture                              Trust Agreement
               Act Section                                    Section

          Section 310(a)(1) . . . . . . . . . . . . . . . . . . . . .  8.07
               (a)(2) . . . . . . . . . . . . . . . . . . . . . . . .  8.07
               (a)(3) . . . . . . . . . . . . . . . . . . . . . . . .  8.09
               (a)(4) . . . . . . . . . . . . . . . . . . .  Not Applicable
               (b)  . . . . . . . . . . . . . . . . . . . . . . . . .  8.08
          Section 311(a)  . . . . . . . . . . . . . . . . . . . . . .  8.13
               (b)  . . . . . . . . . . . . . . . . . . . . . . . . .  8.13
          Section 312(a)  . . . . . . . . . . . . . . . . . . . . . .  5.07
               (b)  . . . . . . . . . . . . . . . . . . . . . . . . .  5.07
               (c)  . . . . . . . . . . . . . . . . . . . . . . . . .  5.07
          Section 313(a)  . . . . . . . . . . . . . . . . . . . . . 8.14(a)
               (a)(4) . . . . . . . . . . . . . . . . . . . . . . . 8.14(b)
               (b)  . . . . . . . . . . . . . . . . . . . . . . . . 8.14(b)
               (c)  . . . . . . . . . . . . . . . . . . . . . . . . 8.14(a)
               (d)  . . . . . . . . . . . . . . . . . . .  8.14(a), 8.14(b)
          Section 314(a)  . . . . . . . . . . . . . . . . . . . . . .  8.15
               (b)  . . . . . . . . . . . . . . . . . . . .  Not Applicable
               (c)(1) . . . . . . . . . . . . . . . . . . . . .  8.15, 8.16
               (c)(2) . . . . . . . . . . . . . . . . . . . . . . . .  8.16
               (c)(3) . . . . . . . . . . . . . . . . . . . . . . . .  8.16
               (d)  . . . . . . . . . . . . . . . . . . . .  Not Applicable
               (e)  . . . . . . . . . . . . . . . . . . . . . . . . .  8.16
          Section 315(a)  . . . . . . . . . . . . . . . . . . . . . .  8.01
               (b)  . . . . . . . . . . . . . . . . . . . . . 8.02, 8.14(b)
               (c)  . . . . . . . . . . . . . . . . . . . . . . . . 8.01(a)
               (d)  . . . . . . . . . . . . . . . . . . . . . .  8.01, 8.03
               (e)  . . . . . . . . . . . . . . . . . . . .  Not Applicable
          Section 316(a)  . . . . . . . . . . . . . . . . .  Not Applicable
               (a)(1)(A)  . . . . . . . . . . . . . . . . . . . . . .  8.19
               (a)(1)(B)  . . . . . . . . . . . . . . . . . . . . . .  8.19
               (a)(2) . . . . . . . . . . . . . . . . . . .  Not Applicable
               (b)  . . . . . . . . . . . . . . . . . . . .  Not Applicable
               (c)  . . . . . . . . . . . . . . . . . . . .  Not Applicable
          Section 317(a)(1) . . . . . . . . . . . . . . . .  Not Applicable
               (a)(2) . . . . . . . . . . . . . . . . . . .  Not Applicable
               (b)  . . . . . . . . . . . . . . . . . . . . . . . . .  5.09
          Section 318(a)  . . . . . . . . . . . . . . . . . . . . . . 10.10

                                        

               Note:   This Cross-Reference Table does  not constitute part
          of the Trust Agreement and shall not affect the interpretation of
          any of its terms and provisions.
<PAGE>






                                  TABLE OF CONTENTS


                                      ARTICLE I

                                    Defined Terms . . . . . . . . . . .   2

          Section 1.01   Definitions  . . . . . . . . . . . . . . . . .   2

                                      ARTICLE II

                              Establishment of the Trust  . . . . . . .  10

          Section 2.01   Name . . . . . . . . . . . . . . . . . . . . .  10

          Section 2.02   Offices of the Trustees; Principal Place of
                         Business . . . . . . . . . . . . . . . . . . .  11

          Section 2.03   Initial Contribution of Trust Property;
                         Organizational Expenses  . . . . . . . . . . .  11

          Section 2.04   Issuance of the Preferred Securities . . . . .  11

          Section 2.05   Subscription and Purchase of Junior
                         Subordinated Notes; Issuance of the Common
                         Securities . . . . . . . . . . . . . . . . . .  11

          Section 2.06   Declaration of Trust . . . . . . . . . . . . .  12

          Section 2.07   Authorization to Enter into Certain
                         Transactions . . . . . . . . . . . . . . . . .  12

          Section 2.08   Assets of Trust  . . . . . . . . . . . . . . .  17

          Section 2.09   Title to Trust Property  . . . . . . . . . . .  17

          Section 2.10   Mergers and Consolidations of the Trust  . . .  18

                                     ARTICLE III

                                   Payment Account  . . . . . . . . . .  19

          Section 3.01   Payment Account  . . . . . . . . . . . . . . .  19

                                      ARTICLE IV

                              Distributions; Redemption . . . . . . . .  19

          Section 4.01   Distributions  . . . . . . . . . . . . . . . .  19

          Section 4.02   Redemption . . . . . . . . . . . . . . . . . .  20


                                          i
<PAGE>






          Section 4.03   Subordination of Common Securities . . . . . .  23

          Section 4.04   Payment Procedures . . . . . . . . . . . . . .  23

          Section 4.05   Tax Returns and Reports  . . . . . . . . . . .  23

                                      ARTICLE V

                            Trust Securities Certificates . . . . . . .  24

          Section 5.01   Initial Ownership  . . . . . . . . . . . . . .  24

          Section 5.02   The Trust Securities Certificates  . . . . . .  24

          Section 5.03   Authentication of Trust Securities
                         Certificates . . . . . . . . . . . . . . . . .  24

          Section 5.04   Registration of Transfer and Exchange of
                         Preferred Securities Certificates  . . . . . .  25

          Section 5.05   Mutilated, Destroyed, Lost or Stolen Trust
                         Securities Certificates  . . . . . . . . . . .  25

          Section 5.06   Persons Deemed Securityholders . . . . . . . .  26

          Section 5.07   Access to List of Securityholders' Names and
                         Addresses  . . . . . . . . . . . . . . . . . .  26

          Section 5.08   Maintenance of Office or Agency  . . . . . . .  27

          Section 5.09   Appointment of Paying Agent  . . . . . . . . .  27

          Section 5.10   Ownership of Common Securities by Depositor  .  28

          Section 5.11   Book-Entry Preferred Securities Certificates;
                         Common Securities Certificate  . . . . . . . .  28

          Section 5.12   Notices to Clearing Agency . . . . . . . . . .  29

          Section 5.13   Definitive Preferred Securities Certificates .  29

          Section 5.14   Rights of Securityholders  . . . . . . . . . .  30

                                      ARTICLE VI

                      Acts of Securityholders; Meetings; Voting . . . .  30

          Section 6.01   Limitations on Voting Rights . . . . . . . . .  30

          Section 6.02   Notice of Meetings . . . . . . . . . . . . . .  31

          Section 6.03   Meetings of Preferred Securityholders  . . . .  32

                                          ii
<PAGE>






          Section 6.04   Voting Rights  . . . . . . . . . . . . . . . .  32

          Section 6.05   Proxies, etc.  . . . . . . . . . . . . . . . .  32

          Section 6.06   Securityholder Action by Written Consent . . .  33

          Section 6.07   Record Date for Voting and Other Purposes  . .  33

          Section 6.08   Acts of Securityholders  . . . . . . . . . . .  33

          Section 6.09   Inspection of Records  . . . . . . . . . . . .  34

                                     ARTICLE VII

                    Representations and Warranties of the Trustees  . .  34

          Section 7.01   Representations and Warranties of the
                         Trustee  . . . . . . . . . . . . . . . . . . .  34

                                     ARTICLE VIII

                                     The Trustees . . . . . . . . . . .  36

          Section 8.01   Certain Duties and Responsibilities  . . . . .  36

          Section 8.02   Notice of Defaults . . . . . . . . . . . . . .  36

          Section 8.03   Certain Rights of Property Trustee . . . . . .  36

          Section 8.04   Not Responsible for Recitals or Issuance of
                         Securities . . . . . . . . . . . . . . . . . .  38

          Section 8.05   May Hold Securities  . . . . . . . . . . . . .  38

          Section 8.06   Compensation; Fees; Indemnity  . . . . . . . .  38

          Section 8.07   Trustees Required; Eligibility . . . . . . . .  39

          Section 8.08   Conflicting Interests  . . . . . . . . . . . .  39

          Section 8.09   Co-Trustees and Separate Trustee . . . . . . .  40

          Section 8.10   Resignation and Removal; Appointment of
                         Successor  . . . . . . . . . . . . . . . . . .  41

          Section 8.11   Acceptance of Appointment by Successor . . . .  42

          Section 8.12   Merger,    Conversion,    Consolidation    or
               Succession
                         to Business  . . . . . . . . . . . . . . . . .  43

          Section 8.13   Preferential Collection of Claims Against

                                         iii
<PAGE>






                         Depositor or Trust . . . . . . . . . . . . . .  43

          Section 8.14   Reports by Property Trustee  . . . . . . . . .  44

          Section 8.15   Reports to the Property Trustee  . . . . . . .  44

          Section 8.16   Evidence of Compliance with Conditions
                         Precedent  . . . . . . . . . . . . . . . . . .  44

          Section 8.17   Number of Trustees . . . . . . . . . . . . . .  45

          Section 8.18   Delegation of Power  . . . . . . . . . . . . .  45

          Section 8.19   Enforcement of Rights of Property Trustee by
                         Securityholders  . . . . . . . . . . . . . . .  45

                                      ARTICLE IX

                             Termination and Liquidation  . . . . . . .  46

          Section 9.01   Termination Upon Expiration Date . . . . . . .  46

          Section 9.02   Early Termination  . . . . . . . . . . . . . .  46

          Section 9.03   Termination  . . . . . . . . . . . . . . . . .  47

          Section 9.04   Liquidation  . . . . . . . . . . . . . . . . .  47

          Section 9.05   Bankruptcy . . . . . . . . . . . . . . . . . .  48

                                      ARTICLE X

                               Miscellaneous Provisions . . . . . . . .  49

          Section 10.01  Guarantee by the Depositor . . . . . . . . . .  49

          Section 10.02  Limitation of Rights of Securityholders  . . .  49

          Section 10.03  Amendment  . . . . . . . . . . . . . . . . . .  49

          Section 10.04  Separability . . . . . . . . . . . . . . . . .  51

          Section 10.05  Governing Law  . . . . . . . . . . . . . . . .  51

          Section 10.06  Successors . . . . . . . . . . . . . . . . . .  51

          Section 10.07  Headings . . . . . . . . . . . . . . . . . . .  51

          Section 10.08  Notice and Demand  . . . . . . . . . . . . . .  51

          Section 10.09  Agreement Not to Petition  . . . . . . . . . .  52


                                          iv
<PAGE>






          Section 10.10  Conflict with Trust Indenture Act  . . . . . .  52


          EXHIBIT A      Restated Certificate of Trust
          EXHIBIT B      Form of Certificate Depository Agreement
          EXHIBIT C      Form of Common Securities Certificate
          EXHIBIT D      Form of Expense Agreement
          EXHIBIT E      Form of Preferred Securities Certificate













































                                          v
<PAGE>






                         AMENDED AND RESTATED TRUST AGREEMENT


               THIS  AMENDED  AND RESTATED  TRUST AGREEMENT  is made  as of
          January  1,  1996, by  and among  (i)  Alabama Power  Company, an
          Alabama  corporation  (the  "Depositor" or  the  "Company"), (ii)
          Chemical Bank, a banking  corporation duly organized and existing
          under  the laws of New  York, as trustee  (the "Property Trustee"
          and, in its separate  corporate capacity and not in  its capacity
          as Trustee, the "Bank"), (iii) Chemical Bank Delaware, a  banking
          corporation  duly  organized  under  the  laws  of  Delaware,  as
          Delaware  trustee (the  "Delaware Trustee"  and, in  its separate
          corporate capacity and not  in its capacity as  Delaware Trustee,
          the  "Delaware  Bank"),  and  (iv)  William  E.  Zales,  Jr.,  an
          individual, and  J. Randy DeRieux, an  individual, as administra-
          tive trustees (each an  "Administrative Trustee" and together the
          "Administrative  Trustees") (the  Property Trustee,  the Delaware
          Trustee  and the Administrative Trustees referred to collectively
          as the "Trustees")  and (v) the  several Holders, as  hereinafter
          defined.


                                     WITNESSETH:

               WHEREAS,   the  Depositor  and  the  Delaware  Trustee  have
          heretofore  duly  declared  and  established   a  business  trust
          pursuant  to the Delaware Business Trust Act by the entering into
          of that certain  Trust Agreement,  dated as of  November 8,  1995
          (the "Original Trust Agreement"), and by the execution and filing
          by the Delaware  Trustee with the Secretary of State of the State
          of  Delaware of the Certificate of Trust, dated November 8, 1995;
          and

               WHEREAS, the parties  hereto desire to amend and restate the
          Original Trust Agreement in  its entirety as set forth  herein to
          provide  for, among other things,  (i) the addition  of the Bank,
          William E.  Zales, Jr. and  J. Randy  DeRieux as trustees  of the
          Trust,  (ii) the acquisition by  the Trust from  the Depositor of
          all of the right,  title and interest in the  Junior Subordinated
          Notes, (iii) the issuance  of the Common Securities by  the Trust
          to the Depositor, and (iv) the issuance and sale of the Preferred
          Securities by the Trust pursuant to the Underwriting Agreement.

               NOW  THEREFORE,  in  consideration  of  the  agreements  and
          obligations set  forth  herein and  for other  good and  valuable
          consideration, the sufficiency  of which is  hereby acknowledged,
          each  party,  for the  benefit of  the  other party  and  for the
          benefit of  the Securityholders,  hereby amends and  restates the
          Original Trust Agreement in its entirety and agrees as follows:




                                          1
<PAGE>






                                      ARTICLE I

                                    Defined Terms

               Section 1.01   Definitions.  For all purposes  of this Trust
          Agreement, except  as otherwise expressly provided  or unless the
          context otherwise requires:

               (a)  the  terms defined  in this  Article have  the meanings
          assigned to them in  this Article and include the plural  as well
          as the singular;

               (b)  all other terms  used herein  that are  defined in  the
          Trust  Indenture Act,  either directly  or by  reference therein,
          have the meanings assigned to them therein;

               (c)  unless the context otherwise requires, any reference to
          an "Article" or a "Section" refers to an Article or a Section, as
          the case may be, of this Trust Agreement; and

               (d)  the words "herein," "hereof" and "hereunder"  and other
          words of similar import refer to this Trust Agreement  as a whole
          and not to any particular Article, Section or other subdivision.

               "Act" has the meaning specified in Section 6.08.

               "Additional Amount"  means, with respect to Trust Securities
          of  a given Liquidation Amount  and/or a given  period, an amount
          equal  to the Additional Interest  (as defined in  clause (ii) of
          the  definition  of  "Additional  Interest"  in  the Subordinated
          Indenture)  paid  by the  Depositor on  a  Like Amount  of Junior
          Subordinated Notes for such period.

               "Administrative  Trustee"  means  each  of  the  individuals
          identified as an "Administrative Trustee" in the preamble to this
          Trust  Agreement solely  in  their  capacities as  Administrative
          Trustees  of  the  Trust  formed  hereunder  and  not  in   their
          individual capacities, or such trustee's successor(s) in interest
          in such  capacity,  or  any  successor  "Administrative  Trustee"
          appointed as herein provided.

               "Affiliate" of  any specified Person means  any other Person
          directly  or indirectly  controlling  or controlled  by or  under
          direct  or indirect  common control  with such  specified Person.
          For  the purposes of  this definition,  "control" when  used with
          respect to any  specified Person  means the power  to direct  the
          management and  policies of such Person,  directly or indirectly,
          whether through  the ownership of voting  securities, by contract
          or otherwise;  and the terms "controlling"  and "controlled" have
          meanings correlative to the foregoing.



                                          2
<PAGE>






               "Bank"  has the  meaning specified in  the preamble  to this
          Trust Agreement.

               "Bankruptcy Event" means, with respect to any Person:

                    (i)  the entry of a  decree or order by a  court having
               jurisdiction in the premises  judging such Person a bankrupt
               or  insolvent, or  approving  as properly  filed a  petition
               seeking   reorganization,   arrangement,   adjudication   or
               composition of or  in respect of  such Person under  federal
               bankruptcy law or any other applicable federal or state law,
               or appointing  a  receiver, liquidator,  assignee,  trustee,
               sequestrator or other similar official of  such Person or of
               any  substantial  part  of  its property,  or  ordering  the
               winding  up   or  liquidation   of  its  affairs,   and  the
               continuance  of a decree or order unstayed and in effect for
               a period of 60 consecutive days; or

                    (ii) the institution by  such Person of proceedings  to
               be adjudicated a bankrupt or insolvent, or the consent by it
               to  the institution of  bankruptcy or insolvency proceedings
               against  it, or the filing by it  of a petition or answer or
               consent  seeking  reorganization  or  relief  under  federal
               bankruptcy law or any other applicable federal or state law,
               or the  consent by it to  the filing of such  petition or to
               the  appointment   of  a  receiver,   liquidator,  assignee,
               trustee, sequestrator or similar  official of such Person or
               of any substantial part of its property, or the making by it
               of  an  assignment  for the  benefit  of  creditors,  or the
               admission by it in writing of its inability to pay its debts
               generally as they  become due,  or the taking  of action  by
               such Person in furtherance of any such action.

               "Bankruptcy  Laws" has  the  meaning  specified  in  Section
          10.09.

               "Board Resolution" means a copy of a resolution certified by
          the  Secretary or an Assistant Secretary of the Depositor to have
          been duly adopted by the Depositor's Board of Directors or a duly
          authorized committee thereof and  to be in full force  and effect
          on the date of such certification, and delivered to the Trustees.

               "Book-Entry  Preferred  Securities  Certificates"   means  a
          beneficial  interest in  the  Preferred Securities  Certificates,
          ownership and  transfers  of which  shall  be made  through  book
          entries by a Clearing Agency as described in Section 5.11.

               "Business Day"  means a day other  than (i) a Saturday  or a
          Sunday, (ii) a day on which banks in  Wilmington, Delaware or New
          York,  New York are authorized  or obligated by  law or executive
          order  to remain  closed or  (iii) a day  on which  the Corporate


                                          3
<PAGE>






          Trust Office or the Indenture Trustee's principal corporate trust
          office is closed for business.

               "Certificate Depository Agreement" means the agreement among
          the Trust, the Depositor and The Depository Trust Company, as the
          initial  Clearing Agency, dated as of the Issue Date, relating to
          the Preferred Securities Certificates, substantially in  the form
          attached  as  Exhibit  B,   as  the  same  may  be   amended  and
          supplemented from time to time.

               "Clearing  Agency"  means an  organization  registered as  a
          "clearing  agency"  pursuant to  Section  17A  of the  Securities
          Exchange Act of 1934,  as amended.  The Depository  Trust Company
          will be the initial Clearing Agency.

               "Clearing Agency Participant" means a broker, dealer,  bank,
          other financial institution or other Person for whom from time to
          time a  Clearing Agency effects book-entry  transfers and pledges
          of securities deposited with the Clearing Agency.

               "Code" means the Internal Revenue Code of 1986, as amended.

               "Commission" means  the Securities and  Exchange Commission,
          as  from time to  time constituted, created  under the Securities
          Exchange  Act of 1934, or, if at  any time after the execution of
          this instrument  such Commission  is not existing  and performing
          the duties now assigned to it under the Trust Indenture Act, then
          the body performing such duties at such time.

               "Common  Security" means  an undivided  beneficial ownership
          interest in the assets  of the Trust having a  Liquidation Amount
          of  $25 and  having the  rights provided  therefor in  this Trust
          Agreement,  including the  right to  receive Distributions  and a
          Liquidation Distribution as provided herein.

               "Common   Securities   Certificate"   means  a   certificate
          evidencing  ownership   of  a  Common   Security  or  Securities,
          substantially in the form attached as Exhibit C.

               "Company" means Alabama Power Company.

               "Corporate Trust  Office" means  the office of  the Property
          Trustee  located in  New York,  New York  at which  its corporate
          trust business shall be principally administered.

               "Definitive Preferred Securities Certificates"  means either
          or  both (as  the context  requires) of (i)  Preferred Securities
          Certificates  issued in  certificated, fully  registered  form as
          provided  in  Section  5.11(a)  and  (ii)   Preferred  Securities
          Certificates  issued in  certificated, fully  registered form  as
          provided in Section 5.13.


                                          4
<PAGE>






               "Delaware Bank" has the meaning specified in the preamble to
          this Trust Agreement.

               "Delaware Business Trust Act"  means Chapter 38 of  Title 12
          of the  Delaware Code, 12 Del.  Code Section 3801 et  seq., as it
          may be amended from time to time.

               "Delaware  Trustee"  means  the  commercial  bank  or  trust
          company or any other person identified as  the "Delaware Trustee"
          and  has  the meaning  specified in  the  preamble to  this Trust
          Agreement solely in its capacity as Delaware Trustee of the Trust
          formed  and  continued  hereunder   and  not  in  its  individual
          capacity, or its successor  in interest in such capacity,  or any
          successor Delaware Trustee appointed as herein provided.

               "Depositor" means Alabama Power  Company, in its capacity as
          "Depositor" under this Trust Agreement.

               "Distribution  Date"  has the  meaning specified  in Section
          4.01(a).

               "Distributions"  means amounts  payable  in  respect of  the
          Trust Securities as provided in Section 4.01.

               "Event of  Default" means  any one  of the following  events
          (whatever the reason  for such  Event of Default  and whether  it
          shall  be voluntary or involuntary or be effected by operation of
          law or pursuant to any judgment, decree or order of  any court or
          any  order,   rule  or   regulation  of  any   administrative  or
          governmental body):

                    (i)  the occurrence of  an Indenture Event  of Default;
               or

                   (ii)  default by the Property  Trustee in the payment of
               any  Distribution  when  it  becomes due  and  payable,  and
               continuation of such default for a period of 30 days; or

                  (iii)  default by the Property  Trustee in the payment of
               any Redemption Price of  any Trust Security when  it becomes
               due and payable; or

                    (iv) default  in the  performance,  or  breach, of  any
               covenant or warranty of the Trustees in this Trust Agreement
               (other  than  a  covenant  or warranty  a  default  in whose
               performance  or breach is dealt with in clause (ii) or (iii)
               above) and  continuation of  such default  or  breach for  a
               period  of 60 days after there has been given, by registered
               or  certified mail,  to the  Trustees by  the Holders  of at
               least 10% in Liquidation Amount of the Outstanding Preferred
               Securities  a  written  notice  specifying  such  default or


                                          5
<PAGE>






               breach and requiring it to be remedied and stating that such
               notice is a "Notice of Default" hereunder; or

                    (v)  the  occurrence of a Bankruptcy Event with respect
               to the Trustees.

               "Expense Agreement"  means the Agreement as  to Expenses and
          Liabilities between  the Company and the  Trust, substantially in
          the form attached as Exhibit D, as amended from time to time.

               "Exchange Act" means the Securities Exchange Act of 1934, as
          amended.

               "Guarantee"  means  the  Guarantee  Agreement  executed  and
          delivered by the Company and Chemical Bank, as Guarantee Trustee,
          contemporaneously with  the execution and delivery  of this Trust
          Agreement,  for  the benefit  of  the  Holders of  the  Preferred
          Securities, as amended from time to time.

               "Indenture Event  of Default" means an "Event of Default" as
          defined in the Subordinated Indenture.

               "Indenture  Redemption  Date"  means "Redemption  Date,"  as
          defined in the Subordinated Indenture.

               "Indenture Trustee" means the trustee under the Subordinated
          Indenture.

               "Issue Date" means  the date  of the delivery  of the  Trust
          Securities.

               "Junior Subordinated Notes" means the $100,000,000 aggregate
          principal  amount  of  the  Depositor's Series  A  7.375%  Junior
          Subordinated Notes, due  March 31, 2026,  issued pursuant to  the
          Subordinated Indenture.

               "Lien"   means  any   lien,  pledge,   charge,  encumbrance,
          mortgage,   deed   of    trust,   adverse   ownership   interest,
          hypothecation,  assignment,  security  interest   or  preference,
          priority or other security agreement  or preferential arrangement
          of any kind or nature whatsoever.

               "Like   Amount"  means   (i)  Trust   Securities  having   a
          Liquidation  Amount  equal  to  the principal  amount  of  Junior
          Subordinated Notes to be contemporaneously redeemed in accordance
          with the Subordinated Indenture and the proceeds of which will be
          used to pay  the Redemption  Price of such  Trust Securities  and
          (ii) Junior Subordinated Notes having a principal amount equal to
          the Liquidation Amount of  the Trust Securities of the  Holder to
          whom such Junior Subordinated Notes are distributed.



                                          6
<PAGE>






               "Liquidation  Amount" means  the  stated amount  of $25  per
          Trust Security.

               "Liquidation  Date"   means  the   date   on  which   Junior
          Subordinated  Notes are  to  be distributed  to Holders  of Trust
          Securities in  connection with  a dissolution and  liquidation of
          the Trust pursuant to Section 9.04.

               "Liquidation  Distribution"  has  the  meaning  specified in
          Section 9.05.

               "Officers' Certificate" means  a certificate  signed by  the
          Chairman  of the  Board,  a  Vice  Chairman  of  the  Board,  the
          President or a Vice President, and by the Treasurer, an Assistant
          Treasurer,  the  Secretary  or  an Assistant  Secretary,  of  the
          Depositor,  and delivered to the appropriate Trustee.  One of the
          officers  signing  an  Officers' Certificate  given  pursuant  to
          Section  8.16  shall be  the  principal  executive, financial  or
          accounting officer  of the  Depositor.  An  Officers' Certificate
          delivered with respect to compliance with a condition or covenant
          provided for in this Trust Agreement shall include:

                    (a)  a   statement  that   each  officer   signing  the
               Officers' Certificate has read the covenant or condition and
               the definitions relating thereto;

                    (b)  a brief statement of the  nature and scope of  the
               examination  or investigation undertaken  by each officer in
               rendering the Officers' Certificate;

                    (c)  a statement  that each such officer  has made such
               examination  or  investigation  as  is  necessary,  in  such
               officer's  opinion, to  express  an informed  opinion as  to
               whether or not  such covenant or condition has been complied
               with; and

                    (d)  a statement as to whether, in the opinion of  each
               such officer,  such condition or covenant  has been complied
               with.

               "Opinion of Counsel" means a written opinion of counsel, who
          may be counsel for the Trust,  the Trustees or the Depositor, but
          not an  employee of the Trust  or the Trustees, and  who shall be
          reasonably acceptable  to the Property  Trustee.  Any  Opinion of
          Counsel pertaining  to  federal income  tax matters  may rely  on
          published rulings of the Internal Revenue Service.

               "Original Trust Agreement" has  the meaning specified in the
          recitals to this Trust Agreement.

               "Outstanding",  when   used   with  respect   to   Preferred
          Securities, means, as of the date of determination, all Preferred

                                          7
<PAGE>






          Securities  theretofore  authenticated and  delivered  under this
          Trust Agreement, except:

                    (i)       Preferred Securities theretofore cancelled by
               the   Administrative   Trustees    or   delivered   to   the
               Administrative Trustees for cancellation;

                    (ii)      Preferred  Securities  for  whose payment  or
               redemption   money  in   the   necessary  amount   has  been
               theretofore  deposited  with  the Property  Trustee  or  any
               Paying Agent  for the Holders of  such Preferred Securities;
               provided  that  if  such  Preferred  Securities  are  to  be
               redeemed,  notice of  such  redemption has  been duly  given
               pursuant to this Trust Agreement; and

                    (iii)     Preferred  Securities  which  have been  paid
               pursuant to Section  5.05 or in  exchange for or in  lieu of
               which other Preferred Securities have been authenticated and
               delivered pursuant to this Trust Agreement;

          provided, however, that in determining whether the Holders of the
          requisite  Liquidation  Amount   of  the  Outstanding   Preferred
          Securities  have   given  any  request,   demand,  authorization,
          direction,   notice,  consent  or   waiver  hereunder,  Preferred
          Securities  owned  by the  Depositor,  the Holder  of  the Common
          Securities,  any Trustee or any Affiliate of the Depositor or any
          Trustee  shall be disregarded  and deemed not  to be Outstanding,
          except  that  (a) in  determining  whether any  Trustee  shall be
          protected   in   relying   upon   any   such   request,   demand,
          authorization,   direction,  notice,  consent   or  waiver,  only
          Preferred  Securities  which such  Trustee knows  to be  so owned
          shall be so disregarded and (b) the  foregoing shall not apply at
          any time  when all  of the outstanding  Preferred Securities  are
          owned  by the Depositor, the Holder of the Common Securities, one
          or more Trustees and/or any such Affiliate.  Preferred Securities
          so owned which have been pledged in good faith may be regarded as
          Outstanding if the pledgee establishes to the satisfaction of the
          Administrative  Trustees  the  pledgee's  right so  to  act  with
          respect  to such Preferred Securities and that the pledgee is not
          the Depositor or any Affiliate of the Depositor.

               "Owner" means each Person  who is the beneficial owner  of a
          Book-Entry Preferred  Securities Certificate as reflected  in the
          records  of  the  Clearing  Agency   or,  if  a  Clearing  Agency
          Participant is not the Owner, then as reflected in the records of
          a  Person  maintaining  an  account  with  such  Clearing  Agency
          (directly  or indirectly,  in accordance  with the rules  of such
          Clearing Agency).

               "Paying  Agent" means  any paying  agent or  co-paying agent
          appointed pursuant  to Section  5.09 and shall  initially be  the
          Property Trustee.

                                          8
<PAGE>






               "Payment  Account"  means a  segregated non-interest-bearing
          corporate trust  account maintained  by the Property  Trustee for
          the benefit of the  Securityholders in which all amounts  paid in
          respect  of the Junior Subordinated  Notes will be  held and from
          which  the Trustee shall make payments  to the Securityholders in
          accordance with Section 4.01.

               "Person"  means  an  individual,  corporation,  partnership,
          joint venture,  trust, limited liability  company or corporation,
          unincorporated  organization  or  government  or  any  agency  or
          political subdivision thereof.

               "Preferred Security" means an undivided beneficial ownership
          interest in the assets  of the Trust having a  Liquidation Amount
          of  $25  and  having  rights  provided  therefor  in  this  Trust
          Agreement,  including the  right to  receive Distributions  and a
          Liquidation Distribution as provided herein.

               "Preferred  Securities  Certificate"  means   a  certificate
          evidencing  ownership of  a  Preferred  Security  or  Securities,
          substantially in the form attached as Exhibit E.

               "Property  Trustee"  means  the  commercial  bank  or  trust
          company identified as  the "Property Trustee" in the  preamble to
          this  Trust Agreement solely in  its capacity as Property Trustee
          of  the Trust  formed  and continued  hereunder  and not  in  its
          individual  capacity,  or  its  successor  in  interest  in  such
          capacity, or any successor "Property Trustee" as herein provided.

               "Redemption Date" means, with  respect to any Trust Security
          to be redeemed, the date fixed for such redemption by or pursuant
          to this Trust Agreement;  provided that each Indenture Redemption
          Date  shall be  a  Redemption Date  for  a Like  Amount of  Trust
          Securities.

               "Redemption Price" means, with respect to any date fixed for
          redemption of any Trust Security, the Liquidation Amount of  such
          Trust  Security, plus  accrued and  unpaid Distributions  to such
          date.

               "Relevant  Trustee" shall  have  the  meaning  specified  in
          Section 8.10.

               "Securities  Register" and  "Securities Registrar"  have the
          respective meanings specified in Section 5.04.

               "Securityholder" or  "Holder" means a Person in whose name a
          Trust  Security or  Securities  is registered  in the  Securities
          Register;  any such  Person shall  be deemed  to be  a beneficial
          owner within the meaning of the Delaware Business Trust Act.



                                          9
<PAGE>






               "Subordinated Indenture"  means the  Indenture, dated  as of
          January 1, 1996, between the Depositor and the Indenture Trustee,
          as supplemented by the Supplemental Indenture.

               "Supplemental  Indenture"  means   the  First   Supplemental
          Indenture,  dated as  of  January 1,  1996,  by and  between  the
          Depositor and the Indenture Trustee.

               "Trust" means  the Delaware business  trust continued hereby
          and identified on the cover page to this Trust Agreement.

               "Trust  Agreement"  means this  Amended  and  Restated Trust
          Agreement, as the same  may be modified, amended  or supplemented
          in  accordance with the  applicable provisions  hereof, including
          all  exhibits hereto, including, for all purposes of this Amended
          and Restated  Trust Agreement and any  modification, amendment or
          supplement, the  provisions of the  Trust Indenture Act  that are
          deemed to be a part of and govern this Amended and Restated Trust
          Agreement  and  any such  modification, amendment  or supplement,
          respectively.

               "Trustees" means the Persons identified as "Trustees" in the
          preamble to  this Trust Agreement  solely in their  capacities as
          Trustees   of  the  Trust  formed  hereunder  and  not  in  their
          individual  capacities, or  their successor  in interest  in such
          capacity, or any successor trustee appointed as herein provided.

               "Trust Indenture Act" means the Trust Indenture Act of  1939
          as in force at the date as of which this instrument was executed;
          provided, however, that in  the event the Trust Indenture  Act of
          1939  is amended after such date, "Trust Indenture Act" means, to
          the extent  required by any  such amendment, the  Trust Indenture
          Act of 1939 as so amended.

               "Trust  Property" means (i)  the Junior  Subordinated Notes,
          (ii) any cash on  deposit in, or owing  to, the Payment  Account,
          and (iii) all proceeds and rights in respect of the foregoing and
          any other property and assets  for the time being held or  deemed
          to be held by the Trustees pursuant to this Trust Agreement.

               "Trust Securities  Certificate" means any one  of the Common
          Securities Certificates or the Preferred Securities Certificates.

               "Trust Security" means  any one of the  Common Securities or
          the Preferred Securities.

               "Underwriting Agreement" means  the Underwriting  Agreement,
          dated as of January 17, 1996,  among the Trust, the Depositor and
          the underwriters named therein.


                                      ARTICLE II

                                          10
<PAGE>






                              Establishment of the Trust

               Section 2.01   Name.   The Trust  continued hereby  shall be
          known  as  "Alabama Power  Capital Trust  I",  in which  name the
          Trustees  may conduct the business of the Trust, make and execute
          contracts  and other instruments on  behalf of the  Trust and sue
          and  be sued.  The Administrative Trustees may change the name of
          the  Trust  from time  to time  following  written notice  to the
          Holders.

               Section 2.02   Offices of  the Trustees; Principal  Place of
          Business.   The address of the Property Trustee is Chemical Bank,
          450 West 33rd Street, New York, New York 10001, or  at such other
          address  in New  York as  the Property  Trustee may  designate by
          written notice  to the  Securityholders and the  Depositor.   The
          principal  place  of business  of  the Delaware  Trustee  is 1201
          Market  Street, Wilmington,  Delaware,  19801, or  at such  other
          address in  Delaware  as the  Delaware Trustee  may designate  by
          notice  to  the Depositor.    The address  of  the Administrative
          Trustees  is c/o  Alabama Power  Company, 600 North  18th Street,
          Birmingham, Alabama  35291,  Attention: Treasurer.  The principal
          place of business of the Trust is c/o Alabama  Power Company, 600
          North 18th Street, Birmingham, Alabama  35291.  The Depositor may
          change the principal place of  business of the Trust at  any time
          by giving notice thereof to the Trustees.

               Section 2.03   Initial   Contribution  of   Trust  Property;
          Organizational  Expenses.    The  Delaware  Trustee  acknowledges
          receipt  in  trust  from the  Depositor  in  connection  with the
          Original Trust Agreement of the sum of $10, which constituted the
          initial Trust  Property.  The Depositor  shall pay organizational
          expenses of the Trust as they arise or shall, upon request of the
          Trustees, promptly  reimburse the Trustees for  any such expenses
          paid by the Trustees.  The Depositor shall make no claim upon the
          Trust Property for the payment of such expenses.

               Section 2.04   Issuance  of  the Preferred  Securities.   On
          January  17,  1996,  the Depositor  and  the  Trust  executed and
          delivered the Underwriting Agreement.  Contemporaneously with the
          execution   and   delivery   of   this   Trust   Agreement,   the
          Administrative Trustees,  on behalf  of the Trust,  shall execute
          and   deliver  to  the   underwriters  named   therein  Preferred
          Securities Certificates, registered in the name of the nominee of
          the initial Clearing Agency, in  an aggregate amount of 3,880,000
          Preferred Securities  having an  aggregate Liquidation  Amount of
          $97,000,000, against  receipt of the aggregate  purchase price of
          such  Preferred  Securities  of  $97,000,000,  which  amount  the
          Administrative Trustees  shall promptly  deliver to the  Property
          Trustee.

               Section 2.05   Subscription    and   Purchase    of   Junior
          Subordinated   Notes;  Issuance   of   the   Common   Securities.

                                          11
<PAGE>






          Contemporaneously with  the execution and delivery  of this Trust
          Agreement, the  Administrative Trustees, on behalf  of the Trust,
          shall  subscribe  to  and  purchase  from  the  Depositor  Junior
          Subordinated  Notes,  registered  in  the name  of  the  Property
          Trustee,  on behalf of  the Trust and the  Holders, and having an
          aggregate  principal   amount  equal  to  $100,000,000,  and,  in
          satisfaction of  the purchase price for  such Junior Subordinated
          Notes, the Administrative Trustees, on behalf of the Trust, shall
          (i)  execute  and  deliver  to the  Depositor  Common  Securities
          Certificates, registered  in the  name  of the  Depositor, in  an
          aggregate amount of 120,000 Common Securities having an aggregate
          Liquidation  Amount of  $3,000,000, and  (ii) cause  the Property
          Trustee to deliver to the Depositor the sum of $100,000,000.

               Section 2.06   Declaration of Trust.  The exclusive purposes
          and functions  of the Trust are  (i) to issue and  sell the Trust
          Securities and use  the proceeds  from such sale  to acquire  the
          Junior Subordinated Notes, and (ii) to engage in those activities
          necessary, incidental, appropriate  or convenient  thereto.   The
          Depositor hereby  appoints each of  the Bank, the  Delaware Bank,
          William E. Zales, Jr.,   and J. Randy DeRieux as trustees  of the
          Trust, to  have all the  rights, powers and duties  to the extent
          set forth herein.   The Property Trustee hereby declares  that it
          will  hold the  Trust Property in  trust upon and  subject to the
          conditions  set forth herein subject  to the conditions set forth
          herein for the benefit of the Trust and the Securityholders.  The
          Trustees shall  have  all rights,  powers  and duties  set  forth
          herein and  in accordance  with  applicable law  with respect  to
          accomplishing the  purposes of the  Trust.  The  Delaware Trustee
          shall  not  be entitled  to exercise  any  powers, nor  shall the
          Delaware Trustee have any  of the duties and  responsibilities of
          the  Property Trustee  or the  Administrative Trustees  set forth
          herein, except that the Delaware Trustee is hereby authorized and
          directed, together with the  Property Trustee and  Administrative
          Trustees, to execute and cause  the Restated Certificate of Trust
          of the Trust (in the form of Exhibit A attached) to be filed with
          the Office of  the Secretary of State of Delaware.   The Delaware
          Trustee  shall be one  of the Trustees  for the  sole and limited
          purpose of  fulfilling the requirements of  the Delaware Business
          Trust Act.

               Section 2.07   Authorization    to   Enter    into   Certain
          Transactions.   The  Trustees shall  conduct the  affairs  of the
          Trust  in accordance  with  the terms  of  this Trust  Agreement.
          Subject to the  limitations set  forth in paragraph  (C) of  this
          Section, and in accordance with the following provisions (A)  and
          (B),  the Trustees  shall have  the authority  to enter  into all
          transactions  and agreements  determined  by the  Trustees to  be
          appropriate in  exercising  the authority,  express  or  implied,
          otherwise  granted to  the Trustees  under this  Trust Agreement,
          and,  to  perform  all  acts in  furtherance  thereof,  including
          without limitation, the following:

                                          12
<PAGE>






               A.   As  among the  Trustees,  the  Administrative  Trustees
          shall  have the  exclusive power,  duty and  authority to  act on
          behalf of the Trust with respect to the following matters:


                    (i)       to acquire the Junior Subordinated Notes with
               the proceeds of  the sale of the Trust Securities; provided,
               however, the Administrative Trustees shall cause legal title
               to all of the Junior Subordinated Notes to be vested in, and
               the  Junior Subordinated Notes to  be held of  record in the
               name of, the Property  Trustee for the benefit of  the Trust
               and Holders of the Trust Securities;

                    (ii)      to  give  the   Depositor  and  the  Property
               Trustee  prompt  written notice  of  the  occurrence of  any
               Special Event (as defined in the Supplemental Indenture) and
               to  take any  ministerial actions  in connection  therewith;
               provided, that  the  Administrative Trustees  shall  consult
               with the Depositor and the Property Trustee before taking or
               refraining to take any  ministerial action in relation to  a
               Special Event;

                    (iii)     to establish  a record date  with respect  to
               all actions to be taken hereunder that require a record date
               be established, including for the purposes of sec 316(c)  of
               the Trust  Indenture Act and with  respect to Distributions,
               voting  rights,  redemptions,  and exchanges,  and  to issue
               relevant notices to  Holders of the  Trust Securities as  to
               such actions and applicable record dates;

                    (iv)      to bring or defend, pay, collect, compromise,
               arbitrate, resort  to  legal  action,  or  otherwise  adjust
               claims  or demands of or against the Trust ("Legal Action"),
               unless pursuant  to Section 2.07(B)(v), the Property Trustee
               has the power to bring such Legal Action;

                    (v)       to employ or  otherwise engage employees  and
               agents (who may be  designated as officers with titles)  and
               managers, contractors,  advisors,  and consultants  and  pay
               reasonable compensation for such services;

                    (vi)      to cause the Trust to comply with the Trust's
               obligations under the Trust Indenture Act;

                    (vii)     to  give  the  certificate  to  the  Property
               Trustee required by sec 314(a)(4) of the Trust Indenture Act,
               which  certificate  may be  executed  by  any Administrative
               Trustee;

                    (viii)    to take  all actions and perform  such duties
               as may  be required of the  Administrative Trustees pursuant
               to the terms of this Agreement;

                                          13
<PAGE>






                    (ix)      to take  all action that may  be necessary or
               appropriate for the preservation and the continuation of the
               Trust's  valid existence, rights,  franchises and privileges
               as a statutory business trust under the laws of the State of
               Delaware  and  of  each  other jurisdiction  in  which  such
               existence is  necessary to protect the  limited liability of
               the Holders of the  Trust Securities or to enable  the Trust
               to effect the purposes for which the Trust has been created;


                    (x)       to take  all action  necessary  to cause  all
               applicable tax returns and  tax information reports that are
               required to  be filed with respect  to the Trust  to be duly
               prepared and filed by the Administrative Trustees, on behalf
               of the Trust;

                    (xi)      to issue and sell the Trust Securities;

                    (xii)     to  cause the  Trust  to enter  into, and  to
               execute,  deliver and  perform on  behalf of the  Trust, the
               Expense  Agreement and the  Certificate Depository Agreement
               and such other agreements  as may be necessary  or desirable
               in connection with the consummation hereof;

                    (xiii)    to   assist  in   the  registration   of  the
               Preferred Securities  under the  Securities Act of  1933, as
               amended,  and under state  securities or blue  sky laws, and
               the  qualification  of  the   Trust  Agreement  as  a  trust
               indenture under the Trust Indenture Act;

                    (xiv)     to  assist in  the listing  of the  Preferred
               Securities upon  such securities  exchange  or exchanges  as
               shall be determined by the Depositor and the registration of
               the Preferred Securities under  the Securities Exchange  Act
               of 1934, as amended,  and the preparation and filing  of all
               periodic and  other reports and other  documents pursuant to
               the foregoing;

                    (xv)      to  send  notices  (other  than   notices  of
               default)   and   other  information   regarding   the  Trust
               Securities  and  the  Junior   Subordinated  Notes  to   the
               Securityholders in accordance with this Trust Agreement;

                    (xvi)     to  appoint  a  Paying Agent,  authenticating
               agent and Securities Registrar in accordance with this Trust
               Agreement;

                    (xvii)    to register transfers of the Trust Securities
               in accordance with this Trust Agreement;

                    (xviii)   to assist in, to  the extent provided in this
               Trust Agreement,  the  winding  up of  the  affairs  of  and

                                          14
<PAGE>






               termination of the Trust  and the preparation, execution and
               filing of the certificate of cancellation with the Secretary
               of State of the State of Delaware; and

                    (xix)     to   take  any   action  incidental   to  the
               foregoing as  the Administrative  Trustees may from  time to
               time  determine is  necessary,  appropriate,  convenient  or
               advisable to protect and conserve the Trust Property for the
               benefit of the Securityholders (without consideration of the
               effect of any such action on any particular Securityholder).

               B.   As among the Trustees,  the Property Trustee shall have
          the exclusive power, duty and  authority to act on behalf  of the
          Trust with respect to the following matters:

                    (i)       engage  in  such  ministerial  activities  as
               shall  be necessary  or appropriate  to effect  promptly the
               redemption of the Trust Securities to the  extent the Junior
               Subordinated Notes are redeemed or mature;

                    (ii)      upon notice  of  distribution issued  by  the
               Administrative Trustees in accordance with the terms of this
               Trust Agreement,  engage in such  ministerial activities  as
               shall  be necessary  or appropriate  to effect  promptly the
               distribution pursuant  to terms  of this Trust  Agreement of
               Junior  Subordinated  Notes to  Holders of  Trust Securities
               upon  the occurrence of a  Special Event (as  defined in the
               Supplemental Indenture);

                    (iii)     subject to the terms hereof, exercise all  of
               the  rights, powers and privileges of a holder of the Junior
               Subordinated  Notes under the Subordinated Indenture and, if
               an  Event of Default occurs and is continuing, shall enforce
               for  the benefit  of,  and subject  to  the rights  of,  the
               Holders of the Trust Securities, its rights as holder of the
               Junior Subordinated Notes under the Subordinated Indenture;

                    (iv)      take all  actions and perform such  duties as
               may   be  specifically  required  of  the  Property  Trustee
               pursuant to the terms of this Trust Agreement;

                    (v)       take any Legal Action  which arises out of or
               in  connection  with an  Event  of Default  or  the Property
               Trustee's duties and obligations under this Trust Agreement,
               the Delaware Business Trust Act or the Trust Indenture Act;

                    (vi)      the  establishment  and  maintenance  of  the
               Payment Account;

                    (vii)     the receipt of and  holding of legal title to
               the Junior Subordinated Notes as described herein;


                                          15
<PAGE>






                    (viii)    the collection of interest, principal and any
               other payments  made in  respect of the  Junior Subordinated
               Notes in the Payment Account;

                    (ix)      the  distribution  of  amounts  owed  to  the
               Securityholders in respect of the Trust Securities;

                    (x)       the sending  of notices of default  and other
               information regarding  the Trust Securities  and the  Junior
               Subordinated Notes to the Securityholders in accordance with
               this Trust Agreement;

                    (xi)      the  distribution  of the  Trust  Property in
               accordance with the terms of this Trust Agreement;

                    (xii)     as  provided in  this  Trust  Agreement,  the
               winding  up of the affairs  of and termination  of the Trust
               and the preparation, execution and filing of the certificate
               of cancellation with the Secretary of State of Delaware; and

                    (xiii)    the  taking of any  action incidental  to the
               foregoing  as  the Property  Trustee may  from time  to time
               determine is necessary, appropriate, convenient or advisable
               to protect and  conserve the Trust Property for  the benefit
               of  the Securityholders (without consideration of the effect
               of any such action on any particular Securityholder).

               C.   So long as this Trust Agreement remains in effect,  the
          Trust (or the Trustees  acting on behalf of the  Trust) shall not
          undertake  any  business,  activities  or  transaction  except as
          expressly provided herein or contemplated hereby.  In particular,
          the Trustees shall not  (i) acquire any investments or  engage in
          any activities not authorized by this Trust Agreement, (ii) sell,
          assign, transfer,  exchange, pledge, set-off or otherwise dispose
          of  any of the Trust Property or interests therein, including, to
          Securityholders, except as expressly  provided herein, (iii) take
          any action that would cause the Trust to fail or cease to qualify
          as a grantor trust for United States federal income tax purposes,
          (iv)  incur any  indebtedness  for borrowed  money,  (v) take  or
          consent to  any action that  would result in  the placement of  a
          Lien  on any  of the  Trust Property,  (vi) issue  any securities
          other than the  Trust Securities, or (vii) have any  power to, or
          agree  to any  action  by  the  Depositor  that  would  vary  the
          investment  (within the  meaning  of Treasury  Regulation Section
          301.7701-4(c)) of  the  Trust or  of  the Securityholders.    The
          Trustees  shall defend all claims  and demands of  all Persons at
          any  time claiming any Lien on any  of the Trust Property adverse
          to  the interest  of the  Trust or  the Securityholders  in their
          capacity as Securityholders.

               D.   In  connection with the issue and sale of the Preferred
          Securities, the Depositor shall have the right and responsibility

                                          16
<PAGE>






          to  assist the Trust with respect to,  or effect on behalf of the
          Trust, the following (and  any actions taken by the  Depositor in
          furtherance  of the  following prior  to the  date of  this Trust
          Agreement are hereby ratified and confirmed in all respects):

                    (i)       to prepare  for filing by the  Trust with the
               Commission a  registration statement  on Form S-3  under the
               Securities  Act of  1933,  as amended,  in  relation to  the
               Preferred Securities, including any amendments thereto;

                    (ii)      to  determine  the states  in  which to  take
               appropriate action  to qualify or  register for sale  all or
               part of  the Preferred Securities and to do any and all such
               acts, other than actions which must be taken by or on behalf
               of the Trust, and  advise the Trustees of actions  they must
               take on behalf of  the Trust, and prepare for  execution and
               filing any documents to  be executed and filed by  the Trust
               or  on behalf of the Trust, as the Depositor deems necessary
               or  advisable in order to comply with the applicable laws of
               any such States;

                    (iii)     to  prepare  for  filing   by  the  Trust  an
               application  to the  New  York Stock  Exchange or  any other
               national stock  exchange or  the NASDAQ National  Market for
               listing upon notice of issuance of any Preferred Securities;

                    (iv)      to prepare  for filing by the  Trust with the
               Commission a registration statement  on Form 8-A relating to
               the registration  of the Preferred Securities  under Section
               12(b) of the Exchange Act, including any amendments thereto;

                    (v)       to  negotiate the  terms of  the Underwriting
               Agreement providing for the sale of the Preferred Securities
               and  to   execute,  deliver  and  perform  the  Underwriting
               Agreement on behalf of the Trust; and

                    (vi)      any  other   actions  necessary,  incidental,
               appropriate or  convenient to carry out any of the foregoing
               activities.

               E.   Notwithstanding  anything herein  to the  contrary, the
          Administrative  Trustees are authorized  and directed  to conduct
          the affairs of  the Trust and  to operate the  Trust so that  the
          Trust will not be  deemed to be an "investment  company" required
          to be registered  under the  Investment Company Act  of 1940,  as
          amended, or taxed as other than a grantor trust for United States
          federal income tax purposes  and so that the Junior  Subordinated
          Notes will be treated as indebtedness of the Depositor for United
          States  federal  income tax  purposes.   In this  connection, the
          Depositor and the Administrative  Trustees are authorized to take
          any action, not inconsistent with applicable law, the Certificate
          of Trust or  this Trust Agreement, that each of the Depositor and

                                          17
<PAGE>






          the Administrative  Trustees determines  in its discretion  to be
          necessary  or desirable for such purposes, as long as such action
          does not adversely  affect the  interests of the  Holders of  the
          Preferred Securities.

               Section 2.08   Assets  of Trust.   The  assets of  the Trust
          shall consist of the Trust Property.

               Section 2.09   Title to Trust Property.   Legal title to all
          Trust  Property  shall be  vested at  all  times in  the Property
          Trustee  (in  its  capacity  as  such)  and  shall  be  held  and
          administered  by the  Property  Trustee for  the  benefit of  the
          Securityholders  and  the Trust  in  accordance  with this  Trust
          Agreement.  The right, title and interest of the Property Trustee
          to the Junior Subordinated Notes shall vest automatically in each
          Person who  may thereafter  be appointed  as Property Trustee  in
          accordance  with the terms hereof.  Such vesting and cessation of
          title shall  be effective  whether or not  conveyancing documents
          have been executed and delivered.

               Section 2.10   Mergers and Consolidations of the Trust.  The
          Trust  may not consolidate, amalgamate, merge with or into, or be
          replaced  by, or  convey,  transfer or  lease its  properties and
          assets substantially as  an entirety to any corporation  or other
          body, except as described below.  The Trust may at the request of
          the Company, with the consent  of the Administrative Trustees and
          without the  consent  of the  Holders  of the  Trust  Securities,
          consolidate,  amalgamate, merge with or into, or be replaced by a
          trust  organized as such under  the laws of  any state; provided,
          that (i) such  successor entity either (x)  expressly assumes all
          of  the  obligations  of the  Trust  with  respect  to the  Trust
          Securities or (y) substitutes  for the Preferred Securities other
          securities  having  substantially the  same  terms  as the  Trust
          Securities (herein referred to  as the "Successor Securities") so
          long  as  the Successor  Securities rank  the  same as  the Trust
          Securities  rank in  priority with  respect to  Distributions and
          payments  upon liquidation,  redemption  and otherwise,  (ii) the
          Company  expressly appoints  a trustee  of such  successor entity
          possessing  the same powers and duties as the Property Trustee as
          the holder of legal title to the Junior Subordinated Notes, (iii)
          the Preferred Securities or  any Successor Securities are listed,
          or any Successor  Securities will be listed upon  notification of
          issuance,   on  any   national  securities   exchange  or   other
          organization on  which the Preferred Securities  are then listed,
          (iv) such merger, consolidation, amalgamation or replacement does
          not cause  the  Preferred  Securities  (including  any  Successor
          Securities)  to  be  downgraded  by   any  nationally  recognized
          statistical rating organization, (v) such  merger, consolidation,
          amalgamation or replacement does not adversely affect the rights,
          preferences and privileges of the Holders of the Trust Securities
          (including  any Successor  Securities)  in any  material respect,
          (vi) such successor entity has a purpose identical to that of the

                                          18
<PAGE>






          Trust, (vii)  prior to such merger,  consolidation, amalgamation,
          or  replacement,  the  Company   has  received  an  opinion  from
          independent counsel to  the Trust experienced in  such matters to
          the effect  that (A) such merger,  consolidation, amalgamation or
          replacement does not adversely affect the rights, preferences and
          privileges  of the Holders of the Trust Securities (including any
          Successor Securities) in any  material respect, and (B) following
          such merger, consolidation,  amalgamation or replacement, neither
          the  Trust nor such successor entity will be required to register
          as an  investment company  under  the Investment  Company Act  of
          1940, and (viii) the  Company guarantees the obligations of  such
          successor entity under  the Successor Securities at  least to the
          extent provided by the Guarantee.  Notwithstanding the foregoing,
          the  Trust shall not, except with the  consent of Holders of 100%
          in  liquidation  amount  of the  Trust  Securities,  consolidate,
          amalgamate,  merge  with or  into, or  be  replaced by  any other
          entity  or permit  any other  entity to  consolidate, amalgamate,
          merge  with  or  into,  or  replace  it  if  such  consolidation,
          amalgamation, merger or replacement would cause the Trust or  the
          successor entity to be  classified as other than a  grantor trust
          for federal income tax purposes.


                                     ARTICLE III

                                   Payment Account

               Section 3.01   Payment Account.

               (a)  On or  prior to  the Issue  Date, the  Property Trustee
          shall establish the Payment Account.  The Property Trustee and an
          agent of  the Property Trustee  shall have exclusive  control and
          sole  right of withdrawal with respect to the Payment Account for
          the purpose  of  making  deposits in  and  withdrawals  from  the
          Payment Account  in accordance  with this  Trust Agreement.   All
          monies and other property  deposited or held from time to time in
          the Payment Account shall be held  by the Property Trustee in the
          Payment Account for the  exclusive benefit of the Securityholders
          and for  distribution as herein provided,  including (and subject
          to) any priority of payments provided for herein.

               (b)  The  Property  Trustee  shall  deposit  in the  Payment
          Account,  promptly upon  receipt,  all payments  of principal  or
          interest  on, and any other payments or proceeds with respect to,
          the Junior  Subordinated  Notes.   Amounts  held in  the  Payment
          Account  shall not  be invested by  the Property  Trustee pending
          distribution thereof.


                                      ARTICLE IV

                              Distributions; Redemption

                                          19
<PAGE>






               Section 4.01   Distributions.

               (a)  Distributions   on  the   Trust  Securities   shall  be
          cumulative  and accrue  from the  Issue Date  and, except  in the
          event that  the  Depositor  exercises  its right  to  extend  the
          interest  payment   period  for  the  Junior  Subordinated  Notes
          pursuant  to Section 104 of  the Supplemental Indenture, shall be
          payable quarterly in arrears  on March 31, June 30,  September 30
          and December 31 of each  year, commencing on March 31, 1996.   If
          any date  on which  Distributions  are otherwise  payable on  the
          Trust Securities is not a Business Day, then the  payment of such
          Distribution shall be made on the next succeeding day which is  a
          Business  Day  (and  without any  interest  or  other payment  in
          respect  of any such delay) except that,  if such Business Day is
          in   the  next   succeeding  calendar   year,  payment   of  such
          distribution shall be made  on the immediately preceding Business
          Day, in each case,  with the same force and effect  as if made on
          such date (each such date, a "Distribution Date").

               (b)  Distributions payable  on the Trust Securities shall be
          fixed at  a rate of 7.375% per annum of the Liquidation Amount of
          the Trust Securities.   The amount  of Distributions payable  for
          any  full  quarterly period  shall be  computed  on the  basis of
          twelve 30-day months and a 360-day year.  If the interest payment
          period for the  Junior Subordinated Notes is extended pursuant to
          Section  104  of   the  Supplemental  Indenture  (an   "Extension
          Period"), then the rate  per annum at which Distributions  on the
          Trust Securities accumulate shall be increased by an amount  such
          that the aggregate amount of Distributions that accumulate on all
          Trust Securities during any such Extension Period is equal to the
          aggregate  amount  of  interest (including  interest  payable  on
          unpaid interest at the percentage rate per annum set forth above,
          compounded  quarterly)  that accrues  during  any  such Extension
          Period on the  Junior Subordinated  Notes.  The  payment of  such
          deferred  interest,  together  with  interest  thereon,  will  be
          distributed to the Holders of the Trust Securities as received at
          the end of  any Extension  Period.  The  amount of  Distributions
          payable for any period  shall include the Additional Amounts,  if
          any.

               (c)  Distributions on the Trust Securities shall be made and
          shall be deemed  payable on  each Distribution Date  only to  the
          extent that the Trust has legally and immediately available funds
          in the Payment Account for the payment of such Distributions.

               (d)  Quarterly   payments    of   Distributions,   including
          Additional  Amounts, if  any,  on the  Trust  Securities on  each
          Distribution Date shall be payable to the Holders thereof as they
          appear on the Securities Register for the Trust Securities on the
          relevant record date, which shall be the close of business on the
          fifteenth calendar day prior to the relevant Distribution Date.


                                          20
<PAGE>






               Each Trust  Security upon registration of transfer  of or in
          exchange for or in lieu  of any other Trust Security  shall carry
          the   rights  of  Distributions   accrued  (including  Additional
          Amounts, if any) and unpaid, and  to accrue (including Additional
          Amounts,  if  any),  which  were  carried  by  such  other  Trust
          Security.

               Section 4.02   Redemption.  

               (a)  On  each Redemption  Date  with respect  to the  Junior
          Subordinated Notes, the Trust  will be required to redeem  a Like
          Amount of Trust Securities at the Redemption Price.

               (b)  Notice  of redemption  shall be  given by  the Property
          Trustee  by first-class  mail, postage  prepaid, mailed  not less
          than 30 nor  more than 60  days prior to  the Redemption Date  to
          each  Holder of Trust Securities to be redeemed, at such Holder's
          address appearing  in  the Security  Register.   All  notices  of
          redemption or liquidation shall state:

                     (i) the Redemption Date;

                    (ii) the Redemption Price;

                   (iii) the CUSIP number;

                    (iv) if less  than all the Outstanding Trust Securities
               are to  be redeemed,  the  total Liquidation  Amount of  the
               Trust Securities to be redeemed; and

                    (v)  that on  the Redemption Date the  Redemption Price
               will become due and payable upon each such Trust Security to
               be redeemed and  that interest thereon will cease  to accrue
               on and after such date.

               (c)  The Trust  Securities redeemed on each  Redemption Date
          shall  be redeemed at the Redemption Price with the proceeds from
          the  contemporaneous  redemption  of Junior  Subordinated  Notes.
          Redemptions  of  the  Trust  Securities shall  be  made  and  the
          Redemption Price shall be deemed payable  on each Redemption Date
          only  to  the  extent  that  the  Trust  has  funds  legally  and
          immediately available in  the Payment Account for the  payment of
          such Redemption Price.

               (d)  If the Property Trustee gives a notice of redemption in
          respect of any Preferred Securities, then, by 2:00 New York time,
          on the  Redemption Date, subject to Section 4.02(c), the Property
          Trustee  will, so long as  the Preferred Securities  are in book-
          entry only form, irrevocably deposit with the Clearing Agency for
          the Preferred  Securities funds sufficient to  pay the applicable
          Redemption Price.  If  the Preferred Securities are no  longer in
          book-entry only  form, the  Property Trustee, subject  to Section

                                          21
<PAGE>






          4.02(c), shall  irrevocably deposit  with the Paying  Agent funds
          sufficient to pay the  applicable Redemption Price and will  give
          the Paying  Agent irrevocable instructions to  pay the Redemption
          Price to the  Holders thereof upon  surrender of their  Preferred
          Securities   Certificates.      Notwithstanding  the   foregoing,
          Distributions  payable on or prior to the Redemption Date for any
          Trust Securities called  for redemption shall  be payable to  the
          Holders of such Trust  Securities as they appear on  the Register
          for the Trust  Securities on  the relevant record  dates for  the
          related Distribution  Dates.  If notice of  redemption shall have
          been given and funds deposited as required, then upon the date of
          such  deposit,  all  rights  of   Securityholders  holding  Trust
          Securities so called for redemption will  cease, except the right
          of  such Securityholders  to  receive the  Redemption Price,  but
          without  interest,   and  such   Securities  will  cease   to  be
          outstanding.  In the event that any date  on which any Redemption
          Price is  payable is  not  a Business  Day, then  payment of  the
          Redemption Price payable on  such date shall be made  on the next
          succeeding  day which is a Business Day (and without any interest
          or other  payment in respect of  any such delay) except  that, if
          such  Business  Day is  in  the  next succeeding  calendar  year,
          payment of such  distribution shall  be made  on the  immediately
          preceding Business Day,  in each  case, with the  same force  and
          effect as if made on such date.  In the event that payment of the
          Redemption  Price in  respect of  Trust Securities  is improperly
          withheld or  refused and not paid  either by the Trust  or by the
          Depositor pursuant to the  Guarantee, Distributions on such Trust
          Securities will  continue to accrue at the  then applicable rate,
          from such Redemption Date originally established by the Trust for
          such Preferred  Securities to the  date such Redemption  Price is
          actually paid.

               (e)  Payment of the Redemption Price on the Trust Securities
          shall be made to the recordholders thereof as they appear on  the
          Securities  Register for  the  Trust Securities  on the  relevant
          record  date, which  shall  be  the  close  of  business  on  the
          fifteenth calendar day prior to the Redemption Date.

               (f)  If less  than all the Outstanding  Trust Securities are
          to  be  redeemed  on  a  Redemption   Date,  then  the  aggregate
          Liquidation Amount  of Trust Securities  to be redeemed  shall be
          allocated  3% to the Common  Securities and 97%  to the Preferred
          Securities, with  such adjustments that each  amount so allocated
          shall be divisible  by $25.  The  particular Preferred Securities
          to be redeemed shall be  selected not more than 60 days  prior to
          the Redemption Date by the Property Trustee from the  Outstanding
          Preferred  Securities  not previously  called for  redemption, by
          such  method  as  the  Property   Trustee  shall  deem  fair  and
          appropriate  and  which  may  provide  for the  selection  for  a
          redemption  of  portions  (equal  to  $25  or  integral  multiple
          thereof) of the  Liquidation Amount of Preferred Securities  of a
          denomination  larger than  $25;  provided,  however, that  before

                                          22
<PAGE>






          undertaking redemption of the  Preferred Securities on other than
          a pro rata  basis, the  Property Trustee shall  have received  an
          Opinion of  Counsel that  the status  of the  Trust as a  grantor
          trust  for  federal income  tax purposes  would not  be adversely
          affected.    The  Property  Trustee  shall  promptly  notify  the
          Security  Registrar   in  writing  of  the  Preferred  Securities
          selected  for  redemption and,  in  the  case  of  any  Preferred
          Securities  selected  for  partial  redemption,  the  Liquidation
          Amount thereof  to be redeemed.   For all purposes of  this Trust
          Agreement, unless the context  otherwise requires, all provisions
          relating to the redemption  of Preferred Securities shall relate,
          in  the  case  of any  Preferred  Securities  redeemed  or to  be
          redeemed only in part,  to the portion of the  Liquidation Amount
          of Preferred Securities which has been or is to be redeemed.

               (g)  Subject to the foregoing provisions of Section 4.02 and
          to applicable  law (including, without limitation,  United States
          federal securities laws), the Company  or its Affiliates may,  at
          any time and  from time to  time, purchase outstanding  Preferred
          Securities by tender, in the open market or by private agreement.

               Section 4.03   Subordination of Common Securities.  

               (a)  Payment of Distributions (including Additional Amounts,
          if  applicable)  on, and  the  Redemption  Price  of,  the  Trust
          Securities,  as applicable, shall be  made pro rata  based on the
          Liquidation Amount  of the  Trust Securities; provided,  however,
          that  if on any Distribution Date or Redemption Date an Indenture
          Event  of  Default  shall have  occurred  and  be  continuing, no
          payment  of any  Distribution  (including Additional  Amounts, if
          applicable) on, or Redemption Price of,  any Common Security, and
          no other  payment on account  of the  redemption, liquidation  or
          other  acquisition of  Common  Securities, shall  be made  unless
          payment  in  full   in  cash  of   all  accumulated  and   unpaid
          Distributions  (including Additional  Amounts, if  applicable) on
          all Outstanding Preferred Securities for all distribution periods
          terminating on or prior thereto, or in the case of payment of the
          Redemption  Price the full amount of such Redemption Price on all
          Outstanding   Preferred  Securities,  shall  have  been  made  or
          provided for, and all funds immediately available to the Property
          Trustee shall first be applied to  the payment in full in cash of
          all  Distributions (including Additional  Amounts, if applicable)
          on, or  Redemption Price  of, Preferred  Securities then due  and
          payable.

               (b)  In the case of the occurrence of any Indenture Event of
          Default, the Holder of  Common Securities will be deemed  to have
          waived  any such Event of Default under the Trust Agreement until
          the  effect of all  such Events  of Default  with respect  to the
          Preferred  Securities  have  been   cured,  waived  or  otherwise
          eliminated.  Until  any such  Events of Default  under the  Trust
          Agreement  with respect to the  Preferred Securities have been so

                                          23
<PAGE>






          cured, waived or otherwise eliminated, the Property Trustee shall
          act solely on behalf  of the Holders of the  Preferred Securities
          and not the Holder of the Common Securities, and only the Holders
          of the Preferred  Securities will  have the right  to direct  the
          Property Trustee to act on their behalf.

               Section 4.04   Payment Procedures.   Payments in respect  of
          the Preferred Securities  shall be  made by check  mailed to  the
          address of  the  Person entitled  thereto as  such address  shall
          appear on the Securities Register or, if the Preferred Securities
          are held by a  Clearing Agency, such Distributions shall  be made
          to the Clearing Agency, which  shall credit the relevant Persons'
          accounts at  such Clearing Agency on  the applicable distribution
          dates.  Payments  in respect  of the Common  Securities shall  be
          made  in  such manner  as shall  be  mutually agreed  between the
          Property Trustee and the Holder of the Common Securities.

               Section 4.05   Tax Returns and Reports.   The Administrative
          Trustee(s)  shall prepare  (or  cause  to  be prepared),  at  the
          Depositor's expense,  and file  all United States  federal, state
          and  local tax and information returns and reports required to be
          filed by or in respect of the Trust.  Prior to January 31 of each
          year, the Administrative Trustee(s) shall provide or cause  to be
          provided to  each Holder  an Internal Revenue  Service Form  1099
          which will report income and OID with respect to such securities.


                                      ARTICLE V

                            Trust Securities Certificates

               Section 5.01   Initial Ownership.  Upon the formation of the
          Trust  by the contribution  by the Depositor  pursuant to Section
          2.03 and until  the issuance of the Trust  Securities, and at any
          time  during  which  no  Trust Securities  are  outstanding,  the
          Depositor shall be the sole beneficial owner of the Trust.

               Section 5.02   The Trust  Securities Certificates.   Each of
          the Preferred and Common  Securities Certificates shall be issued
          in minimum denominations of $25 and  integral multiples in excess
          thereof.  The Trust Securities Certificates shall be  executed on
          behalf of the Trust by manual  or facsimile signature of at least
          one   Administrative  Trustee.    Trust  Securities  Certificates
          bearing  the manual  or facsimile  signatures of  individuals who
          were, at the time  when such signatures shall have  been affixed,
          authorized  to  sign on  behalf of  the  Trust, shall  be validly
          issued and  entitled to  the benefits  of  this Trust  Agreement,
          notwithstanding that such  individuals or any of  them shall have
          ceased  to  be  so authorized  prior  to  the authentication  and
          delivery of  such Trust Securities  Certificates or did  not hold
          such offices at the  date of authentication and delivery  of such
          Trust  Securities   Certificates.    A  transferee   of  a  Trust

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          Securities Certificate  shall become a Securityholder,  and shall
          be  entitled to  the rights and  subject to the  obligations of a
          Securityholder  hereunder, upon  due registration  of such  Trust
          Securities  Certificate  in such  transferee's  name pursuant  to
          Section 5.04.

               Section 5.03   Authentication     of     Trust    Securities
          Certificates.   On  the Issue  Date, the  Administrative Trustees
          shall  cause  Trust  Securities  Certificates,  in  an  aggregate
          Liquidation Amount as provided  in Sections 2.04 and 2.05,  to be
          executed on behalf of  the Trust, authenticated and delivered  to
          or upon the written order of the Depositor signed by its Chairman
          of  the  Board,  its President  or  any  Vice President,  without
          further   corporate  action  by   the  Depositor,  in  authorized
          denominations.  No Trust Securities Certificate shall entitle its
          holder to any  benefit under  this Trust Agreement,  or shall  be
          valid  for any purpose, unless  there shall appear  on such Trust
          Securities   Certificate   a   certificate    of   authentication
          substantially in the form set forth in Exhibit E or Exhibit C, as
          applicable, executed  by at  least one Administrative  Trustee by
          manual signature; such authentication shall constitute conclusive
          evidence that  such Trust Securities Certificate  shall have been
          duly authenticated and delivered hereunder.  All Trust Securities
          Certificates shall be dated the date of their authentication.

               Section 5.04   Registration  of  Transfer  and  Exchange  of
          Preferred  Securities  Certificates.    The  Securities Registrar
          shall  keep  or  cause  to  be  kept,  at  the  office or  agency
          maintained  pursuant to  Section 5.08,  a Securities  Register in
          which,  subject   to  such  reasonable  regulations   as  it  may
          prescribe,  the  Securities  Registrar   shall  provide  for  the
          registration  of Preferred Securities Certificates and the Common
          Securities Certificates (subject  to Section 5.10 in the  case of
          the Common Securities Certificates) and registration of transfers
          and exchanges  of  Preferred Securities  Certificates  as  herein
          provided.  The Property Trustee  shall be the initial  Securities
          Registrar.

               Upon surrender for registration of transfer of any Preferred
          Securities  Certificate  at  the  office   or  agency  maintained
          pursuant  to Section  5.08,  the  Administrative  Trustees  shall
          execute, authenticate and  deliver in the name of  the designated
          transferee or  transferees, one or more  new Preferred Securities
          Certificates  in authorized  denominations  of a  like  aggregate
          Liquidation  Amount  dated  the  date of  authentication  by  the
          Administrative Trustee  or Trustees.    The Securities  Registrar
          shall not be required  to register the transfer of  any Preferred
          Securities that have been  called for redemption.  At  the option
          of a  Holder, Preferred Securities Certificates  may be exchanged
          for  other   Preferred  Securities  Certificates   in  authorized
          denominations   of  the  same  class  and  of  a  like  aggregate
          Liquidation  Amount upon  surrender of  the Preferred  Securities

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<PAGE>






          Certificates to  be exchanged at the office  or agency maintained
          pursuant to Section 5.08.

               Every   Preferred   Securities   Certificate  presented   or
          surrendered  for registration  of transfer  or exchange  shall be
          accompanied  by   a  written  instrument  of   transfer  in  form
          satisfactory to  the Trustees  and the Securities  Registrar duly
          executed  by  the  Holder  or his  attorney  duly  authorized  in
          writing.   Each Preferred Securities  Certificate surrendered for
          registration  of  transfer or  exchange  shall  be cancelled  and
          subsequently disposed of by  the Security Registrar in accordance
          with its customary practice.

               No  service charge  shall  be made  for any  registration of
          transfer or  exchange of  Preferred Securities  Certificates, but
          the Securities Registrar  may require payment of a sum sufficient
          to cover any  tax or governmental  charge that may be  imposed in
          connection with any transfer  or exchange of Preferred Securities
          Certificates.

               Section 5.05   Mutilated,  Destroyed,  Lost or  Stolen Trust
          Securities Certificates.   If (a) any  mutilated Trust Securities
          Certificate shall be surrendered  to the Securities Registrar, or
          if  the  Securities  Registrar  shall  receive  evidence  to  its
          satisfaction  of  the destruction,  loss  or theft  of  any Trust
          Securities Certificate  and (b) there  shall be delivered  to the
          Securities   Registrar  and  the   Administrative  Trustees  such
          security or indemnity as may be required by them to  save each of
          them  harmless, then  in the  absence of  notice that  such Trust
          Securities Certificate  shall have been  acquired by a  bona fide
          purchaser,  the  Administrative Trustees  or any  one of  them on
          behalf  of the  Trust  shall execute  and  authenticate and  make
          available for  delivery, in exchange  for or in lieu  of any such
          mutilated,   destroyed,   lost   or   stolen   Trust   Securities
          Certificate, a  new Trust  Securities Certificate of  like class,
          tenor and denomination.   In connection with the issuance  of any
          new  Trust   Securities  Certificate  under   this  Section,  the
          Administrative Trustees  or the Securities Registrar  may require
          the  payment  of a  sum  sufficient to  cover  any  tax or  other
          governmental charge that may  be imposed in connection therewith.
          Any  duplicate Trust  Securities Certificate  issued  pursuant to
          this Section shall constitute conclusive evidence of an ownership
          interest  in the Trust, as  if originally issued,  whether or not
          the lost, stolen or  destroyed Trust Securities Certificate shall
          be found at any time.

               Section 5.06   Persons Deemed Securityholders.  Prior to due
          presentation of a Trust  Securities Certificate for  registration
          of transfer, the Trustees or the Securities Registrar shall treat
          the  Person in whose name any  Trust Securities Certificate shall
          be registered in  the Securities  Register as the  owner of  such
          Trust  Securities  Certificate  for   the  purpose  of  receiving

                                          26
<PAGE>






          distributions and for all  other purposes whatsoever, and neither
          the Trustees nor the  Securities Registrar shall be bound  by any
          notice to the contrary.

               Section 5.07   Access to List  of Securityholders' Names and
          Addresses.  The Administrative Trustees shall furnish or cause to
          be  furnished to (i) the Depositor and the Property Trustee semi-
          annually, not later  than June 1 and December 1  in each year and
          (ii) the Depositor  or the Property Trustee, as the  case may be,
          within 15 days after  receipt by any Administrative Trustee  of a
          request therefor from the  Depositor or the Property Trustee,  as
          the  case  may be,  in  writing,  a list,  in  such  form as  the
          Depositor  or the  Property  Trustee, as  the  case may  be,  may
          reasonably   require,  of   the  names   and  addresses   of  the
          Securityholders as of a date  not more than 15 days prior  to the
          time such list is furnished.  If three or more Securityholders or
          one or  more Holders of Trust  Securities Certificates evidencing
          not  less than 25% of the outstanding Liquidation Amount apply in
          writing  to  the Administrative  Trustees,  and  such application
          states  that  the applicants  desire  to  communicate with  other
          Securityholders  with respect  to their  rights under  this Trust
          Agreement  or under  the Trust  Securities Certificates  and such
          application is  accompanied by a  copy of the  communication that
          such  applicants propose  to  transmit,  then the  Administrative
          Trustees shall, within  five Business Days  after the receipt  of
          such  application,  afford such  applicants access  during normal
          business hours  to  the current  list of  Securityholders.   Each
          Holder, by receiving and  holding a Trust Securities Certificate,
          shall be deemed to  have agreed not to hold  either the Depositor
          or  the  Administrative Trustees  accountable  by  reason of  the
          disclosure of its name and address, regardless of the source from
          which such information was derived.

               Section 5.08   Maintenance  of  Office   or  Agency.     The
          Administrative   Trustees  shall  maintain   in  the  Borough  of
          Manhattan, New York, an  office or offices or agency  or agencies
          where Preferred  Securities Certificates may  be surrendered  for
          registration  of  transfer  or  exchange and  where  notices  and
          demands  to  or  upon  the  Trustees  in  respect  of  the  Trust
          Securities  Certificates  may  be  served.    The  Administrative
          Trustees initially designate Chemical Bank, 450 West 33rd Street,
          New  York, New  York  10001, as  its  principal agency  for  such
          purposes.  The Administrative  Trustees shall give prompt written
          notice  to the Depositor and to the Securityholders of any change
          in the location of the Securities Register or any such office  or
          agency.

               Section 5.09   Appointment  of  Paying  Agent.    The Paying
          Agent  shall  make  distributions  to  Securityholders  from  the
          Payment   Account  and   shall   report  the   amounts  of   such
          distributions  to the  Property  Trustee and  the  Administrative
          Trustees.  Any  Paying Agent  shall have the  revocable power  to

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<PAGE>






          withdraw funds from the Payment Account for the purpose of making
          the distributions referred to above.  The Administrative Trustees
          may  revoke  such  power and  remove  the  Paying  Agent if  such
          Trustees determine in their sole discretion that the Paying Agent
          shall have failed to perform its obligations under this Agreement
          in any material respect.  The Paying Agent shall initially be the
          Property Trustee, and it  may choose any co-paying agent  that is
          acceptable to the Administrative Trustees and the Depositor.  The
          Property  Trustee shall be  permitted to  resign as  Paying Agent
          upon 30  days' written notice to the  Administrative Trustees and
          the  Depositor.  In the event  that the Property Trustee shall no
          longer  be the  Paying Agent,  the Administrative  Trustees shall
          appoint a successor that is acceptable to the Depositor to act as
          Paying  Agent (which  shall be  a bank  or trust  company).   The
          Administrative Trustees  shall cause such successor  Paying Agent
          or any  additional Paying  Agent appointed by  the Administrative
          Trustees  to execute and deliver to the Trustees an instrument in
          which  such successor  Paying  Agent or  additional Paying  Agent
          shall  agree  with  the  Trustees  that  as  Paying  Agent,  such
          successor Paying Agent or  additional Paying Agent will hold  all
          sums, if any,  held by it for  payment to the Securityholders  in
          trust  for the  benefit of  the Securityholders  entitled thereto
          until  such  sums shall  be paid  to  such Securityholders.   The
          Paying Agent  shall return  all unclaimed funds  to the  Property
          Trustee  and upon  removal of  a Paying  Agent such  Paying Agent
          shall also return  all funds  in its possession  to the  Property
          Trustee.   The provisions of  Sections 8.01, 8.03  and 8.06 shall
          apply to  the Property Trustee also in  its role as Paying Agent,
          for so  long as the  Property Trustee shall  act as Paying  Agent
          and,  to  the  extent  applicable,  to  any  other  paying  agent
          appointed  hereunder.   Any  reference in  this Agreement  to the
          Paying Agent shall include any co-paying agent unless the context
          requires otherwise.

               Section 5.10   Ownership of Common Securities  by Depositor.
          On  the Issue Date,  the Depositor shall  acquire, and thereafter
          retain, beneficial and record ownership of the Common Securities.
          Any  attempted  transfer of  the  Common  Securities, except  for
          transfers by operation of law, shall be void.  The Administrative
          Trustees shall cause each Common Securities Certificate issued to
          the Depositor  to contain a  legend stating "THIS  CERTIFICATE IS
          NOT TRANSFERABLE".

               Section 5.11   Book-Entry Preferred Securities Certificates;
          Common Securities Certificate.  

               (a)  The  Preferred  Securities Certificates,  upon original
          issuance, will be issued  in the form of a  typewritten Preferred
          Securities  Certificate  or Certificates  representing Book-Entry
          Preferred  Securities  Certificates,  to   be  delivered  to  The
          Depository  Trust Company, the initial Clearing Agency, by, or on
          behalf  of, the Trust.   Such Preferred Securities Certificate or

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<PAGE>






          Certificates  shall initially  be  registered  on the  Securities
          Register in  the name of Cede  & Co., the nominee  of the initial
          Clearing Agency, and no Owner will receive a definitive Preferred
          Securities  Certificate  representing  such   beneficial  owner's
          interest  in such  Preferred  Securities, except  as provided  in
          Section 5.13.   Unless and until  Definitive Preferred Securities
          Certificates have been issued to Owners pursuant to Section 5.13:

                    (i)       the provisions of this Section  5.11(a) shall
               be in full force and effect;

                    (ii)      the  Securities  Registrar  and the  Trustees
               shall be entitled to  deal with the Clearing Agency  for all
               purposes of this Trust  Agreement relating to the Book-Entry
               Preferred Securities Certificates (including the  payment of
               principal  of  and  interest  on  the  Book-Entry  Preferred
               Securities and  the giving of instructions  or directions to
               Owners of  Book-Entry  Preferred  Securities)  as  the  sole
               Holder of Book-Entry Preferred  Securities and shall have no
               obligations to the Owners thereof;

                    (iii)     to  the extent  that the  provisions of  this
               Section  conflict with  any other  provisions of  this Trust
               Agreement, the provisions of this Section shall control;

                    (iv)      the rights of  the Owners  of the  Book-Entry
               Preferred  Securities Certificates  shall be  exercised only
               through the Clearing  Agency and shall  be limited to  those
               established by  law and  agreements between such  Owners and
               the Clearing Agency and/or the Clearing Agency Participants.
               Pursuant to the Certificate Depository Agreement, unless and
               until  Definitive  Preferred  Securities   Certificates  are
               issued pursuant  to Section  5.13, the Clearing  Agency will
               make   book-entry  transfers   among  the   Clearing  Agency
               Participants  and  receive  and  transmit  payments  on  the
               Preferred  Securities to such  Clearing Agency Participants;
               and

                    (v)       whenever  this  Trust  Agreement requires  or
               permits  actions  to be  taken  based  upon instructions  or
               directions  of  Holders  of  Trust  Securities  Certificates
               evidencing  a   specified   percentage  of   the   aggregate
               Liquidation Amount,  the Clearing Agency shall  be deemed to
               represent such  percentage only  to the  extent that  it has
               received  instructions to  such  effect  from Owners  and/or
               Clearing   Agency   Participants  owning   or  representing,
               respectively,  such required  percentage  of the  beneficial
               interest  in   the  applicable  class  of  Trust  Securities
               Certificates and  has  delivered such  instructions  to  the
               Trustees.



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               (b)  A single Common Securities Certificate representing the
          Common Securities shall be issued to the Depositor in the form of
          a definitive Common Securities Certificate.

               Section 5.12   Notices to Clearing Agency.   To the extent a
          notice or  other communication  to the Owners  is required  under
          this  Trust  Agreement,  unless  and  until Definitive  Preferred
          Securities Certificates shall have been issued to Owners pursuant
          to Section 5.13,  the Trustees  shall give all  such notices  and
          communications specified  herein to  be  given to  Owners to  the
          Clearing Agency, and shall have no obligations to the Owners.

               Section 5.13   Definitive Preferred Securities Certificates.
          If (i) the  Depositor advises  the Trustees in  writing that  the
          Clearing  Agency  is  no  longer  willing  or  able  to  properly
          discharge  its responsibilities  with  respect to  the  Preferred
          Securities Certificates, and the Depositor  is unable to locate a
          qualified successor, or (ii) the Depositor at  its option advises
          the Trustees in  writing that  it elects to  terminate the  book-
          entry system through the Clearing Agency, then the Administrative
          Trustees  shall notify  the Clearing  Agency and  Holders of  the
          Preferred  Securities.    Upon surrender  to  the  Administrative
          Trustees of  the typewritten Preferred  Securities Certificate or
          Certificates  representing  the  Book-Entry Preferred  Securities
          Certificates  by the Clearing Agency, accompanied by registration
          instructions,  the Administrative  Trustees  or any  one of  them
          shall  execute   and   authenticate  the   Definitive   Preferred
          Securities  Certificates in accordance  with the  instructions of
          the Clearing  Agency.  Neither  the Securities Registrar  nor the
          Trustees  shall be  liable  for any  delay  in delivery  of  such
          instructions and may conclusively rely on, and shall be protected
          in  relying  on,  such  instructions.    Upon  the   issuance  of
          Definitive Preferred Securities Certificates, the  Trustees shall
          recognize  the  Holders  of the  Definitive  Preferred Securities
          Certificates  as  Securityholders.     The  Definitive  Preferred
          Securities   Certificates  shall  be   printed,  lithographed  or
          engraved or may be produced in  any other manner as is reasonably
          acceptable to  the Administrative  Trustees, as evidenced  by the
          execution thereof  by the Administrative  Trustees or any  one of
          them.

               Section 5.14   Rights  of Securityholders.   The legal title
          to  the  Trust Property  is  vested exclusively  in  the Property
          Trustee  (in its  capacity as  such) in  accordance with  Section
          2.09, and the Securityholders  shall not have any right  or title
          therein  other  than the  beneficial  ownership  interest in  the
          assets of the Trust conferred by their Trust Securities, and they
          shall have  no right  to call  for any  partition or  division of
          property,  profits  or rights  of the  Trust except  as described
          below.   The Trust Securities  shall be personal  property giving
          only  the rights specifically set forth therein and in this Trust
          Agreement.  The  Trust Securities shall have no preemptive rights

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<PAGE>






          and when issued and  delivered to Securityholders against payment
          of  the   purchase  price  therefor   will  be  fully   paid  and
          nonassessable  by the Trust.  Except as otherwise provided in the
          Expense Agreement and  Section 10.01 hereof,  the Holders of  the
          Trust  Securities shall  be  entitled to  the same  limitation of
          personal   liability   extended   to   stockholders   of  private
          corporations  for profit organized  under the General Corporation
          Law of the State of Delaware.


                                      ARTICLE VI

                      Acts of Securityholders; Meetings; Voting

               Section 6.01   Limitations on Voting Rights.  

               (a)  Except as provided in this  Section, in Section 8.10 or
          Section  10.03  of  this  Trust Agreement,  in  the  Subordinated
          Indenture,  and  as  otherwise  required  by  law,  no  Holder of
          Preferred  Securities  shall have  any right  to  vote or  in any
          manner  otherwise  control  the  administration,   operation  and
          management of the Trust or the obligations of the parties hereto,
          nor shall anything herein set forth, or contained in the terms of
          the  Trust  Securities  Certificates,   be  construed  so  as  to
          constitute  the Securityholders from time  to time as partners or
          members of an association.

               (b)  So long as  any Junior Subordinated  Notes are held  by
          the Property Trustee, the Trustees shall not (i) direct the time,
          method  and place  of conducting  any proceeding  for any  remedy
          available to the  Indenture Trustee,  or executing  any trust  or
          power conferred  on the Indenture  Trustee with  respect to  such
          Junior Subordinated Notes,  (ii) waive any past default  which is
          waivable under  Section 513 of the  Subordinated Indenture, (iii)
          exercise any right  to rescind  or annul a  declaration that  the
          principal of all the  Junior Subordinated Notes shall be  due and
          payable  or  (iv)  consent  to  any  amendment,  modification  or
          termination  of   the  Subordinated   Indenture  or   the  Junior
          Subordinated Notes, where  such consent shall be  required, or to
          any other action,  as holder  of the  Junior Subordinated  Notes,
          under  the  Subordinated  Indenture,   without,  in  each   case,
          obtaining the prior approval  of the Holders of at  least 66-2/3%
          in  Liquidation Amount  of  the  Preferred Securities;  provided,
          however, that  where a  consent under the  Subordinated Indenture
          would require the consent of  each holder of Junior  Subordinated
          Notes affected thereby,  no such  consent shall be  given by  the
          Trustees without  the prior  written consent  of  each Holder  of
          Preferred Securities.   The Trustees shall not  revoke any action
          previously authorized or  approved by  a vote of  the Holders  of
          Preferred Securities, except pursuant to a subsequent vote of the
          Holders  of Preferred  Securities.   The  Property Trustee  shall
          notify all Holders of  the Preferred Securities of any  notice of

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<PAGE>






          default received  from the Indenture Trustee with  respect to the
          Junior  Subordinated  Notes.     In  addition  to  obtaining  the
          foregoing approvals  of the Holders of  the Preferred Securities,
          prior to taking any of the foregoing actions, the Trustees shall,
          at the expense  of the  Depositor, obtain an  Opinion of  Counsel
          experienced in such matters to the effect that the Trust will not
          be classified as  other than  a grantor trust  for United  States
          federal income tax purposes on account of such action.

               (c)  If  any  proposed  amendment  to  the  Trust  Agreement
          provides for,  or the Trustees  otherwise propose to  effect, (i)
          any action that would adversely  affect the powers, references or
          special rights of  the Preferred  Securities, whether  by way  of
          amendment to  the  Trust  Agreement  or otherwise,  or  (ii)  the
          dissolution, winding-up  or termination of the  Trust, other than
          pursuant to the terms  of this Trust Agreement, then  the Holders
          of Outstanding Preferred  Securities as a class  will be entitled
          to  vote  on such  amendment or  proposal  and such  amendment or
          proposal shall not be  effective except with the approval  of the
          Holders  of  at  least  66-2/3%  in  Liquidation  Amount  of  the
          Outstanding Preferred  Securities.  In addition  to obtaining the
          foregoing approvals  of the Holders of  the Preferred Securities,
          prior to taking any of the foregoing actions, the Trustees shall,
          at the expense  of the  Depositor, obtain an  Opinion of  Counsel
          experienced in such matters to the effect that the Trust will not
          be classified as  other than  a grantor trust  for United  States
          federal income tax purposes on account of such action.

               Section 6.02   Notice of  Meetings.  Notice of  all meetings
          of  the Preferred  Securityholders, stating  the time,  place and
          purpose  of  the meeting,  shall be  given by  the Administrative
          Trustees  pursuant   to   Section   10.08   to   each   Preferred
          Securityholder  of record, at his registered address, at least 15
          days and not  more than 90 days before the meeting.   At any such
          meeting,  any business  properly  before the  meeting  may be  so
          considered  whether or not stated  in the notice  of the meeting.
          Any adjourned meeting  may be held  as adjourned without  further
          notice.

               Any  and all  notice to  which any  Preferred Securityholder
          hereunder may be entitled and any and all communications shall be
          deemed duly served or given if mailed, postage prepaid, addressed
          to  any Preferred  Securityholders of  record at  his  last known
          address as recorded on the Security Register.

               Section 6.03   Meetings  of  Preferred Securityholders.   No
          annual  meeting of Securityholders is  required to be  held.  The
          Administrative  Trustees,   however,  shall  call  a  meeting  of
          Securityholders to vote on any matter upon the written request of
          the  Preferred Securityholders of record of  25% of the Preferred
          Securities  (based   upon  their  Liquidation   Amount)  and  the
          Administrative Trustees or  the Property Trustee may, at any time

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<PAGE>






          in their discretion, call  a meeting of Preferred Securityholders
          to  vote on any matters as to the which Preferred Securityholders
          are entitled to vote.

               Preferred Securityholders of record  of 50% of the Preferred
          Securities  (based  upon  their Liquidation  Amount),  present in
          person or by proxy,  shall constitute a quorum at  any meeting of
          Securityholders.

               If a quorum is present at a  meeting, an affirmative vote by
          the Preferred  Securityholders of record present, in person or by
          proxy,  holding more  than  66-2/3% of  the Preferred  Securities
          (based  upon  their Liquidation  Amount)  held  by the  Preferred
          Securityholders of record present, either in person or  by proxy,
          at   such   meeting   shall   constitute  the   action   of   the
          Securityholders, unless  this Trust Agreement  requires a greater
          number of affirmative votes.

               Section 6.04   Voting  Rights.    Securityholders  shall  be
          entitled  to   one  vote  for  each  $25  of  Liquidation  Amount
          represented by their Trust Securities in respect of any matter as
          to which such Securityholders are entitled to vote.

               Section 6.05   Proxies,   etc.      At   any    meeting   of
          Securityholders, any Securityholder entitled  to vote may vote by
          proxy,  provided  that no  proxy shall  be  voted at  any meeting
          unless  it shall have been placed on file with the Administrative
          Trustees, or with such other officer or agent of the Trust as the
          Administrative Trustees may direct, for verification prior to the
          time at which such vote shall be taken.  Pursuant to a resolution
          of the Property Trustee, proxies may  be solicited in the name of
          the  Property Trustee  or one  or more  officers of  the Property
          Trustee.   Only Securityholders  of record shall  be entitled  to
          vote.  When Trust Securities are held jointly by several persons,
          any one of them may vote at any meeting  in person or by proxy in
          respect of such Trust  Securities, but if more  than one of  them
          shall be present at such meeting in person or by  proxy, and such
          joint owners or their proxies so present disagree  as to any vote
          to be  cast, such vote shall  not be received in  respect of such
          Trust Securities.   A proxy  purporting to be  executed by or  on
          behalf  of   a  Securityholder  shall  be   deemed  valid  unless
          challenged at or prior to its exercise, and the burden of proving
          invalidity shall rest on the challenger.

               Section 6.06   Securityholder  Action  by  Written  Consent.
          Any action which may be taken by Securityholders at a meeting may
          be taken  without a meeting  if Securityholders holding  at least
          66-2/3% of all  outstanding Trust Securities entitled  to vote in
          respect of such action (or such other proportion thereof as shall
          be required  by any express  provision of  this Trust  Agreement)
          shall  consent  to  the  action  in  writing  (based  upon  their
          Liquidation Amount).

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<PAGE>






               Section 6.07   Record  Date for  Voting and  Other Purposes.
          For  the  purposes of  determining  the  Securityholders who  are
          entitled to  notice of and to  vote at any meeting  or by written
          consent,  or  to participate  in  any distribution  on  the Trust
          Securities in respect  of which  a record date  is not  otherwise
          provided for  in this Trust Agreement, or  for the purpose of any
          other  action, the Administrative Trustees  may from time to time
          fix a  date, not  more than  90  days prior  to the  date of  any
          meeting  of Securityholders  or  the payment  of distribution  or
          other action,  as the  case  may be,  as a  record  date for  the
          determination of  the identity  of the Securityholders  of record
          for such purposes.

               Section 6.08   Acts  of  Securityholders.     Any   request,
          demand,  authorization,  direction,  notice,  consent,  waiver or
          other  action provided or permitted by this Trust Agreement to be
          given,  made or taken by  Securityholders may be  embodied in and
          evidenced  by one  or more  instruments of  substantially similar
          tenor signed by  such Securityholders  in person or  by an  agent
          appointed in writing; and, except as otherwise expressly provided
          herein, such  action shall become effective  when such instrument
          or  instruments are  delivered  to  the Administrative  Trustees.
          Such instrument  or instruments (and the  action embodied therein
          and  evidenced thereby) are  herein sometimes referred  to as the
          "Act"   of  the   Securityholders  signing  such   instrument  or
          instruments.  Proof  of execution of any such instrument  or of a
          writing  appointing any such  agent shall  be sufficient  for any
          purpose  of this  Trust Agreement and  (subject to  Section 8.01)
          conclusive  in favor  of  the Trustees,  if  made in  the  manner
          provided in this Section.

               The fact and date of the execution by any Person of any such
          instrument or writing may be proved by the affidavit of a witness
          of such execution or by a certificate of a notary public or other
          officer  authorized by  law  to take  acknowledgements of  deeds,
          certifying that the individual signing such instrument or writing
          acknowledged to him the execution thereof.  Where such  execution
          is  by a signer  acting in a  capacity other  than his individual
          capacity, such  certificate or  affidavit  shall also  constitute
          sufficient  proof of  his authority.   The fact  and date  of the
          execution  of any such instrument or writing, or the authority of
          the Person  executing the same, may  also be proved in  any other
          manner which the Trustees deems sufficient.

               The ownership of Preferred Securities shall be proved by the
          Securities Register.

               Any  request,  demand,  authorization,   direction,  notice,
          consent, waiver or other  Act of the Securityholder of  any Trust
          Security shall bind every future Securityholder of the same Trust
          Security and  the Securityholder  of every Trust  Security issued
          upon the registration of transfer thereof or in exchange therefor

                                          34
<PAGE>






          or  in lieu  thereof  in respect  of  anything done,  omitted  or
          suffered to  be done  by the  Trustees or the  Trust in  reliance
          thereon, whether or not notation of such action is made upon such
          Trust Security.

               Without  limiting the  foregoing, a  Securityholder entitled
          hereunder  to  take any  action  hereunder  with  regard  to  any
          particular Trust  Security may  do so with  regard to all  or any
          part of the  Liquidation Amount of such Trust Security  or by one
          or more duly appointed agents each of which may do so pursuant to
          such  appointment  with  regard  to  all  or  any  part  of  such
          liquidation amount.

               If any  dispute shall  arise between the  Securityholders of
          Trust Securities  and the  Administrative Trustees or  among such
          Securityholders  or Trustees  with  respect to  the authenticity,
          validity or binding nature of any request, demand, authorization,
          direction, consent, waiver or other Act of such Securityholder or
          Trustee  under this  Article VI, then  the determination  of such
          matter by the Property  Trustee shall be conclusive with  respect
          to such matter.

               Section 6.09   Inspection  of  Records.     Upon  reasonable
          notice to the Trustees, the records of the Trust shall be open to
          inspection  by Securityholders  during normal business  hours for
          any purpose reasonably related to  such Securityholder's interest
          as a Securityholder.


                                     ARTICLE VII

                    Representations and Warranties of the Trustees

               Section 7.01   Representations   and   Warranties   of   the
          Trustee.  The Bank,  the Delaware Bank, the Property  Trustee and
          the Delaware Trustee, each  on behalf of and as to itself, hereby
          represents  and warrants for the benefit of the Depositor and the
          Securityholders that:

               (a)  the Bank is a banking corporation or trust company duly
          organized,  validly existing and in good  standing under the laws
          of the State of New  York, and the Delaware Trustee is  a banking
          corporation or trust company duly organized, validly existing and
          in good standing under the laws of the State of Delaware;

               (b)  each  of  the  Bank  and  the  Delaware  Bank  has full
          corporate power,  authority and  legal right to  execute, deliver
          and perform their obligations under  this Trust Agreement and has
          taken all  necessary action to authorize  the execution, delivery
          and performance by it of this Trust Agreement;



                                          35
<PAGE>






               (c)  this Trust Agreement has been duly authorized, executed
          and  delivered by  each of  the Bank  and  the Delaware  Bank and
          constitutes the  valid and legally  binding agreement of  each of
          the  Bank  and  the  Delaware  Bank, enforceable  against  it  in
          accordance  with  its terms,  subject to  bankruptcy, insolvency,
          fraudulent transfer, reorganization, moratorium and  similar laws
          of general  applicability  relating to  or  affecting  creditors'
          rights and to general equity principles;

               (d)  the execution, delivery and  performance by each of the
          Bank and the Delaware Bank of this Trust Agreement have been duly
          authorized by all necessary  corporate action on the part  of the
          Bank,  Property  Trustee,  the  Delaware Bank  and  the  Delaware
          Trustee  and do not require  any approval of  stockholders of the
          Bank  or  the Delaware  Bank  and  such  execution, delivery  and
          performance  will  not (i)  violate  the Bank's  or  the Delaware
          Bank's Charter or By-laws, or  (ii) violate any law, governmental
          rule or  regulation of the United States or the State of New York
          or Delaware, as the case may  be, governing the banking or  trust
          powers of the Bank and the  Property Trustee or the Delaware Bank
          and  the  Delaware Trustee,  or  any  order, judgment  or  decree
          applicable to the Bank,  the Property Trustee, the  Delaware Bank
          or the Delaware Trustee; and

               (e) neither the authorization,  execution or delivery by the
          Bank  or the  Delaware  Bank of  this  Trust Agreement,  nor  the
          consummation of any of the transactions by the Bank, the Property
          Trustee,  the   Delaware  Bank   or  the  Delaware   Trustee  (as
          appropriate in  context) contemplated herein or  therein, nor the
          issuance of  the Trust  Securities Certificates pursuant  to this
          Trust Agreement require the consent or approval of, the giving of
          notice  to,  the registration  with or  the  taking of  any other
          action with respect to any governmental authority or agency under
          any  existing federal,  New York  or Delaware  law  governing the
          banking or trust powers of the Bank or the Delaware Bank.



                                     ARTICLE VIII

                                     The Trustees

               Section 8.01   Certain Duties and Responsibilities.

               (a)  The rights, duties and responsibilities of the Trustees
          shall be as provided by this Trust Agreement and, in  the case of
          the Property  Trustee, the Trust Indenture  Act.  Notwithstanding
          the foregoing, no provision of this Trust Agreement shall require
          the Trustees to expend or risk their own funds or otherwise incur
          any financial liability in the performance of any of their duties
          hereunder, or in the  exercise of any of their  rights or powers,
          if  they  shall  have   reasonable  grounds  for  believing  that

                                          36
<PAGE>






          repayment of  such funds or adequate indemnity  against such risk
          or liability is not reasonably  assured to them.  Whether  or not
          therein  expressly so  provided,  every provision  of this  Trust
          Agreement relating to the  conduct or affecting the  liability of
          or affording protection to  the Trustees shall be subject  to the
          provisions of this Section.

               (b)  All payments made by the Property Trustee in respect of
          the  Trust  Securities shall  be made  only  from the  income and
          proceeds  from the  Trust Property  and only  to the  extent that
          there  shall be  sufficient  income or  proceeds  from the  Trust
          Property  to enable  the  Property Trustee  to  make payments  in
          accordance with the  terms hereof.   Each Securityholder, by  its
          acceptance of a Trust  Security, agrees that it will  look solely
          to the income and proceeds from  the Trust Property to the extent
          available  for distribution to it as herein provided and that the
          Trustees  are  not  personally  liable   to  it  for  any  amount
          distributable in respect of  any Trust Security or for  any other
          liability in respect of any Trust Security.  This Section 8.01(b)
          does  not limit the liability of the Trustees expressly set forth
          elsewhere in this Trust Agreement or, in the case of the Property
          Trustee, in the Trust Indenture Act.

               Section 8.02   Notice of Defaults.  Within 90 days after the
          occurrence of  any default, the Property  Trustee shall transmit,
          in the manner and to the extent provided in Section 10.08, notice
          of  any   default   known  to   the  Property   Trustee  to   the
          Securityholders, the Administrative  Trustees and the  Depositor,
          unless such  default shall have  been cured or  waived.  For  the
          purpose of this Section, the term "default" means any event which
          is, or after  notice or lapse  of time or  both would become,  an
          Event of Default.

               Section 8.03   Certain  Rights of Property Trustee.  Subject
          to the provisions of Section 8.01 and except as provided by law:

               (i)  the Property Trustee may rely and shall be protected in
                    acting or refraining from acting in good faith upon any
                    resolution,  Opinion  of Counsel,  certificate, written
                    representation of a  Holder or transferee,  certificate
                    of  auditors  or   any  other  certificate,  statement,
                    instrument, opinion, report, notice,  request, consent,
                    order,  appraisal,  bond  or other  paper  or  document
                    believed by it to be genuine and to have been signed or
                    presented by the proper party or parties;

              (ii)  if  (A)  in  performing  its duties  under  this  Trust
                    Agreement the  Property Trustee  is required to  decide
                    between  alternative  courses  of  action,  or  (B)  in
                    construing  any   of  the  provisions  in   this  Trust
                    Agreement the Property Trustee finds the same ambiguous
                    or  inconsistent  with any  other  provisions contained

                                          37
<PAGE>






                    herein, or (C)  the Property Trustee  is unsure of  the
                    application of  any provision of  this Trust Agreement,
                    then, except as to any matter as to which the Preferred
                    Securityholders are entitled to vote under the terms of
                    this  Trust  Agreement,   the  Property  Trustee  shall
                    deliver a  notice to  the Depositor requesting  written
                    instructions  of  the Depositor  as  to  the course  of
                    action to  be taken.   The Property Trustee  shall take
                    such action, or refrain from taking such actions as the
                    Property  Trustee shall  be  instructed  in writing  to
                    take,  or to  refrain  from taking,  by the  Depositor;
                    provided, however, that  if the  Property Trustee  does
                    not receive such instructions  of the Depositor  within
                    ten Business  Days after it has  delivered such notice,
                    or  such reasonably shorter period of time set forth in
                    such notice (which to  the extent practicable shall not
                    be less than two  Business Days), it may, but  shall be
                    under no  duty  to, take  or refrain  from taking  such
                    action not inconsistent with this Trust Agreement as it
                    shall deem advisable and  in the best interests of  the
                    Securityholders,  in which  event the  Property Trustee
                    shall have no liability  except for its own  bad faith,
                    negligence or willful misconduct;

             (iii)  the Property  Trustee may  consult with counsel  of its
                    selection and the written advice of such counsel or any
                    Opinion  of   Counsel  shall   be  full  and   complete
                    authorization  and protection in  respect of any action
                    taken,  suffered or  omitted  by it  hereunder in  good
                    faith and in reliance thereon;

              (iv)  the Property  Trustee shall  be under no  obligation to
                    exercise  any of the rights  or powers vested  in it by
                    this Trust Agreement at the request or direction of any
                    of   the  Securityholders   pursuant   to  this   Trust
                    Agreement,  unless  such  Securityholders   shall  have
                    offered to the Property Trustee reasonable security  or
                    indemnity against  the costs, expenses  and liabilities
                    which might be  incurred by it in  compliance with such
                    request or direction;

               (v)  the Property  Trustee shall  not be bound  to make  any
                    investigation into  the facts or matters  stated in any
                    resolution,    certificate,   statement,    instrument,
                    opinion,  report,  notice,  request,   consent,  order,
                    approval, bond or  other document, unless  requested in
                    writing to do so by one or more Securityholders;

              (vi)  the Property Trustee may  execute any of the  trusts or
                    powers hereunder or perform any duties hereunder either
                    directly  or by  or  through its  agents or  attorneys,
                    provided that the Property Trustee shall be responsible

                                          38
<PAGE>






                    for its own negligence  or recklessness with respect to
                    selection  of any  agent  or attorney  appointed by  it
                    hereunder.

               Section 8.04   Not Responsible  for Recitals or  Issuance of
          Securities.   The  recitals contained  herein  and in  the  Trust
          Securities  Certificates shall be taken  as the statements of the
          Trust,  and the  Trustees do  not assume  any responsibility  for
          their correctness.  The Trustees shall not be accountable for the
          use or application  by the  Trust of  the proceeds  of the  Trust
          Securities in accordance with Section 2.05.

               The Property Trustee may  conclusively assume that any funds
          held by it hereunder  are legally available unless an  officer of
          the   Property  Trustee   assigned  to   its  Corporate   Trustee
          Administrative Department shall have received written notice from
          the Company, any Holder or any other Trustee that such  funds are
          not legally available.

               Section 8.05   May Hold Securities.   Except as provided  in
          the  definition  of the  term  "Outstanding"  in Article  I,  any
          Trustee  or any other agent of the  Trustees or the Trust, in its
          individual or any other capacity, may become the owner or pledgee
          of  Trust Securities and may  otherwise deal with  the Trust with
          the same rights  it would have if  it were not a  Trustee or such
          other agent.

               Section 8.06   Compensation; Fees; Indemnity.

               The Depositor agrees:

               (1)  to pay  to the Trustees  from time  to time  reasonable
          compensation for all services  rendered by the Trustees hereunder
          (which  compensation shall not be limited by any provision of law
          in regard to the compensation of a trustee of an express trust);

               (2)  except  as  otherwise  expressly  provided  herein,  to
          reimburse the Trustees upon  request for all reasonable expenses,
          disbursements and  advances incurred or  made by the  Trustees in
          accordance with any provision  of this Trust Agreement (including
          the reasonable compensation and the expenses and disbursements of
          their agents and counsel),  except any such expense, disbursement
          or  advance as  may be  attributable to  their negligence  or bad
          faith; and

               (3)  to indemnify the Trustees for, and to hold the Trustees
          harmless against,  any and all loss, damage, claims, liability or
          expense incurred without  negligence or bad faith  on their part,
          arising  out  of  or   in  connection  with  the   acceptance  or
          administration of  this Trust Agreement, including  the costs and
          expenses of  defending themselves against any  claim or liability


                                          39
<PAGE>






          in  connection with  the exercise  or performance  of any  of its
          powers or duties hereunder.

               The  provisions  of  this  Section 8.06  shall  survive  the
          termination of this Agreement.

               Section 8.07   Trustees Required; Eligibility.

               (a)  There  shall  at  all   times  be  a  Property  Trustee
          hereunder  with respect  to the Trust  Securities.   The Property
          Trustee shall be a Person that has a combined capital and surplus
          of at least $50,000,000.  If any such Person publishes reports of
          condition  at  least  annually,   pursuant  to  law  or   to  the
          requirements of its supervising  or examining authority, then for
          the purposes of this Section, the combined capital and surplus of
          such  Person shall  be  deemed to  be  its combined  capital  and
          surplus as set  forth in its  most recent report of  condition so
          published.  If at  any time the Property Trustee  with respect to
          the  Trust Securities  shall cease to  be eligible  in accordance
          with the  provisions of this Section, it shall resign immediately
          in the manner and  with the effect hereinafter specified  in this
          Article.

               (b)  There  shall at all times be one or more Administrative
          Trustees hereunder with  respect to the  Trust Securities.   Each
          Administrative Trustee shall be either a natural person who is at
          least 21  years of age or  a legal entity that  shall act through
          one or more persons authorized to bind such entity.

               (c)  There shall  at all  times be  a Delaware  Trustee with
          respect  to  the Trust  Securities.   The Delaware  Trustee shall
          either be (i)  a natural person who  is at least 21 years  of age
          and a  resident of the State  of Delaware or (ii)  a legal entity
          authorized to  conduct a  trust business  and with its  principal
          place of business in the State of Delaware that shall act through
          one or more persons authorized to bind such entity.

               Section 8.08   Conflicting Interests.

               If the Property Trustee  has or shall acquire  a conflicting
          interest  within the  meaning  of the  Trust  Indenture Act,  the
          Property Trustee shall either  eliminate such interest or resign,
          to  the extent and in the manner  provided by, and subject to the
          provisions of, the Trust Indenture Act and this Indenture.

               Section 8.09   Co-Trustees and Separate Trustee.

               At any time  or times, for the purpose of  meeting the legal
          requirements of the Trust Indenture Act or of any jurisdiction in
          which any part of the Trust  Property may at the time be located,
          the  Holder of  the Common  Securities  and the  Property Trustee
          shall have power  to appoint, and upon the written request of the

                                          40
<PAGE>






          Property Trustee, the Depositor shall for such purpose join  with
          the Property  Trustee in the execution,  delivery and performance
          of all instruments and agreements necessary or proper to appoint,
          one  or more Persons approved  by the Property  Trustee either to
          act as co-trustee, jointly  with the Property Trustee, of  all or
          any part of such Trust Property, or to act as separate trustee of
          any such Trust Property,  in either case with such  powers as may
          be provided in the instrument of appointment, and to vest in such
          Person or Persons in the capacity aforesaid, any property, title,
          right or power deemed necessary or desirable,subject to the other
          provisions of  this Section.   If the Depositor does  not join in
          such appointment  within 15  days after the  receipt by  it of  a
          request so  to do,  or  in case  an Event  of  Default under  the
          Subordinated  Indenture  has  occurred  and  is  continuing,  the
          Property Trustee alone shall have power to make such appointment.
          Any  co-trustee or  separate trustee  appointed pursuant  to this
          Section shall satisfy the requirements of Section 8.07.

               Should any written instrument from the Depositor be required
          by any co-trustee or separate trustee so appointed for more fully
          confirming to such co-trustee  or separate trustee such property,
          title,  right, or power, any  and all such  instruments shall, on
          request,  be   executed,  acknowledged,  and   delivered  by  the
          Depositor.

               Every co-trustee  or separate  trustee shall, to  the extent
          permitted by law, but  to such extent only, be  appointed subject
          to the following terms, namely:

                    (i)       The  Trust  Securities  shall   be  executed,
               authenticated and delivered and  all rights, powers, duties,
               and  obligations  hereunder in  respect  of  the custody  of
               securities,  cash and  other personal  property held  by, or
               required  to  be deposited  or  pledged  with, the  Trustees
               hereunder, shall be exercised, solely by the Trustees.

                    (ii)      The rights, powers,  duties, and  obligations
               hereby  conferred or  imposed upon  the Property  Trustee in
               respect of any property covered by such appointment shall be
               conferred or imposed upon and exercised  or performed by the
               Property Trustee  or by the  Property Trustee  and such  co-
               trustee or separate trustee jointly, as shall be provided in
               the   instrument  appointing  such  co-trustee  or  separate
               trustee,  except to  the extent  that under  any law  of any
               jurisdiction in which any particular act is to be performed,
               the Property Trustee shall  be incompetent or unqualified to
               perform  such  Act,  in  which event  such  rights,  powers,
               duties, and obligations shall  be exercised and performed by
               such co-trustee or separate trustee.

                    (iii)     The  Property  Trustee  at  any  time,  by an
               instrument  in  writing executed  by  it,  with the  written

                                          41
<PAGE>






               concurrence of the Depositor,  may accept the resignation of
               or remove any co-trustee or separate trustee appointed under
               this Section, and,  in case  an Event of  Default under  the
               Subordinated Indenture has  occurred and is  continuing, the
               Property Trustee shall have  power to accept the resignation
               of,  or  remove, any  such  co-trustee  or separate  trustee
               without the concurrence  of the Depositor.  Upon the written
               request of  the Property  Trustee, the Depositor  shall join
               with the  Property Trustee  in the execution,  delivery, and
               performance of  all instruments and agreements  necessary or
               proper  to  effectuate  such  resignation  or  removal.    A
               successor to any co-trustee  or separate trustee so resigned
               or removed may be  appointed in the manner provided  in this
               Section.

                    (iv)      No co-trustee or  separate trustee  hereunder
               shall  be personally liable by reason of any act or omission
               of  the   Property  Trustee,  or  any   other  such  trustee
               hereunder.

                    (v)       The Trustees shall not be liable by reason of
               any act of a co-trustee or separate trustee.

                    (vi)      Any Act of Holders  delivered to the Property
               Trustee  shall be deemed to have been delivered to each such
               co-trustee and separate trustee.

               Section 8.10   Resignation   and  Removal;   Appointment  of
          Successor.   No  resignation  or  removal  of  any  Trustee  (the
          "Relevant Trustee")  and no  appointment of a  successor Relevant
          Trustee pursuant to this Article shall become effective until the
          acceptance of  appointment by  the successor Relevant  Trustee in
          accordance with the applicable requirements of Section 8.11.

               The  Relevant  Trustee may  resign  at  any time  by  giving
          written notice thereof to the Securityholders.  If the instrument
          of acceptance by a successor Relevant Trustee required by Section
          8.11 shall not have been delivered to the Relevant Trustee within
          30  days  after the  giving of  such  notice of  resignation, the
          resigning Relevant  Trustee may  petition any court  of competent
          jurisdiction for the appointment of a successor Relevant Trustee.

               Unless an  Event  of  Default shall  have  occurred  and  be
          continuing,  the Relevant Trustee may  be removed at  any time by
          Act  of the  Holder of  the Common  Securities.   If an  Event of
          Default  shall  have occurred  and  be  continuing, the  Relevant
          Trustee may be removed at such time by Act of the Securityholders
          of a majority  in Liquidation Amount of  the Preferred Securities
          Certificates,   delivered  to  the   Relevant  Trustee   (in  its
          individual capacity and on behalf of the Trust).



                                          42
<PAGE>






               If the  Relevant Trustee shall resign, be  removed or become
          incapable of continuing to act as Trustee at a time when no Event
          of Default shall have  occurred and be continuing, the  Holder of
          the  Common  Securities,  by Act  of  the  Holder  of the  Common
          Securities  delivered  to the  retiring  Relevant  Trustee, shall
          promptly appoint  a successor  Relevant Trustee or  Trustees, and
          the retiring  Relevant Trustee  shall comply with  the applicable
          requirements  of Section  8.11.   If the  Relevant Trustee  shall
          resign,  be removed or become  incapable of continuing  to act as
          the Relevant Trustee  at a time  when an  Event of Default  shall
          have  occurred  and  be  continuing,  the  Holders  of  Preferred
          Securities,  by  Act of  the  Securityholders  of a  majority  in
          Liquidation Amount of the  Preferred Securities then  outstanding
          delivered  to  the  retiring  Relevant  Trustee,  shall  promptly
          appoint  a  successor  Relevant  Trustee  or  Trustees,  and  the
          Relevant Trustee shall comply with the applicable requirements of
          Section 8.11.  If  no successor Relevant Trustee shall  have been
          so  appointed in accordance  with this Section  8.10 and accepted
          appointment  in   the  manner  required  by   Section  8.11,  any
          Securityholder who has been  a Securityholder of Trust Securities
          for at  least six months may, on behalf of himself and all others
          similarly situated, petition any  court of competent jurisdiction
          for the appointment of a successor Relevant Trustee.

               The  retiring Relevant  Trustee  shall give  notice of  each
          resignation and  each removal of  the Relevant Trustee,  and each
          appointment of a successor Trustee to all  Securityholders in the
          manner provided in  Section 10.08  and shall give  notice to  the
          Depositor.  Each notice  shall include the name of  the successor
          Relevant Trustee and the address of its Corporate Trust Office.

               Notwithstanding the foregoing or any other provision of this
          Trust  Agreement, in the event of any Administrative Trustee or a
          Delaware  Trustee  who  is  a  natural  person  dies  or  becomes
          incompetent or incapacitated, the  vacancy created by such death,
          incompetence or incapacity may  be filled by (i)  the act of  the
          remaining  Administrative  Trustee  or  (ii)  otherwise  by   the
          Depositor (with  the successor in  each case being  an individual
          who  satisfies  the  eligibility  requirement  for Administrative
          Trustees   set   forth   in   Section   8.07).      Additionally,
          notwithstanding  the foregoing  or  any other  provision of  this
          Trust Agreement,  in the  event the Depositor  believes that  any
          Administrative Trustee has  become incompetent or  incapacitated,
          the Depositor, by notice to the remaining Trustees, may terminate
          the  status of such Person as an Administrative Trustee (in which
          case the vacancy so created will be filled in accordance with the
          preceding sentence).

               Section 8.11   Acceptance of Appointment  by Successor.   In
          case  of  the  appointment  hereunder  of  a  successor  Relevant
          Trustee, every such successor Relevant Trustee so appointed shall
          execute, acknowledge and deliver to the Trust and to the retiring

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          Relevant Trustee  an instrument  accepting such  appointment, and
          thereupon  the resignation  or removal  of the  retiring Relevant
          Trustee  shall  become  effective  and  such  successor  Relevant
          Trustee,  without  any further  act,  deed  or conveyance,  shall
          become vested with all  the rights, powers, trusts and  duties of
          the retiring  Relevant  Trustee;  but,  on  the  request  of  the
          Depositor  or  the  successor  Relevant  Trustee,  such  retiring
          Relevant Trustee shall, upon payment  of its charges, execute and
          deliver  an instrument  transferring  to such  successor Relevant
          Trustee  all  the  rights,  powers  and  trusts  of  the retiring
          Relevant Trustee and shall  duly assign, transfer and deliver  to
          such successor  Relevant Trustee all  property and money  held by
          such retiring Relevant Trustee hereunder.

               Upon  request of  any such  successor Relevant  Trustee, the
          Trust  shall execute any and  all instruments for  more fully and
          certainly vesting  in and  confirming to such  successor Relevant
          Trustee all such  rights, powers  and trusts referred  to in  the
          preceding paragraph.

               No  successor Relevant Trustee  shall accept its appointment
          unless at the  time of  such acceptance  such successor  Relevant
          Trustee shall be qualified and eligible under this Article.

               Section 8.12   Merger,    Conversion,    Consolidation    or
          Succession to Business.  Any corporation or other body into which
          the  Property  Trustee,  Delaware Trustee  or  any Administrative
          Trustee which is not a natural person may be merged  or converted
          or with which it may be consolidated, or any corporation or other
          body resulting  from any  merger, conversion or  consolidation to
          which  such Relevant Trustee shall be a party, or any corporation
          or  other  body  succeeding  to  all  or  substantially  all  the
          corporate trust business  of such Relevant Trustee, shall  be the
          successor  of such  Relevant  Trustee  hereunder,  provided  such
          corporation shall be otherwise  qualified and eligible under this
          Article,  without the  execution or  filing of  any paper  or any
          further act on the part of any of the parties hereto.

               Section 8.13   Preferential  Collection  of  Claims  Against
          Depositor or Trust.  If and when the Property Trustee shall be or
          become a  creditor of  the Depositor or  the Trust (or  any other
          obligor  upon   the  Junior  Subordinated  Notes   or  the  Trust
          Securities),  the  Property  Trustee  shall  be  subject  to  the
          provisions of the Trust Indenture Act regarding the collection of
          claims  against  the  Depositor  or  Trust  (or  any  such  other
          obligor).  For purposes of Section 311(b)(4) and (6) of the Trust
          Indenture Act:

               (a)  "cash transaction" means any transaction in  which full
          payment  for goods or securities  sold is made  within seven days
          after  delivery  of the  goods or  securities  in currency  or in


                                          44
<PAGE>






          checks  or other orders drawn  upon banks or  bankers and payable
          upon demand; and

               (b)  "self-liquidating  paper"  means  any  draft,  bill  of
          exchange,  acceptance  or   obligation  which  is  made,   drawn,
          negotiated or incurred by the Depositor or the Trust (or any such
          obligor) for  the purpose of financing  the purchase, processing,
          manufacturing,  shipment,  storage or  sale  of  goods, wares  or
          merchandise and  which is  secured by documents  evidencing title
          to,   possession  of,  or  a  lien  upon,  the  goods,  wares  or
          merchandise or  the receivables or proceeds arising from the sale
          of the  goods, wares  or merchandise previously  constituting the
          security,  provided  the security  is  received  by the  Property
          Trustee   simultaneously  with  the   creation  of  the  creditor
          relationship with  the  Depositor  or  the  Trust  (or  any  such
          obligor)  arising  from  the  making,  drawing,  negotiating   or
          incurring  of   the  draft,  bill  of   exchange,  acceptance  or
          obligation.

               Section 8.14   Reports by Property Trustee.  

               (a)  Within 60 days  after May  15 of  each year  commencing
          with  May 15, 1996,  if required by  Section 313(a) of  the Trust
          Indenture Act, the Property Trustee shall transmit a brief report
          dated  as  of such  May  15 with  respect  to any  of  the events
          specified in such Section 313(a) that may have occurred since the
          later of the date of this Agreement or the preceding May 15.

               (b)  The Property Trustee  shall transmit to Securityholders
          the reports required by Section 313(b) of the Trust Indenture Act
          at the times specified therein.

               (c)  Reports pursuant to  this Section shall be  transmitted
          in the manner and to the persons required by Sections 313(c)  and
          (d) of the Trust Indenture Act.

               Section 8.15   Reports  to  the   Property  Trustee.     The
          Depositor and  the Administrative Trustees on behalf of the Trust
          shall provide to the Property Trustee such documents, reports and
          information as required by  Section 314 (if any) and,  within 120
          days   after  the  end  of  each   fiscal  year,  the  compliance
          certificate required by Section  314(a)(4) of the Trust Indenture
          Act in the form and in the  manner required by Section 314 of the
          Trust Indenture Act.

               Section 8.16   Evidence   of   Compliance  with   Conditions
          Precedent.   Each of Depositor and the Administrative Trustees on
          behalf  of the Trust shall  provide to the  Property Trustee such
          evidence  of compliance  with any  conditions precedent,  if any,
          provided for in  this Trust Agreement  that relate to any  of the
          matters set forth in  Section 314(c) of the Trust  Indenture Act.
          Any  certificate  or opinion  required  to be  given  pursuant to

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<PAGE>






          Section 314(c)(1) of  the Trust Indenture  Act shall comply  with
          Section 314(e) of the Trust Indenture Act.

               Section 8.17   Number of Trustees.

               (a)  The  number   of  Trustees  shall  initially  be  four,
          provided that  Depositor, by  written instrument may  increase or
          decrease the number of Administrative Trustees.

               (b)  If a Trustee ceases  to hold office for any  reason and
          the number  of Administrative Trustees is not reduced pursuant to
          Section  8.17(a),  or if  the  number  of Trustees  is  increased
          pursuant  to Section 8.17(a), a vacancy shall occur.  The vacancy
          shall  be filled  with  a Trustee  appointed  in accordance  with
          Section 8.10.

               (c)  The    death,    resignation,   retirement,    removal,
          bankruptcy, incompetence or incapacity to perform the duties of a
          Trustee shall not operate to annul the Trust.  Whenever a vacancy
          in the  number of Administrative Trustees shall occur, until such
          vacancy is filled by the appointment of an Administrative Trustee
          in accordance  with Section 8.10, the  Administrative Trustees in
          office, regardless of their number (and notwithstanding any other
          provision  of this Agreement),  shall have all  powers granted to
          the  Administrative  Trustees  and  shall  discharge  the  duties
          imposed upon the Administrative Trustees by this Trust Agreement.

               Section 8.18   Delegation of Power.

               (a)  Any Administrative  Trustee, may, by  power of attorney
          consistent  with applicable  law, delegate  to any  other natural
          person  over the age of  21 his or  her power for  the purpose of
          executing   any  documents   contemplated  in   Section  2.07(A),
          including any registration statement  or amendment thereto  filed
          with the Commission, or making any other governmental filing; and

               (b)  The  Administrative  Trustees   shall  have  power   to
          delegate from time  to time to such of their  number the doing of
          such things and the  execution of such instruments either  in the
          name  of the Trust or the names of the Administrative Trustees or
          otherwise as  the Administrative Trustees may  deem expedient, to
          the extent such delegation is not prohibited by applicable law or
          contrary to the provisions of the Trust, as set forth herein.

               Section 8.19   Enforcement of Rights of Property  Trustee by
          Securityholders.   If (i) the Trust fails to pay distributions in
          full  on the  Preferred Securities  for more than  20 consecutive
          quarterly  distribution  periods, or  (ii)  an  Event of  Default
          occurs  and   is  continuing,  then  the   Holders  of  Preferred
          Securities  will rely on the enforcement  by the Property Trustee
          of its  rights against the  Company as the  holder of the  Junior
          Subordinated  Notes.  In addition,  the Holders of  a majority in

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<PAGE>






          aggregate  liquidation amount  of the  Preferred Securities  will
          have  the  right  to  direct  the  time,  method,  and  place  of
          conducting  any  proceeding  for  any  remedy  available  to  the
          Property Trustee or to direct the  exercise of any trust or power
          conferred upon  the Property  Trustee under the  Trust Agreement,
          including  the right to  direct the Property  Trustee to exercise
          the   remedies  available  to  it  as  a  holder  of  the  Junior
          Subordinated Notes, provided that such  direction shall not be in
          conflict with any  rule of law or with this  Trust Agreement, and
          could not  involve the Property Trustee in  personal liability in
          circumstances where reasonable  indemnity would not  be adequate.
          If the Property  Trustee fails  to enforce its  rights under  the
          Junior Subordinated Notes, a  Holder of Preferred Securities may,
          to  the extent  permitted  by applicable  law, institute  a legal
          proceeding against the  Company to enforce its rights  under this
          Trust Agreement  without first instituting  any legal  proceeding
          against  the Property  Trustee  or any  other  person or  entity,
          including the Trust; it being understood and intended that no one
          or  more of  such Holders  shall  have any  right  in any  manner
          whatsoever by virtue of, or by availing of, any provision of this
          Trust Agreement to affect, disturb or prejudice the rights of any
          other of such Holders or to obtain or to seek  to obtain priority
          or preference over any  other of such  Holders or to enforce  any
          right under  this Trust  Agreement, except in  the manner  herein
          provided  and for  the  equal and  ratable  benefit of  all  such
          Holders.


                                      ARTICLE IX

                             Termination and Liquidation

               Section 9.01   Termination Upon Expiration Date.   The Trust
          shall automatically terminate on  April 30, 2026 (the "Expiration
          Date") or earlier pursuant to Section 9.02.

               Section 9.02   Early Termination.   Upon the  first to occur
          of  any of the following events (such first occurrence, an "Early
          Termination Event"), the Trust  shall be dissolved and terminated
          in accordance with the terms hereof:

                    (i)       the   occurrence   of  a   Bankruptcy  Event,
               dissolution or liquidation of, in respect of, the Depositor,
               or the dissolution of the Trust pursuant to judicial decree;

                    (ii)      the occurrence of a Special Event (as defined
               in  the  Supplemental Indenture)  and  the  election of  the
               Depositor to distribute the Junior Subordinated Notes to the
               Preferred Securityholders; provided, however, that if at the
               time  there is  available  to the  Trust the  opportunity to
               eliminate  the  Special  Event  within  90  days  after  the
               occurrence thereof  by taking some ministerial  action, such

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<PAGE>






               as filing a form or making an election, or using some  other
               reasonable measure,  which would  have no adverse  effect on
               the Trust, the Depositor or  the Holders, the Trust (through
               the Administrative  Trustees) will  pursue  such measure  in
               lieu of redemption or dissolution; and

                    (iii)     the payment at maturity or redemption  of all
               of the Junior Subordinated Notes, and the consequent payment
               of the Preferred Securities.

               Section 9.03   Termination.  The respective  obligations and
          responsibilities  of the  Trust and  the Trustees  created hereby
          shall terminate upon the latest  to occur of the following:   (a)
          the distribution by the  Property Trustee to Securityholders upon
          the liquidation of the Trust or upon the redemption of all of the
          Trust  Securities pursuant  to Section  4.02, of  all  amounts or
          instruments required  to be distributed hereunder  upon the final
          payment  of the Trust Securities; (b) the payment of any expenses
          owed  by the Trust; and  (c) the discharge  of all administrative
          duties of  the Administrative Trustees, including the performance
          of any tax reporting obligations with respect to the Trust or the
          Securityholders.

               Section 9.04   Liquidation.  

               (a)  If any Early Termination Event specified in clause (ii)
          of Section 9.02 occurs, the  Junior Subordinated Notes shall  not
          be distributed  unless prior thereto, the  Property Trustee shall
          have received an Opinion  of Counsel experienced in such  matters
          to the  effect that  the Holders will  not recognize any  gain or
          loss for United States federal income tax purposes as a result of
          such dissolution and distribution of Junior Subordinated Notes.

               (b)  In  connection   with  a  distribution  of  the  Junior
          Subordinated  Notes, each  Holder  of Trust  Securities shall  be
          entitled to receive, after the  satisfaction of creditors of  the
          Trust  (as  evidenced  by  a certificate  of  the  Administrative
          Trustees), a Like Amount of Junior Subordinated Notes.  Notice of
          liquidation shall be  given by the Trustees  by first-class mail,
          postage prepaid, mailed not  later than 30 nor more  than 60 days
          prior  to the Liquidation Date to each Holder of Trust Securities
          at such Holder's address appearing in the Security Register.  All
          notices of liquidation shall:

                    (i)       state the Liquidation Date;

                    (ii)      state  that from  and  after the  Liquidation
               Date,  the Trust Securities will  no longer be  deemed to be
               outstanding   and  any  Trust  Securities  Certificates  not
               surrendered for exchange will be deemed to represent  a Like
               Amount of Junior Subordinated Notes; and


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<PAGE>






                    (iii)     provide  such information with respect to the
               mechanics  by which  Holders  may exchange  Trust Securities
               Certificates for Junior Subordinated Notes.

               (c)  In order  to effect the  liquidation of  the Trust  and
          distribution of the Junior Subordinated Notes to Securityholders,
          the  Property  Trustee shall  establish  a record  date  for such
          distribution (which shall be not more  than 45 days prior to  the
          Liquidation Date) and, either itself acting as  exchange agent or
          through  the  appointment of  a  separate  exchange agent,  shall
          establish such  procedures as it shall deem appropriate to affect
          the distribution of Junior Subordinated Notes in exchange for the
          Outstanding Trust Securities Certificates.

               (d)  After the  Liquidation Date,  (i) the  Trust Securities
          will no  longer be  deemed to  be Outstanding, (ii)  certificates
          representing a Like  Amount of Junior Subordinated  Notes will be
          issued  to  Holders   of  Trust  Securities   Certificates,  upon
          surrender of such certificates  to the Administrative Trustees or
          their agent for exchange, (iii) any Trust Securities Certificates
          not so surrendered  for exchange  will be deemed  to represent  a
          Like Amount  of Junior  Subordinated Notes, accruing  interest at
          the rate provided for  in the Junior Subordinated Notes  from the
          last Distribution Date on  which a Distribution was made  on such
          Trust Certificates  until such  certificates  are so  surrendered
          (and until such  certificates are so surrendered,  no payments of
          interest or principal will be made to Holders of Trust Securities
          Certificates with respect to  such Junior Subordinated Notes) and
          (iv) all rights of  Securityholders holding Trust Securities will
          cease, except the right of such Securityholders to receive Junior
          Subordinated   Notes   upon   surrender   of   Trust   Securities
          Certificates.

               (e)  The Depositor  will use  its best  efforts to have  the
          Junior Subordinated  Notes that  are distributed in  exchange for
          the Preferred Securities to be listed on such securities exchange
          as the Preferred Securities  are then listed.  The  Depositor may
          elect to  have the Junior Subordinated Notes issued in book-entry
          form  to the  Clearing  Agency  or  its  nominee  pursuant  to  a
          Certificate  Depository  Agreement substantially  in the  form of
          Exhibit B.

               Section 9.05   Bankruptcy.   If  an early  termination event
          specified in clause (i)  of Section 9.02 has occurred,  the Trust
          shall  be liquidated.  The Property Trustee shall, subject to the
          receipt  of an  Opinion of  Counsel to  the  effect set  forth in
          Section 9.04(a), distribute the  Junior Subordinated Notes to the
          Securityholders  as  provided  in   Section  9.04,  unless   such
          distribution is determined by  the Administrative Trustees not to
          be  practical, in  which event  the Holders  will be  entitled to
          receive out of the assets of the Trust available for distribution
          to   Securityholders,  after   satisfaction  of   liabilities  to

                                          49
<PAGE>






          creditors, an amount  equal to the  Liquidation Amount per  Trust
          Security  plus accrued  and unpaid  Distributions thereon  to the
          date   of   payment   (such   amount   being   the   "Liquidation
          Distribution").   If  such Liquidation  Distribution can  be paid
          only in part because the Trust has insufficient  assets available
          to  pay in  full  the aggregate  Liquidation Distribution,  then,
          subject  to the next succeeding  sentence, the amounts payable by
          the Trust  on the Trust  Securities shall be  paid on a  pro rata
          basis (based upon Liquidation Amounts).  The Holder of the Common
          Securities will be entitled  to receive Liquidation Distributions
          upon  any such  dissolution, winding-up  or termination  pro rata
          (determined as aforesaid)  with Holders of Preferred  Securities,
          except  that,  if  an  Event  of  Default  has  occurred  and  is
          continuing, the  Preferred Securities shall have  a priority over
          the Common Securities.


                                      ARTICLE X

                               Miscellaneous Provisions

               Section 10.01  Guarantee by  the Depositor.  Subject  to the
          terms  and  conditions  hereof,  the  Depositor  irrevocably  and
          unconditionally guarantees to  each person or entity to  whom the
          Trust  is  now or  hereafter  becomes  indebted  or  liable  (the
          "Beneficiaries")  the full payment, when  and as due,  of any and
          all Obligations (as hereinafter  defined) to such  Beneficiaries.
          As used herein, "Obligations" means any indebtedness, expenses or
          liabilities  of the Trust, other than obligations of the Trust to
          pay  to Holders  of  any Preferred  Securities  or other  similar
          interests in the Trust  the amounts due such holders  pursuant to
          the  terms of  the  Preferred Securities  or  such other  similar
          interests, as  the case may be.  This guarantee is intended to be
          for  the  benefit,  of,  and  to  be  enforceable  by,  all  such
          Beneficiaries,  whether or not  such Beneficiaries  have received
          notice hereof.

               Section 10.02  Limitation of Rights of Securityholders.  The
          death or incapacity of any  person having an interest, beneficial
          or  otherwise, in a Trust Security shall not operate to terminate
          this Trust  Agreement, nor  entitle the legal  representatives or
          heirs  of such person or  any Securityholder for  such person, to
          claim an accounting, take  any action or bring any  proceeding in
          and  for   a  partition  or   winding  up  of   the  arrangements
          contemplated hereby, nor otherwise affect the rights, obligations
          and liabilities of the parties hereto or any of them.

               Section 10.03  Amendment.  

               (a)  This  Trust Agreement may be amended  from time to time
          by the Trustees  and the  Depositor, without the  consent of  any
          Securityholders, (i) to cure any ambiguity, correct or supplement

                                          50
<PAGE>






          any provision herein  or therein which  may be inconsistent  with
          any  other  provision herein  or therein,  or  to make  any other
          provisions  with respect  to matters  or questions  arising under
          this Trust Agreement,  which shall not  be inconsistent with  the
          other provisions of this Trust Agreement, provided, however, that
          any such  amendment shall  not adversely affect  in any  material
          respect the interests  of any Securityholder  or (ii) to  modify,
          eliminate or add  to any  provisions of this  Trust Agreement  to
          such extent as  shall be necessary to ensure that  the Trust will
          not be classified as other than a grantor trust for United States
          federal income tax purposes at any time that any Trust Securities
          are outstanding; provided,  however, that, except in  the case of
          clause  (ii),  such  action shall  not  adversely  affect in  any
          material respect the interests of any Securityholder and,  in the
          case  of clause (i), any amendments of this Trust Agreement shall
          become   effective  when   notice   thereof  is   given  to   the
          Securityholders.

               (b)  Except  as  provided in  Section  10.03(c)  hereof, any
          provision in this Trust Agreement may  be amended by the Trust or
          the  Trustees  with  (i)  the consent  of  Trust  Securityholders
          representing  not  less  than  66-2/3%  (based  upon  Liquidation
          Amounts)  of  the  Trust  Securities then  Outstanding  and  (ii)
          receipt by  the Trustees of an  Opinion of Counsel  to the effect
          that  such amendment or the exercise of  any power granted to the
          Trustees in  accordance with such  amendment will not  affect the
          Trust's status  as  a grantor  trust  for United  States  federal
          income  tax purposes or the  Trust's exemption from  status of an
          "investment company" under the Investment Company Act of 1940, as
          amended.

               (c)  In  addition to and notwithstanding any other provision
          in this  Trust Agreement,  without the consent  of each  affected
          Securityholder (such  consent being  obtained in accordance  with
          Section 6.03 or  6.06 hereof),  this Trust Agreement  may not  be
          amended to (i) change the amount or timing of any Distribution on
          the Trust Securities or otherwise adversely affect the amount  of
          any  Distribution required  to be  made in  respect of  the Trust
          Securities as  of a specified date, (ii)  restrict the right of a
          Securityholder to institute suit for the  enforcement of any such
          payment  on or  after  such date,  or  (iii) change  the  consent
          required pursuant to Section 10.03.

               (d)  Notwithstanding  any  other  provisions of  this  Trust
          Agreement,  the Trustees shall not  enter into or  consent to any
          amendment  to this Trust Agreement which would cause the Trust to
          fail or  cease to  qualify for  the exemption  from status of  an
          "investment company" under the Investment Company Act of 1940, as
          amended, afforded by Rule 3a-5 thereunder.

               (e)  Without  the  consent  of  the  Depositor,  this  Trust
          Agreement  may not  be  amended in  a  manner which  imposes  any

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<PAGE>






          additional  obligation  on  the  Depositor.    In  executing  any
          amendment permitted  by this Trust Agreement,  the Trustees shall
          be  entitled to receive, and  (subject to Section  8.01) shall be
          fully protected in  relying upon  an Opinion  of Counsel  stating
          that  the execution of such amendment  is authorized or permitted
          by  this Trust  Agreement.  The  Trustees may,  but shall  not be
          obligated to,  enter into  any such supplemental  indenture which
          affects  the   Trustee's  own   rights,  duties,   immunities  or
          liabilities under this Trust Agreement or otherwise.

               (f)  In the event that any amendment to this Trust Agreement
          is made,  the Administrative  Trustees shall promptly  provide to
          the Depositor a copy of such amendment.

               Section 10.04  Separability.  In case  any provision in this
          Trust Agreement or  in the Trust Securities Certificates shall be
          invalid,  illegal or  unenforceable, the  validity, legality  and
          enforceability of the remaining provisions  shall not in any  way
          be affected or impaired thereby.

               Section 10.05  Governing Law.  THIS TRUST AGREEMENT  AND THE
          RIGHTS AND OBLIGATIONS OF EACH OF  THE SECURITYHOLDERS, THE TRUST
          AND THE TRUSTEES  WITH RESPECT  TO THIS TRUST  AGREEMENT AND  THE
          TRUST  SECURITIES  SHALL  BE  CONSTRUED IN  ACCORDANCE  WITH  AND
          GOVERNED BY THE LAWS  OF THE STATE OF DELAWARE; PROVIDED THAT THE
          IMMUNITIES  AND STANDARD OF CARE OF THE PROPERTY TRUSTEE SHALL BE
          GOVERNED BY NEW YORK LAW.

               Section 10.06  Successors.   This  Trust Agreement  shall be
          binding upon and shall inure to  the benefit of any successor  to
          both  the  Trust and  the  Trustees, including  any  successor by
          operation of law.

               Section 10.07  Headings.  The  Article and Section  headings
          are for convenience only and shall not affect the construction of
          this Trust Agreement.

               Section 10.08  Notice  and Demand.   Any  notice, demand  or
          other  communication  which  by   any  provision  of  this  Trust
          Agreement  is required or permitted  to be given  or served to or
          upon any Securityholder or  the Depositor may be given  or served
          in writing  by deposit  thereof, postage prepaid,  in the  United
          States  mail, hand  delivery or  facsimile transmission,  in each
          case, addressed, (i)  in the case of  a Preferred Securityholder,
          to such  Preferred Securityholder  as such  Securityholder's name
          and address appear  on the  Securities Register and  (ii) in  the
          case of  the Common Securityholder  or the Depositor,  to Alabama
          Power Company, 600 North 18th Street, Birmingham, Alabama  35291,
          Attention: Treasurer,  Facsimile No. (205) 250-2445,  with a copy
          to  the Assistant Secretary, Facsimile No.  (770) 821-2894.  Such
          notice, demand or other communication to or upon a Securityholder


                                          52
<PAGE>






          shall be deemed to have been sufficiently given or made, for  all
          purposes, upon hand delivery, mailing or transmission.

               Any  notice,  demand or  other  communication  which by  any
          provision  of this Trust Agreement is required or permitted to be
          given  or served to  or upon the  Trust or the  Trustees shall be
          given in writing addressed (until another address is published by
          the Trust) as  follows:  (i) with respect to the Property Trustee
          and  the Delaware Trustee,  Chemical Bank, 450  West 33rd Street,
          New  York,   New  York,   10001,  Attention:   Corporate  Trustee
          Administration  Department; Chemical  Bank Delaware,  1201 Market
          Street,  Wilmington, Delaware  19801, Attention:  Corporate Trust
          Department, as  the case  may be;  and (ii) with  respect to  the
          Administrative Trustees, to them at the address above for notices
          to the  Depositor, marked  Attention: Administrative  Trustees of
          Alabama Power Capital Trust I c/o Treasurer.  Such notice, demand
          or other communication to or upon the Trust or the Trustees shall
          be  deemed  to have  been sufficiently  given  or made  only upon
          actual receipt of the writing by the applicable Trustee.

               Section 10.09  Agreement  Not  to  Petition.    Each of  the
          Trustees  and  the  Depositor  agrees  for  the  benefit  of  the
          Securityholders that, until at  least one year and one  day after
          the Trust has been  terminated in accordance with Article  IX, it
          shall not file, or join in the filing of, a  petition against the
          Trust   under   any   bankruptcy,  reorganization,   arrangement,
          insolvency, liquidation  or other similar law (including, without
          limitation,  the  United States  Bankruptcy  Code) (collectively,
          "Bankruptcy Laws") or otherwise  join in the commencement of  any
          proceeding  against the Trust under  any Bankruptcy Law.   In the
          event the Depositor  takes action  in violation  of this  Section
          10.09,  the   Property  Trustee   agrees,  for  the   benefit  of
          Securityholders, that it shall file an answer with the bankruptcy
          court  or otherwise properly contest  the filing of such petition
          by  the Depositor against the  Trust or the  commencement of such
          action and raise  the defense  that the Depositor  has agreed  in
          writing  not  to  take such  action  and  should  be stopped  and
          precluded therefrom and such  other defenses, if any, as  counsel
          for the Trustees or the Trust may assert.  The provisions of this
          Section  10.09  shall  survive  the  termination  of  this  Trust
          Agreement.

               Section 10.10  Conflict with Trust Indenture Act.

               (a)  This Trust  Agreement is  subject to the  provisions of
          the Trust  Indenture Act  that are  required to be  part of  this
          Trustee  Agreement  and  shall,  to  the  extent  applicable,  be
          governed by such provisions.

               (b)  The Property Trustee shall be the only Trustee which is
          a Trustee for the purposes of the Trust Indenture Act.


                                          53
<PAGE>






               (c)  If any provision hereof  limits, qualifies or conflicts
          with another provision hereof which is required to be included in
          this  Trust Agreement  by  any of  the  provisions of  the  Trust
          Indenture Act, such required provision shall control.

               (d)  The  application of  the  Trust Indenture  Act to  this
          Trust  Agreement  shall  not  affect  the  nature  of  the  Trust
          Securities  as equity  securities representing  interests in  the
          Trust.

          THE  RECEIPT AND ACCEPTANCE OF  A TRUST SECURITY  OR ANY INTEREST
          THEREIN BY OR  ON BEHALF  OF A SECURITYHOLDER  OR ANY  BENEFICIAL
          OWNER, WITHOUT ANY SIGNATURE  OR FURTHER MANIFESTATION OF ASSENT,
          SHALL   CONSTITUTE   THE    UNCONDITIONAL   ACCEPTANCE   BY   THE
          SECURITYHOLDER  AND ALL  OTHERS HAVING  A BENEFICIAL  INTEREST IN
          SUCH TRUST SECURITY OF ALL THE TERMS AND PROVISIONS OF THIS TRUST
          AGREEMENT AND THE AGREEMENT OF THE TRUST, SUCH SECURITYHOLDER AND
          SUCH  OTHERS THAT THOSE  TERMS AND  PROVISIONS SHALL  BE BINDING,
          OPERATIVE   AND  EFFECTIVE   AS  BETWEEN   THE  TRUST   AND  SUCH
          SECURITYHOLDER AND SUCH OTHERS.

































                                          54
<PAGE>






               IN WITNESS  WHEREOF, the  parties hereto have  executed this
          Trust  Agreement or  have  caused  this  Trust  Agreement  to  be
          executed on  their behalf, all as of the day and year first above
          written.


                                        ALABAMA POWER COMPANY


                                        By:                                
                                             Art P. Beattie
                                             Its  Vice President, Secretary
                                                  and Treasurer


                                        CHEMICAL BANK,
                                             as Property Trustee


                                        By:                                
                                        Title:                             


                                        CHEMICAL BANK DELAWARE,
                                             as Delaware Trustee


                                        By:                                
                                        Title:                             



                                                                           
                                        WILLIAM E. ZALES, JR.,
                                        as Administrative Trustee



                                                                           
                                        J. RANDY DERIEUX,
                                        as Administrative Trustee












                                          55
<PAGE>






                                                                  EXHIBIT A

                            RESTATED CERTIFICATE OF TRUST
                                          OF
                            ALABAMA POWER CAPITAL TRUST I


               THIS RESTATED CERTIFICATE OF  TRUST of Alabama Power Capital
          Trust  I  (the  "Trust"),  a business  trust  under  the Delaware
          Business  Trust Act  (12 Del.  C. Section  3801, et  seq.), dated
          January  ___, 1996,  is  being duly  executed  and filed  by  the
          undersigned, as trustees of  the Trust, to amend and  restate the
          original Certificate of Trust of the Trust.

               1.   Name.   The  name of  the  business trust  being formed
          hereby is Alabama Power Capital Trust I.

               2.   Original  Certificate.  The original Certificate of the
          Trust was filed on November 8, 1995.

               3.   Delaware Trustee.  The name and business address of the
          trustee of  the Trust with  a principal place of  business in the
          State of Delaware is Chemical Bank Delaware, 1201  Market Street,
          Wilmington, Delaware 19801.

               4.   Effective  Date.   This  Restated Certificate  of Trust
          shall be effective as of its filing.

               IN WITNESS  WHEREOF, the undersigned, being  the trustees of
          the  Trust have executed this Restated Certificate of Trust as of
          the date first above written.

                                        CHEMICAL BANK DELAWARE,
                                        as Delaware Trustee


                                        By:                                
                                             Name:
                                             Title:


                                        CHEMICAL BANK,
                                        as Property Trustee


                                        By:                                
                                             Name:
                                             Title:





                                  Exhibit A - Page 1
<PAGE>






                                        WILLIAM E. ZALES, JR.,
                                        as Administrative Trustee


                                        By:                                
                                             Name:
                                             Title:


                                        J. RANDY DERIEUX,
                                        as Administrative Trustee


                                        By:                                
                                             Name:
                                             Title:





































                                  Exhibit A - Page 2
<PAGE>






                                                                  EXHIBIT B

                                                      _______________, 1996


          The Depository Trust Company
          55 Water Street, 49th Floor
          New York, New York 10041-0099

          Attention:  General Counsel's Office

                    Re:  Alabama Power Capital Trust I
                         7.375% Trust Preferred Securities

          Ladies and Gentlemen:

               The purpose of  this letter  is to set  out certain  matters
          relating  to the above-referenced Preferred Securities (CUSIP No.
          _________ (the "Securities") of Alabama Power Capital Trust I,  a
          Delaware statutory business trust  (the "Trust").  The Securities
          are guaranteed to the extent set forth in the Prospectus relating
          to  the  Securities  dated  January  17, 1996  by  Alabama  Power
          Company, an  Alabama  corporation.    The Trust  is  selling  the
          Securities to certain underwriters (the  "Underwriters") pursuant
          to  an Underwriting  Agreement dated  January 17,  1996,  and the
          Underwriters wish to take delivery  of the Securities through The
          Depository  Trust  Company  ("DTC").    The  Trust is  acting  as
          transfer  agent and  registrar  with respect  to the  Securities.
          Chemical  Bank, in its capacity as Property Trustee of the Trust,
          will  act  as paying  agent in  relation  to the  Securities (the
          "Property Trustee").

               To induce  DTC  to accept  the  Securities as  eligible  for
          deposit at  DTC, and  to act in  accordance with  its rules  with
          respect to  the Securities,  the Trust  and the  Property Trustee
          severally,   as  set   forth  below   each  make   the  following
          representations to DTC.

               1.   Before the closing of the sale of the Securities to the
          Underwriters,   which  is   expected   to  occur   on  or   about
          ______________, 1996  there shall be  deposited with  DTC one  or
          more global certificates (the "Global Certificate") registered in
          the name of DTC's nominee, Cede & Co., for 3,880,000 Securities.

               2.   The Amended  and Restated  Trust Agreement dated  as of
          January  1,  1996  provides for  the  voting  by  holders of  the
          Securities  under  certain   circumstances.    The  Trust   shall
          establish  a  record date  for such  purposes  and shall,  to the
          extent possible, give  DTC notice  of such record  date not  less
          than 15 calendar days in advance of such record date.  Notices to
          DTC pursuant to this paragraph by telecopy shall be sent to DTC's
          Reorganization Department  at (212)  709-6896 or  (212) 709-6897,

                                  Exhibit B - Page 1
<PAGE>






          and  receipt of  such notices shall  be confirmed  by telephoning
          (212) 709-6870.   Notices to  DTC pursuant to  this paragraph  by
          mail  or by  other means  shall be  sent to  DTC's Reorganization
          Department as indicated in paragraph 6.

               3.   In    the   event    of   stock    split,   conversion,
          recapitalization, reorganization or any other similar transaction
          resulting  in  the  cancellation  of  all  or  any  part  of  the
          Securities outstanding, the Trust shall send DTC a notice of such
          event 5 business days prior to the effective date of such event.

               4.   In  the event  of a  distribution with  respect to  the
          Securities  outstanding, the  Property Trustee  shall send  DTC a
          notice  specifying   the  amount  of  and   conditions,  if  any,
          applicable to such payment or distribution.  Such notice shall be
          sent to DTC by a secure means (e.g., legible telecopy, registered
          or  certified  mail,  overnight  delivery)  in  a  timely  manner
          designed to assure  that such  notice is in  DTC's possession  no
          later than the close of business  on the business day before  the
          record date for such  distribution.  (The Property Trustee  shall
          have a method  to verify subsequently the  use of such means  and
          the timeliness of such notice.)  After establishing the amount of
          payment to be made  on the Securities, the Property  Trustee will
          notify  DTC's Dividend Department of such payment 5 business days
          prior to payment date.

               5.   In  the event  of  a redemption  by  the Trust  of  the
          Securities, notice  to holders  of  the Securities  by the  Trust
          specifying the terms of  the redemption shall be sent  to DTC not
          less than 30  days prior to such  event by a secure  means in the
          manner set forth  in the  preceding paragraph.   Such  redemption
          notice shall  be sent to  DTC's Call  Notification Department  at
          (516)  227-4039  or 4190,  and receipt  of  such notice  shall be
          confirmed  by telephoning (516) 227-4070.   Notice by  mail or by
          any other means shall be sent to:

                    Call Notification Department
                    The Depository Trust Company
                    711 Stewart Avenue
                    Garden City, New York 11530-4719

               6.   In  the   event  of   any  invitation  to   tender  the
          Securities,  notice by  the Trust  to holders  of  the Securities
          specifying the  terms of the tender  shall be sent to  DTC by the
          Trust by  a secure means by the close of business on the Business
          Day before such notice is given to such Holders.   Notices to DTC
          pursuant to this paragraph and notices of other corporate actions
          (including mandatory  tenders,  exchanges and  capital  changes),
          shall be sent by  telecopy to DTC's Reorganization  Department at
          (212) 709-1093  or (212) 709-1094,  and receipt  of such  notices
          shall be confirmed by  telephoning (212) 709-6884, or by  mail or
          any other means to:

                                  Exhibit B - Page 2
<PAGE>






                    Manager, Reorganization Department
                    Reorganization Window
                    The Depository Trust Company
                    7 Hanover Square, 23rd Floor
                    New York, New York 10004-2695

               7.   All  notices  and payment  advices  sent  to DTC  shall
          contain the CUSIP  number of the Securities  and the accompanying
          description  of the  Securities, which,  as of  the date  of this
          letter, is "Alabama Power Capital Trust I, 7.375% Trust Preferred
          Securities."

               8.   Notices to  DTC's Dividend Department by telecopy shall
          be sent to (212)  709-1723.  Such notices by mail or by any other
          means shall be sent to:

                    Manager, Announcements
                    Dividend Department
                    The Depository Trust Company
                    7 Hanover Square, 22nd Floor
                    New York, New York 10004

               The Trust  shall confirm DTC's  receipt of such  telecopy by
               telephoning the Dividend Department at (212) 709-1270.

               9.   Payments of  cash distributions, including  payments on
          redemption,  with  respect to  the  Securities  evidenced by  the
          Global Certificate shall be received by Cede & Co., as nominee of
          DTC,  or its registered assigns in same day funds on each payment
          date  (or in  accordance with  existing arrangements  between the
          Property Trustee and DTC).   Such payments shall be  made payable
          to the order of Cede & Co.

               10.  Other cash payments shall be received by Cede & Co., as
          a nominee of DTC, or its  registered assigns in next day funds on
          each payment  date (or  in accordance with  existing arrangements
          between  the Property Trustee and  DTC).  Such  payments shall be
          made payable to  the order of Cede & Co.,  and shall be addressed
          as follows:

                    NFDS Redemption Department
                    The Depository Trust Department
                    7 Hanover Square, 23rd Floor
                    New York, New York 10004-2695

               11.  DTC may direct  the Trust and  the Property Trustee  to
          use any other telecopy number or  address of DTC as the number or
          address to which notices or payments may be sent.

               12.  In the event of a conversion, redemption, or  any other
          similar transaction  (e.g., tender made and  accepted in response
          to  the  Trust's invitation)  necessitating  a  reduction in  the

                                  Exhibit B - Page 3
<PAGE>






          aggregate  number   of  Securities   outstanding,  DTC,   in  its
          discretion:   (a) may request the Trust to issue and authenticate
          a  new  Security certificate;  or  (b)  may make  an  appropriate
          notation  on the  Security  certificate indicating  the date  and
          amount of such reduction.

               13.  DTC  may  discontinue  its  services  as  a  securities
          depositary  with respect to the Global Certificate at any time by
          giving reasonable notice  to the  Trust (at which  time DTC  will
          confirm  with  the  Trust  the  aggregate  number  of  Securities
          deposited  with  it) and  discharging  its responsibilities  with
          respect thereto under applicable  law.  Under such circumstances,
          at  DTC's request  the Trust  shall cooperate  fully with  DTC by
          taking prompt appropriate action to make alternative arrangements
          for book-entry settlement for the Securities or to make available
          one or  more separate certificates evidencing  Securities, to any
          participant having Securities credited to its DTC account.

               14.  In the event that  the Trust determines that beneficial
          owners  of  Securities  shall  be  able  to  obtain  certificated
          Securities  the Trust  shall notify  DTC of  the availability  of
          certificates.  In such event, the Trust shall issue, transfer and
          exchange certificates in appropriate  amounts, as required by DTC
          and others.

               15.  Nothing herein shall  require the  Trustees to  advance
          their own funds for any purposes.

               This letter may be  executed in any number of  counterparts,
          each of  which when so executed shall be deemed to be an original
          but all such counterparts  shall together constitute but  one and
          the same instrument.

                                   Very truly yours,

                                   Alabama Power Capital Trust I


                                   By:                                     
                                        Name:                              
                                        Title:  Administrative Trustee



                                   CHEMICAL BANK,
                                   as Property Trustee of
                                     Alabama Power Capital Trust I


                                   By:                                     
                                        Name:
                                        Title:

                                  Exhibit B - Page 4
<PAGE>






          RECEIVED AND ACCEPTED:

          THE DEPOSITORY TRUST COMPANY


          By:                                
                    Authorized Officer














































                                  Exhibit B - Page 5
<PAGE>






                                                                  EXHIBIT C



                         THIS CERTIFICATE IS NOT TRANSFERABLE

          Certificate Number                    Number of Common Securities
               C-1                                          120,000

                       Certificate Evidencing Common Securities
                                          of
                            Alabama Power Capital Trust I

                                  Common Securities
                     (liquidation amount $25 per Common Security)

               Alabama Power  Capital Trust  I, a statutory  business trust
          formed under the  laws of  the State of  Delaware (the  "Trust"),
          hereby certifies that Alabama Power Company (the "Holder") is the
          registered owner of one  hundred twenty thousand (120,000) common
          securities   of  the  Trust   representing  undivided  beneficial
          ownership interests in the assets of the Trust and designated the
          Common Securities  (liquidation amount $25  per Common  Security)
          (the  "Common Securities").   In accordance with  Section 5.10 of
          the Trust Agreement  (as defined below) the Common Securities are
          not transferable, except  by operation of law,  and any attempted
          transfer  hereof  shall  be  void.    The  designations,  rights,
          privileges,  restrictions,  preferences   and  other  terms   and
          provisions  of the Common Securities  are set forth  in, and this
          certificate  and the  Common  Securities represented  hereby  are
          issued and  shall in  all respects  be subject  to the  terms and
          provisions of,  the Amended and  Restated Trust Agreement  of the
          Trust  dated as of  January 1, 1996,  as the same  may be amended
          from  time  to  time   (the  "Trust  Agreement"),  including  the
          designation  of the terms of  the Common Securities  as set forth
          therein.  The Trust will furnish a copy of the Trust Agreement to
          the  Holder without charge upon  written request to  the Trust at
          its principal place of business or registered office.

               Upon receipt of this certificate, the Holder is bound by the
          Trust Agreement and is entitled to the benefits thereunder.












                                  Exhibit C - Page 1
<PAGE>






               IN WITNESS WHEREOF, the Administrative Trustees of the Trust
          have executed this certificate this 24th day of January, 1996.

                                        Alabama Power Capital Trust I


                                        By:                                
                                             WILLIAM E. ZALES, JR.,
                                             as Administrative Trustee



                                        By:                                
                                             J. RANDY DERIEUX,
                                             as Administrative Trustee



                            CERTIFICATE OF AUTHENTICATION

               This  is one  of the  Common Securities  referred to  in the
          within-mentioned Trust Agreement.


                                                                           
                                             as Administrative Trustee



























                                  Exhibit C - Page 2
<PAGE>






                                                                  EXHIBIT D

                       AGREEMENT AS TO EXPENSES AND LIABILITIES

               THIS AGREEMENT AS TO  EXPENSES AND LIABILITIES (this "Agree-
          ment") is made as of ___________ ___, 1996, between Alabama Power
          Company, an  Alabama  corporation (the  "Company"),  and  Alabama
          Power Capital Trust I, a Delaware business trust (the "Trust").

               WHEREAS,  the  Trust  intends  to issue  its  7.375%  Common
          Securities  (the  Common   Securities)  to  and   receive  Junior
          Subordinated Notes from the Company and to issue and sell Alabama
          Power Capital Trust I 7.375% Trust Preferred Securities, Series A
          (the  "Preferred Securities") with  such powers,  preferences and
          special rights and restrictions  as are set forth in  the Amended
          and Restated Trust Agreement of the Trust dated  as of January 1,
          1996 as  the same may  be amended from  time to time  (the "Trust
          Agreement"); and

               WHEREAS,   the  Company   is  the   issuer  of   the  Junior
          Subordinated Notes.

               NOW,  THEREFORE, in  consideration of  the purchase  by each
          holder of  the Preferred  Securities, which purchase  the Company
          hereby agrees shall  benefit the Company  and which purchase  the
          Company acknowledges will be made  in reliance upon the execution
          and  delivery of this Agreement, the Company and the Trust hereby
          agree as follows:

                                      ARTICLE I

               Section 1.01.  Guarantee by  the Company.    Subject to  the
          terms and  conditions hereof, the Company  hereby irrevocably and
          unconditionally  guarantees to each person  or entity to whom the
          Trust  is  now  or  hereafter becomes  indebted  or  liable  (the
          "Beneficiaries")  the full payment, when  and as due,  of any and
          all Obligations  (as hereinafter defined)  to such Beneficiaries.
          As used herein, "Obligations" means any indebtedness, expenses or
          liabilities  of the Trust, other than obligations of the Trust to
          pay  to  holders of  any  Preferred Securities  or  other similar
          interests in the Trust  the amounts due such holders  pursuant to
          the terms  of  the Preferred  Securities  or such  other  similar
          interests, as the case may be.  This Agreement is  intended to be
          for   the  benefit  of,  and  to  be  enforceable  by,  all  such
          Beneficiaries, whether  or not  such Beneficiaries  have received
          notice hereof.

               Section 1.02.  Term  of  Agreement.    This  Agreement shall
          terminate and be of no further force and effect upon  the date on
          which there  are no  Beneficiaries remaining;  provided, however,
          that  this Agreement shall continue  to be effective  or shall be
          reinstated,  as the  case may be,  if at  any time  any holder of

                                  Exhibit D - Page 1
<PAGE>






          Preferred Securities  or any Beneficiary must  restore payment of
          any  sums   paid  under  the  Preferred   Securities,  under  any
          Obligation, under  the Guarantee Agreement dated  the date hereof
          by  the Company and Chemical Bank, as guarantee trustee, or under
          this  Agreement for  any  reason whatsoever.   This  Agreement is
          continuing, irrevocable, unconditional and absolute.

               Section 1.03.  Waiver of Notice.   The Company hereby waives
          notice of acceptance of  this Agreement and of any  Obligation to
          which  it applies  or may  apply, and  the Company  hereby waives
          presentment, demand for  payment, protest, notice  of nonpayment,
          notice of  dishonor, notice of  redemption and all  other notices
          and demands.

               Section 1.04.  No Impairment.   The obligations,  covenants,
          agreements  and duties of the  Company under this Agreement shall
          in no way be affected or impaired by reason of the happening from
          time to time of any of the following:

                    (a)  the extension of time for the payment the Trust of
               all or any portion of the Obligations or for the performance
               of  any  other  obligation  under,  arising out  of,  or  in
               connection with, the Obligations;

                    (b)  any  failure, omission, delay or lack of diligence
               on  the part  of  the Beneficiaries  to  enforce, assert  or
               exercise any right, privilege,  power or remedy conferred on
               the  Beneficiaries with  respect to  the Obligations  or any
               action  on the  part  of the  Trust  granting indulgence  or
               extension of any kind; or

                    (c)  the   voluntary    or   involuntary   liquidation,
               dissolution,   sale   of   any   collateral,   receivership,
               insolvency,   bankruptcy,  assignment  for  the  benefit  of
               creditors,   reorganization,  arrangement,   composition  or
               readjustment  of  debt  or,  or  other  similar  proceedings
               affecting, the Trust or any of the assets of the Trust.

          There  shall be no obligation of the Beneficiaries to give notice
          to, or  obtain the consent  of, the Company  with respect to  the
          happening of any of the foregoing.

               Section 1.05.  Enforcement.   A Beneficiary may enforce this
          Agreement directly against the Company and the Company waives any
          right or remedy to require that any action be brought against the
          Trust or any other person or entity before proceeding against the
          Company.

                                      ARTICLE II

               Section 2.01.  Binding   Effect.      All   guarantees   and
          agreements contained in this Agreement shall bind the successors,

                                  Exhibit D - Page 2
<PAGE>






          assigns, receivers,  trustees and representatives of  the Company
          and shall inure to the benefit of the Beneficiaries.

               Section 2.02.  Amendment.    So long  as  there remains  any
          Beneficiary  or  any  Preferred  Securities  of  any  series  are
          outstanding, this Agreement  shall not be modified or  amended in
          any manner adverse to  such Beneficiary or to the  holders of the
          Preferred Securities.

               Section 2.03.  Notices.     Any  notice,  request  or  other
          communication required  or permitted to be  given hereunder shall
          be  given  in writing  by  delivering  the same  against  receipt
          therefor by facsimile transmission  (confirmed by mail), telex or
          by  registered or certified mail, addressed as follows (and if so
          given, shall  be deemed given when  mailed or upon receipt  of an
          answer-back, if sent by telex), to-wit:

                    Alabama Power Capital Trust I
                    c/o Chemical Bank
                    450 West 33rd Street
                    New York, New York 10001
                    Facsimile No.:
                    Attention:     Corporate Trustee
                                   Administration Department

                    Alabama Power Company
                    600 North 18th Street
                    Birmingham, Alabama  35291
                    Facsimile No.:
                    Attention:

               Section  2.04.   THIS  AGREEMENT SHALL  BE  GOVERNED BY  AND
          CONSTRUED  AND INTERPRETED  IN ACCORDANCE  WITH  THE LAWS  OF THE
          STATE OF ALABAMA.

               THIS AGREEMENT is  executed as  of the date  and year  first
          above written.

                                        ALABAMA POWER COMPANY

                                        By:                                
                                             Name:
                                             Title:

                                        ALABAMA POWER CAPITAL TRUST I

                                        By:                                
                                             ____________________________,
          as
                                             Administrative Trustee



                                  Exhibit D - Page 3
<PAGE>






                                                                  EXHIBIT E


               Unless  this  Certificate  is  presented  by  an  authorized
          representative  of  The  Depository  Trust Company,  a  New  York
          Corporation  ("DTC"), to  Alabama Power  Capital  Trust I  or its
          agent for registration of transfer, exchange, or payment, and any
          certificate issued is registered in the  name of Cede & Co. or in
          such other name as is  requested by an authorized  representative
          of DTC  (and any payment  made to  Cede &  Co. or  to such  other
          entity as is requested  by an authorized representative of  DTC),
          any  transfer, pledge, or other use hereof for value or otherwise
          by or  to any person is wrongful inasmuch as the registered owner
          thereof, Cede & Co., has an interest herein.

                Certificate Number           Number of Preferred Securities
                                                        3,880,000
                        P-1                        CUSIP NO. 010383206

                     Certificate Evidencing Preferred Securities

                                          of

                            Alabama Power Capital Trust I

                          7.375% Trust Preferred Securities,
                   (Liquidation amount $25 per Preferred Security)

               Alabama Power  Capital Trust  I, a statutory  business trust
          formed under the  laws of  the State of  Delaware (the  "Trust"),
          hereby certifies that Cede & Co. (the "Holder") is the registered
          owner of three million  eight hundred eighty thousand (3,880,000)
          preferred   securities  of   the  Trust   representing  undivided
          beneficial  ownership interest  in the  assets of  the  Trust and
          designated  the  Alabama  Power  Capital  Trust  I  7.375%  Trust
          Preferred  Securities  (liquidation  amount  $25   per  Preferred
          Security) (the "Preferred Securities").  The Preferred Securities
          are transferable on the books and records of the Trust, in person
          or  by  a  duly  authorized  attorney,  upon  surrender  of  this
          certificate  duly  endorsed and  in proper  form for  transfer as
          provided  in Section  5.04  of the  Trust  Agreement (as  defined
          below).    The  designations,  rights,  privileges, restrictions,
          references  and  other  terms  and provisions  of  the  Preferred
          Securities  are  set  forth  in, and  this  certificate  and  the
          Preferred Securities  represented hereby are issued  and shall in
          all  respects  be subject  to the  terms  and provisions  of, the
          Amended  and Restated Trust Agreement  of the Trust,  dated as of
          January  1, 1996, as  the same may  be amended from  time to time
          (the "Trust Agreement") including the designation of the terms of
          Preferred  Securities as set forth  therein.  The  holder of this
          certificate is entitled to the benefits of a guarantee by Alabama
          Power Company, an Alabama corporation (the "Company") pursuant to

                                  Exhibit E - Page 1
<PAGE>






          a Guarantee  Agreement between the Company and  Chemical Bank, as
          guarantee trustee,  dated as of January 1, 1996 (the "Guarantee")
          to the extent provided therein.  The Trust will furnish a copy of
          the  Trust  Agreement and  the Guarantee  to  the holder  of this
          certificate  without charge upon written request  to the Trust at
          its principal place of business or registered office.

               Upon  receipt  of  this  certificate,  the  holder  of  this
          certificate  is bound by the  Trust Agreement and  is entitled to
          the benefits thereunder.











































                                  Exhibit E - Page 2
<PAGE>






               IN WITNESS WHEREOF, the Administrative Trustees of the Trust
          have executed this certificate this 24th day of January, 1996.

                                        ALABAMA POWER CAPITAL TRUST I


                                        By:                                
                                             WILLIAM E. ZALES, JR.,
                                             as Administrative Trustee



                                        By:                                
                                             J. RANDY DERIEUX,
                                             as Administrative Trustee


                             CERTIFICATE OF AUTHORIZATION

               This is one of  the Preferred Securities referred to  in the
          within-mentioned Trust Agreement.


                                                                           
                                             as Administrative Trustee




























                                  Exhibit E - Page 3
<PAGE>






                                      ASSIGNMENT

          FOR VALUE  RECEIVED, the  undersigned assigns and  transfers this
          Preferred Security to:

                                                                           

                                                                           

                                                                           

                                                                           

          (Insert assignee's social security or tax identification umber)
                                                                           

                                                                           

                                                                           

          (Insert address and zip code of assignee)
          and irrevocably appoints
                                                                           

                                                                           

                                                                           

          agent  to transfer  this  Preferred Security  Certificate on  the
          books of  the Trust.  The agent may substitute another to act for
          him or her.

          Date:                                        

          Signature:                                   

          (Sign exactly  as your  name appears  on the  other side  of this
          Preferred Security Certificate)
<PAGE>









                                                       Exhibit E














                                                                           



                                ALABAMA POWER COMPANY

                                          TO

                                    CHEMICAL BANK,
                                             TRUSTEE.



                                                          

                             SUBORDINATED NOTE INDENTURE

                                DATED JANUARY 1, 1996


                                                          









                                                                           
<PAGE>






                                ALABAMA POWER COMPANY
            RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939 AND
               SUBORDINATED NOTE INDENTURE, DATED AS OF JANUARY 1, 1996

                  TRUST INDENTURE
                    ACT SECTION                     INDENTURE SECTION

          (S)  310(a)(1)  . . . . . . . . . . . . . . . . . . . . . . . 609
                  (a)(2)  . . . . . . . . . . . . . . . . . . . . . . . 609
                  (a)(3)  . . . . . . . . . . . . . . . . .  Not Applicable
                  (a)(4)  . . . . . . . . . . . . . . . . .  Not Applicable
                  (b) . . . . . . . . . . . . . . . . . . . . . . . . . 608
                                                                        610
          (S)  311(a) . . . . . . . . . . . . . . . . . . . . . . . . . 613
               311(b)(4)  . . . . . . . . . . . . . . . . . . . . .  613(a)
                  (b)(6)  . . . . . . . . . . . . . . . . . . . . .  613(b)
          (S)  312(a) . . . . . . . . . . . . . . . . . . . . . . . . . 701
                                                                     702(a)
                  (c) . . . . . . . . . . . . . . . . . . . . . . .  702(b)
          (S)  313(a) . . . . . . . . . . . . . . . . . . . . . . .  703(a)
               313(b) . . . . . . . . . . . . . . . . . . . . . . .  703(b)
               313(c) . . . . . . . . . . . . . . . . . . . . . . .  703(c)
                                                                        704
                  (d) . . . . . . . . . . . . . . . . . . . . . . .  703(c)
          (S)  314(a) . . . . . . . . . . . . . . . . . . . . . . 704, 1007
                  (b) . . . . . . . . . . . . . . . . . . .  Not Applicable
                  (c)(1)  . . . . . . . . . . . . . . . . . . . . . . . 102
                  (c)(2)  . . . . . . . . . . . . . . . . . . . . . . . 102
                  (c)(3)  . . . . . . . . . . . . . . . . .  Not Applicable
                  (d) . . . . . . . . . . . . . . . . . . .  Not Applicable
                  (e) . . . . . . . . . . . . . . . . . . . . . . . . . 102
          (S)  315(a) . . . . . . . . . . . . . . . . . . . . . . .  601(a)
                  (b) . . . . . . . . . . . . . . . . . . . . . . . . . 602
                  (c) . . . . . . . . . . . . . . . . . . . . . . .  601(b)
                  (d) . . . . . . . . . . . . . . . . . . . . . . .  601(c)
                  (d)(1)  . . . . . . . . . . . . . . . . . . . . 601(a)(1)
                  (d)(2)  . . . . . . . . . . . . . . . . . . . . 601(c)(2)
                  (d)(3)  . . . . . . . . . . . . . . . . . . . . 601(c)(3)
                  (e) . . . . . . . . . . . . . . . . . . . . . . . . . 514
          (S)  316(a) . . . . . . . . . . . . . . . . . . . . . . . . . 101
                  (a)(1)(A) . . . . . . . . . . . . . . . . . . . . . . 502
                                                                        512
                  (a)(1)(B) . . . . . . . . . . . . . . . . . . . . . . 513
                  (a)(2)  . . . . . . . . . . . . . . . . .  Not Applicable
                  (b) . . . . . . . . . . . . . . . . . . . . . . . . . 508
          (S)  317(a)(1)  . . . . . . . . . . . . . . . . . . . . . . . 503
                  (a)(2)  . . . . . . . . . . . . . . . . . . . . . . . 504
                  (b) . . . . . . . . . . . . . . . . . . . . . . . .  1003
          (S)  318(a) . . . . . . . . . . . . . . . . . . . . . . . . . 107
<PAGE>






                                  TABLE OF CONTENTS

                                                                       PAGE

          Parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
          Recitals of the Company . . . . . . . . . . . . . . . . . . . . 1


                                     ARTICLE ONE

                           DEFINITIONS AND OTHER PROVISIONS
                                OF GENERAL APPLICATION  . . . . . . . .   1

          SECTION 101.   DEFINITIONS  . . . . . . . . . . . . . . . . .   1
               Act  . . . . . . . . . . . . . . . . . . . . . . . . . .   2
               Additional Interest  . . . . . . . . . . . . . . . . . .   2
               Affiliate  . . . . . . . . . . . . . . . . . . . . . . .   2
               Authenticating Agent . . . . . . . . . . . . . . . . . .   3
               Board of Directors . . . . . . . . . . . . . . . . . . .   3
               Board Resolution . . . . . . . . . . . . . . . . . . . .   3
               Business Day . . . . . . . . . . . . . . . . . . . . . .   3
               Certificate   of   a   Firm   of   Independent   Public
                    Accountants . . . . . . . . . . . . . . . . . . . .   3
               Commission . . . . . . . . . . . . . . . . . . . . . . .   3
               Company  . . . . . . . . . . . . . . . . . . . . . . . .   3
               "Company Request" or "Company Order" . . . . . . . . . .   3
               Corporate Trust Office . . . . . . . . . . . . . . . . .   3
               Corporation  . . . . . . . . . . . . . . . . . . . . . .   4
               Defaulted Interest . . . . . . . . . . . . . . . . . . .   4
               Depositary . . . . . . . . . . . . . . . . . . . . . . .   4
               Event of Default . . . . . . . . . . . . . . . . . . . .   4
               Global Security  . . . . . . . . . . . . . . . . . . . .   4
               Guarantee  . . . . . . . . . . . . . . . . . . . . . . .   4
               Holder . . . . . . . . . . . . . . . . . . . . . . . . .   4
               Indenture  . . . . . . . . . . . . . . . . . . . . . . .   4
               Interest Payment Date  . . . . . . . . . . . . . . . . .   4
               Junior Subordinated Note . . . . . . . . . . . . . . . .   4
               Maturity . . . . . . . . . . . . . . . . . . . . . . . .   5
               Officers' Certificate  . . . . . . . . . . . . . . . . .   5
               Opinion of Counsel . . . . . . . . . . . . . . . . . . .   5
               Outstanding  . . . . . . . . . . . . . . . . . . . . . .   5
               Paying Agent . . . . . . . . . . . . . . . . . . . . . .   6
               Person . . . . . . . . . . . . . . . . . . . . . . . . .   6
               Predecessor Security . . . . . . . . . . . . . . . . . .   6
               Property Trustee . . . . . . . . . . . . . . . . . . . .   6
               Redemption Date  . . . . . . . . . . . . . . . . . . . .   6
               Redemption Price . . . . . . . . . . . . . . . . . . . .   6
               Regular Record Date  . . . . . . . . . . . . . . . . . .   6
               Responsible Officer  . . . . . . . . . . . . . . . . . .   7
               Securities Trust . . . . . . . . . . . . . . . . . . . .   7
               Security Register" and "Security Registrar"  . . . . . .   7
               Senior Indebtedness  . . . . . . . . . . . . . . . . . .   7

                                          i
<PAGE>






               Special Record Date  . . . . . . . . . . . . . . . . . .   8
               Stated Maturity  . . . . . . . . . . . . . . . . . . . .   8
               Trust Agreement  . . . . . . . . . . . . . . . . . . . .   8
               Trust Indenture Act  . . . . . . . . . . . . . . . . . .   8
               Trust Securities . . . . . . . . . . . . . . . . . . . .   8
               Trustee  . . . . . . . . . . . . . . . . . . . . . . . .   8
               Vice President . . . . . . . . . . . . . . . . . . . . .   8

          SECTION 102.   COMPLIANCE CERTIFICATES AND OPINIONS . . . . .   8

          SECTION 103.   FORM OF DOCUMENTS DELIVERED TO TRUSTEE . . . .   9

          SECTION 104.   ACTS OF HOLDERS  . . . . . . . . . . . . . . .  10

          SECTION 105.   NOTICES, ETC., TO TRUSTEE AND COMPANY  . . . .  11

          SECTION 106.   NOTICE  TO  HOLDERS  OF  JUNIOR  SUBORDINATED
                         NOTES; WAIVER  . . . . . . . . . . . . . . . .  11

          SECTION 107.   CONFLICT WITH TRUST INDENTURE ACT  . . . . . .  12

          SECTION 108.   EFFECT OF HEADINGS AND TABLE OF CONTENTS . . .  12

          SECTION 109.   SUCCESSORS AND ASSIGNS . . . . . . . . . . . .  12

          SECTION 110.   SEPARABILITY CLAUSE  . . . . . . . . . . . . .  12

          SECTION 111.   BENEFITS OF INDENTURE  . . . . . . . . . . . .  12

          SECTION 112.   GOVERNING LAW  . . . . . . . . . . . . . . . .  13

          SECTION 113.   LEGAL HOLIDAYS . . . . . . . . . . . . . . . .  13

          SECTION 114.   APPOINTMENT OF AGENT FOR SERVICE . . . . . . .  13


                                     ARTICLE TWO

                          FORMS OF JUNIOR SUBORDINATED NOTES  . . . . .  14

          SECTION 201.   FORMS GENERALLY  . . . . . . . . . . . . . . .  14

          SECTION 202.   FORM    OF     TRUSTEE'S    CERTIFICATE    OF
                         AUTHENTICATION . . . . . . . . . . . . . . . .  14

          SECTION 203.   JUNIOR  SUBORDINATED  NOTES  ISSUABLE IN  THE
                         FORM OF A GLOBAL SECURITY  . . . . . . . . . .  14






                                          ii
<PAGE>






                                    ARTICLE THREE

                            THE JUNIOR SUBORDINATED NOTES . . . . . . .  17

          SECTION 301.   AMOUNT UNLIMITED; ISSUABLE IN SERIES . . . . .  17

          SECTION 302.   EXECUTION,   AUTHENTICATION,   DELIVERY   AND
                         DATING . . . . . . . . . . . . . . . . . . . .  19

          SECTION 303.   REGISTRATION,  REGISTRATION  OF TRANSFER  AND
                         EXCHANGE . . . . . . . . . . . . . . . . . . .  21

          SECTION 304.   MUTILATED, DESTROYED, LOST AND  STOLEN JUNIOR
                         SUBORDINATED NOTES . . . . . . . . . . . . . .  22

          SECTION 305.   PAYMENT   OF    INTEREST;   INTEREST   RIGHTS
                         PRESERVED  . . . . . . . . . . . . . . . . . .  23

          SECTION 306.   PERSONS DEEMED OWNERS  . . . . . . . . . . . .  25

          SECTION 307.   CANCELLATION . . . . . . . . . . . . . . . . .  25

          SECTION 308.   COMPUTATION OF INTEREST  . . . . . . . . . . .  25


                                     ARTICLE FOUR

                              SATISFACTION AND DISCHARGE  . . . . . . .  25

          SECTION 401.   SATISFACTION AND DISCHARGE OF INDENTURE  . . .  25

          SECTION 402.   APPLICATION OF TRUST MONEY . . . . . . . . . .  27


                                     ARTICLE FIVE

                                       REMEDIES . . . . . . . . . . . .  27

          SECTION 501.   EVENTS OF DEFAULT  . . . . . . . . . . . . . .  27

          SECTION 502.   ACCELERATION  OF   MATURITY;  RESCISSION  AND
                         ANNULMENT  . . . . . . . . . . . . . . . . . .  30

          SECTION 503.   COLLECTION  OF  INDEBTEDNESS  AND  SUITS  FOR
                         ENFORCEMENT BY TRUSTEE . . . . . . . . . . . .  31

          SECTION 504.   TRUSTEE MAY FILE PROOFS OF CLAIM . . . . . . .  31

          SECTION 505.   TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION
                         OF JUNIOR SUBORDINATED NOTES . . . . . . . . .  32

          SECTION 506.   APPLICATION OF MONEY COLLECTED . . . . . . . .  33

                                         iii
<PAGE>






          SECTION 507.   LIMITATION ON SUITS  . . . . . . . . . . . . .  33

          SECTION 508.   UNCONDITIONAL  RIGHT  OF  HOLDERS TO  RECEIVE
                         PRINCIPAL, PREMIUM AND INTEREST  . . . . . . .  34

          SECTION 509.   RESTORATION OF RIGHTS AND REMEDIES . . . . . .  34

          SECTION 510.   RIGHTS AND REMEDIES CUMULATIVE . . . . . . . .  34

          SECTION 511.   DELAY OR OMISSION NOT WAIVER . . . . . . . . .  35

          SECTION 512.   CONTROL  BY  HOLDERS  OF JUNIOR  SUBORDINATED
                         NOTES  . . . . . . . . . . . . . . . . . . . .  35

          SECTION 513.   WAIVER OF PAST DEFAULTS  . . . . . . . . . . .  35

          SECTION 514.   UNDERTAKING FOR COSTS  . . . . . . . . . . . .  36

          SECTION 515.   WAIVER OF STAY OR EXTENSION LAWS . . . . . . .  36


                                     ARTICLE SIX

                                     THE TRUSTEE  . . . . . . . . . . .  37

          SECTION 601.   CERTAIN DUTIES AND RESPONSIBILITIES  . . . . .  37

          SECTION 602.   NOTICE OF DEFAULTS . . . . . . . . . . . . . .  38

          SECTION 603.   CERTAIN RIGHTS OF TRUSTEE  . . . . . . . . . .  38

          SECTION 604.   NOT RESPONSIBLE  FOR RECITALS OF  ISSUANCE OF
                         JUNIOR SUBORDINATED NOTES  . . . . . . . . . .  40

          SECTION 605.   MAY HOLD JUNIOR SUBORDINATED NOTES . . . . . .  40

          SECTION 606.   MONEY HELD IN TRUST  . . . . . . . . . . . . .  40

          SECTION 607.   COMPENSATION AND REIMBURSEMENT . . . . . . . .  41

          SECTION 608.   DISQUALIFICATION; CONFLICTING INTERESTS  . . .  41

          SECTION 609.   CORPORATE TRUSTEE REQUIRED; ELIGIBILITY  . . .  41

          SECTION 610.   RESIGNATION   AND  REMOVAL;   APPOINTMENT  OF
                         SUCCESSOR  . . . . . . . . . . . . . . . . . .  42

          SECTION 611.   ACCEPTANCE OF APPOINTMENT BY SUCCESSOR . . . .  44

          SECTION 612.   MERGER,    CONVERSION,    CONSOLIDATION    OR
                         SUCCESSION TO BUSINESS . . . . . . . . . . . .  45


                                          iv
<PAGE>






          SECTION 613.   PREFERENTIAL  COLLECTION  OF  CLAIMS  AGAINST
                         COMPANY  . . . . . . . . . . . . . . . . . . .  45

          SECTION 614.   APPOINTMENT OF AUTHENTICATING AGENT  . . . . .  46


                                    ARTICLE SEVEN

                  HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY . .  48

          SECTION 701.   COMPANY   TO   FURNISH   TRUSTEE  NAMES   AND
                         ADDRESSES OF HOLDERS . . . . . . . . . . . . .  48

          SECTION 702.   PRESERVATION  OF INFORMATION;  COMMUNICATIONS
                         TO HOLDERS . . . . . . . . . . . . . . . . . .  48

          SECTION 703.   REPORTS BY TRUSTEE . . . . . . . . . . . . . .  49

          SECTION 704.   REPORTS BY COMPANY . . . . . . . . . . . . . .  49


                                    ARTICLE EIGHT

                 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE .  50

          SECTION 801.   COMPANY  MAY  CONSOLIDATE,   ETC.,  ONLY   ON
                         CERTAIN TERMS  . . . . . . . . . . . . . . . .  50

          SECTION 802.   SUCCESSOR CORPORATION SUBSTITUTED  . . . . . .  51


                                     ARTICLE NINE

                               SUPPLEMENTAL INDENTURES  . . . . . . . .  51

          SECTION 901.   SUPPLEMENTAL  INDENTURES  WITHOUT CONSENT  OF
                         HOLDERS  . . . . . . . . . . . . . . . . . . .  51

          SECTION 902.   SUPPLEMENTAL   INDENTURES  WITH   CONSENT  OF
                         HOLDERS  . . . . . . . . . . . . . . . . . . .  52

          SECTION 903.   GENERAL  PROVISIONS   REGARDING  SUPPLEMENTAL
                         INDENTURE  . . . . . . . . . . . . . . . . . .  53

          SECTION 904.   EXECUTION OF SUPPLEMENTAL INDENTURES . . . . .  54

          SECTION 905.   EFFECT OF SUPPLEMENTAL INDENTURES  . . . . . .  54

          SECTION 906.   CONFORMITY WITH TRUST INDENTURE ACT  . . . . .  54

          SECTION 907.   REFERENCE  IN  JUNIOR  SUBORDINATED NOTES  TO
                         SUPPLEMENTAL INDENTURES  . . . . . . . . . . .  54

                                          v
<PAGE>






                                     ARTICLE TEN

                                      COVENANTS . . . . . . . . . . . .  55

          SECTION 1001.  PAYMENT OF PRINCIPAL AND INTEREST  . . . . . .  55

          SECTION 1002.  MAINTENANCE OF OFFICE OR AGENCY  . . . . . . .  55

          SECTION 1003.  MONEY FOR JUNIOR SUBORDINATED  NOTES PAYMENTS
                         TO BE HELD IN TRUST  . . . . . . . . . . . . .  55

          SECTION 1004.  ADDITIONAL INTEREST  . . . . . . . . . . . . .  57

          SECTION 1005.  CORPORATE EXISTENCE  . . . . . . . . . . . . .  58

          SECTION 1006.  LIMITATIONS  ON  DIVIDEND  AND CERTAIN  OTHER
                         PAYMENTS . . . . . . . . . . . . . . . . . . .  58

          SECTION 1007.  STATEMENT AS TO COMPLIANCE . . . . . . . . . .  58

          SECTION 1008.  WAIVER OF CERTAIN COVENANTS  . . . . . . . . .  59

          SECTION 1009.  COVENANTS REGARDING TRUST  . . . . . . . . . .  59


                                    ARTICLE ELEVEN

                       REDEMPTION OF JUNIOR SUBORDINATED NOTES  . . . .  60

          SECTION 1101.  APPLICABILITY OF ARTICLE . . . . . . . . . . .  60

          SECTION 1102.  ELECTION TO REDEEM; NOTICE TO TRUSTEE  . . . .  60

          SECTION 1103.  SELECTION BY TRUSTEE  OF JUNIOR  SUBORDINATED
                         NOTES TO BE REDEEMED . . . . . . . . . . . . .  60

          SECTION 1104.  NOTICE OF REDEMPTION . . . . . . . . . . . . .  61

          SECTION 1105.  DEPOSIT OF REDEMPTION PRICE  . . . . . . . . .  62

          SECTION 1106.  JUNIOR   SUBORDINATED    NOTES   PAYABLE   ON
                         REDEMPTION DATE  . . . . . . . . . . . . . . .  62

          SECTION 1107.  JUNIOR SUBORDINATED NOTES REDEEMED IN PART . .  62


                                    ARTICLE TWELVE

                                    SINKING FUNDS . . . . . . . . . . .  63

          SECTION 1201.  APPLICABILITY OF ARTICLE . . . . . . . . . . .  63


                                          vi
<PAGE>






          SECTION 1202.  SATISFACTION  OF  SINKING FUND  PAYMENTS WITH
                         JUNIOR SUBORDINATED NOTES  . . . . . . . . . .  63

          SECTION 1203.  REDEMPTION OF JUNIOR  SUBORDINATED NOTES  FOR
                         SINKING FUND . . . . . . . . . . . . . . . . .  64


                                   ARTICLE THIRTEEN

                                    SUBORDINATION . . . . . . . . . . .  64

          SECTION 1301.  JUNIOR  SUBORDINATED   NOTES  SUBORDINATE  TO
                         SENIOR INDEBTEDNESS  . . . . . . . . . . . . .  64

          SECTION 1302.  PAYMENT OF PROCEEDS UPON DISSOLUTION, ETC. . .  64

          SECTION 1303.  NO  PAYMENT  WHEN   SENIOR  INDEBTEDNESS   IN
                         DEFAULT  . . . . . . . . . . . . . . . . . . .  66

          SECTION 1304.  PAYMENT PERMITTED IF NO DEFAULT  . . . . . . .  66

          SECTION 1305.  SUBROGATION  TO RIGHTS  OF HOLDERS  OF SENIOR
                         INDEBTEDNESS . . . . . . . . . . . . . . . . .  67

          SECTION 1306.  PROVISIONS SOLELY TO DEFINE RELATIVE RIGHTS  .  67

          SECTION 1307.  TRUSTEE TO EFFECTUATE SUBORDINATION  . . . . .  68

          SECTION 1308.  NO WAIVER OF SUBORDINATION PROVISIONS  . . . .  68

          SECTION 1309.  TRUST MONEYS NOT SUBORDINATED  . . . . . . . .  69

          SECTION 1310.  NOTICE TO THE TRUSTEE  . . . . . . . . . . . .  69

          SECTION 1311.  RELIANCE ON JUDICIAL  ORDER OR CERTIFICATE OF
                         LIQUIDATING AGENT  . . . . . . . . . . . . . .  70

          SECTION 1312.  TRUSTEE NOT  FIDUCIARY FOR HOLDERS  OF SENIOR
                         INDEBTEDNESS . . . . . . . . . . . . . . . . .  70

          SECTION 1313.  RIGHTS  OF   TRUSTEE  AS  HOLDER   OF  SENIOR
                         INDEBTEDNESS;   PRESERVATION   OF   TRUSTEE'S
                         RIGHTS . . . . . . . . . . . . . . . . . . . .  70

          SECTION 1314.  ARTICLE APPLICABLE TO PAYING AGENTS  . . . . .  71

          SECTION 1315.  RELIANCE BY HOLDERS OF SENIOR INDEBTEDNESS ON
                         SUBORDINATION PROVISIONS . . . . . . . . . . .  71





                                         vii
<PAGE>






                                   ARTICLE FOURTEEN

                               MISCELLANEOUS PROVISIONS . . . . . . . .  71

          SECTION 1401.  NO RECOURSE AGAINST OTHERS . . . . . . . . . .  71

          SECTION 1402.  SET-OFF  . . . . . . . . . . . . . . . . . . .  71

          SECTION 1403.  ASSIGNMENT; BINDING EFFECT . . . . . . . . . .  72

          SECTION 1404.  ADDITIONAL INTEREST  . . . . . . . . . . . . .  72










































                                         viii
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                             SUBORDINATED NOTE INDENTURE

               THIS SUBORDINATED  NOTE INDENTURE is  made as of  January 1,
          1996, between ALABAMA POWER COMPANY, a corporation duly organized
          and  existing  under the  laws of  the  State of  Alabama (herein
          called the "Company"),  having its principal office at  600 North
          18th Street,  Birmingham,  Alabama  35291, and  CHEMICAL BANK,  a
          banking corporation duly organized and existing under the laws of
          the State  of  New York,  having  its principal  corporate  trust
          office at 450  West 33rd  Street, New  York, New  York 10001,  as
          Trustee (herein called the "Trustee").

                                 W I T N E S S E T H:

               WHEREAS, the  Company has duly authorized  the execution and
          delivery  of this Subordinated Note  Indenture to provide for the
          issuance  from  time  to   time  of  its  unsecured  subordinated
          debentures,  notes  or other  evidences  of indebtedness  (herein
          called the "Junior Subordinated  Notes"), to be issued in  one or
          more series as in this Subordinated Note Indenture provided; and

               WHEREAS, all things necessary to make this Subordinated Note
          Indenture a  valid agreement of  the Company, in  accordance with
          its terms, have been done.

               NOW, THEREFORE, for and in consideration of the premises and
          the purchase  of  the Junior  Subordinated Notes  by the  Holders
          thereof,  it is mutually covenanted and agreed, for the equal and
          proportionate benefit  of all Holders of  the Junior Subordinated
          Notes or of series thereof, as follows:

                                     ARTICLE ONE

                           DEFINITIONS AND OTHER PROVISIONS
                                OF GENERAL APPLICATION

          SECTION 101.   DEFINITIONS.

               For all purposes of this Subordinated Note Indenture, except
          as otherwise  expressly provided or unless  the context otherwise
          requires:

                    (1)  the  terms  defined  in   this  Article  have  the
               meanings assigned  to them in  this Article and  include the
               plural as well as the singular;

                    (2)  all other  terms used herein which  are defined in
               the  Trust Indenture  Act, either  directly or  by reference
               therein, have the meanings assigned to them therein;

                    (3)  all accounting terms not otherwise  defined herein
               have  the  meanings  assigned  to them  in  accordance  with

                                          1
<PAGE>






               generally  accepted  accounting  principles  in  the  United
               States of America, and, except as otherwise herein expressly
               provided,   the   term   "generally    accepted   accounting
               principles"  with  respect to  any  computation required  or
               permitted hereunder shall mean such accounting principles as
               are  generally accepted in  the United States  of America at
               the date of such computation;

                    (4)  the  words "herein", "hereof"  and "hereunder" and
               other  words of  similar import  refer to  this Subordinated
               Note Indenture as a whole and not to any particular Article,
               Section or other subdivision; and

                    (5)  Trust Securities related to a particular series of
               Junior  Subordinated   Notes  means  the  series   of  Trust
               Securities  the proceeds of the sale of which were loaned to
               the  Company   in  exchange   for  such  series   of  Junior
               Subordinated Notes, and the guarantee related to such series
               of Trust  Securities means  the guarantee pursuant  to which
               the Company  has guaranteed,  to the extent  stated therein,
               the payment of distributions  and certain other amounts with
               respect to such series of Trust Securities.

               Certain terms, used principally  in Article Six, are defined
          in that Article.

               "Act",  when used  with respect  to any  Holder of  a Junior
          Subordinated Note, has the meaning specified in Section 104.

               "Additional Interest"  means (i) such  additional amounts as
          may be required so that the  net amounts received and retained by
          the Holder (if  the Holder  is a Securities  Trust) after  paying
          taxes, duties, assessments  or governmental  charges of  whatever
          nature  (other  than withholding  taxes)  imposed  by the  United
          States or  any other taxing authority  will not be  less than the
          amounts the Holder would have received had no such taxes, duties,
          assessments, or other governmental charges been imposed; and (ii)
          any  interest due  and  not paid  on  an Interest  Payment  Date,
          together with interest thereon from such Interest Payment Date to
          the  date  of payment,  compounded  quarterly,  on each  Interest
          Payment Date.

               "Affiliate" of  any specified Person means  any other Person
          directly  or indirectly  controlling  or controlled  by or  under
          direct  or indirect  common control  with such  specified Person.
          For  the purposes  of this definition,  "control" when  used with
          respect to any  specified Person  means the power  to direct  the
          management and  policies of such Person,  directly or indirectly,
          whether through  the ownership of voting  securities, by contract
          or otherwise;  and the terms "controlling"  and "controlled" have
          meanings  correlative  to  the  foregoing.    Notwithstanding the


                                          2
<PAGE>






          foregoing, any  Securities Trust  organized by the  Company shall
          not be deemed to be an Affiliate of the Company.

               "Authenticating   Agent"   means  any   Person   or  Persons
          authorized by the Trustee  to authenticate one or more  series of
          Junior Subordinated Notes.

               "Board of Directors" means either  the board of directors of
          the Company  or  any duly  authorized committee  of the  officers
          and/or directors of the Company appointed by that board.

               "Board Resolution" means a copy of a resolution certified by
          the  Secretary or an Assistant  Secretary of the  Company to have
          been duly  adopted by the  Board of Directors  and to be  in full
          force and effect on the date of such certification, and delivered
          to the Trustee.

               "Business  Day" means a day  other than (i)  a Saturday or a
          Sunday,  (ii) a  day on  which banks  in New  York, New  York are
          authorized  or obligated  by  law or  executive  order to  remain
          closed, or (iii)  a day  on which the  Trustee's Corporate  Trust
          Office or Property Trustee's  principal corporate trust office is
          closed for business.

               "Certificate  of a  Firm of Independent  Public Accountants"
          means a certificate signed by an independent public accountant or
          a  firm  of  independent  public  accountants  who   may  be  the
          independent public accountants regularly retained by  the Company
          or  who may  be  other  independent  public  accountants.    Such
          accountant or firm shall be entitled  to rely upon an Opinion  of
          Counsel as to the interpretation of any legal matters relating to
          such certificate.

               "Commission" means the  Securities and Exchange  Commission,
          as from  time to time  constituted, created under  the Securities
          Exchange Act  of 1934, as amended,  or, if at any  time after the
          execution of this instrument such Commission is not existing  and
          performing  the  duties  now  assigned  to  it  under  the  Trust
          Indenture Act, then the body performing such duties at such time.

               "Company" means  the Person named  as the  "Company" in  the
          first paragraph of this  instrument until a successor corporation
          shall  have become such pursuant  to the applicable provisions of
          this Subordinated Note Indenture, and thereafter "Company"  shall
          mean such successor corporation.

               "Company Request" or "Company Order" means a written request
          or order signed in the name of the Company by its Chairman of the
          Board, its President or  a Vice President, and by  its Treasurer,
          an Assistant Treasurer, its  Secretary or an Assistant Secretary,
          and delivered to the Trustee.


                                          3
<PAGE>






               "Corporate Trust Office" means the office of the Trustee  in
          the  Borough of  Manhattan,  New  York  City,  at  which  at  any
          particular time its corporate trust business shall be principally
          administered,  which  office at  the  date of  execution  of this
          Subordinated  Note Indenture is located at  450 West 33rd Street,
          New York, New York 10001.

               "Corporation" includes corporations, associations, companies
          and business trusts.

               "Defaulted  Interest" has  the meaning specified  in Section
          305.

               "Depositary"  means,  unless   otherwise  specified  by  the
          Company  pursuant to either Section  203 or 301,  with respect to
          Junior Subordinated Notes of  any series issuable or issued  as a
          Global  Security, The  Depository  Trust Company,  New York,  New
          York,  or any successor  thereto registered as  a clearing agency
          under the Securities Exchange  Act of 1934, as amended,  or other
          applicable statute or regulation.

               "Event of Default" has the meaning specified in Section 501.

               "Global Security" means with respect to any series of Junior
          Subordinated Notes issued  hereunder, a Junior  Subordinated Note
          that is executed  by the Company and  authenticated and delivered
          by  the Trustee to the Depositary or pursuant to the Depositary's
          instruction, all in accordance with Section 203 of this Indenture
          and any indenture supplemental hereto.

               "Guarantee" means  a Guarantee  Agreement, if  any, executed
          and delivered by the Company for the  benefit of the holders from
          time to time  of all or  a portion of the  Trust Securities of  a
          Securities Trust.

               "Holder", when used with  respect to any Junior Subordinated
          Note, means the Person in whose name the Junior Subordinated Note
          is registered in the Security Register.

               "Indenture" means this instrument as  originally executed or
          as it may from time to time be supplemented  or amended by one or
          more indentures supplemental hereto  entered into pursuant to the
          applicable  provisions hereof and shall  include the terms of the
          particular  series of  Junior  Subordinated Notes  established as
          contemplated by Section 301.

               "Interest  Payment  Date", when  used  with  respect to  any
          series of Junior Subordinated  Notes, means the dates established
          for  the  payment  of  interest  thereon,   as  provided  in  the
          supplemental indenture for such series.



                                          4
<PAGE>






               "Junior  Subordinated Note"  has the  meaning stated  in the
          first recital of this  Indenture and more particularly means  any
          Junior Subordinated Notes authenticated  and delivered under this
          Indenture.

               "Maturity",   when   used   with  respect   to   any  Junior
          Subordinated  Note, means the date on which the principal of such
          Junior Subordinated  Note or an installment  of principal becomes
          due and payable  as therein  or herein provided,  whether at  the
          Stated  Maturity  or by  declaration  of  acceleration, call  for
          redemption or otherwise.

               "Officers' Certificate"  means a  certificate signed by  the
          Chairman of the Board,  the President or a Vice President, and by
          the  Treasurer,  an  Assistant  Treasurer, the  Secretary  or  an
          Assistant  Secretary,  of  the  Company,  and  delivered  to  the
          Trustee.

               "Opinion of Counsel" means a written opinion of counsel, who
          may be  counsel for the Company,  and who shall be  acceptable to
          the Trustee.

               "Outstanding", when used with respect to Junior Subordinated
          Notes, means,  as  of  the  date  of  determination,  all  Junior
          Subordinated  Notes theretofore authenticated and delivered under
          this Indenture, except:

                    (i)       Junior    Subordinated    Notes   theretofore
               canceled by  the Trustee  or delivered  to  the Trustee  for
               cancellation;

                    (ii)      Junior Subordinated Notes  for whose  payment
               or  redemption  money  in  the  necessary  amount  has  been
               theretofore deposited  with the Trustee or  any Paying Agent
               (other  than  the  Company)  in   trust  or  set  aside  and
               segregated in trust by the Company (if the Company shall act
               as  its own  Paying Agent)  for the  Holders of  such Junior
               Subordinated   Notes;   provided   that   if   such   Junior
               Subordinated  Notes  are  to  be redeemed,  notice  of  such
               redemption has been duly given pursuant to this Indenture or
               provision  therefor  satisfactory  to the  Trustee  has been
               made;

                    (iii)     Junior Subordinated Notes that have been paid
               or  in exchange  for  or  in  lieu  of  which  other  Junior
               Subordinated  Notes  have been  authenticated  and delivered
               pursuant  to  this Indenture,  other  than  any such  Junior
               Subordinated Notes in respect of which there shall have been
               presented to the Trustee proof satisfactory  to it that such
               Junior Subordinated Notes are held by a bona  fide purchaser
               in  whose hands  such  Junior Subordinated  Notes are  valid
               obligations of the Company; and

                                          5
<PAGE>






                    (iv)      Junior   Subordinated   Notes,  or   portions
               thereof, converted into or exchanged for another security if
               the terms of such Junior Subordinated Notes provide for such
               conversion or exchange;

          provided,  however, that  in  determining, during  any period  in
          which  any Junior Subordinated Notes of a series are owned by any
          Person other than  the Company or any  Affiliate thereof, whether
          the  Holders of  the  requisite principal  amount of  Outstanding
          Junior Subordinated Notes of such series have given any  request,
          demand,  authorization,  direction,  notice,  consent  or  waiver
          hereunder, Junior Subordinated Notes of  such series owned by the
          Company or any Affiliate thereof shall  be disregarded and deemed
          not  to be Outstanding.  In determining whether the Trustee shall
          be  protected   in  relying   upon  any  such   request,  demand,
          authorization, direction, notice, consent or waiver, only  Junior
          Subordinated Notes  that the Trustee knows to  be so owned by the
          Company or an Affiliate of the Company in the above circumstances
          shall be so disregarded.  Junior Subordinated Notes so owned that
          have been pledged in good faith may be regarded as Outstanding if
          the pledgee  establishes to the  satisfaction of the  Trustee the
          pledgee's  right  so   to  act  with   respect  to  such   Junior
          Subordinated Notes and that the pledgee is not the Company or any
          Affiliate of the Company.

               "Paying Agent" means any Person authorized by the Company to
          pay  the principal of  (and premium, if  any) or  interest on any
          Junior Subordinated Notes on behalf of the Company.

               "Person"  means  any  individual, corporation,  partnership,
          joint   venture,   association,   joint-stock   company,   trust,
          unincorporated  organization  or  government  or  any  agency  or
          political subdivision thereof.

               "Predecessor Security" of any particular Junior Subordinated
          Note means every previous Junior Subordinated Note evidencing all
          or  a  portion  of  the  same debt  as  that  evidenced  by  such
          particular  Junior Subordinated  Note; and,  for the  purposes of
          this definition, any  Junior Subordinated Note  authenticated and
          delivered under  Section 304  in exchange  for  or in  lieu of  a
          mutilated,  destroyed, lost  or stolen  Junior  Subordinated Note
          shall  be  deemed to  evidence the  same  debt as  the mutilated,
          destroyed, lost or stolen Junior Subordinated Note.

               "Property  Trustee", when  used with  respect to  the Junior
          Subordinated Notes of any series, means the Person designated  as
          such in the related Trust Agreement.

               "Redemption  Date", when  used  with respect  to any  Junior
          Subordinated Note to be  redeemed, means the date fixed  for such
          redemption by or pursuant to this Indenture.


                                          6
<PAGE>






               "Redemption  Price", when  used with  respect to  any Junior
          Subordinated Note  to be redeemed, means the price at which it is
          to be redeemed pursuant to this Indenture.

               "Regular  Record  Date"  for  the interest  payable  on  any
          Interest Payment  Date on  the Junior Subordinated  Notes of  any
          series means the  date specified for that purpose as contemplated
          by Section 301, whether or not a Business Day.

               "Responsible  Officer",  when  used   with  respect  to  the
          Trustee,  means the chairman or any vice-chairman of the board of
          directors,  the chairman  or any  vice-chairman of  the executive
          committee  of the board of  directors, the chairman  of the trust
          committee, the president, any  vice president, the secretary, any
          assistant secretary, the treasurer,  any assistant treasurer, the
          cashier,  any assistant  cashier, any  senior trust  officer, any
          trust officer or  assistant trust officer, the  controller or any
          assistant  controller  or  any   other  officer  of  the  Trustee
          customarily performing functions  similar to  those performed  by
          any of the above designated officers and also means, with respect
          to a particular corporate trust matter, any other officer to whom
          such  matter  is  referred  because  of   his  knowledge  of  and
          familiarity with the particular subject.

               "Securities Trust" means any statutory business trust formed
          by the Company  or an  Affiliate to issue  Trust Securities,  the
          proceeds  of which will  be used to  purchase Junior Subordinated
          Notes of one or more series.

               "Security  Register"  and  "Security  Registrar"   have  the
          respective meanings specified in Section 303.

               "Senior Indebtedness" means,  with respect  to the  Company,
          (i)  any payment due in  respect of indebtedness  of the Company,
          whether outstanding at the date of execution of this Subordinated
          Note Indenture  or thereafter incurred, created,  or assumed, (a)
          in respect of money borrowed (including any financial derivative,
          hedging  or  futures  contract  or similar  instrument)  and  (b)
          evidenced  by  securities,  debentures,  bonds,  notes  or  other
          similar instruments issued by the Company  which, by their terms,
          are  senior  or  senior subordinated  debt  securities including,
          without limitation,  all  obligations under  its indentures  with
          various trustees;  (ii) all capital lease  obligations; (iii) all
          obligations issued or  assumed as the deferred  purchase price of
          property, all conditional sale obligations and all obligations of
          the Company  under any  title retention agreement  (but excluding
          trade accounts payable arising in the ordinary course of business
          and long-term purchase obligations); (iv) all obligations for the
          reimbursement  of  any  letter  of  credit, banker's  acceptance,
          security purchase facility or similar credit transaction; (v) all
          obligations of the type  referred to in clauses (i)  through (iv)
          above  of other  persons  the payment  of  which the  Company  is

                                          7
<PAGE>






          responsible  or liable  as obligor,  guarantor or  otherwise; and
          (vi)  all  obligations of  the type  referred  to in  clauses (i)
          through (v) above  of other  persons secured by  any lien on  any
          property  or asset of the Company (whether or not such obligation
          is  assumed by the Company), except for (1) any such indebtedness
          that is  by its  terms  subordinated to  or pari  passu with  the
          Junior Subordinated  Notes  and (2)  any  unsecured  indebtedness
          between  or among  the Company  or its  Affiliates.   Such Senior
          Indebtedness shall continue to be entitled to the benefits of the
          subordination   provisions   contained   in    Article   Thirteen
          irrespective of any amendment, modification or waiver of any term
          of such Senior Indebtedness.

               "Special  Record  Date" for  the  payment  of any  Defaulted
          Interest on the Junior  Subordinated Notes of any series  means a
          date fixed by the Trustee pursuant to Section 305.

               "Stated  Maturity", when  used  with respect  to any  Junior
          Subordinated  Note or  any  installment of  principal thereof  or
          interest  thereon,  means  the  date  specified  in  such  Junior
          Subordinated Note as  the fixed  date on which  the principal  of
          such Junior Subordinated Note or such installment of principal or
          interest is due and payable.

               "Trust Agreement",  when used  with respect to  a Securities
          Trust, means the agreement or instrument that governs the affairs
          of such Securities Trust.

               "Trust Indenture Act" means the Trust Indenture Act of 1939,
          as amended, and any  reference herein to the Trust  Indenture Act
          or a particular provision thereof shall mean such Trust Indenture
          Act or provision, as the case may be, as amended or replaced from
          time to time.

               "Trust   Securities"  means  the   securities  issued  by  a
          Securities  Trust  evidencing  the  entire   beneficial  interest
          therein.

               "Trustee" means  the Person  named as  the "Trustee"  in the
          first  paragraph of  this  instrument until  a successor  Trustee
          shall  have become  such with  respect to  one or more  series of
          Junior  Subordinated Notes pursuant  to the applicable provisions
          of this Indenture, and thereafter "Trustee" shall mean or include
          each Person who  is then a Trustee hereunder, and  if at any time
          there  is more  than  one such  Person,  "Trustee" as  used  with
          respect to the Junior Subordinated Notes of any series shall mean
          the  Trustee with  respect to  Junior Subordinated Notes  of that
          series.

               "Vice  President", when used with respect  to the Company or
          the  Trustee, means any vice president, whether or not designated


                                          8
<PAGE>






          by a number or  a word or words  added before or after the  title
          "vice president."

          SECTION 102.   COMPLIANCE CERTIFICATES AND OPINIONS.

               Upon  any  application or  request  by  the  Company to  the
          Trustee to take any action under any provision of this Indenture,
          the Company shall furnish to the Trustee an Officers' Certificate
          stating  that all conditions  precedent, if any,  provided for in
          this Indenture relating to the proposed action have been complied
          with and  an Opinion of  Counsel stating that  in the  opinion of
          such counsel  all such  conditions precedent,  if any,  have been
          complied with, except that in the case of any such application or
          request  as  to  which  the  furnishing  of  such   documents  is
          specifically required by any provision of this Indenture relating
          to  such   particular  application  or   request,  no  additional
          certificate or opinion need be furnished.

               Every certificate or opinion with respect to compliance with
          a condition  or covenant  provided for  in  this Indenture  shall
          include

                    (i)       a statement that each individual signing such
               certificate or  opinion has read such  covenant or condition
               and the definitions herein relating thereto;

                    (ii)      a brief statement as  to the nature and scope
               of   the  examination  or   investigation  upon   which  the
               statements  or opinions  contained  in  such certificate  or
               opinion are based;

                    (iii)     a statement that, in the opinion of each such
               individual, he has made such examination or investigation as
               is necessary to enable him to express an informed opinion as
               to  whether  or not  such  covenant  or condition  has  been
               complied with; and

                    (iv)      a statement as to  whether, in the opinion of
               each such  individual, such  condition or covenant  has been
               complied with.

          SECTION 103.   FORM OF DOCUMENTS DELIVERED TO TRUSTEE.

               In  any  case  where  several matters  are  required  to  be
          certified  by, or covered by an opinion of, any specified Person,
          it  is not  necessary that all  such matters be  certified by, or
          covered by the opinion of, only  one such Person, or that they be
          certified  or covered by only  one document, but  one such Person
          may certify or give an  opinion with respect to some matters  and
          one or more other such Persons  as to other matters, and any such
          Person may certify or give  an opinion as to such matters  in one
          or several documents.

                                          9
<PAGE>






               Any  certificate or opinion of an officer of the Company may
          be  based, insofar  as  it  relates  to  legal  matters,  upon  a
          certificate or opinion of, or representations by, counsel, unless
          such  officer knows, or in the exercise of reasonable care should
          know,  that the  certificate or  opinion or  representations with
          respect to the matters  upon which his certificate or  opinion is
          based  are erroneous.  Any such certificate or Opinion of Counsel
          may be based,  insofar as it relates  to factual matters,  upon a
          certificate or opinion of, or  representations by, an officer  or
          officers of the Company stating that the information with respect
          to  such factual  matters is  in the  possession of  the Company,
          unless  such counsel knows, or in the exercise of reasonable care
          should know,  that the certificate or  opinion or representations
          with respect to such matters are erroneous.

               Where any Person is required to make, give or execute two or
          more applications, requests, consents,  certificates, statements,
          opinions or other instruments under this Indenture, they may, but
          need not, be consolidated and form one instrument.

          SECTION 104.   ACTS OF HOLDERS.

               (a)  Any request, demand, authorization,  direction, notice,
          consent,  waiver or other action provided by this Indenture to be
          given or taken by Holders may be embodied in and evidenced by one
          or more instruments of substantially similar tenor signed by such
          Holders in person or by agent duly appointed  in writing.  Except
          as herein otherwise expressly  provided, such action shall become
          effective when  such instrument  or instruments are  delivered to
          the  Trustee and, where it  is hereby expressly  required, to the
          Company.  Such instrument or instruments (and the action embodied
          therein and  evidenced thereby) are herein  sometimes referred to
          as  the  "Act"   of  the  Holders  signing  such   instrument  or
          instruments.  Proof  of execution of any such  instrument or of a
          writing appointing  any such agent,  shall be sufficient  for any
          purpose of this Indenture and (subject to Section 601) conclusive
          in favor  of the Trustee and  the Company, if made  in the manner
          provided in this Section.

               (b)  The fact and date of the execution by any Person of any
          such instrument or  writing may be proved  by the affidavit  of a
          witness of such execution or by  a certificate of a notary public
          or other  officer authorized  by law  to take acknowledgments  of
          deeds, certifying that the  individual signing such instrument or
          writing  acknowledged to him  the execution thereof.   Where such
          execution is  by a signer in a capacity other than his individual
          capacity,  such  certificate or  affidavit shall  also constitute
          sufficient proof of his authority.

               (c)  The  principal  amount  and serial  numbers  of  Junior
          Subordinated  Notes held by any  Person, and the  date of holding
          the same, shall be proved by the Security Register.

                                          10
<PAGE>






               (d)  Any request, demand, authorization,  direction, notice,
          consent,  election,  waiver or  other Act  of  the Holder  of any
          Junior Subordinated  Note shall bind  every future Holder  of the
          same  Junior  Subordinated Note  and the  Holder of  every Junior
          Subordinated  Note  issued  upon  the  registration  of  transfer
          thereof or in exchange therefor or in lieu thereof in  respect of
          anything done, omitted or  suffered to be done by  the Trustee or
          the  Company in reliance thereon, whether or not notation of such
          action is made upon such Junior Subordinated Note.

               (e)  The fact and date  of execution of any such  instrument
          or writing and the authority of the Person executing the same may
          also  be proved  in  any other  manner  which the  Trustee  deems
          sufficient;  and the Trustee may in  any instance require further
          proofwith respect toany of thematters referred toin this Section.

               (f)  If the Company shall solicit from the Holders of Junior
          Subordinated Notes of any series any Act, the Company may, at its
          option, by Board Resolution, fix in advance a record date for the
          determination of Holders of Junior Subordinated Notes entitled to
          take such Act, but the Company shall have no obligation to do so.
          Any  such record date shall be fixed at the Company's discretion.
          If such a record date is fixed,  such Act may be sought or  given
          before or after the record  date, but only the Holders  of record
          at  the close of business on such  record date shall be deemed to
          be  Holders  of Junior  Subordinated  Notes  for the  purpose  of
          determining whether Holders of the requisite proportion of Junior
          Subordinated Notes of such  series Outstanding have authorized or
          agreed  or consented to such Act, and for that purpose the Junior
          Subordinated Notes  of such series Outstanding  shall be computed
          as of such record date.

          SECTION 105.   NOTICES, ETC., TO TRUSTEE AND COMPANY.

               Any  request,  demand,  authorization,   direction,  notice,
          consent,  election, waiver or  Act of  Holders or  other document
          provided or permitted by this Indenture to be made upon, given or
          furnished to, or filed with,

                    (1)  the Trustee by any Holder of a Junior Subordinated
               Note or by the Company shall be sufficient for every purpose
               hereunder if made,  given, furnished or filed in  writing to
               or  with   the  Trustee  at  its   Corporate  Trust  Office,
               Attention: Corporate Trustee Administration Department, or

                    (2)  the Company by the Trustee or by any Holder  shall
               be sufficient for every purpose  hereunder (unless otherwise
               herein expressly provided) if  in writing and mailed, first-
               class  postage  prepaid, to  the  Company  addressed to  the
               attention  of  its  Secretary,  at 600  North  18th  Street,
               Birmingham,  Alabama 35291,   or   at  any   other   address


                                          11
<PAGE>






               previously  furnished  in  writing  to the  Trustee  by  the
               Company.

          SECTION 106.   NOTICE  TO HOLDERS  OF JUNIOR  SUBORDINATED NOTES;
                         WAIVER.

               Except  as otherwise expressly  provided herein,  where this
          Indenture provides  for notice to Holders  of Junior Subordinated
          Notes of any event, such notice shall be sufficiently given if in
          writing and  mailed, first-class postage prepaid,  to each Holder
          affected  by such  event,  at his  address as  it appears  in the
          Security  Register,  not later  than  the  latest date,  and  not
          earlier than the earliest date, prescribed for the giving of such
          Notice.

               In  case by reason of the suspension of regular mail service
          or by reason of any other cause it shall be impracticable to give
          such notice by mail, then such notification as shall be made with
          the  approval  of  the  Trustee  shall  constitute  a  sufficient
          notification for  every purpose  hereunder.   In  any case  where
          notice to Holders is  given by mail, neither the failure  to mail
          such  notice, nor  any  defect in  any notice  so mailed,  to any
          particular  Holder shall  affect the  sufficiency of  such notice
          with respect to other Holders.

               Where this Indenture provides for notice in any manner, such
          notice may be waived in writing by the Person entitled to receive
          such  notice, either before or  after the event,  and such waiver
          shall be  the equivalent of  such notice.   Waivers of notice  by
          Holders  of Junior  Subordinated Notes  shall be  filed with  the
          Trustee,  but such filing shall  not be a  condition precedent to
          the validity of any action taken in reliance upon such waiver.

          SECTION 107.   CONFLICT WITH TRUST INDENTURE ACT.

               If any provision hereof  limits, qualifies or conflicts with
          a  provision of the Trust Indenture Act  that is required to be a
          part of  and govern this Indenture, such required provision shall
          control.

          SECTION 108.   EFFECT OF HEADINGS AND TABLE OF CONTENTS.

               The Article  and Section  headings herein  and the Table  of
          Contents  are  for convenience  only  and  shall not  affect  the
          construction hereof.

          SECTION 109.   SUCCESSORS AND ASSIGNS.

               All  covenants  and  agreements  in this  Indenture  by  the
          Company  shall  bind  its  successors  and  assigns,  whether  so
          expressed or not.


                                          12
<PAGE>






          SECTION 110.   SEPARABILITY CLAUSE.

               In  case  any provision  in  this  Indenture or  the  Junior
          Subordinated  Notes shall  be invalid, illegal  or unenforceable,
          the  validity,  legality  and  enforceability  of  the  remaining
          provisions shall not in any way be affected or impaired thereby.

          SECTION 111.   BENEFITS OF INDENTURE.

               Nothing in this Indenture  or the Junior Subordinated Notes,
          express  or implied,  shall give  to any  Person, other  than the
          parties  hereto, their  successors hereunder  and the  Holders of
          Junior Subordinated Notes and, to the  extent provided in Section
          1403, the holders of Senior Indebtedness or Trust Securities, any
          benefit  or any legal or  equitable right, remedy  or claim under
          this Indenture.





          SECTION 112.   GOVERNING LAW.

               This Indenture  and the  Junior Subordinated Notes  shall be
          governed by, and  construed in accordance with, the internal laws
          of the State of New York.

          SECTION 113.   LEGAL HOLIDAYS.

               In any case where any Interest Payment Date, Redemption Date
          or Stated Maturity of any Junior Subordinated Note shall not be a
          Business Day,  then (notwithstanding any other  provision of this
          Indenture  or  of  the  Junior  Subordinated  Notes)  payment  of
          interest or principal  (and premium, if any) need  not be made on
          such date, but may be  made on the next succeeding  Business Day,
          except  that,  if such  Business Day  is  in the  next succeeding
          calendar year,  such payment  shall  be made  on the  immediately
          preceding  Business Day,  in each  case with  the same  force and
          effect  as if  made on  the Interest  Payment Date  or Redemption
          Date,  or at the Stated Maturity, provided that no interest shall
          accrue on  the amount  so payable for  the period from  and after
          such Interest  Payment Date, Redemption Date  or Stated Maturity,
          as the case may be.

          SECTION 114.   APPOINTMENT OF AGENT FOR SERVICE.

               By the execution and delivery of this Indenture, the Company
          hereby appoints the Trustee  as its agent upon which  process may
          be  served in  any  legal  action  or  proceeding  which  may  be
          instituted  in any  Federal  or State  court  in the  Borough  of
          Manhattan,  New  York City,  arising out  of  or relating  to the
          Junior Subordinated Notes  or this Indenture.  Service of process

                                          13
<PAGE>






          upon  such agent  at the office  of such  agent at  450 West 33rd
          Street, New  York, New York  10001,  Attention: Corporate Trustee
          Administration Department  (or such other address  in the Borough
          of Manhattan, New York City, as may be the Corporate Trust Office
          of  the Trustee),  and  written notice  of  such service  to  the
          Company by the Person  serving the same addressed as  provided in
          Section  105, shall be deemed  in every respect effective service
          of  process  upon  the  Company  in  any  such  legal  action  or
          proceeding, and the Company hereby submits to the jurisdiction of
          any such court in which any such legal action or proceeding is so
          instituted.  Such appointment shall be irrevocable so long as the
          Holders  of  Junior  Subordinated  Notes shall  have  any  rights
          pursuant  to the  terms thereof  or of  this Indenture  until the
          appointment of a successor by the Company with the consent of the
          Trustee and such successor's acceptance of such appointment.  The
          Company  further agrees to take any and all action, including the
          execution  and  filing   of  any  and  all   such  documents  and
          instruments, as may be necessary to continue such designation and
          appointment of such agent or successor.

               By the execution and delivery of this Indenture, the Trustee
          hereby agrees to  act as  such agent and  undertakes promptly  to
          notify the  Company of  receipt by it  of service  of process  in
          accordance with this Section.

                                     ARTICLE TWO

                          FORMS OF JUNIOR SUBORDINATED NOTES

          SECTION 201.   FORMS GENERALLY.

               The Junior  Subordinated Notes of  each series  shall be  in
          substantially  the  form appended  to the  supplemental indenture
          authorizing  such  series, in  each  case  with such  appropriate
          insertions, omissions, substitutions and other variations  as are
          required  or  permitted  by  this Indenture,  and  may  have such
          letters,  numbers  or  other  marks of  identification  and  such
          legends or  endorsements placed  thereon as  may  be required  to
          comply  with  the rules  of any  securities  exchange or  as may,
          consistently herewith, be  determined by  the officers  executing
          such Junior  Subordinated Notes, as evidenced  by their execution
          of the Junior Subordinated Notes.

               The  Junior  Subordinated  Notes  of each  series  shall  be
          issuable in registered form without coupons.

               The  definitive  Junior Subordinated  Notes may  be printed,
          typewritten, lithographed or engraved  on steel engraved  borders
          or may be produced in any other manner, all as  determined by the
          officers executing  such Junior Subordinated Notes,  as evidenced
          by their execution of such Junior Subordinated Notes.


                                          14
<PAGE>






          SECTION 202.   FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.

               The form of the  Trustee's Certificate of Authentication for
          a series of Junior  Subordinated Notes shall be  in substantially
          the form appended to  the Supplemental Indenture authorizing such
          series.

          SECTION 203.   JUNIOR SUBORDINATED NOTES ISSUABLE  IN THE FORM OF
                         A GLOBAL SECURITY.

               (a)  If the Company shall  establish pursuant to Section 301
          that  the Junior Subordinated Notes of a particular series are to
          be issued  in whole or in part in the  form of one or more Global
          Securities, then the Company shall execute and the Trustee shall,
          in accordance with Section 302 and the Company Order delivered to
          the  Trustee thereunder,  authenticate  and deliver  such  Global
          Security or Securities,  which (i) shall represent,  and shall be
          denominated in an amount equal to the  aggregate principal amount
          of the Outstanding Junior Subordinated Notes of such series to be
          represented  by  such Global  Security  or  Securities, (ii)  may
          provide   that  the  aggregate   amount  of   Outstanding  Junior
          Subordinated Notes represented thereby  may from time to  time be
          increased  or  reduced  to  reflect  exchanges,  (iii)  shall  be
          registered in the name of the Depositary for such Global Security
          or  Securities or  its nominee,  (iv) shall  be delivered  by the
          Trustee  to  the  Depositary  or  pursuant  to  the  Depositary's
          instruction  and (v) shall bear  a legend in  accordance with the
          requirements of the Depositary.

               (b)  Notwithstanding any other provision of this Section 203
          or of Section  303, subject  to the provisions  of paragraph  (c)
          below, unless  the terms of  a Global  Security expressly  permit
          such Global  Security to be  exchanged in  whole or  in part  for
          individual Junior  Subordinated Notes,  a Global Security  may be
          transferred, in  whole but not in part and in the manner provided
          in Section  303, only  to a  nominee of  the Depositary for  such
          Global  Security,  or  to  the  Depositary,  or  to  a  successor
          Depositary for such Global  Security selected or approved by  the
          Company, or to a nominee of such successor Depositary.

               (c)  (1)    If  at any  time  the  Depositary  for a  Global
               Security notifies the Company that it is unwilling or unable
               to  continue as Depositary for such Global Security or if at
               any time  the Depositary  for the Junior  Subordinated Notes
               for  such  series shall  no longer  be  eligible or  in good
               standing  under  the Securities  Exchange  Act  of 1934,  as
               amended,  or  other applicable  statute  or  regulation, the
               Company shall appoint a successor Depositary with respect to
               such Global Security.   If a  successor Depositary for  such
               Global Security  is not appointed  by the Company  within 90
               days after the Company receives such notice or becomes aware
               of  such ineligibility,  the Company  will execute,  and the

                                          15
<PAGE>






               Trustee,   upon  receipt   of  a   Company  Order   for  the
               authentication   and   delivery    of   individual    Junior
               Subordinated  Notes  of such  series  in  exchange for  such
               Global  Security, will  authenticate and  deliver individual
               Junior  Subordinated Notes of such series  of like tenor and
               terms in  definitive form  in an aggregate  principal amount
               equal  to the  principal amount  of the  Global  Security in
               exchange for such Global Security.

                    (2)  The  Company may  at  any  time  and in  its  sole
               discretion determine that  the Junior Subordinated  Notes of
               any  series issued or  issuable in the  form of one  or more
               Global  Securities shall  no longer  be represented  by such
               Global Security  or Securities.   In such event  the Company
               will execute,  and the  Trustee, upon receipt  of a  Company
               Request for  the authentication and  delivery of  individual
               Junior  Subordinated Notes  of  such series  in exchange  in
               whole or in part for such Global Security, will authenticate
               and  deliver  individual Junior  Subordinated Notes  of such
               series  of like  tenor and  terms in  definitive form  in an
               aggregate principal amount equal  to the principal amount of
               such Global Security or  Securities representing such series
               in exchange for such Global Security or Securities.

                    (3)  If  specified by  the Company pursuant  to Section
               301  with respect  to  Junior Subordinated  Notes issued  or
               issuable  in the form  of a Global  Security, the Depositary
               for such Global Security  may surrender such Global Security
               in  exchange  in  whole or  in  part  for  individual Junior
               Subordinated Notes of such series of like tenor and terms in
               definitive  form  on such  terms  as are  acceptable  to the
               Company and  such Depositary.   Thereupon the  Company shall
               execute,  and  the Trustee  shall authenticate  and deliver,
               without service charge, (A) to each Person specified by such
               Depositary a  new Junior Subordinated  Note or Notes  of the
               same  series or like tenor  and terms and  of any authorized
               denomination  as  requested  by  such  Person  in  aggregate
               principal amount  equal to and in exchange for such Person's
               beneficial interest in the Global  Security; and (B) to such
               Depositary a new Global Security of like tenor and terms and
               in an  authorized denomination  equal to the  difference, if
               any, between the principal  amount of the surrendered Global
               Security  and  the  aggregate  principal  amount  of  Junior
               Subordinated Notes delivered to Holders thereof.

                    (4)  In  any  exchange  provided  for  in  any  of  the
               preceding three paragraphs, the Company will execute and the
               Trustee  will  authenticate  and  deliver  individual Junior
               Subordinated   Notes  in   definitive  form   in  authorized
               denominations.   Upon the  exchange of the  entire principal
               amount   of  a   Global   Security  for   individual  Junior
               Subordinated Notes, such Global  Security shall be cancelled

                                          16
<PAGE>






               by  the  Trustee.    Except  as  provided  in  the preceding
               paragraph, Junior Subordinated Notes issued in exchange  for
               a  Global  Security  pursuant   to  this  Section  shall  be
               registered  in   such   names   and   in   such   authorized
               denominations as the  Depositary for  such Global  Security,
               pursuant  to   instructions  from  its  direct  or  indirect
               participants  or  otherwise,  shall  instruct  the  Trustee.
               Provided that  the Company and  the Trustee have  so agreed,
               the Trustee shall deliver  such Junior Subordinated Notes to
               the Persons in whose names the Junior Subordinated Notes are
               registered.

                    (5)  Any endorsement  of a  Global Security to  reflect
               the  amount, or any increase  or decrease in  the amount, or
               changes  in the  rights  of Holders,  of Outstanding  Junior
               Subordinated Notes represented thereby shall be made in such
               manner and by such  Person or Persons as shall  be specified
               therein  or in the Company Order to be delivered pursuant to
               Section 302 with respect thereto.  Subject to the provisions
               of Section  302, the Trustee shall deliver and redeliver any
               such  Global Security  in the  manner and  upon instructions
               given by the Person  or Persons specified therein or  in the
               applicable Company  Order.  If  a Company Order  pursuant to
               Section 302  has been, or simultaneously  is, delivered, any
               instructions  by the  Company  with respect  to such  Global
               Security  shall be in writing but need not be accompanied by
               or  contained in an  Officers' Certificate  and need  not be
               accompanied by an Opinion of Counsel.

                                    ARTICLE THREE

                            THE JUNIOR SUBORDINATED NOTES

          SECTION 301.   AMOUNT UNLIMITED; ISSUABLE IN SERIES.

               The aggregate principal amount  of Junior Subordinated Notes
          which may be authenticated and delivered under this Indenture  is
          unlimited.

               The Junior Subordinated Notes  may be issued in one  or more
          series.   There  may  be established,  pursuant  to one  or  more
          indentures supplemental  hereto, prior to the  issuance of Junior
          Subordinated Notes of any series,

                    (1)  the title of the  Junior Subordinated Notes of the
               series  (which shall  distinguish  the  Junior  Subordinated
               Notes of  the series from  Junior Subordinated Notes  of all
               other series);

                    (2)  any limit  upon the aggregate principal  amount of
               the Junior  Subordinated Notes  of the series  which may  be
               authenticated and delivered under this Indenture (except for

                                          17
<PAGE>






               Junior Subordinated Notes  authenticated and delivered  upon
               registration  of transfer of, or in exchange for, or in lieu
               of, other  Junior Subordinated Notes of  the series pursuant
               to Sections 203, 303, 304, 907 or 1107);

                    (3)  the   Person  to   whom  interest   on   a  Junior
               Subordinated Note of  the series shall  be payable if  other
               than the Person in whose  name that Junior Subordinated Note
               (or one or more Predecessor Securities) is registered at the
               close  of business  on  the  Regular  Record Date  for  such
               interest;

                    (4)  the date or  dates on which  the principal of  the
               Junior Subordinated Notes of the series is payable,  and the
               right, if any, to  extend the Stated Maturity of  the Junior
               Subordinated Notes and the conditions to such extension;

                    (5)  the rate or rates at which the Junior Subordinated
               Notes  of the  series shall  bear interest,  if any,  or any
               method  by which such rate or rates shall be determined, the
               date or  dates from  which such  interest shall  accrue, the
               Interest  Payment  Dates on  which  such  interest shall  be
               payable, the Regular Record Date for the interest payable on
               Junior Subordinated  Notes on any Interest  Payment Date and
               the  basis upon which interest  shall be calculated if other
               thanthat of a 360-dayyear consisting oftwelve 30-day months;

                    (6)  the place  or places  where the principal  of (and
               premium,   if  any)   and  interest,   if  any,   on  Junior
               Subordinated Notes of the series shall be payable;

                    (7)  the period  or periods within which,  the price or
               prices  at which  and the  terms  and conditions  upon which
               Junior Subordinated Notes  of the series may be redeemed, in
               whole or in part, at the option of the Company;

                    (8)  the obligation,  if any, of the  Company to redeem
               or purchase Junior Subordinated Notes of the series pursuant
               to  any sinking fund or analogous provision or at the option
               of  a Holder thereof and the period or periods within which,
               the price or prices  at which ,and the terms  and conditions
               upon which, Junior Subordinated Notes of the series shall be
               redeemed or purchased, in whole or in part, pursuant to such
               obligation;

                    (9)  the  denominations  in  which Junior  Subordinated
               Notes of the series shall be issuable;

                    (10) if  the amount  of payments  of principal  of (and
               premium, if any) or interest (including Additional Interest)
               on  the  Junior Subordinated  Notes  of  the  series may  be


                                          18
<PAGE>






               determined with reference to an index or formula, the manner
               in which such amounts shall be determined;

                    (11) if  other than  the principal amount  thereof, the
               portion of the principal amount of Junior Subordinated Notes
               of the  series which  shall be payable  upon declaration  of
               acceleration of  the  Maturity thereof  pursuant to  Section
               502;

                    (12) any  deletions from, modifications of or additions
               to  the Events  of Default  or covenants  of the  Company as
               provided herein pertaining to the  Junior Subordinated Notes
               of the series, and any  change in the rights of  the Trustee
               or Holders of such series pursuant to Section 901 or 902.

                    (13) any  additions  to the  definitions  currently set
               forth in this Indenture with respect to such series;

                    (14) whether  the  Junior  Subordinated  Notes  of  the
               series shall be issued in whole or in  part in the form of a
               Global Security or Securities;  the terms and conditions, if
               any, upon which  such Global Security  or Securities may  be
               exchanged  in  whole  or  in part  for  certificated  Junior
               Subordinated Notes of such  series and of like tenor  of any
               authorized  denomination and  the circumstances  under which
               such  exchange  may  occur,  if other  than  in  the  manner
               provided for in Section 203; the Depositary  for such Global
               Security  or Securities;  and  the  form  of any  legend  or
               legends  to be borne by any such Global Security in addition
               to or in lieu of the legend referred to in Section 203;

                    (15) the right,  if any, of  the Company to  extend the
               interest   payment   periods  of   such  series   of  Junior
               Subordinated Notes,  including the  maximum duration of  any
               such  extension or extensions,  the Additional  Interest, if
               any, payable  on such  Junior Subordinated Notes  during any
               extension  of the  interest  payment period  and any  notice
               (which  shall include  notice to  the Trustee) that  must be
               given upon  the exercise  of such  right to  extend interest
               payment periods;

                    (16) any    restriction    or    condition    on    the
               transferability of such Junior Subordinated Notes; and

                    (17) any other terms of the series.

               All  Junior Subordinated  Notes of  any one series  shall be
          substantially identical except as to the date or dates from which
          interest, if any, shall accrue and denomination and except as may
          otherwise be  provided in the  terms of such  Junior Subordinated
          Notes  determined or established  as provided above.   All Junior
          Subordinated Notes of  any one series need  not be issued  at the

                                          19
<PAGE>






          same  time  and,  unless  otherwise  provided,  a  series  may be
          reopened for issuances of additional Junior Subordinated Notes of
          such series.

          SECTION 302.   EXECUTION, AUTHENTICATION, DELIVERY AND DATING.

               The Junior Subordinated Notes shall be executed on behalf of
          the Company by its Chairman of the Board, its President or one of
          its Vice Presidents, under  its corporate seal reproduced thereon
          attested by its  Secretary or one  of its Assistant  Secretaries.
          The signature of any of these officers on the Junior Subordinated
          Notes may be manual or facsimile.

               Junior  Subordinated Notes bearing  the manual  or facsimile
          signatures  of individuals who were  at the time  relevant to the
          authorization thereof  the proper  officers of the  Company shall
          bind the Company, notwithstanding that such individuals or any of
          them have ceased to hold such offices prior to the authentication
          and  delivery of such Junior  Subordinated Notes or  did not hold
          such offices at the date of such Junior Subordinated Notes.

               At any  time and from  time to time after  the execution and
          delivery  of  this  Indenture,  the Company  may  deliver  Junior
          Subordinated Notes of any  series executed by the Company  to the
          Trustee for authentication, together with a Company Order for the
          authentication and delivery  of such  Junior Subordinated  Notes,
          and the  Trustee,  in accordance  with the  Company Order,  shall
          authenticate and deliver such Junior Subordinated Notes.  If  all
          of  the Junior  Subordinated Notes  of any series  are not  to be
          issued at one time and if the supplemental indenture establishing
          such series shall  so permit,  such Company Order  may set  forth
          procedures acceptable  to the Trustee  for the  issuance of  such
          Junior Subordinated Notes and determining the terms of particular
          Junior Subordinated Notes  of such series, such as interest rate,
          maturity  date, date  of issuance  and date  from which  interest
          shall  accrue.    In  authenticating  Junior  Subordinated  Notes
          hereunder,  and accepting  the additional  responsibilities under
          this Indenture in relation to such Junior Subordinated Notes, the
          Trustee shall  be entitled  to receive,  and (subject  to Section
          601) shall be fully protected in relying upon:

                    (1)  an Opinion of Counsel, to the effect that:

                              (a)  the  form  and   terms  of  such  Junior
                         Subordinated  Notes or  the manner  of determining
                         such  terms  have been  established  in conformity
                         with the provisions of this Indenture; and

                              (b)  such  Junior  Subordinated  Notes,  when
                         authenticated  and delivered  by  the Trustee  and
                         issued by the Company in the manner and subject to
                         any   conditions  specified  in  such  Opinion  of

                                          20
<PAGE>






                         Counsel, will constitute valid and legally binding
                         obligations   of   the  Company,   enforceable  in
                         accordance  with  their  terms,  subject,   as  to
                         enforcement,     to     bankruptcy,    insolvency,
                         reorganization   and   other   laws   of   general
                         applicability   relating   to  or   affecting  the
                         enforcement  of creditors'  rights and  to general
                         equity principles; and

                    (2)  an  Officers' Certificate  stating,  to  the  best
               knowledge of  each signer of such certificate, that no event
               which is, or after notice or lapse of time would become,  an
               Event  of  Default  with  respect  to   any  of  the  Junior
               Subordinated Notes shall have occurred and be continuing.

          The Trustee  shall not  be required  to authenticate such  Junior
          Subordinated Notes if the issue of such Junior Subordinated Notes
          pursuant to this Indenture will affect the  Trustee's own rights,
          duties or immunities under the Junior Subordinated Notes and this
          Indenture  or  otherwise  in a  manner  which  is  not reasonably
          acceptable to the Trustee.

               If all the Junior  Subordinated Notes of any series  are not
          to be issued at one time, it shall not be necessary to deliver an
          Opinion  of  Counsel and  Officers'  Certificate at  the  time of
          issuance of each such Junior  Subordinated Note, but such opinion
          and  certificate  shall be  delivered at  or  before the  time of
          issuance  of the first Junior Subordinated Note of such series to
          be issued.

               Each Junior Subordinated Note shall be dated the date of its
          authentication.

               No Junior Subordinated Note shall be entitled to any benefit
          under  this Indenture or be  valid or obligatory  for any purpose
          unless  there   appears  on  such  Junior   Subordinated  Note  a
          certificate of authentication substantially in the form  provided
          for  herein executed by the Trustee by manual signature, and such
          certificate upon any Junior Subordinated Note shall be conclusive
          evidence, and  the only  evidence, that such  Junior Subordinated
          Note  has been duly authenticated and  delivered hereunder and is
          entitled to the benefits of this Indenture.

          SECTION 303.   REGISTRATION,   REGISTRATION   OF   TRANSFER   AND
                         EXCHANGE.

               The Company  shall cause  to be  kept at  the office of  the
          Security  Registrar designated  pursuant to  this Section  303 or
          Section 1002 a register (referred to  as the "Security Register")
          in which,  subject  to  such  reasonable regulations  as  it  may
          prescribe,  the Company  shall  provide for  the registration  of
          Junior Subordinated Notes and of transfers of Junior Subordinated

                                          21
<PAGE>






          Notes.   The  Trustee is hereby  initially appointed  as Security
          Registrar  for the  purpose  of registering  Junior  Subordinated
          Notes  and  transfers  of  Junior Subordinated  Notes  as  herein
          provided.

               Subject to  Section 203, upon surrender  for registration of
          transfer of any  Junior Subordinated  Note of any  series at  the
          office or agency maintained for such purpose for such series, the
          Company  shall execute,  and the  Trustee shall  authenticate and
          deliver, in the name of the designated transferee or transferees,
          one or more  new Junior  Subordinated Notes of  the same  series,
          Stated  Maturity  and  original  issue date,  of  any  authorized
          denominations and of like tenor and aggregate principal amount.

               Subject  to Section  203, Junior  Subordinated Notes  of any
          series may be exchanged, at the option of  the Holder, for Junior
          Subordinated  Notes  of  the  same series,  Stated  Maturity  and
          original issue date, of any authorized denominations  and of like
          tenor  and  aggregate principal  amount,  upon  surrender of  the
          Junior Subordinated Notes to  be exchanged at any such  office or
          agency.

               Whenever any  Junior Subordinated Notes  are so  surrendered
          for  exchange, the Company  shall execute, and  the Trustee shall
          authenticate and deliver, the  Junior Subordinated Notes that the
          Holder making the exchange is entitled to receive.

               All  Junior Subordinated Notes  issued upon any registration
          of transfer or exchange of Junior Subordinated Notes shall be the
          valid obligations of  the Company, evidencing the  same debt, and
          entitled to the same benefits under this Indenture, as the Junior
          Subordinated Notes surrendered upon such registration of transfer
          or exchange.

               Every Junior Subordinated Note presented or  surrendered for
          registration of transfer or for exchange shall (if so required by
          the Company or the  Trustee) be duly endorsed, or  be accompanied
          by a written instrument  of transfer in form satisfactory  to the
          Company and the  Security Registrar duly executed,  by the Holder
          thereof or his attorney duly authorized in writing.

               No  service charge  shall be  made  for any  registration of
          transfer  or  exchange  of  Junior Subordinated  Notes,  but  the
          Company may require payment of a sum sufficient to  cover any tax
          or  other governmental charge  that may be  imposed in connection
          with  any   registration  of  transfer  or   exchange  of  Junior
          Subordinated Notes, other than exchanges pursuant to Section 304,
          907 or 1107 not involving any transfer.

               The  Company shall not be required (i) to issue, to register
          the transfer of or  to exchange Junior Subordinated Notes  of any
          series  during a period of 15 days immediately preceding the date

                                          22
<PAGE>






          notice is  given identifying  the  serial numbers  of the  Junior
          Subordinated Notes  of that series called for redemption, or (ii)
          to  issue, to register the transfer of  or to exchange any Junior
          Subordinated  Notes  so selected  for redemption  in whole  or in
          part, except  the unredeemed  portion of any  Junior Subordinated
          Note being redeemed in part.

               None  of the Company, the  Trustee, any Paying  Agent or the
          Security Registrar will have  any responsibility or liability for
          any aspect of the records relating to or payments made on account
          of  beneficial ownership  interests of  a Global Security  or for
          maintaining,  supervising  or reviewing  any records  relating to
          such beneficial ownership interests.

          SECTION 304.   MUTILATED,  DESTROYED,  LOST  AND   STOLEN  JUNIOR
                         SUBORDINATED NOTES.

               If any mutilated Junior  Subordinated Note is surrendered to
          the Trustee,  the Company  shall  execute and  the Trustee  shall
          authenticate  and  deliver  in  exchange therefor  a  new  Junior
          Subordinated  Note  of  the  same  series,  Stated  Maturity  and
          original issue date, and  of like tenor and principal  amount and
          bearing a number not contemporaneously outstanding.

               If there shall be  delivered to the Company and  the Trustee
          (i) evidence  to their satisfaction  of the destruction,  loss or
          theft of any Junior  Subordinated Note and (ii) such  security or
          indemnity as may be required by them to save each of them and any
          agent  of either of them harmless, then, in the absence of notice
          to  the Company or the Trustee that such Junior Subordinated Note
          has been acquired  by a  bona fide purchaser,  the Company  shall
          execute  and upon its request the  Trustee shall authenticate and
          deliver, in lieu  of any  such destroyed, lost  or stolen  Junior
          Subordinated Note,  a new  Junior Subordinated  Note of the  same
          series,  Stated Maturity  and original  issue date,  and of  like
          tenor   and   principal  amount   and   bearing   a  number   not
          contemporaneously outstanding.

               In case any such mutilated, destroyed, lost or stolen Junior
          Subordinated  Note has  become  or is  about  to become  due  and
          payable,  the Company in its discretion may, instead of issuing a
          new Junior Subordinated Note, pay such Junior Subordinated Note.

               Upon the issuance of any  new Junior Subordinated Note under
          this  Section, the  Company  may require  the  payment of  a  sum
          sufficient to cover any tax or other governmental charge that may
          be imposed  in relation thereto and any other expenses (including
          the fees and expenses of the Trustee) connected therewith.

               Every  new Junior  Subordinated  Note of  any series  issued
          pursuant to this Section in lieu of any destroyed, lost or stolen
          Junior Subordinated Note shall  constitute an original additional

                                          23
<PAGE>






          contractual  obligation  of  the  Company,  whether  or  not  the
          destroyed, lost  or stolen Junior  Subordinated Note shall  be at
          any  time  enforceable  by  anyone,   and  any  such  new  Junior
          Subordinated Note shall be  entitled to all the benefits  of this
          Indenture  equally and  proportionately  with any  and all  other
          Junior Subordinated Notes of that series duly issued hereunder.

               The  provisions  of this  Section  are  exclusive and  shall
          preclude  (to the extent  lawful) all  other rights  and remedies
          with  respect  to  the   replacement  or  payment  of  mutilated,
          destroyed, lost or stolen Junior Subordinated Notes.

          SECTION 305.   PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.

               Unless  otherwise provided  as contemplated  by Section  301
          with respect to any series of Junior Subordinated Notes, interest
          (including Additional  Interest) on any Junior  Subordinated Note
          that  is payable, and is punctually paid or duly provided for, on
          any Interest Payment  Date shall be paid  to the Person  in whose
          name that  Junior Subordinated Note  (or one or  more Predecessor
          Securities) is registered at the close of business on the Regular
          Record Date for such interest.

               Any interest  (including Additional Interest) on  any Junior
          Subordinated  Note  of any  series that  is  payable, but  is not
          punctually paid or duly provided for on any Interest Payment Date
          (herein called "Defaulted Interest")  shall forthwith cease to be
          payable  to the  Holder on  the relevant  Regular Record  Date by
          virtue of  having been such  Holder, and such  Defaulted Interest
          may be  paid by the  Company, at  its election in  each case,  as
          provided in Clause (1) or (2) below:

                    (1)  The  Company  may elect  to  make  payment of  any
               Defaulted Interest to  the Persons in whose names the Junior
               Subordinated  Notes  of  such  series  (or their  respective
               Predecessor  Securities)  are  registered at  the  close  of
               business  on a Special Record  Date for the  payment of such
               Defaulted Interest,  which shall  be fixed in  the following
               manner.   The Company shall notify the Trustee in writing of
               the amount of Defaulted Interest proposed to be paid on each
               Junior  Subordinated Note of such series and the date of the
               proposed payment,  and at  the same time  the Company  shall
               deposit with the  Trustee an  amount of money  equal to  the
               aggregate  amount proposed  to be  paid in  respect of  such
               Defaulted  Interest or shall  make arrangements satisfactory
               to  the Trustee  for such deposit  prior to the  date of the
               proposed payment,  such money when  deposited to be  held in
               trust  for  the benefit  of  the  Persons entitled  to  such
               Defaulted Interest  as in  this Clause provided.   Thereupon
               the  Trustee shall fix a Special Record Date for the payment
               of such Defaulted Interest  which shall be not more  than 15
               days  and not  less than 10  days prior  to the  date of the

                                          24
<PAGE>






               proposed payment and not less than 10 days after the receipt
               by the Trustee of the  notice of the proposed payment.   The
               Trustee shall  promptly notify  the Company of  such Special
               Record  Date and,  in the  name and  at the  expense of  the
               Company, shall cause notice of the proposed payment  of such
               Defaulted Interest  and the Special Record  Date therefor to
               be mailed,  first-class postage  prepaid, to each  Holder of
               Junior Subordinated Notes  of such series at  the address of
               such Holder as it appears in the Security Register, not less
               than 10 days prior  to such Special Record Date.   Notice of
               the  proposed payment  of  such Defaulted  Interest and  the
               Special  Record Date  therefor having  been so  mailed, such
               Defaulted Interest shall  be paid  to the  Persons in  whose
               names the Junior Subordinated Notes of such series (or their
               respective Predecessor  Securities)  are registered  at  the
               close of business on  such Special Record Date and  shall no
               longer be payable pursuant to the following Clause (2).

                    (2)  The  Company  may make  payment  of  any Defaulted
               Interest  (including  Additional  Interest, if  any)  on the
               Junior Subordinated Notes of any  series in any other lawful
               manner  not  inconsistent  with   the  requirements  of  any
               securities exchange on which such Junior Subordinated  Notes
               may be  listed, and upon such  notice as may  be required by
               such  exchange, if, after notice given by the Company to the
               Trustee  of the  proposed payment  pursuant to  this Clause,
               such  manner of payment  shall be deemed  practicable by the
               Trustee.

               Subject to  the foregoing  provisions of this  Section, each
          Junior  Subordinated Note  delivered  under  this Indenture  upon
          registration of transfer of or in  exchange for or in lieu of any
          other Junior Subordinated Note shall carry the rights to interest
          accrued (including  Additional Interest, if any)  and unpaid, and
          to  accrue (including  Additional Interest,  if any),  which were
          carried by such other Junior Subordinated Note.

          SECTION 306.   PERSONS DEEMED OWNERS.

               Prior to due presentment  of a Junior Subordinated  Note for
          registration of transfer, the Company, the Trustee and  any agent
          of the  Company or the Trustee may treat the Person in whose name
          such Junior Subordinated Note is registered as the absolute owner
          of such  Junior Subordinated  Note for  the purpose  of receiving
          payment of principal  of (and  premium, if any)  and (subject  to
          Section 305) interest (including  Additional Interest, if any) on
          such  Junior  Subordinated  Note   and  for  all  other  purposes
          whatsoever,  whether  or not  such  Junior  Subordinated Note  be
          overdue,  and neither the Company,  the Trustee nor  any agent of
          the Company or  the Trustee shall  be affected by  notice to  the
          contrary.


                                          25
<PAGE>






          SECTION 307.   CANCELLATION.

               All  Junior  Subordinated  Notes  surrendered  for  payment,
          redemption, registration  of transfer  or exchange or  for credit
          against any  sinking fund payment  shall, if  surrendered to  any
          Person  other than the Trustee,  be delivered to  the Trustee and
          shall be promptly cancelled  by the Trustee.  The  Company may at
          any  time deliver  to  the Trustee  for  cancellation any  Junior
          Subordinated   Notes   previously  authenticated   and  delivered
          hereunder  which  the Company  may  have acquired  in  any manner
          whatsoever, and all Junior  Subordinated Notes so delivered shall
          be canceled by the  Trustee.  No Junior Subordinated  Notes shall
          be  authenticated  in  lieu of  or  in  exchange  for any  Junior
          Subordinated Notes  canceled as provided in  this Section, except
          as expressly permitted  by this Indenture.  All  cancelled Junior
          Subordinated  Notes held by the  Trustee shall be  disposed of in
          accordance with  a Company Order  and the Trustee  shall promptly
          deliver a certificate of disposition to the Company.

          SECTION 308.   COMPUTATION OF INTEREST.

               Except as otherwise specified as contemplated by Section 301
          for  Junior Subordinated  Notes  of any  series, interest  on the
          Junior Subordinated Notes of each series shall be computed on the
          basis of a 360-day year consisting of twelve 30-day months.

                                     ARTICLE FOUR

                              SATISFACTION AND DISCHARGE

          SECTION 401.   SATISFACTION AND DISCHARGE OF INDENTURE.

               This Indenture shall,  upon Company Request, cease to  be of
          further effect (except as to any surviving rights of registration
          of  transfer  or exchange  of  Junior  Subordinated Notes  herein
          expressly  provided for) and the  Trustee, at the  expense of the
          Company,   shall   execute   proper   instruments   acknowledging
          satisfaction and discharge of this Indenture, when

                    (1)  either

                         (A)  all  Junior  Subordinated  Notes  theretofore
                    authenticated  and delivered  (other  than  (i)  Junior
                    Subordinated Notes  that have been  destroyed, lost  or
                    stolen and that have been  replaced as provided for  in
                    Section  304  and (ii)  Junior  Subordinated Notes  for
                    whose payment money  has theretofore been deposited  in
                    trust or  segregated and held  in trust by  the Company
                    and thereafter repaid to the Company or discharged from
                    such  trust, as  provided  in Section  1003) have  been
                    delivered to the Trustee for cancellation; or


                                          26
<PAGE>






                         (B)  all  such  Junior   Subordinated  Notes   not
                    theretofore delivered  to the Trustee  for cancellation
                    have become  due and payable,  or have been  called for
                    redemption,

               and the Company, in the case of (B) above, has  deposited or
               caused  to be deposited with  the Trustee as  funds in trust
               for the purpose described above  an amount sufficient to pay
               and  discharge  the  entire  indebtedness  on  such   Junior
               Subordinated Notes not theretofore  delivered to the Trustee
               for cancellation,  for principal  (and premium, if  any) and
               interest to  the date of  the Stated Maturity  or Redemption
               Date,  as the  case may  be, or  if the  later, the  date of
               payment;

                    (2)  the  Company has  paid or  caused to  be  paid all
               other sums payable hereunder by the Company; and

                    (3)  the  Company  has  delivered  to  the  Trustee  an
               Officers'  Certificate  and  an  Opinion  of  Counsel,  each
               stating  that all conditions  precedent herein  provided for
               relating to the satisfaction and discharge of this Indenture
               have been complied with.

               In the event there  are Junior Subordinated Notes of  two or
          more series hereunder,  the Trustee shall be  required to execute
          an instrument  acknowledging satisfaction  and discharge of  this
          Indenture  only  if requested  to do  so  with respect  to Junior
          Subordinated Notes of all series as to which it is Trustee and if
          the other conditions thereto are met.  In the event there are two
          or more Trustees  hereunder, then the  effectiveness of any  such
          instrument shall be conditioned  upon receipt of such instruments
          from all Trustees hereunder.

               If, subsequent to the date  a discharge is effected pursuant
          to this  Section  401, Additional  Interest  (in excess  of  that
          established as of  the date such  discharge is effected)  becomes
          payable  in respect  of the  series of Junior  Subordinated Notes
          discharged, in  order to preserve  the benefits of  the discharge
          established hereunder, the  Company shall irrevocably deposit  or
          cause  to  be  irrevocably   deposited  in  accordance  with  the
          provisions of this Section 401, within ten Business Days prior to
          the date the  first payment  in respect  of any  portion of  such
          excess Additional Interest becomes  due, such additional funds as
          are necessary to satisfy the provisions of this Section 401 as if
          a discharge were being effected as of the date of such subsequent
          deposit.   Failure  to  comply  with  the  requirements  of  this
          paragraph  shall result in the termination of the benefits of the
          discharge established by this Section 401.

               Notwithstanding  the  satisfaction  and  discharge  of  this
          Indenture, the obligations  of the Company  to the Trustee  under

                                          27
<PAGE>






          Section 607, the obligations of the Trustee to any Authenticating
          Agent under Section 614  and, if money shall have  been deposited
          with the Trustee pursuant  to subclause (B) of clause (1) of this
          Section, the obligations of the Trustee under Section 402 and the
          last paragraph of Section 1003 shall survive.

          SECTION 402.   APPLICATION OF TRUST MONEY.

               Subject to the provisions of  the last paragraph of  Section
          1003, all money  deposited with the  Trustee pursuant to  Section
          401 shall be held in trust  and applied by it, in accordance with
          the  provisions  of  the  Junior  Subordinated  Notes,  and  this
          Indenture, to the payment, either directly  or through any Paying
          Agent  (including the Company or  an Affiliate acting  as its own
          Paying  Agent)  as the  Trustee  may  determine,  to the  Persons
          entitled  thereto, of  the principal  (and premium,  if  any) and
          interest for whose payment such money has been deposited with the
          Trustee.

                                     ARTICLE FIVE

                                       REMEDIES

          SECTION 501.   EVENTS OF DEFAULT.

               "Event  of Default",  wherever used  herein with  respect to
          Junior Subordinated Notes  of any  series, means any  one of  the
          following events  (whatever the reason for such  Event of Default
          and whether it shall  be voluntary or involuntary or  be effected
          by operation of  law or pursuant to any judgment, decree or order
          of   any  court  or  any   order,  rule  or   regulation  of  any
          administrative  or  governmental   body  or  occasioned   by  the
          operation of Article Thirteen):

                    (1)  default in  the payment  of any interest  upon any
               Junior Subordinated Note of that series when  it becomes due
               and  payable on  an  Interest  Payment  Date other  than  at
               Maturity,  including  Additional  Interest  (as  defined  in
               clause (ii)  of the definition thereof)  in respect thereof,
               and  continuance of such default  for a period  of  ten (10)
               days;  provided, however, that (i) a  valid extension of the
               interest payment period by the Company pursuant to the terms
               of   a   supplemental  indenture   authorizing   the  Junior
               Subordinated  Notes of  that series  shall not  constitute a
               default in the payment of interest for this purpose and (ii)
               no such default shall be deemed to exist if, on  or prior to
               the date  on which  such interest  became  due, the  Company
               shall have  made a payment  sufficient to pay  such interest
               pursuant to the Guarantee related to the Trust Securities of
               the   Securities  Trust   owning  such   series  of   Junior
               Subordinated Notes, and shall have delivered a notice to the
               Trustee to that effect; or

                                          28
<PAGE>






                    (2)  default  in payment  of  Additional  Interest  (as
               defined  in clause  (i) of  the definition thereof)  and the
               continuance of such default  for a period of ten  (10) days;
               or 

                    (3)  default in  the payment  of the principal  of, (or
               premium, if any) or interest (including  Additional Interest
               as  defined in clause (ii) of the definition thereof) on any
               Junior  Subordinated Note  of that  series at  its Maturity;
               provided, however, that  no such default  in the payment  of
               principal  (or  premium,  if  any)  or  interest  (including
               Additional  Interest  as  defined  in  clause  (ii)  of  the
               definition thereof) shall be deemed to exist if, on or prior
               to the date such principal (and premium, if any) or interest
               (including Additional Interest as  defined in clause (ii) of
               the definition  thereof) became due, the  Company shall have
               made  a  payment  sufficient  to  pay  such  principal  (and
               premium,  if any) or interest (including Additional Interest
               as  defined  in  clause  (ii)  of  the  definition  thereof)
               pursuant to the Guarantee related to the Trust Securities of
               the  Securities   Trust   owning  such   series  of   Junior
               Subordinated Notes, and shall have delivered a notice to the
               Trustee to that effect; or

                    (4)  default   in  the  deposit  of  any  sinking  fund
               payment,   when  and  as  due  by  the  terms  of  a  Junior
               Subordinated  Note of  that series  and continuance  of such
               default for a period of 3 Business Days; or

                    (5)  default  in  the  performance  or  breach  of  any
               covenant or warranty of the Company in this Indenture (other
               than  a covenant or warranty a  default in whose performance
               or whose  breach is  elsewhere in this  Section specifically
               dealt  with or  which has  expressly been  included  in this
               Indenture  solely for the benefit  of one or  more series of
               Junior  Subordinated  Notes  other than  that  series),  and
               continuance of such  default or  breach for a  period of  90
               days after  there has been given, by registered or certified
               mail, to  the Company by the Trustee,  or to the Company and
               the  Trustee by  the Holders  of at  least 25%  in principal
               amount of the Outstanding  Junior Subordinated Notes of that
               series, a  written notice specifying such  default or breach
               and requiring it to be remedied and stating that such notice
               is a "Notice of Default" hereunder; or

                    (6)  the entry  by a  court having jurisdiction  in the
               premises  of (A) a decree or order  for relief in respect of
               the Company in  an involuntary case or  proceeding under any
               applicable   federal   or   state  bankruptcy,   insolvency,
               reorganization or other similar law or (B) a decree or order
               adjudging the Company a  bankrupt or insolvent, or approving
               as  properly filed a petition  by one or  more Persons other

                                          29
<PAGE>






               than  the  Company   seeking  reorganization,   arrangement,
               adjustment or  composition of or  in respect of  the Company
               under any applicable  federal or state law,  or appointing a
               custodian,   receiver,    liquidator,   assignee,   trustee,
               sequestrator or  other similar  official for the  Company or
               for  any substantial part  of its property,  or ordering the
               winding  up   or  liquidation   of  its  affairs,   and  the
               continuance  of any such decree  or order for  relief or any
               such  other decree  or order  unstayed and  in effect  for a
               period of 90 consecutive days; or

                    (7)  the  commencement  by the  Company  of  a case  or
               proceeding under any applicable federal or state bankruptcy,
               insolvency, reorganization  or other  similar law or  of any
               other case  or proceeding  to be adjudicated  a bankrupt  or
               insolvent, or the consent by it to the entry of  a decree or
               order  for relief  in respect of  the Company  in a  case or
               proceeding under any applicable federal or state bankruptcy,
               insolvency, reorganization  or other  similar law or  to the
               commencement  of   any  bankruptcy  or  insolvency  case  or
               proceeding against it, or the filing by  it of a petition or
               answer or consent seeking reorganization or relief under any
               applicable federal or state law, or the consent by it to the
               filing of such petition  or to the appointment of  or taking
               possession by a  custodian, receiver, liquidator,  assignee,
               trustee, sequestrator or similar  official of the Company or
               of any substantial part of its property, or the making by it
               of  an assignment  for  the  benefit  of creditors,  or  the
               admission by it in writing of its inability to pay its debts
               generally as  they become  due, or  the taking  of corporate
               action by the Company in furtherance of any such action; or

                    (8)  any other Event  of Default provided with  respect
               to  Junior   Subordinated  Notes  of  that   series  in  the
               supplemental indenture authorizing such series.


















                                          30
<PAGE>






          SECTION 502.   ACCELERATION    OF   MATURITY;    RESCISSION   AND
                         ANNULMENT.

               If an Event of  Default with respect to  Junior Subordinated
          Notes  of  any  series at  the  time  Outstanding  occurs and  is
          continuing, then in every such case the Trustee or the Holders of
          not less than 25%  in principal amount of the  Outstanding Junior
          Subordinated  Notes  of that  series  may  declare the  principal
          amount  (or  such  portion of  the  principal  amount  as may  be
          specified  in  the terms  of that  series) of  all of  the Junior
          Subordinated  Notes   of  that  series  to  be  due  and  payable
          immediately, by a notice  in writing to  the Company (and to  the
          Trustee  if given by Holders), and upon any such declaration such
          principal  amount (or specified  amount) shall become immediately
          due and payable.

               At any  time after such  a declaration of  acceleration with
          respect  to Junior Subordinated Notes of any series has been made
          and before a judgment or decree for payment of the  money due has
          been  obtained by  the  Trustee as  hereinafter  in this  Article
          provided,  the Holders of not  less than a  majority in principal
          amount  of  the Outstanding  Junior  Subordinated  Notes of  that
          series, by written  notice to  the Company and  the Trustee,  may
          rescind and annul such declaration and its consequences if

                    (1)  the Company has paid or deposited with the Trustee
               a sum sufficient to pay

                         (A)  all    overdue   interest    (including   any
                    Additional  Interest) on all  Junior Subordinated Notes
                    of that series,

                         (B)  the principal of  (and premium,  if any)  any
                    Junior  Subordinated Notes  of that  series  which have
                    become  due  otherwise  than  by  such  declaration  of
                    acceleration and interest thereon  at the rate or rates
                    prescribed therefor in such Junior Subordinated Notes,

                         (C)  to the extent  that payment of  such interest
                    is  lawful, interest  upon overdue  interest (including
                    any  Additional   Interest)  at   the  rate  or   rates
                    prescribed therefor in such Junior  Subordinated Notes,
                    and

                         (D)  all  sums paid  or  advanced  by the  Trustee
                    hereunder  and  the reasonable  compensation, expenses,
                    disbursements and advances  of the Trustee, its  agents
                    and counsel, and  any other amounts due  to the Trustee
                    under Section 607; and

                    (2)  all  Events  of  Default  with  respect  to Junior
               Subordinated  Notes  of that  series,  other  than the  non-

                                          31
<PAGE>






               payment  of the  principal of  Junior Subordinated  Notes of
               that series which have become due solely by such declaration
               of acceleration,  have been cured  or waived as  provided in
               Section 513.

          No  such rescission shall affect any subsequent default or impair
          any right consequent thereon.

          SECTION 503.   COLLECTION   OF   INDEBTEDNESS   AND   SUITS   FOR
                         ENFORCEMENT BY TRUSTEE.

               The Company  covenants that  if an  Event of  Default occurs
          under Section  501(1), (2), (3) or (4) with respect to any Junior
          Subordinated Notes the Company will, upon demand of  the Trustee,
          pay  to  it, for  the  benefit  of  the  Holders of  such  Junior
          Subordinated Notes, the whole amount then due and payable on such
          Junior Subordinated Notes for principal (and premium, if any) and
          interest  (including Additional  Interest,  if any)  and, to  the
          extent   that  payment   of  such   interest  shall   be  legally
          enforceable, interest  on any overdue principal  (and premium, if
          any) and on any  overdue interest (including Additional Interest,
          if any), at the rate or rates prescribed therefor  in such Junior
          Subordinated Notes, and, in addition thereto, such further amount
          as  shall  be  sufficient to  cover  the  costs  and expenses  of
          collection,  including  the  reasonable  compensation,  expenses,
          disbursements  and  advances  of  the  Trustee,  its  agents  and
          counsel, and any other  amounts due to the Trustee  under Section
          607.

               If the Company fails to pay such amounts forthwith upon such
          demand, the Trustee, in its own name and as trustee of an express
          trust, may institute a judicial proceeding for the  collection of
          the  sums so  due and  unpaid, may  prosecute such  proceeding to
          judgment or final  decree and  may enforce the  same against  the
          Company or any other obligor  upon such Junior Subordinated Notes
          and  collect the moneys adjudged or decreed  to be payable in the
          manner provided by law out of the property of the  Company or any
          other  obligor  upon  such Junior  Subordinated  Notes,  wherever
          situated.

               If  an Event of Default with  respect to Junior Subordinated
          Notes of any series occurs and  is continuing, the Trustee may in
          its  discretion proceed to protect and enforce its rights and the
          rights of the Holders of Junior Subordinated Notes of such series
          by  such appropriate  judicial proceedings  as the  Trustee shall
          deem  most  effectual to  protect  and enforce  any  such rights,
          whether for the specific enforcement of any covenant or agreement
          in this  Indenture or in aid of the exercise of any power granted
          herein, or to enforce any other proper remedy.

          SECTION 504.   TRUSTEE MAY FILE PROOFS OF CLAIM.


                                          32
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               In  case of  the pendency  of any  receivership, insolvency,
          liquidation, bankruptcy, reorganization, arrangement, adjustment,
          composition or other judicial  proceeding relative to the Company
          or  any other obligor upon  the Junior Subordinated  Notes or the
          property  of  the  Company or  of  such  other  obligor or  their
          creditors, the Trustee (irrespective  of whether the principal of
          the  Junior Subordinated Notes shall  then be due  and payable as
          therein expressed or by declaration or otherwise and irrespective
          of whether the Trustee shall have  made any demand on the Company
          for  the payment  of  overdue  principal  or interest)  shall  be
          entitled  and empowered,  by intervention  in such  proceeding or
          otherwise,

                    (1)  to  file and prove a claim for the whole amount of
               principal  (and  premium, if  any)  and  interest owing  and
               unpaid in respect  of the Junior  Subordinated Notes and  to
               file such other papers  or documents as may be  necessary or
               advisable  in  order  to  have  the  claims of  the  Trustee
               (including   any  claim  for  the  reasonable  compensation,
               expenses,  disbursements and  advances of  the  Trustee, its
               agents and counsel, and any other amounts due to the Trustee
               under Section 607) and of the Holders of Junior Subordinated
               Notes allowed in such judicial proceeding, and

                    (2)  to   collect  and  receive  any  moneys  or  other
               property payable  or deliverable on  any such claims  and to
               distribute the same;

          and  any  custodian,  receiver,  assignee,  trustee,  liquidator,
          sequestrator  or  other similar  official  in  any such  judicial
          proceeding  is  hereby  authorized   by  each  Holder  of  Junior
          Subordinated Notes to make  such payments to the Trustee  and, in
          the event  that the Trustee  shall consent to the  making of such
          payments directly to the Holders of Junior Subordinated Notes, to
          pay  to  the  Trustee  any  amount  due  it  for  the  reasonable
          compensation,   expenses,  disbursements  and   advances  of  the
          Trustee,  its agents and counsel,  and any other  amounts due the
          Trustee under Section 607.

               Nothing herein  contained shall  be deemed to  authorize the
          Trustee to authorize or consent to  or accept or adopt on  behalf
          of  any  Holder  of  a  Junior  Subordinated  Note  any  plan  of
          reorganization, arrangement, adjustment or  composition affecting
          the Junior Subordinated Notes or the rights of any Holder thereof
          or to  authorize the Trustee to  vote in respect of  the claim of
          any Holder of a Junior Subordinated Note in any such proceeding.

          SECTION 505.   TRUSTEE  MAY ENFORCE CLAIMS  WITHOUT POSSESSION OF
                         JUNIOR SUBORDINATED NOTES.

               All  rights of action and claims under this Indenture or the
          Junior  Subordinated Notes may be  prosecuted and enforced by the

                                          33
<PAGE>






          Trustee without the possession of any of the Junior  Subordinated
          Notes  or  the  production  thereof in  any  proceeding  relating
          thereto, and any such proceeding  instituted by the Trustee shall
          be brought  in its own name  as trustee of an  express trust, and
          any  recovery of judgment shall, after  provision for the payment
          of  the  reasonable  compensation,  expenses,  disbursements  and
          advances  of  the Trustee,  its agents  and  counsel, be  for the
          ratable benefit of  the Holders of the  Junior Subordinated Notes
          in respect of which such judgment has been recovered.

          SECTION 506.   APPLICATION OF MONEY COLLECTED.

               Any money collected by the Trustee  pursuant to this Article
          shall be applied  in the  following order, at  the date or  dates
          fixed by  the Trustee and,  in case  of the distribution  of such
          money on account of  principal (or premium, if any)  or interest,
          upon  presentation  of the  Junior  Subordinated  Notes, and  the
          notation thereon of the  payment if only partially paid  and upon
          surrender thereof if fully paid:

                    First:  To the  payment of all amounts due  the Trustee
               under Section 607; and

                    Second:  Subject to Article Thirteen, to the payment of
               the amounts  then  due  and unpaid  for  principal  of  (and
               premium,   if  any)   and  interest   (including  Additional
               Interest,  if  any)  on  the Junior  Subordinated  Notes  in
               respect of which or for the benefit of which such  money has
               been collected,  ratably, without preference or  priority of
               any kind, according to  the amounts due and payable  on such
               Junior  Subordinated Notes  for principal  (and premium,  if
               any) and interest  (including Additional Interest,  if any),
               respectively; and

                    Third:  The balance,  if any, to the Person  or Persons
               entitled thereto.

          SECTION 507.   LIMITATION ON SUITS.

               No  Holder  of any  Junior Subordinated  Note of  any series
          shall have  any right to  institute any  proceeding, judicial  or
          otherwise, with respect to this Indenture, or for the appointment
          of  a receiver  or trustee,  or for  any other  remedy hereunder,
          unless:

                    (1)  such Holder has previously given written notice to
               the Trustee of a continuing Event of Default with respect to
               the Junior Subordinated Notes of that series;

                    (2)  the  Holders of  not  less than  25% in  principal
               amount of  the Outstanding Junior  Subordinated Notes series
               shall have made  written request to the Trustee to institute

                                          34
<PAGE>






               proceedings in respect of  such Event of Default in  its own
               name as Trustee hereunder;

                    (3)  such Holder or Holders have offered to the Trustee
               reasonable  indemnity   against  the  costs,   expenses  and
               liabilities to be incurred in compliance with such request;

                    (4)  the Trustee for 60 days  after its receipt of such
               notice,  request  and  offer  of  indemnity  has  failed  to
               institute any such proceeding; and

                    (5)  no  direction  inconsistent   with  such   written
               request has been  given to  the Trustee  during such  60-day
               period by the Holders  of a majority in principal  amount of
               the Outstanding Junior Subordinated Notes of that series;

          it  being understood  and intended that  no one  or more  of such
          Holders shall have any  right in any manner whatsoever  by virtue
          of, or by availing of, any provision of this Indenture to affect,
          disturb or prejudice  the rights of any other of  such Holders or
          to obtain or  to seek to obtain  priority or preference over  any
          other  of such  Holders  or  to  enforce  any  right  under  this
          Indenture, except in the manner herein provided and for the equal
          and ratable benefit of all of such Holders.

          SECTION 508.   UNCONDITIONAL   RIGHT   OF   HOLDERS  TO   RECEIVE
                         PRINCIPAL, PREMIUM AND INTEREST.

               Notwithstanding any  other provision  in this  Indenture but
          subject   to  Article   Thirteen,  the   Holder  of   any  Junior
          Subordinated Notes shall  have the right,  which is absolute  and
          unconditional,  to  receive  payment  of the  principal  of  (and
          premium, if any) and (subject to Section 305) interest (including
          any Additional Interest)  on such Junior Subordinated Note on the
          due  dates expressed in such Junior Subordinated Note (or, in the
          case of redemption, on the Redemption Date) and to institute suit
          for  the enforcement of any  such payment, and  such rights shall
          not be impaired without the consent of such Holder.

          SECTION 509.   RESTORATION OF RIGHTS AND REMEDIES.

               If the Trustee or  any Holder of a Junior  Subordinated Note
          has  instituted any  proceeding to  enforce any  right  or remedy
          under this Indenture and such proceeding has been discontinued or
          abandoned for any reason, or has been determined adversely to the
          Trustee or to such Holder,  then and in every such  case, subject
          to any determination in such proceeding, the Company, the Trustee
          and the  Holders of Junior  Subordinated Notes shall  be restored
          severally  and respectively to  their former  positions hereunder
          and thereafter all  rights and  remedies of the  Trustee and  the
          Holders  shall continue  as though  no  such proceeding  had been
          instituted.

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<PAGE>






          SECTION 510.   RIGHTS AND REMEDIES CUMULATIVE.

               Except as otherwise provided with respect to the replacement
          or  payment  of  mutilated,  destroyed,  lost  or  stolen  Junior
          Subordinated Notes in the last paragraph of Section 304, no right
          or remedy herein conferred upon or reserved to the Trustee  or to
          the Holders  of  Junior  Subordinated Notes  is  intended  to  be
          exclusive  of  any other  right or  remedy,  and every  right and
          remedy shall, to the  extent permitted by law, be  cumulative and
          in  addition to every other  right and remedy  given hereunder or
          now or hereafter existing at law  or in equity or otherwise.  The
          assertion  or employment  of any  right or  remedy hereunder,  or
          otherwise,  shall  not  prevent   the  concurrent  assertion   or
          employment of any other appropriate right or remedy.

          SECTION 511.   DELAY OR OMISSION NOT WAIVER.

               No delay  or omission of the Trustee or of any Holder of any
          Junior Subordinated Note to exercise any right or remedy upon any
          Event  of  Default  shall impair  any  such  right  or remedy  or
          constitute   a  waiver  of  any  such  Event  of  Default  or  an
          acquiescence  therein.   Every  right  and remedy  given  by this
          Article or  by law  to the  Trustee or to  the Holders  of Junior
          Subordinated Notes may  be exercised  from time to  time, and  as
          often  as  may be  deemed expedient,  by  the Trustee  or  by the
          Holders of Junior Subordinated Notes.

          SECTION 512.   CONTROL BY HOLDERS OF JUNIOR SUBORDINATED NOTES.

               The  Holders of not less than a majority in principal amount
          of the Outstanding Junior Subordinated Notes  of any series shall
          have the right to direct the time, method and place of conducting
          any  proceeding  for any  remedy  available  to  the Trustee,  or
          exercising  any trust  or power  conferred on  the  Trustee, with
          respect to the Junior Subordinated Notes of such series, provided
          that

                    (1)  such direction  shall not be in  conflict with any
               rule  of law or with  this Indenture, and  could not involve
               the  Trustee  in personal  liability in  circumstances where
               reasonable indemnity would not be adequate, and

                    (2)  the  Trustee  may  take any  other  action  deemed
               proper by  the Trustee which  is not inconsistent  with such
               direction.

          SECTION 513.   WAIVER OF PAST DEFAULTS.

               The  Holders of not less than a majority in principal amount
          of  the Outstanding Junior Subordinated Notes  of any series may,
          on  behalf of the Holders of all the Junior Subordinated Notes of


                                          36
<PAGE>






          such  series, waive  any past default  hereunder with  respect to
          such series and its consequences, except a default

                    (1)  in the payment of the principal of (or premium, if
               any)  or  interest (including  Additional  Interest)  on any
               Junior Subordinated Note of such series, or

                    (2)  in respect of a covenant or provision hereof which
               under Article Nine cannot be modified or amended without the
               consent   of  the   Holder   of   each  Outstanding   Junior
               Subordinated Note of such series affected.

               Upon any such waiver, such default shall cease to exist, and
          any  Event of Default arising  therefrom shall be  deemed to have
          been  cured, for  every purpose  of this  Indenture; but  no such
          waiver  shall extend to any subsequent or other default or impair
          any right consequent thereon.

          SECTION 514.   UNDERTAKING FOR COSTS.

               All  parties to this Indenture agree, and each Holder of any
          Junior  Subordinated  Note by  his  acceptance  thereof shall  be
          deemed  to  have agreed,  that any  court  may in  its discretion
          require, in any suit for  the enforcement of any right  or remedy
          under this Indenture, or  in any suit against the Trustee for any
          action taken, suffered or omitted by it as Trustee, the filing by
          any  party litigant in  such suit  of an  undertaking to  pay the
          costs of such  suit, and that  such court may  in its  discretion
          assess  reasonable costs,  including reasonable  attorneys' fees,
          against any party litigant in such suit, having due regard to the
          merits and  good faith  of the  claims or  defenses made  by such
          party  litigant; but  the  provisions of  this Section  shall not
          apply  to any  suit  instituted  by  the  Company,  to  any  suit
          instituted  by the Trustee, to any suit instituted by any Holder,
          or group  of Holders, holding in  the aggregate more  than 10% in
          principal amount of the  Outstanding Junior Subordinated Notes of
          any series, or to any suit instituted by any Holder of any Junior
          Subordinated  Note for  the  enforcement of  the  payment of  the
          principal  of  (or  premium,   if  any)  or  interest  (including
          Additional Interest) on any Junior Subordinated  Note on or after
          the  Stated  Maturity  or  Maturities expressed  in  such  Junior
          Subordinated Note (or, in the case of redemption, on or after the
          Redemption Date).

          SECTION 515.   WAIVER OF STAY OR EXTENSION LAWS.

               The Company covenants (to the extent that it may lawfully do
          so) that it will not at any time insist upon, or plead, or in any
          manner  whatsoever claim or take the benefit or advantage of, any
          stay  or extension  law  wherever enacted,  now  or at  any  time
          hereafter in  force,  which  may  affect  the  covenants  or  the
          performance of  this Indenture;  and the  Company (to the  extent

                                          37
<PAGE>






          that it may lawfully  do so) hereby expressly waives  all benefit
          or  advantage of  any such  law and  covenants  that it  will not
          hinder, delay or impede the execution of any power herein granted
          to the Trustee, but will suffer and permit the execution of every
          such power as though no such law had been enacted.





                                     ARTICLE SIX

                                     THE TRUSTEE

          SECTION 601.   CERTAIN DUTIES AND RESPONSIBILITIES.

               (a)  Except during  the continuance  of an Event  of Default
          with respect to Junior Subordinated Notes of any series,

                    (1)  the Trustee undertakes to perform, with respect to
               Junior Subordinated  Notes of  such series, such  duties and
               only  such  duties as  are  specifically set  forth  in this
               Indenture, and no implied  covenants or obligations shall be
               read into this Indenture against the Trustee; and

                    (2)  in  the absence  of  bad faith  on  its part,  the
               Trustee may,  with respect  to Junior Subordinated  Notes of
               such  series,  conclusively rely,  as  to the  truth  of the
               statements  and the  correctness of  the opinions  expressed
               therein,  upon certificates  or  opinions furnished  to  the
               Trustee  and   conforming  to   the  requirements   of  this
               Indenture;  but in  the  case of  any  such certificates  or
               opinions  which  by any  provision  hereof  are specifically
               required  to be furnished to  the Trustee, the Trustee shall
               be under  a duty to examine the same to determine whether or
               not they conform to the requirements of this Indenture.

               (b)  In case  an Event  of Default  with  respect to  Junior
          Subordinated Notes of any series  has occurred and is continuing,
          the Trustee  shall exercise, with respect  to Junior Subordinated
          Notes of such series, such of  the rights and powers vested in it
          by this Indenture, and use  the same degree of care and  skill in
          their exercise, as a prudent man would  exercise or use under the
          circumstances in the conduct of his own affairs.

               (c)  No provision  of this  Indenture shall be  construed to
          relieve the  Trustee from liability for its own negligent action,
          its own negligent failure  to act, or its own  wilful misconduct,
          except that

                    (1)  this Subsection  shall not be  construed to  limit
               the effect of Subsection (a) of this Section;

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<PAGE>






                    (2)  the Trustee  shall not be liable for  any error of
               judgment made in good faith by a Responsible Officer, unless
               it  shall  be  proved  that the  Trustee  was  negligent  in
               ascertaining the pertinent facts;

                    (3)  the Trustee  shall not  be liable with  respect to
               any action taken or omitted to be taken by it  in good faith
               in  accordance  with  the  direction of  the  Holders  of  a
               majority  in  principal  amount  of  the  Outstanding Junior
               Subordinated  Notes  of any  series  relating  to the  time,
               method and place of conducting any proceeding for any remedy
               available to the  Trustee, or exercising any  trust or power
               conferred  upon  the  Trustee,  under  this  Indenture  with
               respect to the Junior Subordinated Notes of such series; and

                    (4)  no provision  of this Indenture  shall require the
               Trustee to expend or  risk its own funds or  otherwise incur
               any  financial liability in  the performance  of any  of its
               duties hereunder, or in the exercise of any of its rights or
               powers, if  it shall  have reasonable grounds  for believing
               that repayment  of such funds or  adequate indemnity against
               such risk or liability is not reasonably assured to it.

               (d)  Whether  or not  therein expressly  so provided,  every
          provision of this  Indenture relating to the conduct or affecting
          the  liability of or affording protection to the Trustee shall be
          subject to the provisions of this Section.

          SECTION 602.   NOTICE OF DEFAULTS.

               Within 90 days after the occurrence of any default hereunder
          with  respect to the Junior Subordinated Notes of any series, the
          Trustee   shall  transmit  by  mail  to  all  Holders  of  Junior
          Subordinated  Notes of  such series  entitled to  receive reports
          pursuant  to Section 313(c) of the Trust Indenture Act, notice of
          all defaults hereunder known to the Trustee,  unless such default
          shall have been cured or waived; provided, however, that,  except
          in the case of  a default in the payment of  the principal of (or
          premium, if  any) or interest (including  Additional Interest) on
          any  Junior Subordinated Note of such series or in the payment of
          any sinking fund installment  with respect to Junior Subordinated
          Notes   of  such  series,  the  Trustee  shall  be  protected  in
          withholding such notice if and so long as the board of directors,
          the  executive committee  or a  trust committee  of directors  or
          Responsible Officers of the Trustee in good  faith determine that
          the withholding  of such notice is in the interest of the Holders
          of  Junior  Subordinated  Notes  of such  series;  and  provided,
          further,  that  in  the case  of  any  default  of the  character
          specified in  Section 501(5) with respect  to Junior Subordinated
          Notes of such  series, no such  notice to Holders shall  be given
          until at  least 45 days  after the occurrence  thereof.  For  the
          purpose of this Section, the term "default" means any event which

                                          39
<PAGE>






          is, or after  notice or lapse  of time or  both would become,  an
          Event  of Default  with respect  to Junior Subordinated  Notes of
          such series.

          SECTION 603.   CERTAIN RIGHTS OF TRUSTEE.

               Subject to the provisions of Section 601:

                    (a)  the  Trustee may  rely and  shall be  protected in
               acting  or  refraining  from  acting  upon  any  resolution,
               certificate, statement, instrument, opinion, report, notice,
               request,  direction, consent, order,  bond, debenture, note,
               other evidence  of indebtedness  or other paper  or document
               believed by  it to  be genuine  and to  have been signed  or
               presented by the proper party or parties;

                    (b)  any request or direction  of the Company mentioned
               herein shall be sufficiently  evidenced by a Company Request
               or  Company Order and a resolution of the Board of Directors
               may be sufficiently evidenced by a Board Resolution;

                    (c)  whenever in the  administration of this  Indenture
               the  Trustee shall deem it desirable that a matter be proved
               or established  prior to  taking, suffering or  omitting any
               action  hereunder,  the Trustee  (unless  other evidence  be
               herein specifically  prescribed) may, in the  absence of bad
               faith on its part, rely upon an Officer's Certificate;

                    (d)  the  Trustee  may  consult with  counsel  and  the
               written advice  of such  counsel or  any Opinion  of Counsel
               shall be  full and complete authorization  and protection in
               respect  of any  action  taken, suffered  or  omitted by  it
               hereunder in good faith and in reliance thereon;

                    (e)  the  Trustee  shall  be  under  no  obligation  to
               exercise any of the  rights or powers vested  in it by  this
               Indenture  at the request or direction of any of the Holders
               of Junior  Subordinated Notes of any series pursuant to this
               Indenture,  unless such  Holders shall  have offered  to the
               Trustee reasonable security or indemnity  against the costs,
               expenses and  liabilities which might  be incurred by  it in
               compliance with such request or direction;

                    (f)  the  Trustee  shall  not  be  bound  to  make  any
               investigation  into  the  facts  or matters  stated  in  any
               resolution,  certificate,  statement,  instrument,  opinion,
               report,  notice, request,  direction, consent,  order, bond,
               debenture,  note, other  evidence of  indebtedness  or other
               paper or document, but  the Trustee, in its  discretion, may
               make such  further inquiry or investigation  into such facts
               or  matters as  it may  see fit, and,  if the  Trustee shall
               determine to make such  further inquiry or investigation, it

                                          40
<PAGE>






               shall be entitled to examine the books, records and premises
               of the Company, personally or by agent or attorney;

                    (g)  the  Trustee  may execute  any  of  the trusts  or
               powers  hereunder  or perform  any  duties  hereunder either
               directly  or  by or  through  agents  or  attorneys and  the
               Trustee  shall  not be  responsible  for  any misconduct  or
               negligence on  the part of  any agent or  attorney appointed
               with due care by it hereunder; and

                    (h)  the Trustee shall not be charged with knowledge of
               any Event of Default with respect to the Junior Subordinated
               Notes of any series for which it is acting as Trustee unless
               either (1) a Responsible Officer of the Trustee  assigned to
               the  Corporate Trustee Administration  Department and agency
               group  of   the  Trustee  (or  any   successor  division  or
               department of  the Trustee)  shall have actual  knowledge of
               the  Event of Default or (2) written notice of such Event of
               Default shall have been given to the Trustee by the Company,
               any other  obligor on such  Junior Subordinated Notes  or by
               any Holder of such Junior Subordinated Notes.

          SECTION 604.   NOT RESPONSIBLE FOR RECITALS OF ISSUANCE OF JUNIOR
                         SUBORDINATED NOTES.

               The recitals contained herein and in the Junior Subordinated
          Notes (except the Trustee's certificates of authentication) shall
          be taken as the statements of the Company, and the Trustee or any
          Authenticating   Agent  assumes   no  responsibility   for  their
          correctness.   The  Trustee makes  no representations  as to  the
          validity  or  sufficiency  of this  Indenture  or  of the  Junior
          Subordinated  Notes.   The  Trustee or  any Authenticating  Agent
          shall  not be  accountable  for the  use  or application  by  the
          Company of Junior Subordinated Notes or the proceeds thereof.

               The Trustee shall not be deemed to owe any fiduciary duty to
          the holders of Trust Securities and  shall be entitled to rely on
          the delivery to it of  a written notice by a Person  representing
          himself to be a holder of a Trust Security to establish that such
          Person is such a holder.  The Trustee may conclusively rely on an
          Officers'  Certificate  as  evidence  that  the  holders  of  the
          necessary  percentage   of   liquidation  preference   of   Trust
          Securities have taken any action contemplated hereunder and shall
          have  no duty  to  investigate  the  truth  or  accuracy  of  any
          statement contained therein.

          SECTION 605.   MAY HOLD JUNIOR SUBORDINATED NOTES.

               The Trustee, any Authenticating Agent, any Paying Agent, any
          Security  Registrar or  any other  agent of  the Company,  in its
          individual or any other capacity, may become the owner or pledgee
          of Junior  Subordinated Notes  and, subject  to Sections 608  and

                                          41
<PAGE>






          613, may otherwise deal with the Company with the same rights  it
          would have if it  were not Trustee, Authenticating Agent,  Paying
          Agent, Security Registrar or such other agent.

          SECTION 606.   MONEY HELD IN TRUST.

               Money held by  the Trustee  in trust hereunder  need not  be
          segregated from other funds except to the extent required by law.
          The Trustee shall be under no liability for interest on any money
          received by  it hereunder  except  as otherwise  agreed with  the
          Company.

          SECTION 607.   COMPENSATION AND REIMBURSEMENT.

               The Company agrees

                    (1)  to pay to the Trustee from time to time reasonable
               compensation for  all  services  rendered  by  it  hereunder
               (which compensation shall not be limited by any provision of
               law in regard to the compensation of a trustee of an express
               trust);

                    (2)  except as otherwise  expressly provided herein, to
               reimburse the  Trustee upon  its request for  all reasonable
               expenses, disbursements and advances incurred or made by the
               Trustee in  accordance with any provision  of this Indenture
               (including the  reasonable compensation and the expenses and
               disbursements of  its agents  and counsel), except  any such
               expense, disbursement  or advance as may  be attributable to
               its negligence, willful misconduct or bad faith; and

                    (3)  to  indemnify  the Trustee  for,  and  to hold  it
               harmless against, any  loss, liability  or expense  incurred
               without negligence,  willful misconduct or bad  faith on its
               part, arising out of or in connection with the acceptance or
               administration of  the trust or trusts  hereunder, including
               the costs and expenses of defending itself against any claim
               or liability in connection  with the exercise or performance
               of any of its powers or duties hereunder.

               As security  for the performance  of the obligations  of the
          Company under this Section the Trustee shall have a lien prior to
          the Junior Subordinated Notes upon all property and funds held or
          collected by the Trustee as such, except funds held  in trust for
          the payment of  principal of,  premium, if any,  or interest,  if
          any, on particular Junior Subordinated Notes.

          SECTION 608.   DISQUALIFICATION; CONFLICTING INTERESTS.

               If  the  Trustee  has   or  shall  acquire  any  conflicting
          interest, within  the  meaning of  the  Trust Indenture  Act,  it
          shall,  within  90 days  after  ascertaining  that  it  has  such

                                          42
<PAGE>






          conflicting  interest, either eliminate such conflicting interest
          or  resign, to  the extent  and in  the  manner provided  by, and
          subject  to the provisions of,  the Trust Indenture  Act and this
          Indenture.

          SECTION 609.   CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.

               There  shall at all times be a Trustee hereunder which shall
          be a corporation organized  and doing business under the  laws of
          the United States of  America, any State thereof or  the District
          of  Columbia, authorized  under such  laws to  exercise corporate
          trust powers, having a  combined capital and surplus of  at least
          $50,000,000, subject to supervision  or examination by federal or
          state authority and qualified and eligible under this Article and
          otherwise  permitted by the Trust Indenture Act to act as Trustee
          under an Indenture qualified  under the Trust Indenture Act.   If
          such  corporation   publishes  reports  of  condition   at  least
          annually,  pursuant  to  law  or  to  the  requirements  of  said
          supervising or examining authority, then for the purposes of this
          Section,  the combined  capital and  surplus of  such corporation
          shall be deemed to  be its combined capital surplus as  set forth
          in its  most recent report  of condition so published,  if at any
          time  the Trustee shall cease  to be eligible  in accordance with
          the  provisions of this  Section, it shall  resign immediately in
          the  manner and  with the  effect hereinafter  specified  in this
          Article.

          SECTION 610.   RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR.

               (a)  No  resignation  or  removal  of  the  Trustee  and  no
          appointment of a successor Trustee pursuant to this Article shall
          become  effective  until the  acceptance  of  appointment by  the
          successor Trustee in accordance with  the applicable requirements
          of Section 611.

               (b)  The  Trustee may resign at any time with respect to the
          Junior Subordinated Notes of one or more series by giving written
          notice thereof to the  Company.  If the instrument  of acceptance
          by a successor  Trustee required  by Section 611  shall not  have
          been  delivered to the Trustee within 30 days after the giving of
          such notice  of resignation,  the resigning Trustee  may petition
          any  court of  competent jurisdiction  for  the appointment  of a
          successor Trustee  with respect to the  Junior Subordinated Notes
          of such series.

               (c)  The  Trustee may be removed at any time with respect to
          the  Junior  Subordinated  Notes of  any  series  by  Act of  the
          Holders  of a  majority in  principal amount  of the  Outstanding
          Junior Subordinated Notes of such series delivered to the Trustee
          and to the Company.

               (d)  If at any time:

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<PAGE>






                    (1)  the Trustee shall fail  to comply with Section 608
               after written  request therefor  by the  Company  or by  any
               Holder of a Junior  Subordinated Note who has been  a Holder
               of a Junior Subordinated Note for at least six months, or

                    (2)  the  Trustee shall  cease  to  be  eligible  under
               Section  609 and shall fail  to resign after written request
               therefor by the Company or by any such Holder, or

                    (3)  the Trustee  shall become  incapable of  acting or
               shall be adjudged a  bankrupt or insolvent or a  receiver of
               the Trustee or  of its  property shall be  appointed or  any
               public officer shall take  charge or control of  the Trustee
               or  of   its  property  or   affairs  for  the   purpose  of
               rehabilitation, conservation or liquidation,

          then, in  any such case, (i) the  Company, by a Board Resolution,
          may  remove the Trustee  with respect to  all Junior Subordinated
          Notes, or  (ii) subject  to Section 514,  any Holder of  a Junior
          Subordinated Note  who has been  a bona  fide Holder of  a Junior
          Subordinated  Note  for at  least six  months  may, on  behalf of
          himself and all others similarly situated,  petition any court of
          competent  jurisdiction  for  the  removal of  the  Trustee  with
          respect to all Junior Subordinated Notes and the appointment of a
          successor Trustee or Trustees.

               (e)  If  the  Trustee shall  resign,  be  removed or  become
          incapable of acting, or if a vacancy shall occur in the office of
          Trustee for  any cause, with  respect to the  Junior Subordinated
          Notes of one  or more series, the Company, by a Board Resolution,
          shall  promptly  appoint a  successor  Trustee  or Trustees  with
          respect  to the Junior Subordinated Notes of that or those series
          (it being  understood  that any  such  successor Trustee  may  be
          appointed with respect to the Junior Subordinated Notes of one or
          more  or all of such  series and that at  any time there shall be
          only one Trustee with respect to the Junior Subordinated Notes of
          any  particular  series) and  shall  comply  with the  applicable
          requirements  of Section  611.   If, within  one year  after such
          resignation, removal  or incapability, or the  occurrence of such
          vacancy,  a   successor  Trustee  with  respect   to  the  Junior
          Subordinated Notes of any series shall be appointed by Act of the
          Holders  of a  majority in  principal  amount of  the Outstanding
          Junior Subordinated Notes of such series delivered to the Company
          and  the retiring  Trustee,  the successor  Trustee so  appointed
          shall,  forthwith  upon its  acceptance  of  such appointment  in
          accordance with  the  applicable  requirements  of  Section  611,
          become  the   successor  Trustee  with  respect   to  the  Junior
          Subordinated Notes  of such series  and to that  extent supersede
          the  successor Trustee appointed by the Company.  If no successor
          Trustee  with respect  to  the Junior  Subordinated Notes  of any
          series shall have been so appointed by the Company or the Holders
          of  Junior Subordinated  Notes  and accepted  appointment in  the

                                          44
<PAGE>






          manner  required   by  Section  611,  any  Holder   of  a  Junior
          Subordinated  Note who  has been a  bona fide Holder  of a Junior
          Subordinated Note of such  series for at least six months may, on
          behalf of himself and all others similarly situated, petition any
          court  of  competent  jurisdiction   for  the  appointment  of  a
          successor Trustee  with respect to the  Junior Subordinated Notes
          of such series.

               (f)  The Company  shall give notice of  each resignation and
          each  removal   of  the  Trustee  with  respect   to  the  Junior
          Subordinated  Notes  of  any series  and  each  appointment  of a
          successor Trustee  with respect to the  Junior Subordinated Notes
          of any series by mailing  written notice of such event  by first-
          class mail, postage  prepaid, to  all Holders of  such series  of
          Junior  Subordinated Notes as their names and addresses appear in
          the Security Register.

          SECTION 611.   ACCEPTANCE OF APPOINTMENT BY SUCCESSOR.

               (a)  In  case of  the appointment  hereunder of  a successor
          Trustee with respect to all Junior Subordinated Notes, every such
          successor  Trustee so  appointed shall  execute, acknowledge  and
          deliver  to the Company and to the retiring Trustee an instrument
          accepting  such appointment,  and  thereupon  the resignation  or
          removal  of the retiring Trustee  shall become effective and such
          successor Trustee,  without any further act,  deed or conveyance,
          shall become  vested  with all  the  rights, powers,  trusts  and
          duties  of the  retiring  Trustee; but,  on  the request  of  the
          Company or  the successor  Trustee, such retiring  Trustee shall,
          upon payment  of its charges,  execute and deliver  an instrument
          transferring to such successor Trustee all the rights, powers and
          trusts of  the retiring Trustee  and shall duly  assign, transfer
          and deliver to such successor Trustee all property and money held
          by such retiring Trustee hereunder.

               (b)  In  case of  the appointment  hereunder of  a successor
          Trustee with respect to  the Junior Subordinated Notes of  one or
          more  (but not all) series, the Company, the retiring Trustee and
          each successor  Trustee with  respect to the  Junior Subordinated
          Notes  of one  or  more  series  shall  execute  and  deliver  an
          indenture  supplemental  hereto  wherein each  successor  Trustee
          shall  accept such appointment  and which (1)  shall contain such
          provisions as  shall be  necessary or  desirable to transfer  and
          confirm  to, and  to  vest in,  each  successor Trustee  all  the
          rights,  powers, trusts and  duties of the  retiring Trustee with
          respect  to the Junior Subordinated Notes of that or those series
          to which the appointment  of such successor Trustee relates,  (2)
          if  the  retiring Trustee  is not  retiring  with respect  to all
          Junior Subordinated Notes, shall contain such provisions as shall
          be  deemed necessary or desirable to confirm that all the rights,
          powers, trusts and duties of the retiring Trustee with respect to
          the Junior Subordinated Notes of that or those series as to which

                                          45
<PAGE>






          the  retiring Trustee is not retiring shall continue to be vested
          in the  retiring Trustee, and (3)  shall add to or  change any of
          the provisions of this Indenture as shall be necessary to provide
          for or facilitate the  administration of the trusts  hereunder by
          more than one Trustee, it being understood that nothing herein or
          in such supplemental indenture shall constitute such Trustees co-
          trustees  of the same trust  and that each  such Trustee shall be
          trustee  of a trust or  trusts hereunder separate  and apart from
          any trust  or  trusts hereunder  administered by  any other  such
          Trustee; and upon the execution and delivery of such supplemental
          indenture  the resignation  or  removal of  the retiring  Trustee
          shall become  effective to the  extent provided therein  and each
          such  successor  Trustee,  without   any  further  act,  deed  or
          conveyance,  shall become  vested  with all  the rights,  powers,
          trusts and duties  of the  retiring Trustee with  respect to  the
          Junior  Subordinated Notes of that  or those series  to which the
          appointment of such successor Trustee relates; but, on request of
          the Company or any successor Trustee, such retiring Trustee shall
          duly assign,  transfer and deliver to such  successor Trustee all
          property and money held  by such retiring Trustee hereunder  with
          respect  to the Junior Subordinated Notes of that or those series
          to which the appointment of such successor Trustee relates.

               (c)  Upon request of any such successor Trustee, the Company
          shall  execute  any  and  all  instruments  for  more  fully  and
          certainly vesting in and confirming to such successor Trustee all
          such  rights, powers and trusts  referred to in  paragraph (a) or
          (b) of this Section, as the case may be.

               (d)  No  successor  Trustee  shall  accept  its  appointment
          unless  at  the time  of such  acceptance such  successor Trustee
          shall be qualified and eligible under this Article.

          SECTION 612.   MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
                         BUSINESS.

               Any corporation  into which  the  Trustee may  be merged  or
          converted  or  with  which   it  may  be  consolidated,  or   any
          corporation   resulting   from   any   merger,    conversion   or
          consolidation  to  which the  Trustee shall  be  a party,  or any
          corporation succeeding to all  or substantially all the corporate
          trust  business of  the Trustee,  shall be  the successor  of the
          Trustee hereunder,  provided such corporation shall  be otherwise
          qualified and eligible under  this Article, without the execution
          or filing of any  paper or any further act on the  part of any of
          the  parties hereto.  In case any Junior Subordinated Notes shall
          have been authenticated, but  not delivered, by the Trustee  then
          in office,  any successor by merger,  conversion or consolidation
          to such authenticating Trustee  may adopt such authentication and
          deliver the  Junior Subordinated Notes so  authenticated with the
          same effect as if such successor Trustee had itself authenticated
          such Junior Subordinated Notes.

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<PAGE>






          SECTION 613.   PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

               If and when the Trustee shall be or become a creditor of the
          Company  (or  any  other  obligor upon  the  Junior  Subordinated
          Notes), the Trustee  shall be  subject to the  provisions of  the
          Trust Indenture  Act regarding  the collection of  claims against
          the Company (or any such other obligor).  For purposes of Section
          311(b)(4) and (6) of the Trust Indenture Act:

               (a)  "cash transaction" means any  transaction in which full
          payment  for goods or securities  sold is made  within seven days
          after  delivery  of the  goods or  securities  in currency  or in
          checks  or other orders drawn  upon banks or  bankers and payable
          upon demand; and

               (b)  "self-liquidating  paper"  means  any  draft,  bill  of
          exchange,  acceptance   or  obligation  which  is   made,  drawn,
          negotiated or incurred by  the Company (or any such  obligor) for
          the purpose of financing the purchase, processing, manufacturing,
          shipment, storage  or sale  of goods,  wares  or merchandise  and
          which is secured by documents evidencing title to, possession of,
          or   a  lien  upon,  the  goods,  wares  or  merchandise  or  the
          receivables or proceeds arising from the sale of the goods, wares
          or merchandise previously constituting the security, provided the
          security  is  received by  the  Trustee  simultaneously with  the
          creation of  the creditor relationship  with the Company  (or any
          such obligor)  arising from  the making, drawing,  negotiating or
          incurring  of   the  draft,  bill  of   exchange,  acceptance  or
          obligation.

          SECTION 614.   APPOINTMENT OF AUTHENTICATING AGENT.

               At any time when any of the Junior Subordinated Notes remain
          Outstanding the  Trustee may  appoint an Authenticating  Agent or
          Agents  with respect to one or more series of Junior Subordinated
          Notes that shall be authorized to act on behalf of the Trustee to
          authenticate Junior Subordinated Notes of such series issued upon
          exchange, registration of transfer  or partial redemption thereof
          or  pursuant to  Section 304,  and Junior  Subordinated Notes  so
          authenticated shall be entitled to the benefits of this Indenture
          and  shall be  valid  and  obligatory  for  all  purposes  as  if
          authenticated by  the Trustee  hereunder.  Wherever  reference is
          made  in this  Indenture to  the authentication  and  delivery of
          Junior  Subordinated  Notes  by  the  Trustee  or  the  Trustee's
          certificate of authentication, such  reference shall be deemed to
          include authentication  and delivery on behalf of  the Trustee by
          an  Authenticating  Agent  and  a certificate  of  authentication
          executed on  behalf of  the Trustee  by an  Authenticating Agent.
          Each Authenticating Agent shall be acceptable  to the Company and
          shall  at all times be a corporation organized and doing business
          under the laws of the United States of America, any State thereof
          or the District of Columbia, authorized under such laws to act as

                                          47
<PAGE>






          Authenticating Agent,  having a  combined capital and  surplus of
          not  less   than  $50,000,000  and  subject   to  supervision  or
          examination   by   federal  or   state   authority.     If   such
          Authenticating  Agent  publishes reports  of  condition at  least
          annually,  pursuant  to  law  or  to  the  requirements  of  said
          supervising or examining authority, then for the purposes of this
          Section, the combined capital  and surplus of such Authenticating
          Agent shall be deemed to be  its combined capital and surplus  as
          set  forth in its most  recent report of  condition so published.
          If at any time an Authenticating Agent shall cease to be eligible
          in  accordance   with  the  provisions  of   this  Section,  such
          Authenticating Agent  shall resign immediately in  the manner and
          with the effect specified in this Section.

               Any corporation  into which  an Authenticating Agent  may be
          merged or converted or with which it may  be consolidated, or any
          corporation   resulting   from    any   merger,   conversion   or
          consolidation  to  which such  Authenticating  Agent  shall be  a
          party, or  any corporation succeeding to the  corporate agency or
          corporate  trust  business  of  an  Authenticating  Agent,  shall
          continue to be an Authenticating Agent, provided such corporation
          shall  be  otherwise eligible  under  this  Section, without  the
          execution or filing  of any paper or any further  act on the part
          of the Trustee or the Authenticating Agent.

               An Authenticating  Agent may  resign at  any time  by giving
          written  notice thereof to  the Trustee and to  the Company.  The
          Trustee may at any time terminate the agency of an Authenticating
          Agent  by giving  written notice  thereof to  such Authenticating
          Agent  and to  the Company.    Upon receiving  such  a notice  of
          resignation or  upon such a termination,  or in case at  any time
          such  Authenticating   Agent  shall  cease  to   be  eligible  in
          accordance with the  provisions of this Section, the  Trustee may
          appoint  a   successor  Authenticating   Agent  which  shall   be
          acceptable to the Company  and shall mail written notice  of such
          appointment by first-class mail,  postage prepaid, to all Holders
          of  Junior Subordinated Notes, if any, of the series with respect
          to which such Authenticating Agent will serve, as their names and
          addresses  appear  in  the  Security  Register.    Any  successor
          Authenticating Agent upon acceptance of its appointment hereunder
          shall become vested with all the rights, powers and duties of its
          predecessor hereunder, with like effect as if originally named as
          an Authenticating Agent.  No successor Authenticating Agent shall
          be  appointed  unless  eligible  under  the  provisions  of  this
          Section.

               The Trustee  agrees to pay to each Authenticating Agent from
          time to time reasonable compensation  for its services under this
          Section, and the Trustee  shall be entitled to be  reimbursed for
          such payments, subject to the provisions of Section 607.



                                          48
<PAGE>






               The  provisions  of  Sections  306,  604  and  605  shall be
          applicable to each Authenticating Agent.

               If an appointment with respect to one or more series is made
          pursuant  to this Section, the Junior  Subordinated Notes of such
          series  may have endorsed  thereon, in addition  to the Trustee's
          certificate   of  authentication,  an  alternate  certificate  of
          authentication in the following form:

                    This is  one of  the Junior Subordinated  Notes of
               the  series  designated  therein  referred  to  in  the
               within-mentioned Indenture.

                                                         
                                      As Trustee

                            By                            
                               As Authenticating Agent

                            By                            
                                 Authorized Signatory


                                    ARTICLE SEVEN

                  HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

          SECTION 701.   COMPANY TO FURNISH TRUSTEE NAMES AND  ADDRESSES OF
                         HOLDERS.

               The Company will  furnish or  cause to be  furnished to  the
          Trustee

                    (a)  semi-annually, not  later than June 1 and December
               1, in  each year, a  list, in such  form as the  Trustee may
               reasonably require,  containing all  the information  in the
               possession or control of  the Company, or any of  its Paying
               Agents other than the Trustee, as to the names and addresses
               of  the  Holders of  Junior  Subordinated  Notes as  of  the
               preceding May 15 or November 15, as the case may be, and

                    (b)  at  such other times as the Trustee may request in
               writing,  within 30 days after the receipt by the Company of
               any  such request, a list of  similar form and content as of
               the most recent Regular Record Date;

          excluding  from any such list names and addresses received by the
          Trustee in its capacity as Security Registrar.

          SECTION 702.   PRESERVATION  OF  INFORMATION;  COMMUNICATIONS  TO
                         HOLDERS.


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<PAGE>






               (a)  The Trustee  shall comply with the  obligations imposed
          on it pursuant to Section 312 of the Trust Indenture Act.

               (b)  Every Holder of Junior Subordinated Notes, by receiving
          and holding the  same, agrees  with the Company  and the  Trustee
          that neither the Company nor the Trustee nor any agent  of either
          of  them shall be held accountable by reason of the disclosure of
          any such information as to the names and addresses of the Holders
          of Junior Subordinated Notes in accordance with Section 312(b) of
          the Trust Indenture Act, regardless of the source from which such
          information was derived, and  that the Trustee shall not  be held
          accountable  by reason  of  mailing any  material  pursuant to  a
          request made under Section 312(b) of the Trust Indenture Act.



          SECTION 703.   REPORTS BY TRUSTEE.

               (a)  Within  60 days  after May 15  of each  year commencing
          with  the first  May  15  after  the  first  issuance  of  Junior
          Subordinated  Notes pursuant  to this  Indenture, if  required by
          Section  313(a)  of the  Trust Indenture  Act, the  Trustee shall
          transmit a brief  report dated as of such May  15 with respect to
          any of  the events specified in such Section 313(a) that may have
          occurred  since the later of the immediately preceding May 15 and
          the date of this Indenture.

               (b)  The Trustee  shall  transmit the  reports  required  by
          Section  313(b) of the Trust Indenture Act at the times specified
          therein.

               (c)  Reports pursuant to  this Section shall  be transmitted
          in the manner and to the Persons required by  Sections 313(c) and
          (d) of the Trust Indenture Act.

          SECTION 704.   REPORTS BY COMPANY.

               The  Company,  pursuant  to  Section  314(a)  of  the  Trust
          Indenture Act, shall:

                    (1)  file with  the Trustee,  within 15 days  after the
               Company  is required to  file the same  with the Commission,
               copies  of  the  annual  reports  and  of  the  information,
               documents and other  reports (or copies of  such portions of
               any of the foregoing as the Commission may from time to time
               by rules and regulations prescribe) that the Company may  be
               required to  file with the Commission pursuant to Section 13
               or  Section 15(d) of the Securities Exchange Act of 1934, as
               amended;  or,  if  the  Company  is  not  required  to  file
               information, documents or reports pursuant to either of said
               Sections,  then  it shall  file  with  the  Trustee and  the
               Commission,  in  accordance   with  rules  and   regulations

                                          50
<PAGE>






               prescribed  from time to time by the Commission, such of the
               supplementary  and  periodic   information,  documents   and
               reports  which may be required pursuant to Section 13 of the
               Securities Exchange Act of 1934, as amended, in respect of a
               security  listed  and registered  on  a  national securities
               exchange  as may  be prescribed  from time  to time  in such
               rules and regulations;

                    (2)  file  with  the  Trustee  and  the  Commission, in
               accordance with  rules and regulations prescribed  from time
               to  time  by the  Commission,  such additional  information,
               documents  and reports  with  respect to  compliance by  the
               Company with the conditions  and covenants of this Indenture
               as  may be  required from  time to  time by  such  rules and
               regulations;

                    (3)  transmit, within 30 days  after the filing thereof
               with  the Trustee,  to  the Holders  of Junior  Subordinated
               Notes, in the manner  and to the extent provided  in Section
               313(c)  of the  Trust Indenture  Act, such summaries  of any
               information, documents  and reports required to  be filed by
               the  Company  pursuant to  paragraphs  (1) and  (2)  of this
               Section  704 as  may  be required  by rules  and regulations
               prescribed from time to time by the Commission; and

                    (4)  notify  the  Trustee   when  and  as  the   Junior
               Subordinated Notes of any  series become admitted to trading
               on any national securities exchange.

                                    ARTICLE EIGHT

                 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

          SECTION 801.   COMPANY  MAY  CONSOLIDATE, ETC.,  ONLY  ON CERTAIN
                         TERMS.

               The  Company shall  not consolidate with  or merge  into any
          other corporation or convey, transfer or lease its properties and
          assets substantially as an entirety to any Person, unless

                    (1)  in  case  the  Company shall  consolidate  with or
               merge into another corporation  or convey, transfer or lease
               its properties  and assets  substantially as an  entirety to
               any Person, the corporation  formed by such consolidation or
               into  which  the  Company  is  merged  or the  Person  which
               acquires  by conveyance  or transfer,  or which  leases, the
               properties  and assets  of the  Company substantially  as an
               entirety shall be a corporation organized and existing under
               the  laws of the United States of America, any State thereof
               or  the District of Columbia and  shall expressly assume, by
               an indenture supplemental hereto, executed and delivered  to
               the Trustee, in  form satisfactory to  the Trustee, the  due

                                          51
<PAGE>






               and punctual payment  of the principal  of (and premium,  if
               any) and interest (including Additional Interest) on all the
               Junior  Subordinated  Notes  and the  performance  of  every
               covenant of this Indenture on the  part of the Company to be
               performed or observed;

                    (2)  immediately   after   giving   effect    to   such
               transactions, no Event of Default, and no event which, after
               notice or  lapse of time or  both, would become an  Event of
               Default, shall have happened and be continuing; and

                    (3)  the  Company  has  delivered  to  the  Trustee  an
               Officers'  Certificate  and  an  Opinion  of  Counsel,  each
               stating   that   such  consolidation,   merger,  conveyance,
               transfer  or lease complies  with this Article  and that all
               conditions precedent  herein provided for  relating to  such
               transaction have been complied with.




































                                          52
<PAGE>






          SECTION 802.   SUCCESSOR CORPORATION SUBSTITUTED.

               Upon  any consolidation by the Company with or merger by the
          Company into any corporation or any conveyance, transfer or lease
          of the properties and  assets of the Company substantially  as an
          entirety   in  accordance   with  Section   801,   the  successor
          corporation  formed  by  such  consolidation or  into  which  the
          Company  is merged or to which such conveyance, transfer or lease
          is  made  shall  succeed to,  and  be  substituted  for, and  may
          exercise  every  right  and  power  of,  the  Company  under this
          Indenture with the same  effect as if such successor  corporation
          had been named as  the Company herein, and thereafter,  except in
          the  case  of  a  lease,  the predecessor  corporation  shall  be
          relieved of  all obligations  and covenants under  this Indenture
          and the Junior Subordinated Notes.

                                     ARTICLE NINE

                               SUPPLEMENTAL INDENTURES

          SECTION 901.   SUPPLEMENTAL   INDENTURES   WITHOUT   CONSENT   OF
                         HOLDERS.

               Without the  consent of  any Holders of  Junior Subordinated
          Notes, the Company,  when authorized by  a Board Resolution,  and
          the Trustee,  at any time and  from time to time,  may enter into
          one or more indentures  supplemental hereto, in form satisfactory
          to the Trustee, for any of the following purposes:

                    (1)  to evidence the succession of  another corporation
               to the Company and  the assumption by any such  successor of
               the covenants  of  the  Company  herein and  in  the  Junior
               Subordinated Notes; or

                    (2)  to add  to the  covenants of  the Company  for the
               benefit  of the  Holders  of all  or  any series  of  Junior
               Subordinated  Notes (and if such covenants are to be for the
               benefit  of  less than  all  series  of Junior  Subordinated
               Notes, stating  that  such  covenants  are  expressly  being
               included  solely  for  the benefit  of  such  series) or  to
               surrender  any  right or  power  herein  conferred upon  the
               Company; or

                    (3)  to add any additional Events of Default; or

                    (4)  to  add to or change any of the provisions of this
               Indenture, to  change or  eliminate any restrictions  on the
               payment  of  principal  (or   premium,  if  any)  on  Junior
               Subordinated  Notes  or to  permit  the  issuance of  Junior
               Subordinated Notes in uncertificated form, provided any such
               action  shall  not adversely  affect  the  interests of  the


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               Holders of Junior  Subordinated Notes of  any series in  any
               material respect; or

                    (5)  to change  or eliminate  any of the  provisions of
               this  Indenture  with  respect   to  any  series  of  Junior
               Subordinated Notes theretofore unissued; or

                    (6)  to secure the Junior Subordinated Notes; or

                    (7)  to  establish   the  form   or  terms   of  Junior
               Subordinated Notes  of any  series as permitted  by Sections
               201 and 301; or

                    (8)  to evidence  and  provide for  the  acceptance  of
               appointment hereunder by a successor Trustee with respect to
               the Junior Subordinated Notes  of one or more series  and to
               add to or change any of the provisions of this  Indenture as
               shall  be  necessary  to   provide  for  or  facilitate  the
               administration  of the  trusts  hereunder by  more than  one
               Trustee, pursuant to the requirements of Section 611(b); or

                    (9)  to cure  any ambiguity,  to correct  or supplement
               any  provision herein  which  may be  inconsistent with  any
               other provision  herein, or to make  provisions with respect
               to  matters  or  questions  arising  under  this  indenture,
               provided  such  action   shall  not  adversely  affect   the
               interests of the Holders of Junior Subordinated Notes of any
               series  or holders  of outstanding  Trust Securities  in any
               material respect; or

                    (10) subject to  Section 903(a), to make  any change in
               Article Thirteen that would  limit or terminate the benefits
               available to  any holder  of Senior Indebtedness  under such
               Article; or

                    (11) to modify,  eliminate or add to  the provisions of
               this  Indenture  to such  extent  as shall  be  necessary to
               effect the  qualification of this Indenture  under the Trust
               Indenture Act or under any similar federal statute hereafter
               enacted, and to add to this  Indenture such other provisions
               as may be expressly required by the Trust Indenture Act.

          SECTION 902.   SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.

               With the consent of the Holders of not less than a  majority
          in principal amount of  the Outstanding Junior Subordinated Notes
          of each series affected by such supplemental indenture, by Act of
          said  Holders  delivered to  the  Company  and the  Trustee,  the
          Company, when authorized by  a Board Resolution, and  the Trustee
          may enter into an indenture or indentures supplemental hereto for
          the purpose of adding any provisions to or changing in any manner
          or  eliminating any  of the  provisions of  this Indenture  or of

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<PAGE>






          modifying  in  any manner  the rights  of  the Holders  of Junior
          Subordinated Notes of such series under this Indenture; provided,
          however, that  no such supplemental indenture  shall, without the
          consent  of the  Holder of  each Outstanding  Junior Subordinated
          Note affected thereby,

                    (1)  change the Stated Maturity of the principal of, or
               any installment of  principal of or interest  on, any Junior
               Subordinated Note, or reduce the principal amount thereof or
               the rate of interest (including Additional Interest) thereon
               or  any  premium payable  upon  the  redemption thereof,  or
               change  the  method  of  calculating the  rate  of  interest
               thereon,  or  impair the  right  to institute  suit  for the
               enforcement  of any  such  payment on  or  after the  Stated
               Maturity thereof (or, in the case of redemption, on or after
               the Redemption Date), or

                    (2)  reduce the percentage  in principal amount  of the
               Outstanding  Junior  Subordinated Notes  of any  series, the
               consent  of   whose  Holders   is  required  for   any  such
               supplemental indenture,  or the consent of  whose Holders is
               required  for   any  waiver  (of  compliance   with  certain
               provisions of  this Indenture or  certain defaults hereunder
               and their consequences) provided for in this Indenture, or

                    (3)  modify any of the  provisions of this Section 902,
               Section  513 or Section  1008, except  to increase  any such
               percentage or  to provide  that certain other  provisions of
               this  Indenture cannot  be  modified or  waived without  the
               consent   of  the   Holder   of  each   Outstanding   Junior
               Subordinated  Note affected thereby, provided, however, that
               this  clause shall not be  deemed to require  the consent of
               any Holder  of a  Junior Subordinated Note  with respect  to
               changes in  the references to "the  Trustee" and concomitant
               changes in this Section and Section 1008, or the deletion of
               this  proviso,  in  accordance   with  the  requirements  of
               Sections 611(b) and 901(8), or

                    (4)  modify  the  provisions  of  this  Indenture  with
               respect  to  the subordination  of  the  Junior Subordinated
               Notes in a manner adverse to such Holder.

          SECTION 903.   GENERAL    PROVISIONS    REGARDING    SUPPLEMENTAL
                         INDENTURE.

               (a)  A  supplemental  indenture  entered  into  pursuant  to
          Section 901 or Section 902 may not make any change that adversely
          affects the rights under Article Thirteen of any holder of Senior
          Indebtedness then  outstanding unless the holders  of such Senior
          Indebtedness (or  any group or representative  thereof authorized
          to give a consent) consent to such change.


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<PAGE>






               (b)  A  supplemental indenture  which changes  or eliminates
          any  covenant or  other  provision of  this  Indenture which  has
          expressly been included  solely for  the benefit of  one or  more
          particular series of Junior Subordinated Notes, or which modifies
          the  rights of the Holders  of Junior Subordinated  Notes of such
          series with respect to such covenant or other provision, shall be
          deemed  not  to affect  the rights  under  this Indenture  of the
          Holders of Junior Subordinated Notes of any other series.

               (c)  It shall not  be necessary  for any Act  of Holders  of
          Junior  Subordinated  Notes under  this  Section  to approve  the
          particular form  of any  proposed supplemental indenture,  but it
          shall  be  sufficient if  such Act  or  action shall  approve the
          substance thereof.

          SECTION 904.   EXECUTION OF SUPPLEMENTAL INDENTURES.

               In executing, or accepting the additional trusts created by,
          any  supplemental  indenture permitted  by  this  Article or  the
          modifications thereby  of the  trusts created by  this Indenture,
          the Trustee shall be entitled to receive, and (subject to Section
          601)  shall be  fully protected  in relying  upon, an  Opinion of
          Counsel stating that the execution of such supplemental indenture
          is authorized or permitted  by this Indenture.  The  Trustee may,
          but shall not be  obligated to, enter into any  such supplemental
          indenture  which  affects  the  Trustee's   own  rights,  duties,
          immunities or liabilities under this Indenture or otherwise.

          SECTION 905.   EFFECT OF SUPPLEMENTAL INDENTURES.

               Upon the execution of  any supplemental indenture under this
          Article,   this  Indenture   shall  be  modified   in  accordance
          therewith, and such  supplemental indenture shall form a  part of
          this  Indenture  for all  purposes;  and every  Holder  of Junior
          Subordinated  Notes theretofore  or thereafter  authenticated and
          delivered hereunder shall be bound thereby.

          SECTION 906.   CONFORMITY WITH TRUST INDENTURE ACT.

               Every  supplemental  indenture  executed  pursuant  to  this
          Article shall conform to the requirements of the  Trust Indenture
          Act.

          SECTION 907.   REFERENCE   IN   JUNIOR   SUBORDINATED  NOTES   TO
                         SUPPLEMENTAL INDENTURES.

               Junior Subordinated Notes  of any  series authenticated  and
          delivered  after the  execution  of  any  supplemental  indenture
          pursuant  to this  Article  may, and  shall  if required  by  the
          Trustee, bear a  notation in form  approved by the Trustee  as to
          any matter provided for  in such supplemental indenture.   If the
          Company shall so  determine, new Junior Subordinated Notes of any

                                          56
<PAGE>






          series so modified  as to conform, in the  opinion of the Trustee
          and  the  Company,  to any  such  supplemental  indenture  may be
          prepared  and  executed  by  the Company  and  authenticated  and
          delivered  by  the Trustee  in  exchange  for Outstanding  Junior
          Subordinated Notes of such series.
















































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                                     ARTICLE TEN

                                      COVENANTS

          SECTION 1001.  PAYMENT OF PRINCIPAL AND INTEREST.

               The Company  covenants and  agrees for  the benefit of  each
          series  of  Junior  Subordinated  Notes that  it  will  duly  and
          punctually  pay  the  principal  of  (and  premium, if  any)  and
          interest, including Additional Interest  (subject to the right of
          the  Company to extend an interest payment period pursuant to the
          terms  of  a   supplemental  indenture  authorizing  the   Junior
          Subordinated Notes  of that  series), on the  Junior Subordinated
          Notes  of that series in accordance with  the terms of the Junior
          Subordinated Notes and this Indenture.

          SECTION 1002.  MAINTENANCE OF OFFICE OR AGENCY.

               The Company  or its  Affiliate  will maintain  an office  or
          agency where  Junior Subordinated  Notes of  each  series may  be
          presented  or surrendered for  payment, where Junior Subordinated
          Notes  of  that series  may  be surrendered  for  registration of
          transfer or exchange and where notices and demands to or upon the
          Company in  respect  of the  Junior  Subordinated Notes  of  that
          series  and this Indenture may be served.   The Company will give
          prompt written notice  to the  Trustee of the  location, and  any
          change in the location, of such office or agency.  If at any time
          the  Company shall fail to  maintain any such  required office or
          agency in respect of  any series of Junior Subordinated  Notes or
          shall  fail to furnish the Trustee with the address thereof, such
          presentations and surrenders of Junior Subordinated Notes of that
          series may be made and notices  and demands may be made or served
          at the Corporate  Trust Office  of the Trustee,  and the  Company
          hereby  appoints  the  Trustee  as  its  agent  to  receive  such
          respective presentations, surrenders, notices and demands.

               The Company may also from time to time designate one or more
          other offices  or agencies where the Junior Subordinated Notes of
          one or more series may be presented or surrendered for any or all
          such  purposes  and   may  from   time  to   time  rescind   such
          designations.  The Company will give prompt written notice to the
          Trustee of any such  designation or rescission and of  any change
          in the location of any such other office or agency.

          SECTION 1003.  MONEY FOR JUNIOR SUBORDINATED NOTES PAYMENTS TO BE
                         HELD IN TRUST.

               If the  Company or one of  its Affiliates shall at  any time
          act as its own Paying Agent with respect to any  series of Junior
          Subordinated Notes, it  will, on or  before each due date  of the
          principal  of  (and  premium,  if  any)  or  interest  (including
          Additional Interest, if  any) on any  of the Junior  Subordinated

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<PAGE>






          Notes of that series, segregate and hold in trust for the benefit
          of  the  Persons entitled  thereto a  sum  sufficient to  pay the
          principal (and premium, if any) or interest (including Additional
          Interest, if any)  so becoming due until such sums  shall be paid
          to such Persons or  otherwise disposed of as herein  provided and
          will promptly  notify the Trustee of its  action or failure so to
          act.

               Whenever  the Company shall  have one or  more Paying Agents
          for  any series of Junior  Subordinated Notes, it  will, prior to
          each  due date  of  the principal  of  (and premium,  if any)  or
          interest (including  Additional Interest,  if any) on  any Junior
          Subordinated  Notes of that series, deposit with a Paying Agent a
          sum  sufficient to  pay the  principal (and  premium, if  any) or
          interest (including Additional Interest, if any) so becoming due,
          such  sum to  be held  in trust  for the  benefit of  the Persons
          entitled  to  such  principal,  premium  or  interest  (including
          Additional  Interest, if any),  and (unless such  Paying Agent is
          the  Trustee) the Company will promptly notify the Trustee of its
          action or failure so to act.

               The Company will cause  each Paying Agent for any  series of
          Junior  Subordinated Notes other than the  Trustee to execute and
          deliver to the Trustee  an instrument in which such  Paying Agent
          shall agree with the  Trustee, subject to the provisions  of this
          Section, that such Paying Agent will:

                    (1)  hold  all sums held by  it for the  payment of the
               principal of  (and premium,  if any) or  interest (including
               Additional Interest, if any) on Junior Subordinated Notes of
               that series in trust for the benefit of the Persons entitled
               thereto until such  sums shall  be paid to  such Persons  or
               otherwise disposed of as herein provided;

                    (2)  give  the Trustee  notice  of any  default by  the
               Company (or  any other obligor upon  the Junior Subordinated
               Notes  of that  series)  in the  making  of any  payment  of
               principal of  (and premium,  if any) or  interest (including
               Additional  Interest,  if any)  on  the Junior  Subordinated
               Notes of that series; and

                    (3)  at  any time  during the  continuance of  any such
               default, upon the written  request of the Trustee, forthwith
               pay to the Trustee all sums  so held in trust by such Paying
               Agent.

               The  Company may at any  time, for the  purpose of obtaining
          the satisfaction and discharge of this Indenture or for any other
          purpose, pay, or by Company Order direct any Paying Agent to pay,
          to the  Trustee all  sums held  in trust by  the Company  or such
          Paying Agent, such sums to  be held by the Trustee upon  the same
          trusts as those upon which such sums were held by  the Company or

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<PAGE>






          such Paying Agent; and, upon such payment by any Paying Agent  to
          the Trustee, such Paying Agent shall be released from all further
          liability with respect to such money.

               Any money deposited with the Trustee or any Paying Agent, or
          then  held  by the  Company,  in trust  for  the  payment of  the
          principal  of  (and  premium,  if  any)  or  interest  (including
          Additional Interest, if  any) on any Junior  Subordinated Note of
          any series  and  remaining unclaimed  for  two years  after  such
          principal (and premium, if any) or interest (including Additional
          Interest, if any) has become due and payable shall be paid to the
          Company  on Company  Request, or  (if then  held by  the Company)
          shall  be  discharged from  such trust;  and  the Holder  of such
          Junior  Subordinated  Note  shall  thereafter,  as  an  unsecured
          general creditor, look  only to the Company for  payment thereof,
          and  all liability  of  the Trustee  or  such Paying  Agent  with
          respect to such trust money, and all liability of the  Company as
          trustee thereof, shall  thereupon cease; provided,  however, that
          the Trustee or such  Paying Agent, before being required  to make
          any such repayment, may at the expense of the Company cause to be
          published once, in a newspaper of general circulation in New York
          City notice that such  money remains unclaimed and that,  after a
          date specified therein, which shall not be less than 30 days from
          the date of such publication, any unclaimed balance of such money
          then remaining will be repaid to the Company.

          SECTION 1004.  ADDITIONAL INTEREST.

               If the Junior Subordinated Notes of a series provide for the
          payment  of Additional  Interest  (for purposes  of this  Section
          1004, as defined in clause (i)  of the definition thereof) to the
          Holders of such Junior Subordinated Notes, then the Company shall
          pay  to each Holder of such Securities the Additional Interest as
          provided therein.

               Except  as  otherwise  provided   in  or  pursuant  to  this
          Indenture, if  the Junior Subordinated Notes of  a series provide
          for the payment of Additional Interest, at least 10 days prior to
          the  first Interest Payment Date  with respect to  that series of
          Junior  Subordinated  Notes upon  which such  Additional Interest
          shall  be payable (or, if  the Junior Subordinated  Notes of that
          series shall not bear  interest prior to Maturity, the  first day
          on which a payment of principal and any premium is  made), and at
          least 10 days prior to each  date of payment of principal and any
          premium or interest if there has been any change with respect  to
          the  matters   set  forth   in   the  below-mentioned   Officer's
          Certificate,  the  Company  will  furnish  the  Trustee  and  the
          Company's  Paying  Agents,  if  other than  the  Trustee  or  the
          Company, with an Officers' Certificate stating  the amount of the
          Additional Interest  payable per minimum  authorized denomination
          of  such  Junior  Subordinated  Notes (and,  if  such  Additional
          Interest  is  payable  only  with respect  to  particular  Junior

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          Subordinated  Notes, then the names of the Holders of such Junior
          Subordinated Notes).
          SECTION 1005.  CORPORATE EXISTENCE.

               Subject to Article Eight, the Company will do or cause to be
          done all things necessary to preserve and keep in full  force and
          effect  its  corporate  existence  and the  rights  (charter  and
          statutory) and franchises of the Company; provided, however, that
          the Company shall  not be required to preserve any  such right or
          franchise if  the Board  of  Directors shall  determine that  the
          preservation thereof is no longer desirable in the conduct of the
          business  of  the  Company, and  that  the  loss  thereof is  not
          disadvantageous in any material respect to the Holders.

          SECTION 1006.  LIMITATIONS   ON   DIVIDEND   AND  CERTAIN   OTHER
                         PAYMENTS.

               The  Company covenants, for  the benefit  of the  Holders of
          each series of  Junior Subordinated Notes,  that, subject to  the
          next succeeding  sentence, (a) the  Company shall not  declare or
          pay  any dividend or make  any distributions with  respect to, or
          redeem,  purchase, acquire  or  make a  liquidation payment  with
          respect to, any  of its capital stock, and  (b) the Company shall
          not make any payment  of interest, principal or premium,  if any,
          on or repay,  repurchase or redeem any debt securities (including
          guarantees) issued by the  Company which rank pari passu  with or
          junior to the Junior Subordinated Notes, (a) if  at such time the
          Company  shall have  given notice  of its  election to  extend an
          interest payment  period for  such series of  Junior Subordinated
          Notes and such extension shall be continuing, (b) if at such time
          the Company  shall be in default  with respect to its  payment or
          other obligations under the Guarantee with respect to  the series
          of Trust Securities,  if any,  related to such  series of  Junior
          Subordinated Notes, or (c)  if at such  time an Event of  Default
          hereunder  with respect  to  such series  of Junior  Subordinated
          Notes shall  have  occurred and  be  continuing.   The  preceding
          sentence, however,  shall not  restrict  (i) any  of the  actions
          described   in  the   preceding  sentence   resulting  from   any
          reclassification of  the Company's capital stock  or the exchange
          or conversion of  one class  or series of  the Company's  capital
          stock for another class or series of the Company's capital stock,
          (ii) the declaration and payment of a dividend or distribution or
          similar  share  purchase rights  in  the  future,  or  (iii)  the
          purchase  of  fractional interests  in  shares  of the  Company's
          capital stock  pursuant to the conversion  or exchange provisions
          of  such  capital  stock  or  the  security  being  converted  or
          exchanged.   The Company covenants that it shall take all actions
          necessary to ensure the compliance  of its Subsidiaries with this
          Section 1006.

          SECTION 1007.  STATEMENT AS TO COMPLIANCE.


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               (a)  The Company  shall deliver  to the Trustee,  within 120
          days  after the  end of  each fiscal  year, a  written statement,
          which need not comply  with Section 102, signed by  the principal
          executive   officer,  the  principal  financial  officer  or  the
          principal accounting officer  of the  Company, as to  his or  her
          knowledge  of the  Company's compliance  with all  conditions and
          covenants under  this Indenture.   For  purposes of this  Section
          1007, such compliance  shall be determined without  regard to any
          period of grace or requirement of notice under this Indenture.

               (b)  The Company shall deliver to the Trustee, no later than
          the Business Day on which the event occurs, written notice of the
          liquidation, dissolution  or winding-up of a  Securities Trust if
          such  liquidation, dissolution or  winding-up would occur earlier
          than the Stated  Maturity of the Junior Subordinated  Notes owned
          by such Securities Trust.

               (c)  The Company  shall deliver to the  Trustee, within five
          days after the  occurrence thereof, written  notice of any  event
          which after notice or lapse of time or both would become an Event
          of Default pursuant to Section 501.

          SECTION 1008.  WAIVER OF CERTAIN COVENANTS.

               The Company may  omit in any  particular instance to  comply
          with  any term, provision or condition set forth in Sections 1005
          and 1006 with  respect to  the Junior Subordinated  Notes of  any
          series if  before the time for such  compliance the Holders of at
          least a  majority in principal  amount of the  Outstanding Junior
          Subordinated  Notes of such series shall, by Act of such Holders,
          either waive such compliance in such  instance or generally waive
          compliance with  such term, provision  or condition, but  no such
          waiver  shall  extend  to  or  affect  such  term,  provision  or
          condition except to  the extent so  expressly waived, and,  until
          such  waiver  shall  become  effective, the  obligations  of  the
          Company and  the duties  of the  Trustee in  respect of any  such
          term,  provision  or condition  shall  remain in  full  force and
          effect.

          SECTION 1009.  COVENANTS REGARDING TRUST.

               For  so long as the Trust Securities remain outstanding, the
          Company  covenants (i)  to directly  or indirectly  maintain 100%
          ownership  of the  Common  Securities (as  defined  in the  Trust
          Agreement relating  to such  securities) of the  Trust; provided,
          however, that  any permitted  successor of the  Company hereunder
          may succeed to the Company's ownership of such Common Securities,
          and (ii)  to use its reasonable efforts to cause the Trust (a) to
          remain a statutory business trust, except  in connection with the
          distribution of Junior Subordinated Notes to the holders of Trust
          Securities  in liquidation of the Trust, the redemption of all of
          the  Trust   Securities  of   the  Trust,  or   certain  mergers,

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          consolidations  or amalgamations,  each  as  permitted under  the
          Trust Agreement, and (b)  to otherwise continue to be  classified
          as a grantor trust for United States federal income tax purposes.


















































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                                    ARTICLE ELEVEN

                       REDEMPTION OF JUNIOR SUBORDINATED NOTES

          SECTION 1101.  APPLICABILITY OF ARTICLE.

               Junior Subordinated Notes of any series which are redeemable
          before their  Stated Maturity  shall be redeemable  in accordance
          with  their   terms  and   (except  as  otherwise   specified  as
          contemplated by Section 301 for Junior Subordinated Notes of  any
          series) in accordance with this Article.

          SECTION 1102.  ELECTION TO REDEEM; NOTICE TO TRUSTEE.

               The   election  of   the  Company   to  redeem   any  Junior
          Subordinated  Notes shall be evidenced by a Board Resolution.  In
          case of any  redemption at the election of the  Company of all of
          the Junior Subordinated Notes of  any series, the Company  shall,
          at  least 60  days prior  to  the Redemption  Date  fixed by  the
          Company  (unless a  shorter notice  shall be satisfactory  to the
          Trustee and the related Property Trustee), notify the Trustee and
          the related Property Trustee in writing  of such Redemption Date.
          In case of any redemption at  the election of the Company of less
          than all the Junior Subordinated Notes of any series, the Company
          shall, at least 60 days prior to the Redemption Date fixed by the
          Company (unless  a shorter  notice shall  be satisfactory  to the
          Trustee and the related Property Trustee), notify the Trustee and
          the related  Property Trustee in writing of  such Redemption Date
          and  of the principal amount of Junior Subordinated Notes of such
          series to be redeemed.   In the case of any redemption  of Junior
          Subordinated Notes (i) prior to the expiration of any restriction
          on  such  redemption  provided  in  the  terms  of   such  Junior
          Subordinated  Notes  or  elsewhere  in this  Indenture,  or  (ii)
          pursuant to  an election  of the Company  which is  subject to  a
          condition  specified in  the  terms of  such Junior  Subordinated
          Notes,  the Company shall  furnish the Trustee  with an Officers'
          Certificate   evidencing  compliance  with  such  restriction  or
          condition.

          SECTION 1103.  SELECTION  BY TRUSTEE OF JUNIOR SUBORDINATED NOTES
                         TO BE REDEEMED.

               If the Junior  Subordinated Notes are registered in the name
          of  only one Holder, any  partial redemptions shall  be pro rata.
          If the Junior Subordinated  Notes are held in definitive  form by
          more than one Holder and if less than all the Junior Subordinated
          Notes of any  series are  to be redeemed,  the particular  Junior
          Subordinated Notes to be redeemed shall be selected not more than
          60  days prior to  the Redemption Date  by the  Trustee, from the
          Outstanding  Junior   Subordinated  Notes  of  such   series  not
          previously  called for redemption, by lot or other such method as
          the Trustee shall deem fair and appropriate and which may provide

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          for  the selection  for  redemption  of  portions (equal  to  the
          minimum authorized denomination for Junior Subordinated Notes  of
          that series  or any integral  multiple thereof) of  the principal
          amount  of  Junior  Subordinated  Notes  of   such  series  of  a
          denomination larger than the minimum  authorized denomination for
          Junior Subordinated Notes of that series.

               The Trustee shall promptly notify  the Company in writing of
          the Junior Subordinated Notes selected for redemption and, in the
          case  of  any  Junior  Subordinated Notes  selected  for  partial
          redemption, the principal amount thereof to be redeemed.

               For  all  purposes of  this  Indenture,  unless the  context
          otherwise requires, all provisions  relating to the redemption of
          Junior Subordinated Notes shall relate, in the case of any Junior
          Subordinated  Notes redeemed or to  be redeemed only  in part, to
          the portion of  the principal amount of  such Junior Subordinated
          Notes which has been or is to be redeemed.

          SECTION 1104.  NOTICE OF REDEMPTION.

               Notice of redemption shall  be given in the  manner provided
          in Section 106 to the Holders of Junior Subordinated Notes to  be
          redeemed not  less than 30  nor more  than 60 days  prior to  the
          Redemption Date.

               All notices of redemption shall state:

                    (1)  the Redemption Date,

                    (2)  the Redemption Price,

                    (3)  if   less   than   all   the   Outstanding  Junior
               Subordinated Notes  of any  series are  to be redeemed,  the
               identification (and, in the  case of partial redemption, the
               principal amounts)  of  the particular  Junior  Subordinated
               Notes to be redeemed,

                    (4)  that on the  Redemption Date the  Redemption Price
               will  become   due  and   payable  upon  each   such  Junior
               Subordinated Note  to be  redeemed and, if  applicable, that
               interest  thereon will  cease to  accrue  on and  after said
               date,

                    (5)  the place or places where such Junior Subordinated
               Notes are to  be surrendered for  payment of the  Redemption
               Price, and

                    (6)  that the redemption is for a sinking fund, if such
               is the case.



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               Notice  of redemption  of  Junior Subordinated  Notes to  be
          redeemed  at the  election of the  Company shall be  given by the
          Company or, at the  Company's request, by the Trustee in the name
          and at the expense of the Company.

          SECTION 1105.  DEPOSIT OF REDEMPTION PRICE.

               Except  as otherwise  provided in  a supplemental  indenture
          pursuant  to  Section  301,  prior to  any  Redemption  Date, the
          Company shall deposit  with the  Trustee or with  a Paying  Agent
          (or, if the Company or its  Affiliate is acting as its own Paying
          Agent, segregate and hold  in trust as provided in  Section 1003)
          an amount  of money sufficient to pay the Redemption Price of and
          accrued interest,  if any, on  all the Junior  Subordinated Notes
          which are to be redeemed on that date.

          SECTION 1106.  JUNIOR  SUBORDINATED  NOTES PAYABLE  ON REDEMPTION
                         DATE.

               Notice  of redemption  having been  given as  aforesaid, the
          Junior  Subordinated  Notes  so  to be  redeemed  shall,  on  the
          Redemption Date, become due  and payable at the  Redemption Price
          therein specified  together with any  accrued interest (including
          any  Additional Interest) thereon,  and from and  after such date
          (unless  the  Company   shall  default  in  the  payment  of  the
          Redemption Price and  accrued interest) such Junior  Subordinated
          Notes shall cease to bear  interest.  Upon surrender of any  such
          Junior Subordinated  Note for redemption in  accordance with such
          notice,  such  Junior  Subordinated Note  shall  be  paid  by the
          Company at the Redemption  Price, together with accrued interest,
          if  any,  and any  Additional  Interest to  the  Redemption Date;
          provided,  however,  that,  except  as otherwise  provided  in  a
          supplemental indenture pursuant  to Section 301, installments  of
          interest on Junior Subordinated Notes whose Stated Maturity is on
          or prior to the Redemption  Date shall be payable to  the Holders
          of  such Junior Subordinated  Notes, or  one or  more Predecessor
          Securities,  registered as such at  the close of  business on the
          relevant Record Dates according to their terms and the provisions
          of Section 305.

               If any Junior Subordinated  Note called for redemption shall
          not be  so  paid  upon  surrender  thereof  for  redemption,  the
          principal (and premium,  if any) shall, until paid, bear interest
          from the Redemption Date  at the rate prescribed therefor  in the
          Junior Subordinated Note.

          SECTION 1107.  JUNIOR SUBORDINATED NOTES REDEEMED IN PART.

                    Any  Junior Subordinated  Note that  is to  be redeemed
          only in part  shall be surrendered at an office  or agency of the
          Company  therefor  (with,  if  the  Company  or  the  Trustee  so
          requires, due endorsement by, or a written instrument of transfer

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          in form satisfactory to the Company and the Trustee duly executed
          by,  the Holder  thereof  or  his  attorney  duly  authorized  in
          writing), and  the Company shall  execute, and the  Trustee shall
          authenticate   and  deliver   to  the   Holder  of   such  Junior
          Subordinated   Note   without  service   charge,  a   new  Junior
          Subordinated  Note  of  the  same  series,  Stated  Maturity  and
          original issue  date of any authorized  denomination as requested
          by such Holder,  in aggregate  principal amount equal  to and  in
          exchange for  the  unredeemed portion  of  the principal  of  the
          Junior Subordinated Note so surrendered.

                                    ARTICLE TWELVE

                                    SINKING FUNDS

          SECTION 1201.  APPLICABILITY OF ARTICLE.

               The  provisions of this  Article shall be  applicable to any
          sinking fund for the retirement of Junior Subordinated Notes of a
          series except  as otherwise specified as  contemplated by Section
          301 for Junior Subordinated Notes of such series.

               The minimum amount of any sinking fund payment  provided for
          by the terms of Junior Subordinated Notes of any series is herein
          referred to  as  a  "mandatory sinking  fund  payment",  and  any
          payment  in excess  of such  minimum amount  provided for  by the
          terms  of  Junior  Subordinated  Notes of  any  series  is herein
          referred to as an  "optional sinking fund payment".   If provided
          for  by the terms of Junior Subordinated Notes of any series, the
          cash  amount  of  any sinking  fund  payment  may  be subject  to
          reduction as provided in Section 1202.  Each sinking fund payment
          shall  be applied to the redemption  of Junior Subordinated Notes
          of any series as provided for by the terms of Junior Subordinated
          Notes of such series.

          SECTION 1202.  SATISFACTION OF SINKING FUND PAYMENTS  WITH JUNIOR
                         SUBORDINATED NOTES.

               The  Company (1) may deliver Outstanding Junior Subordinated
          Notes  of  a  series  (other  than   any  previously  called  for
          redemption), and  (2) may apply  as a credit  Junior Subordinated
          Notes of a series which have been redeemed either at the election
          of  the Company pursuant to the terms of such Junior Subordinated
          Notes or  through the  application of permitted  optional sinking
          fund payments pursuant to the  terms of such Junior  Subordinated
          Notes, in each  case in satisfaction  of all or  any part of  any
          sinking  fund payment  with  respect to  the Junior  Subordinated
          Notes of such series required to be made pursuant to the terms of
          such  Junior Subordinated Notes as  provided for by  the terms of
          such series;  provided that  such Junior Subordinated  Notes have
          not  been previously so credited.  Such Junior Subordinated Notes
          shall be received and credited for such purpose by the Trustee at

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          the Redemption Price specified  in such Junior Subordinated Notes
          for redemption  through operation  of the  sinking  fund and  the
          amount of such sinking fund payment shall be reduced accordingly.

          SECTION 1203.  REDEMPTION  OF  JUNIOR   SUBORDINATED  NOTES   FOR
                         SINKING FUND.

               Not less than  60 days  prior to each  sinking fund  payment
          date  for any series  of Junior  Subordinated Notes,  the Company
          will deliver  to the Trustee an  Officers' Certificate specifying
          the  amount of  the next  ensuing sinking  fund payment  for that
          series pursuant to the terms of that series, the portion thereof,
          if  any, which  is to  be satisfied  by payment  of cash  and the
          portion thereof, if any,  which is to be satisfied  by delivering
          and crediting  Junior Subordinated Notes of  that series pursuant
          to  Section 1202 and  stating the basis for  such credit and that
          such  Junior  Subordinated  Notes  have not  previously  been  so
          credited  and  will  also  deliver  to  the  Trustee  any  Junior
          Subordinated Notes  to be  so delivered.   Not less than  30 days
          before each  such sinking  fund payment  date  the Trustee  shall
          select the  Junior Subordinated  Notes to  be redeemed  upon such
          sinking fund payment date in the manner specified in Section 1103
          and  cause notice of  the redemption thereof  to be given  in the
          name of  and at the expense of the Company in the manner provided
          in  Section  1104.   Such  notice  having  been  duly given,  the
          redemption of such  Junior Subordinated Notes shall  be made upon
          the terms and in the manner stated in Sections 1106 and 1107.

                                   ARTICLE THIRTEEN

                                    SUBORDINATION

          SECTION 1301.  JUNIOR  SUBORDINATED  NOTES SUBORDINATE  TO SENIOR
                         INDEBTEDNESS.

               The Company  covenants  and agrees,  and  each Holder  of  a
          Junior  Subordinated Note,  by  his acceptance  thereof, likewise
          covenants  and  agrees, that,  to the  extent  and in  the manner
          hereinafter set forth in this  Article (subject to Article Four),
          the  payment of the principal  of, premium, if  any, and interest
          (including Additional  Interest) on each  and all  of the  Junior
          Subordinated Notes  are  hereby expressly  made  subordinate  and
          subject in right of payment to the prior payment in  full in cash
          of all Senior Indebtedness.

          SECTION 1302.  PAYMENT OF PROCEEDS UPON DISSOLUTION, ETC.

               Upon any payment or distribution of assets of the Company to
          creditors   upon   any   liquidation,  dissolution,   winding-up,
          reorganization,   assignment  for   the  benefit   of  creditors,
          marshalling  of   assets  or  liabilities   or  any   bankruptcy,
          insolvency  or  similar proceedings  of  the  Company (each  such

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          event, if any,  referred to  as a "Proceeding"),  the holders  of
          Senior Indebtedness  shall be entitled to receive payment in full
          of all amounts  due on or to  become due on or in  respect of all
          Senior  Indebtedness (including  any  interest  accruing  thereon
          after the  commencement of any  such Proceeding,  whether or  not
          allowed as  a  claim against  the  Company in  such  Proceeding),
          before the Holders  of the Junior Subordinated Notes are entitled
          to  receive any  payment or  distribution (excluding  any payment
          described  in  Section  1309)  on account  of  the  principal of,
          premium, if  any, or interest (including  Additional Interest, if
          any)  on the  Junior  Subordinated Notes  or  on account  of  any
          purchase, redemption or other acquisition  of Junior Subordinated
          Notes  by   the  Company   (all  such  payments,   distributions,
          purchases,  redemptions  and  acquisitions,  whether  or  not  in
          connection with  a Proceeding,  herein referred  to, individually
          and collectively, as a "Payment").

               In  the  event  that,  notwithstanding  the  foregoing,  any
          payment or distribution of assets of  the Company of any kind  or
          character, whether in cash, property or securities, prohibited by
          the foregoing shall be received by the  Trustee or the Holders of
          the Junior  Subordinated Notes before all  Senior Indebtedness is
          paid in full,  or provision is made for such  payment in money in
          accordance  with its terms, such payment or distribution shall be
          held in  trust for  the  benefit of  and shall  be  paid over  or
          delivered to the holders of Senior Indebtedness or to the trustee
          or trustees under any indenture pursuant to which any instruments
          evidencing any such Senior Indebtedness may have been issued,  as
          their  respective  interests may  appear,  as  calculated by  the
          Company,   for  application   to  the   payment  of   all  Senior
          Indebtedness remaining unpaid to the extent  necessary to pay all
          Senior  Indebtedness in full in accordance  with its terms, after
          giving effect to any concurrent payment or distribution to or for
          the holders of such Senior Indebtedness.

               For purposes of this Article, "assets of  the Company" shall
          not  be deemed  to  include shares  of stock  of  the Company  as
          reorganized or  readjusted, or securities  of the Company  or any
          other corporation  provided for  by a  plan of  reorganization or
          readjustment, the payment  of which is  subordinated at least  to
          the  extent provided in this  Article with respect  to the Junior
          Subordinated Notes to the payment of all Senior Indebtedness that
          may at the time  be outstanding, provided, however, that  (i) the
          Senior Indebtedness  is assumed by  the new corporation,  if any,
          resulting from any such  reorganization or readjustment, and (ii)
          the rights of  the holders  of the Senior  Indebtedness are  not,
          without   the  consent   of   such  holders,   altered  by   such
          reorganization or readjustment.  The consolidation of the Company
          with, or the merger  of the Company into, another  corporation or
          the  liquidation  or dissolution  of  the  Company following  the
          conveyance or  transfer  of  its  property  as  an  entirety,  or
          substantially  as an  entirety, to  another corporation  upon the

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          terms and  conditions provided for in Article  Eight hereof shall
          not  be   deemed  a  dissolution,   winding-up,  liquidation   or
          reorganization  for the  purposes of  this Section  1302 if  such
          other corporation shall, as a part of such consolidation, merger,
          conveyance  or transfer,  comply  with the  conditions stated  in
          Article Eight hereof.  Nothing in Section 1303 or in this Section
          1302  shall apply to claims of, or payments to, the Trustee under
          or pursuant to Section 607.

          SECTION 1303.  NO PAYMENT WHEN SENIOR INDEBTEDNESS IN DEFAULT.

               No payment of  any principal, including redemption  payments
          if any (premium,  if any), or  interest on (including  Additional
          Interest) the Junior Subordinated Notes shall be made if

                    (i)       any Senior Indebtedness is not paid when  due
               whether at the  stated maturity  of any such  payment or  by
               call  for redemption  and any  applicable grace  period with
               respect  to  such  default  has  ended,  with  such  default
               remaining uncured  and such default  has not been  waived or
               otherwise ceased to exist;

                    (ii)      the maturity  of any Senior  Indebtedness has
               been accelerated because of a default; or

                    (iii)     notice has  been given of the  exercise of an
               option to require repayment, mandatory payment or prepayment
               or otherwise.

               In  the  event  that,  notwithstanding  the  foregoing,  the
          Company  shall  make any  Payment to  the  Trustee or  any Holder
          prohibited  by the foregoing provisions of  this Section, then in
          such event  such Payment shall be held in trust and paid over and
          delivered forthwith to the holders of the Senior Indebtedness.

               The  provisions  of  this  Section shall  not  apply  to any
          Payment  with respect  to  which  Section  1302 hereof  would  be
          applicable.

          SECTION 1304.  PAYMENT PERMITTED IF NO DEFAULT.

               Nothing  contained  in this  Article  or  elsewhere in  this
          Indenture or  in  any  of the  Junior  Subordinated  Notes  shall
          prevent  the Company, at any  time except during  the pendency of
          any  Proceeding referred to in  Section 1302 hereof  or under the
          conditions  described  in   Section  1303  hereof,   from  making
          Payments.   Nothing in this Article shall  have any effect on the
          right of the Holders or the Trustee to accelerate the maturity of
          the  Junior Subordinated Notes upon the occurrence of an Event of
          Default, but, in that event, no payment may be made  in violation
          of  the provisions  of this  Article with  respect to  the Junior
          Subordinated Notes.   If payment of the Junior Subordinated Notes

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          is  accelerated because of an Event of Default, the Company shall
          promptly notify  the holders of the Senior Indebtedness (or their
          representatives) of such acceleration.



          SECTION 1305.  SUBROGATION  TO  RIGHTS   OF  HOLDERS  OF   SENIOR
                         INDEBTEDNESS.

               The rights  of the Holders of the  Junior Subordinated Notes
          shall  be subrogated to the rights  of the holders of such Senior
          Indebtedness  to  receive  payments  and distributions  of  cash,
          property  and securities  applicable to  the  Senior Indebtedness
          until the principal of, premium, if any, and  interest (including
          Additional Interest)  on the  Junior Subordinated Notes  shall be
          paid in full.  For  purposes of such subrogation, no payments  or
          distributions to  the holders of  the Senior Indebtedness  of any
          cash, property or securities  to which the Holders of  the Junior
          Subordinated Notes or  the Trustee would  be entitled except  for
          the provisions of this  Article, and no payments pursuant  to the
          provisions of this Article to  the holders of Senior Indebtedness
          by  Holders  of the  Junior  Subordinated Notes  or  the Trustee,
          shall,  as among the Company, its creditors other than holders of
          Senior Indebtedness  and the  Holders of the  Junior Subordinated
          Notes,  be deemed to be a payment  or distribution by the Company
          to or on account of the Senior Indebtedness.

          SECTION 1306.  PROVISIONS SOLELY TO DEFINE RELATIVE RIGHTS.

               The provisions of  this Article are and  are intended solely
          for the purpose of defining the relative rights of the Holders on
          the one hand and the holders of  Senior Indebtedness on the other
          hand.  Nothing  contained in  this Article or  elsewhere in  this
          Indenture or in the  Junior Subordinated Notes is intended  to or
          shall  (a) impair, as among the Company, its creditors other than
          holders of  Senior  Indebtedness and  the Holders  of the  Junior
          Subordinated  Notes,  the obligation  of  the  Company, which  is
          absolute  and unconditional  (and  which, subject  to the  rights
          under  this Article  of the  holders of  Senior Indebtedness,  is
          intended to rank  equally with all  other general obligations  of
          the  Company), to pay to  the Holders of  the Junior Subordinated
          Notes  the principal of, premium, if any, and interest (including
          Additional Interest) on the Junior Subordinated Notes as and when
          the  same shall become due  and payable in  accordance with their
          terms; or (b) affect  the relative rights against the  Company of
          the Holders of the Junior Subordinated Notes and creditors of the
          Company  other than  the holders  of Senior Indebtedness;  or (c)
          prevent the Trustee or the Holder of any Junior Subordinated Note
          from  exercising all remedies  otherwise permitted  by applicable
          law  upon default under this Indenture, subject to the rights, if
          any,  under this Article of the holders of Senior Indebtedness to
          receive  cash,  property  and  securities  otherwise  payable  or

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          deliverable  to  the  Trustee  or  such  Holder  or,  under   the
          conditions  specified in  Section  1303, to  prevent any  payment
          prohibited by  such Section or  enforce their rights  pursuant to
          the penultimate paragraph in Section 1303.



          SECTION 1307.  TRUSTEE TO EFFECTUATE SUBORDINATION.

               Each Holder of a Junior Subordinated Note by his  acceptance
          thereof  authorizes and directs the Trustee on his behalf to take
          such  action as may be necessary or appropriate to effectuate the
          subordination provided  in this Article and  appoints the Trustee
          his attorney-in-fact for any and all such purposes, including, in
          the  event   of  any  dissolution,  winding-up,   liquidation  or
          reorganization of the Company, whether in bankruptcy, insolvency,
          receivership proceedings,  or otherwise,  the timely filing  of a
          claim for the unpaid  balance of the indebtedness of  the Company
          owing to such Holder in the form required in such proceedings and
          the causing of such claim to be approved.

          SECTION 1308.  NO WAIVER OF SUBORDINATION PROVISIONS.

               No  right  of any  present or  future  holder of  any Senior
          Indebtedness  to  enforce the  subordination  provisions provided
          herein shall at any time in  any way be prejudiced or impaired by
          any  act or failure to  act on the part of  the Company or by any
          act or any failure to act, in good faith,  by any such holder, or
          by any  noncompliance by the  Company with the  terms, provisions
          and  covenants of  this  Indenture, regardless  of any  knowledge
          thereof any such holder may have or be otherwise charged with.

               Without  in any way limiting the generality of the foregoing
          paragraph, the holders  of Senior Indebtedness  may, at any  time
          and from  time to time, without  the consent of or  notice to the
          Trustee or the Holders of the Junior  Subordinated Notes, without
          incurring   responsibility  to   the   Holders  of   the   Junior
          Subordinated  Notes  and  without   impairing  or  releasing  the
          subordination   provided  in  this  Article  or  the  obligations
          hereunder  of the Holders of the Junior Subordinated Notes to the
          holders  of  Senior  Indebtedness, do  any  one  or  more of  the
          following:  (i)  change the manner, place or terms  of payment or
          extend  the time  of  payment  of,  or  renew  or  alter,  Senior
          Indebtedness,  or otherwise  amend  or supplement  in any  manner
          Senior Indebtedness or any instrument evidencing the  same or any
          agreement  under which  Senior Indebtedness is  outstanding; (ii)
          permit the Company to  borrow, repay and then reborrow any or all
          of  the Senior  Indebtedness;  (iii) sell,  exchange, release  or
          otherwise deal with any  property pledged, mortgaged or otherwise
          securing Senior  Indebtedness; (iv) release any  Person liable in
          any  manner  for  the  collection  of  Senior  Indebtedness;  (v)
          exercise  or  refrain  from  exercising any  rights  against  the

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          Company and any other Person; or (vi) apply any sums received  by
          them to Senior Indebtedness.



















































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          SECTION 1309.  TRUST MONEYS NOT SUBORDINATED.

               Notwithstanding  anything contained herein  to the contrary,
          payments  from money held in  trust by the  Trustee under Article
          Four  for the payment  of the principal of,  premium, if any, and
          interest (including Additional Interest)  on any series of Junior
          Subordinated Notes shall not be subordinated to the prior payment
          of any  Senior Indebtedness  or subject  to the  restrictions set
          forth in this Article  and no Holder of such  Junior Subordinated
          Notes nor the Trustee shall be obligated  to pay over such amount
          to  the   Company,  any  holder  of  Senior  Indebtedness  (or  a
          designated representative  of such holder) or  any other creditor
          of the Company.

          SECTION 1310.  NOTICE TO THE TRUSTEE.

               The  Company   shall  give   prompt  written  notice   to  a
          Responsible  Officer  of the  Trustee of  any  fact known  to the
          Company that would prohibit  the making of any payment  of monies
          to or by the Trustee in  respect of the Junior Subordinated Notes
          pursuant to the  provision of this Article.   Notwithstanding the
          provisions  of  this  Article  or  any other  provision  of  this
          Indenture, the Trustee shall not be charged with knowledge of the
          existence  of any  facts that  would prohibit  the making  of any
          payment  of monies to or by the  Trustee in respect of the Junior
          Subordinated  Notes pursuant  to the  provisions of  this Article
          unless  and until a Responsible Officer of the Trustee shall have
          received written notice thereof at the Corporate Trust Office  of
          the Trustee  from the Company  or a holder  or holders of  Senior
          Indebtedness or from any trustee therefor; and before the receipt
          of  any  such  written  notice,  the   Trustee,  subject  to  the
          provisions of Section 601,  shall be entitled in all  respects to
          assume that no such  facts exist; provided, however, that  if the
          Trustee shall not have  received the notice provided for  in this
          Section 1310  at least two Business  Days prior to  the date upon
          which, by the terms  hereof, any money may become payable for any
          purpose  (including,  without  limitation,  the  payment  of  the
          principal  of  (or premium,  if any)  or  interest on  any Junior
          Subordinated  Note),  then,  anything  herein  contained  to  the
          contrary notwithstanding,  the Trustee shall have  full power and
          authority  to receive  such money  and to  apply the same  to the
          purposes  for which they were received, and shall not be affected
          by  any notice to the contrary that  may be received by it within
          two Business Days prior to such date.

               The Trustee, subject to the provisions of Section 601, shall
          be entitled to rely on the delivery to it of a written notice  by
          a  Person  representing   himself  to  be  a   holder  of  Senior
          Indebtedness (or a trustee on behalf of such holder) to establish
          that  such  notice  has   been  given  by  a  holder   of  Senior
          Indebtedness  or  a  trustee on  behalf  of  any  such holder  or
          holders.  In  the event that the Trustee determines in good faith

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          that  further evidence is required  with respect to  the right of
          any Person as a  holder of Senior Indebtedness to  participate in
          any payment or distribution pursuant to this Article, the Trustee
          may request such  Person to  furnish evidence  to the  reasonable
          satisfaction   of  the  Trustee  as  to   the  amount  of  Senior
          Indebtedness held by such Person, the extent to which such Person
          is entitled to  participate in such  payment or distribution  and
          any other facts pertinent to the rights of such Person under this
          Article,  and if such evidence  is not furnished  the Trustee may
          defer any  payment to such Person  pending judicial determination
          as to the right of such Person to receive such payment.

          SECTION 1311.  RELIANCE  ON  JUDICIAL  ORDER  OR  CERTIFICATE  OF
                         LIQUIDATING AGENT.

               Upon any payment  or distribution of  assets of the  Company
          referred  to  in  this  Article,  the  Trustee,  subject  to  the
          provisions of Section 601  hereof, and the Holders of  the Junior
          Subordinated  Notes shall be entitled  to rely upon  any order or
          decree entered  by any court  of competent jurisdiction  in which
          such  Proceeding is pending, or  a certificate of  the trustee in
          bankruptcy,  receiver,  liquidating trustee,  custodian, assignee
          for the benefit of  creditors, agent or other Person  making such
          payment or  distribution,  delivered to  the  Trustee or  to  the
          Holders  of  Junior  Subordinated   Notes,  for  the  purpose  of
          ascertaining the Persons entitled  to participate in such payment
          or  distribution, the  holders  of the  Senior Indebtedness,  the
          amount  thereof or payable thereon, the amount or amounts paid or
          distributed thereon and all  other facts pertinent thereto or  to
          this Article,  provided that  the foregoing  shall apply  only if
          such court has been apprised of the provisions of this Article.

          SECTION 1312.  TRUSTEE  NOT  FIDUCIARY  FOR  HOLDERS   OF  SENIOR
                         INDEBTEDNESS.

               Subject to the provisions of Section 601,  the Trustee shall
          not be deemed to owe any fiduciary duty to the  holders of Senior
          Indebtedness  and shall not  be liable to any  such holders if it
          shall  in good faith mistakenly pay over or distribute to Holders
          of  Junior Subordinated Notes or  to the Company  or to any other
          Person  cash, property  or  securities to  which  any holders  of
          Senior Indebtedness shall  be entitled by virtue of  this Article
          or otherwise.

          SECTION 1313.  RIGHTS   OF   TRUSTEE   AS   HOLDER    OF   SENIOR
                         INDEBTEDNESS; PRESERVATION OF TRUSTEE'S RIGHTS.

               The Trustee in its individual  capacity shall be entitled to
          all  the rights set  forth in  this Article  with respect  to any
          Senior Indebtedness which  may at any time be held  by it, to the
          same extent  as  any other  holder  of Senior  Indebtedness,  and


                                          75
<PAGE>






          nothing in this Indenture shall deprive the Trustee of any of its
          rights as such holder.

               Nothing  in  this  Article  shall  apply to  claims  of,  or
          payments to, the Trustee under or pursuant to Section 607 hereof.

          SECTION 1314.  ARTICLE APPLICABLE TO PAYING AGENTS.

               In case at any time any  Paying Agent other than the Trustee
          (or the Company or  an Affiliate of the Company) shall  have been
          appointed by the Company  and be then acting hereunder,  the term
          "Trustee" as used in this Article shall in such case (unless  the
          context  otherwise requires)  be  construed as  extending to  and
          including such Paying Agent  within its meaning as fully  for all
          intents and purposes  as if such Paying Agent were  named in this
          Article in addition to or in place of the Trustee.

          SECTION 1315.  RELIANCE  BY  HOLDERS  OF  SENIOR  INDEBTEDNESS ON
                         SUBORDINATION PROVISIONS.

               Each   Holder  by  accepting   a  Junior  Subordinated  Note
          acknowledges   and  agrees   that  the   foregoing  subordination
          provisions  are,  and are  intended to  be,  an inducement  and a
          consideration to each holder  of any Senior Indebtedness, whether
          such Senior Indebtedness  was created or acquired before or after
          the issuance  of the  Junior Subordinated  Notes, to  acquire and
          continue   to  hold,  or   to  continue  to   hold,  such  Senior
          Indebtedness  and such  holder  of Senior  Indebtedness shall  be
          deemed  conclusively   to  have  relied  on   such  subordination
          provisions in acquiring and continuing to hold, or to continue to
          hold, such Senior Indebtedness.

                                   ARTICLE FOURTEEN

                               MISCELLANEOUS PROVISIONS

          SECTION 1401.  NO RECOURSE AGAINST OTHERS.

               An  incorporator or  any past,  present or  future director,
          officer, employee or stockholder,  as such, of the  Company shall
          not have any liability  for any obligations of the  Company under
          the  Junior Subordinated Notes or this Indenture or for any claim
          based on, in respect of or by reason of such obligations or their
          creation.  By  accepting a Junior Subordinated  Note, each Holder
          shall  waive and  release all  such liability.   Such  waiver and
          release shall be part of  the consideration for the issue  of the
          Junior Subordinated Notes.

          SECTION 1402.  SET-OFF.

               Notwithstanding anything  to the contrary  in this Indenture
          or in any  Junior Subordinated Note of  any series, prior  to the

                                          76
<PAGE>






          dissolution  of  any  Securities  Trust  that  has  issued  Trust
          Securities related  to a series of Junior Subordinated Notes, the
          Company shall have  the right  to set-off and  apply against  any
          payment it is otherwise required to  make hereunder or thereunder
          with  respect to  the  principal of  or  interest (including  any
          Additional  Interest) on  the Junior  Subordinated Notes  of such
          series with and to  the extent the Company has  theretofore made,
          or is concurrently  on the date of such payment making, a payment
          with respect to  the Trust  Securities of the  series related  to
          such  series of  Junior Subordinated  Notes under  the applicable
          Guarantee.  Contemporaneously with, or as promptly as practicable
          after, any such  payment under such Guarantee,  the Company shall
          deliver to the Trustee  an Officers' Certificate (upon  which the
          Trustee  shall  be  entitled  to rely  conclusively  without  any
          requirement to  investigate the  facts contained therein)  to the
          effect  that such payment has been made  and that, as a result of
          such payment, the corresponding  payment under the related series
          of Junior Subordinated Notes has been set-off  in accordance with
          this Section 1402.

          SECTION 1403.  ASSIGNMENT; BINDING EFFECT.

               The Company shall have the right at all times to assign  any
          of its  rights or obligations under this Indenture to a direct or
          indirect wholly-owned subsidiary  of the Company,  provided that,
          in the event  of any  such assignment, the  Company shall  remain
          primarily  liable for  the performance  of all  such obligations.
          This  Indenture may also be assigned by the Company in connection
          with a  transaction described in  Article Eight.   This Indenture
          shall be binding  upon and inure to  the benefit of  the Company,
          the Trustee,  the Holders, any Security  Registrar, Paying Agent,
          and  Authenticating Agent  and,  to the  extent specifically  set
          forth  herein,  the  holders  of Senior  Indebtedness  and  their
          respective  successors and  assigns.   The provisions  of Section
          1006 are  for the benefit of  the holders of the  series of Trust
          Securities referred to therein and,  prior to the dissolution  of
          the related Securities Trust, may be enforced by such holders.  A
          holder of  a Trust Security shall  not have the right,  as such a
          holder, to enforce any other provision of this Indenture.

          SECTION 1404.  ADDITIONAL INTEREST.

               Whenever  there  is  mentioned  in this  Indenture,  in  any
          context, the payment  of the  principal of, premium,  if any,  or
          interest  on, or in respect  of, any Junior  Subordinated Note of
          any  series, such mention shall  be deemed to  include mention of
          the payment of Additional  Interest provided for by the  terms of
          such series of Junior  Subordinated Notes to the extent  that, in
          such context, Additional Interest is, were or would be payable in
          respect thereof  pursuant to such  terms, and express  mention of
          the payment of Additional Interest in any provisions hereof shall


                                          77
<PAGE>






          not  be  construed  as  excluding Additional  Interest  in  those
          provisions hereof where such express mention is not made.


               This   instrument  may   be  executed   in  any   number  of
          counterparts, each of which so executed shall be deemed to  be an
          original, but all such counterparts shall together constitute but
          one and the same instrument.

               IN  WITNESS WHEREOF,  the  parties hereto  have caused  this
          Indenture  to be  duly executed,  and their  respective corporate
          seals to  be hereunto affixed and attested, all as of the day and
          year first above written.

                                             ALABAMA POWER COMPANY


                                             By                            
                                                  Art P. Beattie
                                                  Vice President, Treasurer
                                                       and Secretary
          Attest:



                                        
          Assistant Secretary


                                             CHEMICAL BANK
                                             Trustee


                                             By                            
                                                  Vice President
          Attest:


                                        
          Senior Trust Officer













                                          78
<PAGE>






          STATE OF                 )
                                   )    SS.:
          COUNTY OF                )

               On  the   ____  day  of  ______________,   1996,  before  me
          personally came Art  P. Beattie, to  me known, who,  being by  me
          duly sworn,  did depose and say  that he is a  Vice President and
          the  Treasurer and Secretary of Alabama Power Company, one of the
          corporations described  herein and which  executed the  foregoing
          instrument;  that he knows the seal of said corporation; that the
          seal affixed to said  instrument is such corporate seal;  that it
          was  so affixed by  authority of the  Board of Directors  of said
          corporation,  and  that  he  signed  his  name  thereto  by  like
          authority.


                                                                           
                                        Notary Public
          [SEAL]
                                        My Commission Expires:             


          STATE OF NEW YORK        )
                                   )    SS.:
          CITY OF NEW YORK         )

               On  the   ____  day  of  ______________,   1996,  before  me
          personally came                                                 ,
          to me known, who, being by me duly sworn, did depose and say that
          he is a  Vice President of Chemical Bank, one of the corporations
          described  herein and  which executed  the foregoing  instrument;
          that he knows the seal of said corporation; that the seal affixed
          to said instrument is such corporate seal; that it was so affixed
          by authority of the  Board of Directors of said  corporation, and
          that he signed his name thereto by like authority.


                                                                           
                                        Notary Public
          [SEAL]
                                        My Commission Expires:             












                                          79
<PAGE>









                                                       Exhibit F
                                                                           






                                ALABAMA POWER COMPANY

                                          TO

                                    CHEMICAL BANK,
                                        TRUSTEE.





                                                          

                             FIRST SUPPLEMENTAL INDENTURE

                             DATED AS OF JANUARY 1, 1996


                                                          



                                     $100,000,000


                      SERIES A 7.375% JUNIOR SUBORDINATED NOTES

                                  DUE MARCH 31, 2026

















                                                                           
<PAGE>

<PAGE>






                                  TABLE OF CONTENTS1


                                                                       PAGE


                                      ARTICLE 1

                          Series A Junior Subordinated Notes  . . . . .   1

          SECTION 101.   Establishment  . . . . . . . . . . . . . . . .   1

          SECTION 102.   Definitions  . . . . . . . . . . . . . . . . .   2

          SECTION 103.   Payment of Principal and Interest  . . . . . .   3

          SECTION 104.   Deferral of Interest Payments  . . . . . . . .   4

          SECTION 105.   Denominations  . . . . . . . . . . . . . . . .   5

          SECTION 106.   Global Securities  . . . . . . . . . . . . . .   5

          SECTION 107.   Transfer . . . . . . . . . . . . . . . . . . .   6

          SECTION 108.   Redemption . . . . . . . . . . . . . . . . . .   6

                                      ARTICLE 2

                               Miscellaneous Provisions . . . . . . . .   7

          SECTION 201.   Recitals by Company  . . . . . . . . . . . . .   7

          SECTION 202.   Ratification and Incorporation of Original
                         Indenture  . . . . . . . . . . . . . . . . . .   7

          SECTION 203.   Executed in Counterparts . . . . . . . . . . .   8

          SECTION 204.   Listing of Notes . . . . . . . . . . . . . . .   8









                              

               1This Table  of Contents  does not  constitute part  of  the
          Indenture or have any  bearing upon the interpretation of  any of
          its terms and provisions.

                                          i
<PAGE>






                    THIS FIRST SUPPLEMENTAL INDENTURE is made as of the 1st
          day  of January, 1996, by  and between ALABAMA  POWER COMPANY, an
          Alabama  corporation,   600   North  18th   Street,   Birmingham,
          Alabama  35291  (the "Company"),  and CHEMICAL  BANK, a  New York
          banking  corporation,  450  West   33rd  Street,  New  York,  New
          York  10001 (the "Trustee").

                                 W I T N E S S E T H:

                    WHEREAS,  the Company  has  heretofore  entered into  a
          Subordinated  Note Indenture,  dated as  of January 1,  1996 (the
          "Original Indenture") with Chemical Bank;

                    WHEREAS, the Original  Indenture is incorporated herein
          by  this reference and the Original Indenture, as supplemented by
          this  First   Supplemental  Indenture,  is   herein  called   the
          "Indenture";

                    WHEREAS, under the Original  Indenture, a new series of
          Junior Subordinated Notes may  at any time be established  by the
          Board  of  Directors  of  the  Company  in  accordance  with  the
          provisions of the Original Indenture and the terms of such series
          may  be described  by  a supplemental  indenture executed  by the
          Company and the Trustee;

                    WHEREAS,  the  Company  proposes  to create  under  the
          Indenture a new series of Junior Subordinated Notes;

                    WHEREAS, additional Junior  Subordinated Notes of other
          series hereafter  established, except  as may  be limited  in the
          Original Indenture as at the time  supplemented and modified, may
          be issued from  time to time pursuant to the  Indenture as at the
          time supplemented and modified; and

                    WHEREAS,  all  conditions  necessary to  authorize  the
          execution,  delivery and  recording  of  this First  Supplemental
          Indenture and  to make it a  valid and binding obligation  of the
          Company have been done or performed.

                    NOW, THEREFORE, in consideration of  the agreements and
          obligations  set forth  herein  and for  other good  and valuable
          consideration,  the sufficiency of  which is hereby acknowledged,
          the parties hereto hereby agree as follows:

                                      ARTICLE 1

                          Series A Junior Subordinated Notes

               SECTION 101.   Establishment.  There is hereby established a
          new  series of Junior Subordinated  Notes to be  issued under the
          Indenture,  to be  designated as  the  Company's Series  A 7.375%
          Junior  Subordinated Notes,  due March  31, 2026  (the  "Series A
          Notes").
<PAGE>






               There  are to  be authenticated  and delivered  $100,000,000
          principal amount of Series A Notes, and no further Series A Notes
          shall  be  authenticated  and  delivered except  as  provided  by
          Sections 203, 303, 304,  907 or 1107  of the Original  Indenture.
          The Series A Notes shall be issued in definitive fully registered
          form.

               The  Series A Notes shall  be in substantially  the form set
          out in  Exhibit A  hereto.   The entire  principal amount  of the
          Series A Notes  shall initially be  evidenced by one  certificate
          issued to the Property Trustee of Alabama Power Capital Trust I.

               The form of the  Trustee's Certificate of Authentication for
          the  Series A Notes shall be in  substantially the form set forth
          in Exhibit B hereto.

               Each Series A Note shall be dated the date of authentication
          thereof  and  shall  bear  interest  from  the date  of  original
          issuance thereof or from the most recent Interest Payment Date to
          which interest has been paid or duly provided for.

               SECTION 102.   Definitions.    The  following defined  terms
          used herein  shall, unless  the context otherwise  requires, have
          the  meanings specified below.  Capitalized terms used herein for
          which no definition  is provided herein  shall have the  meanings
          set forth in the Original Indenture.

               "Deferred  Interest" means each  installment of interest not
          paid during any Extension Period, and interest thereon.  Deferred
          installments  of interest  shall  bear interest  at  the rate  of
          7.375% per annum from the applicable Interest Payment Date to the
          date of payment, compounded quarterly.

               "Extension Period" means any period during which the Company
          has  elected to defer payments of interest, which deferral may be
          for a period of up to twenty (20) consecutive quarters.

               "Interest Payment Dates" means  March 31, June 30, September
          30 and December 31 of each year.

               "Investment Company Act Event"  means that the Company shall
          have received  an Opinion  of Counsel  to the  effect that,  as a
          result of  the occurrence of a  change in law or  regulation or a
          written  change  in  interpretation  or  application  of  law  or
          regulation by any legislative body, court, governmental agency or
          regulatory authority,  there is  more than an  insubstantial risk
          that the Securities Trust is or will be considered an "investment
          company" that is  required to be registered  under the Investment
          Company Act of 1940,  as amended, which change  becomes effective
          on or after the Issue Date.

               "Original Issue Date" means January 24, 1996.

                                          2
<PAGE>







               "Regular Record  Date" means, with respect  to each Interest
          Payment  Date, the  close of  business on  the 15th  calendar day
          preceding such Interest Payment Date.

               "Securities Trust"  means Alabama  Power Capital Trust  I, a
          statutory business trust formed by the Company under Delaware law
          to issue Trust  Securities, the proceeds of which will be used to
          purchase Series A Notes.

               "Special Event" means an Investment Company Act Event or Tax
          Event.

               "Stated Maturity" means March 31, 2026.

               "Tax Event" means  that the Company  shall have received  an
          Opinion  of Counsel  experienced in  such matters  to the  effect
          that, as a result  of (a) any amendment to,  or change (including
          any  announced prospective  change) in,  laws (or  any regulation
          thereunder) of  the United States or any political subdivision or
          taxing authority thereof or  therein or (b) any amendment  to, or
          change  in,  an interpretation  or  application of  such  laws or
          regulations, there  is more than  an insubstantial risk  that (i)
          the  related Securities Trust  would be subject  to United States
          federal  income tax with respect to income accrued or received on
          the  Series  A  Notes,  (ii)  interest  payable  to  the  related
          Securities Trust on the Series A Notes would not be deductible by
          the  Company for  United States federal  income tax  purposes, or
          (iii)  the related Securities Trust would be subject to more than
          a  de minimis amount of other taxes, duties or other governmental
          charges, which change or amendment becomes  effective on or after
          the Original Issue Date.

               SECTION 103.   Payment  of  Principal  and  Interest.    The
          unpaid principal amount of the Series A Notes shall bear interest
          at the  rate of 7.375% per annum until paid or duly provided for.
          Interest shall  be paid  quarterly  in arrears  on each  Interest
          Payment Date to  the Person in whose name the  Series A Notes are
          registered on the  Regular Record Date for  such Interest Payment
          Date, provided that  interest payable at  the Stated Maturity  of
          principal or on a Redemption Date as provided herein will be paid
          to  the Person  to  whom  principal is  payable.  So  long as  an
          Extension  Period is not occurring, any such interest that is not
          so punctually paid or  duly provided for will forthwith  cease to
          be  payable to the  Holders on such  Regular Record Date  and may
          either be paid to the Person or Persons in whose  name the Series
          A Notes  are registered  at the  close of  business on a  Special
          Record  Date for  the payment  of such  defaulted interest  to be
          fixed  by the  Trustee  ("Special Record  Date"), notice  whereof
          shall be given to Holders of the Series A Notes not less than ten
          (10) days  prior to such Special  Record Date, or be  paid at any
          time  in  any other  lawful  manner  not  inconsistent  with  the

                                          3
<PAGE>






          requirements  of any  securities exchange, if  any, on  which the
          Series A  Notes shall be listed,  and upon such notice  as may be
          required by any such  exchange, all as more fully provided in the
          Original Indenture.

               Payments  of interest  on the  Series  A Notes  will include
          interest accrued to but excluding the respective Interest Payment
          Dates.    Interest  payments for  the  Series  A  Notes shall  be
          computed and paid on the basis of a 360-day year of twelve 30-day
          months.  In the event that any date on which  interest is payable
          on the  Series A Notes is  not a Business Day, then  a payment of
          the interest  payable  on such  date  will be  made  on the  next
          succeeding  day  that is  a Business  Day,  except that,  if such
          Business Day  is  in  the  next succeeding  calendar  year,  such
          payment  shall be made on the immediately preceding Business Day,
          in each case  with the same  force and effect  as if made  on the
          date the payment was originally payable.

               Payment of the principal and  interest (including Additional
          Interest,  if   any)  due  at  the  Stated  Maturity  or  earlier
          redemption of the Series A Notes shall  be made upon surrender of
          the Series A Notes at the Corporate Trust Office  of the Trustee,
          in such  coin or currency of  the United States of  America as at
          the  time of  payment is legal  tender for payment  of public and
          private  debts.  Payments of  interest (including interest on any
          Interest Payment  Date) will be  made, subject to  such surrender
          where  applicable, at  the option  of the  Company, (i)  by check
          mailed  to the  address of  the Person  entitled thereto  as such
          address shall appear  in the  Security Register or  (ii) by  wire
          transfer  at  such  place  and  to  such  account  at  a  banking
          institution  in the United States as may be designated in writing
          to the Trustee  at least sixteen (16) days prior  to the date for
          payment by the Person entitled thereto.

               The Company shall pay, as  additional interest on the Series
          A  Notes,  when due  to the  United  States or  any  other taxing
          authority,  the amounts set forth in clause (i) of the definition
          of Additional Interest.

               SECTION 104.   Deferral of Interest  Payments.  The  Company
          has  the right at  any time and  from time to time  to extend the
          interest payment  period of the Series  A Notes for up  to twenty
          (20) consecutive quarters (each,  an "Extension Period"), but not
          beyond the  Stated Maturity.  Notwithstanding  the foregoing, the
          Company has no right to extend its obligation to pay such amounts
          as  are defined  in clause  (i) of  the definition  of Additional
          Interest.  Prior to the termination of any such Extension Period,
          the  Company  may further  extend  the  interest payment  period,
          provided  that  such Extension  Period,  together  with all  such
          previous and  further extensions of that  Extension Period, shall
          not  exceed   twenty  (20)   consecutive  quarters.     Upon  the
          termination  of any such Extension Period and upon the payment of

                                          4
<PAGE>






          all accrued and unpaid interest and any Additional Interest  then
          due,  the Company may select  a new Extension  Period, subject to
          the above limitations and requirements.

               Upon  the  termination   of  any  Extension  Period,   which
          termination shall  be on  an Interest Payment  Date, the  Company
          shall  pay all Deferred Interest  on the next succeeding Interest
          Payment Date to  the Person in whose name the  Series A Notes are
          registered on the Regular Record  Date for such Interest  Payment
          Date, provided that Deferred  Interest payable at Stated Maturity
          or on  any Redemption  Date will  be paid to  the Person  to whom
          principal is payable.

               If  the Company shall have  given notice of  its election to
          select any Extension Period, the Company shall not (i) declare or
          pay any dividend or distribution on, or redeem, purchase, acquire
          or make a liquidation payment with respect to, any of its capital
          stock,  or  make  any  guarantee  payments  with respect  to  the
          foregoing  and (ii)  make any payment  of interest,  principal or
          premium,  if  any, on  or repay,  repurchase  or redeem  any debt
          securities (including guarantees) issued by the Company that rank
          pari passu with or junior to the Series A Notes.

               The Company shall give the Holder or Holders of the Series A
          Notes and the  Trustee notice,  as provided in  Sections 105  and
          106, respectively, of the Original Indenture, of its selection or
          extension  of an Extension Period at least one Business Day prior
          to the earlier  of (i) the  Regular Record Date  relating to  the
          Interest  Payment Date  on  which  the  Extension  Period  is  to
          commence or relating  to the  Interest Payment Date  on which  an
          Extension  Period   that  is   being  extended   would  otherwise
          terminate,  or (ii) the date  the Company or  Securities Trust is
          required  to give notice to the  New York Stock Exchange or other
          applicable self-regulatory organization of the record date or the
          date such distributions are payable.  The Company shall cause the
          Securities  Trust to give  notice of  the Company's  selection of
          such  Extension Period to Holders  of the Trust  Securities.  The
          month  in which any notice  is given pursuant  to the immediately
          preceding  sentence of  this Section  shall constitute  the first
          month of the  first quarter  of the twenty  (20) quarters,  which
          comprise the Maximum Extension Period.

               At any time  any of the foregoing  notices are given to  the
          Trustee,  the  Company shall  give to  the  Paying Agent  for the
          Series  A  Notes  such  information as  said  Paying  Agent shall
          reasonably  require  in  order   to  fulfill  its  tax  reporting
          obligations with respect to such Series A Notes.

               SECTION 105.   Denominations.   The  Series A  Notes may  be
          issued  in the  denominations  of $25,  or any  integral multiple
          thereof.


                                          5
<PAGE>






               SECTION 106.   Global Securities.  If the Series A Notes are
          distributed to  Holders of the Trust Securities of the Securities
          Trust  in liquidation  of  such Holders'  interests therein,  the
          Series A Notes will  be issued in the form of  one or more Global
          Securities registered in the name of the Depositary  (which shall
          be  The Depository Trust Company)  or its nominee.   Except under
          the  limited  circumstances  described  below,  Series   A  Notes
          represented by the Global Security  will not be exchangeable for,
          and  will not  otherwise  be  issuable  as,  Series  A  Notes  in
          definitive form.   The Global Securities described  above may not
          be  transferred  except by  the Depositary  to  a nominee  of the
          Depositary or by a nominee of the Depositary to the Depositary or
          another nominee of the Depositary or to a successor Depositary or
          its nominee.

               Owners  of beneficial  interests in  such a  Global Security
          will  not be considered the Holders thereof for any purpose under
          the  Indenture, and no  Global Security  representing a  Series A
          Note shall be exchangeable, except for another Global Security of
          like denomination and  tenor to be registered in the  name of the
          Depositary or its  nominee or  to a successor  Depositary or  its
          nominee.  The rights of Holders of such Global  Security shall be
          exercised only through the Depositary.

               A  Global Security shall be  exchangeable for Series A Notes
          registered in the names  of persons other than the  Depositary or
          its  nominee only if (i) the Depositary notifies the Company that
          it is unwilling  or unable to  continue as a Depositary  for such
          Global  Security  and no  successor  Depositary  shall have  been
          appointed,  or if  at any  time  the Depositary  ceases  to be  a
          clearing agency  registered under the Securities  Exchange Act of
          1934, as amended, at a time when the Depositary is required to be
          so  registered  to  act  as  such  Depositary  and  no  successor
          Depositary shall  have been  appointed, (ii)  the Company in  its
          sole discretion determines that such  Global Security shall be so
          exchangeable, or  (iii)  there shall  have occurred  an Event  of
          Default with respect to the Series  A Notes.  Any Global Security
          that is  exchangeable pursuant to the preceding sentence shall be
          exchangeable for Series A  Notes registered in such names  as the
          Depositary shall direct.

               SECTION 107.   Transfer.  No service charge will be made for
          any transfer or exchange  of Series A Notes, but payment  will be
          required   of  a  sum  sufficient  to  cover  any  tax  or  other
          governmental charge that may be imposed in connection therewith.

               The  Company shall not be required (a) to issue, transfer or
          exchange  any Series  A Notes  during a  period beginning  at the
          opening  of  business fifteen  (15) days  before  the day  of the
          mailing  of a notice identifying the serial numbers of the Series
          A Notes to be called  for redemption, and ending at the  close of
          business  on  the day  of  the  mailing, or  (b)  to transfer  or

                                          6
<PAGE>






          exchange any  Series A Notes theretofore  selected for redemption
          in whole  or in part, except the unredeemed portion of any Series
          A Note redeemed in part.

               SECTION 108.   Redemption.    The Series  A  Notes  shall be
          subject to  redemption at the option of  the Company, in whole or
          in part, without premium or penalty, at any time or  from time to
          time on or  after March 31, 2001, at a  Redemption Price equal to
          100%  of the  principal amount  to be  redeemed plus  accrued but
          unpaid interest,  including Additional  Interest, if any,  to the
          Redemption Date;  provided, however, that if a redemption in part
          shall result in the delisting of the  Preferred Securities issued
          by the Securities Trust, the Company may only redeem the Series A
          Notes in whole.  In addition, upon occurrence of a Special Event,
          the Company may, within ninety (90) days following the occurrence
          thereof and subject to the terms and conditions of the Indenture,
          elect to redeem the Series A Notes, in whole, at a price equal to
          100%  of the principal amount to be redeemed plus any accrued but
          unpaid interest (including Additional Interest) to the Redemption
          Date; provided, however, that if at the time of the occurrence of
          the  Special  Event, there  is available  to  the Company  or the
          Securities Trust the opportunity to eliminate, within such 90-day
          period, the Special Event by taking some ministerial action, such
          as filing  a form or making  an election, or  pursuing some other
          similar reasonable measure, which would have no adverse effect on
          the  Securities Trust, the Company  or the Holders  of such Trust
          Securities,  the Company or the Securities Trust, as the case may
          be, will pursue such measure in lieu of redemption.

               In the  event of  redemption of the  Series A Notes  in part
          only, a  new Series A  Note or  Notes for the  unredeemed portion
          will be issued  in the name or names of  the Holders thereof upon
          the surrender thereof.

               The Series A Notes will not have a sinking fund.

               Notice of  redemption shall be given as  provided in Section
          1104 of the Original Indenture.

               Any redemption of less than all of the Series A Notes shall,
          with respect to the principal thereof, be divisible by $25.


                                      ARTICLE 2

                               Miscellaneous Provisions

               SECTION 201.   Recitals by  Company.   The recitals in  this
          First Supplemental Indenture are made by the Company only and not
          by  the Trustee,  and  all of  the  provisions contained  in  the
          Original  Indenture   in  respect  of   the  rights,  privileges,
          immunities, powers and  duties of the Trustee shall be applicable

                                          7
<PAGE>






          in  respect  of Series  A Notes  and  of this  First Supplemental
          Indenture as fully and with like effect as if set forth herein in
          full.

               SECTION 202.   Ratification  and  Incorporation of  Original
          Indenture.   As supplemented hereby, the Original Indenture is in
          all respects ratified and  confirmed, and the Original Indenture,
          as  heretofore   supplemented  and   modified,  and   this  First
          Supplemental Indenture shall be read, taken and  construed as one
          and the same instrument.

               SECTION 203.   Executed   in   Counterparts.     This  First
          Supplemental Indenture  may be simultaneously executed in several
          counterparts,  each of which shall  be deemed to  be an original,
          and such counterparts  shall together constitute but one  and the
          same instrument.

               SECTION 204.   Listing of Notes.  If the Series  A Notes are
          to  be issued  as  a  Global  Security  in  connection  with  the
          distribution  of the  Series  A  Notes  to  the  Holders  of  the
          Preferred Securities issued by  the Securities Trust, the Company
          will use its best efforts  to list such Series A Notes on the New
          York  Stock Exchange  or any  such other  exchange on  which such
          Preferred Securities are then listed and traded.


                    IN WITNESS  WHEREOF, each party hereto  has caused this
          instrument  to  be signed  in  its name  and  behalf by  its duly
          authorized  officers,  all as  of the  day  and year  first above
          written.

          ATTEST:                            ALABAMA POWER COMPANY


          By:                                By:                           
               Secretary                          Assistant Treasurer


                                             CHEMICAL BANK


          By:                                By:                           
               Senior Trust Officer               Vice President










                                          8
<PAGE>






                                      EXHIBIT A

                                FORM OF SERIES A NOTE


















































                                          9
<PAGE>






                                      EXHIBIT B


                            CERTIFICATE OF AUTHENTICATION


               This is one of the Notes referred to in the within-mentioned
          Indenture.

                                             CHEMICAL BANK,
                                             as Trustee


                                             By:                           
                                                  Authorized Officer






































                                          10
<PAGE>









                                                            Exhibit G













                                 GUARANTEE AGREEMENT


                                       Between


                                Alabama Power Company

                                    (as Guarantor)


                                         and


                                    Chemical Bank

                                     (as Trustee)


                                     dated as of


                                   January 1, 1996
<PAGE>






                                CROSS-REFERENCE TABLE1

          Section of                         Section of
          Trust Indenture Act                Guarantee
          of 1939, as amended                Agreement

          310(a)  . . . . . . . . . . . . . . . . . . . . . . . . . 4.01(a)
          310(b)  . . . . . . . . . . . . . . . . . . . . . . 4.01(c), 2.08
          310(c)  . . . . . . . . . . . . . . . . . . . . . .  Inapplicable
          311(a)  . . . . . . . . . . . . . . . . . . . . . . . . . 2.02(b)
          311(b)  . . . . . . . . . . . . . . . . . . . . . . . . . 2.02(b)
          311(c)  . . . . . . . . . . . . . . . . . . . . . .  Inapplicable
          312(a)  . . . . . . . . . . . . . . . . . . . . . . . . . 2.02(a)
          312(b)  . . . . . . . . . . . . . . . . . . . . . . . . . 2.02(b)
          313 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.03
          314(a)  . . . . . . . . . . . . . . . . . . . . . . . . . .  2.04
          314(b)  . . . . . . . . . . . . . . . . . . . . . .  Inapplicable
          314(c)  . . . . . . . . . . . . . . . . . . . . . . . . . .  2.05
          314(d)  . . . . . . . . . . . . . . . . . . . . . .  Inapplicable
          314(e)  . . . . . . . . . . . . . . . . . . . .  1.01, 2.05, 3.02
          314(f)  . . . . . . . . . . . . . . . . . . . . . . .  2.01, 3.02
          315(a)  . . . . . . . . . . . . . . . . . . . . . . . . . 3.01(d)
          315(b)  . . . . . . . . . . . . . . . . . . . . . . . . . .  2.07
          315(c)  . . . . . . . . . . . . . . . . . . . . . . . . . .  3.01
          315(d)  . . . . . . . . . . . . . . . . . . . . . . . . . 3.01(d)
          315(e)  . . . . . . . . . . . . . . . . . . . . . .  Inapplicable
          316(a)  . . . . . . . . . . . . . . . . . . . . . . 5.04(i), 2.06
          316(b)  . . . . . . . . . . . . . . . . . . . . . . . . . .  5.03
          316(c)  . . . . . . . . . . . . . . . . . . . . . . . . . .  2.02
          317(a)  . . . . . . . . . . . . . . . . . . . . . .  Inapplicable
          317(b)  . . . . . . . . . . . . . . . . . . . . . .  Inapplicable
          318(a)  . . . . . . . . . . . . . . . . . . . . . . . . . 2.01(b)
          318(b)  . . . . . . . . . . . . . . . . . . . . . . . . . .  2.01
          318(c)  . . . . . . . . . . . . . . . . . . . . . . . . . 2.01(a)













                              

               1This Cross-Reference Table  does not constitute part of the
          Guarantee Agreement  and shall  not affect the  interpretation of
          any of its terms or provisions.

                                          i
<PAGE>






                                  TABLE OF CONTENTS

                                                                       Page


                                      ARTICLE I

                                     DEFINITIONS  . . . . . . . . . . .   1

          SECTION 1.01.  Definitions  . . . . . . . . . . . . . . . . .   1

                                      ARTICLE II

                                 TRUST INDENTURE ACT  . . . . . . . . .   4

          SECTION 2.01.  Trust Indenture Act; Application . . . . . . .   4

          SECTION 2.02.  Lists of Holders of Securities . . . . . . . .   4

          SECTION 2.03.  Reports by the Trustee . . . . . . . . . . . .   4

          SECTION 2.04.  Periodic Reports to Trustee  . . . . . . . . .   4

          SECTION 2.05.  Evidence of Compliance with Conditions
                         Precedent  . . . . . . . . . . . . . . . . . .   5

          SECTION 2.06.  Events of Default; Waiver  . . . . . . . . . .   5

          SECTION 2.07.  Event of Default; Notice . . . . . . . . . . .   5

          SECTION 2.08.  Conflicting Interests  . . . . . . . . . . . .   5

                                     ARTICLE III

                         POWERS, DUTIES AND RIGHTS OF TRUSTEE . . . . .   5

          SECTION 3.01.  Powers and Duties of the Trustee . . . . . . .   5

          SECTION 3.02.  Certain Rights of Trustee  . . . . . . . . . .   7

          SECTION 3.03.  Compensation; Fees; Indemnity  . . . . . . . .   9

                                      ARTICLE IV

                                       TRUSTEE  . . . . . . . . . . . .   9

          SECTION 4.01.  Trustee; Eligibility . . . . . . . . . . . . .   9

          SECTION 4.02.  Appointment, Removal and Resignation of
                         Trustee  . . . . . . . . . . . . . . . . . . .  10



                                          ii
<PAGE>






                                      ARTICLE V

                                      GUARANTEE . . . . . . . . . . . .  11

          SECTION 5.01.  Guarantee  . . . . . . . . . . . . . . . . . .  11

          SECTION 5.02.  Waiver of Notice and Demand  . . . . . . . . .  11

          SECTION 5.03.  Obligations Not Affected . . . . . . . . . . .  11

          SECTION 5.04.  Rights of Holders  . . . . . . . . . . . . . .  12

          SECTION 5.05.  Guarantee of Payment . . . . . . . . . . . . .  13

          SECTION 5.06.  Subrogation  . . . . . . . . . . . . . . . . .  13

          SECTION 5.07.  Independent Obligations  . . . . . . . . . . .  13

                                      ARTICLE VI

                                    SUBORDINATION . . . . . . . . . . .  13

          SECTION 6.01.  Subordination  . . . . . . . . . . . . . . . .  13

                                     ARTICLE VII

                                     TERMINATION  . . . . . . . . . . .  13

          SECTION 7.01.  Termination  . . . . . . . . . . . . . . . . .  13

                                     ARTICLE VIII

                                    MISCELLANEOUS . . . . . . . . . . .  14

          SECTION 8.01.  Successors and Assigns . . . . . . . . . . . .  14

          SECTION 8.02.  Amendments . . . . . . . . . . . . . . . . . .  14

          SECTION 8.03.  Notices  . . . . . . . . . . . . . . . . . . .  14

          SECTION 8.04.  Benefit  . . . . . . . . . . . . . . . . . . .  15

          SECTION 8.05.  Interpretation . . . . . . . . . . . . . . . .  15

          SECTION 8.06.  Governing Law  . . . . . . . . . . . . . . . .  16








                                         iii
<PAGE>






                                 GUARANTEE AGREEMENT

               This  GUARANTEE AGREEMENT ("Guarantee  Agreement"), dated as
          of  January 1, 1996, is  executed and delivered  by ALABAMA POWER
          COMPANY, an Alabama  corporation (the "Guarantor"), and  CHEMICAL
          BANK, a New York banking corporation, as trustee (the "Trustee"),
          for the benefit of  the Holders (as defined herein)  from time to
          time of the  Preferred Securities (as defined  herein) of ALABAMA
          POWER CAPITAL TRUST I, a  Delaware statutory business trust  (the
          "Trust").

               WHEREAS, pursuant to an Amended and Restated Trust Agreement
          (the  "Trust Agreement"), dated as  of January 1,  1996 among the
          Trustee,  the other  Trustees  named therein,  and Alabama  Power
          Company, as Depositor, the Trust is issuing as of the date hereof
          $97,000,000  aggregate liquidation  amount  of its  7.375%  Trust
          Preferred  Securities  (the "Preferred  Securities") representing
          ownership interests in the  Trust and having the terms  set forth
          in the Trust Agreement;

               WHEREAS,  the Preferred  Securities  will be  issued by  the
          Trust  and  the proceeds  thereof will  be  used to  purchase the
          Junior Subordinated Notes (as defined in the Trust  Agreement) of
          the Guarantor, which will be  held by the Trust as  trust assets;
          and

               WHEREAS,  as  incentive  for  the Holders  to  purchase  the
          Preferred  Securities, the Guarantor  desires to  irrevocably and
          unconditionally  agree, to the extent set forth herein, to pay to
          the Holders  the Guarantee  Payments (as  defined herein)  and to
          make certain other payments on the terms and conditions set forth
          herein.

               NOW,  THEREFORE,  in  consideration   of  the  payment   for
          Preferred Securities  by each  Holder thereof, which  payment the
          Guarantor  hereby   agrees  shall  benefit  the   Guarantor,  the
          Guarantor executes and delivers  this Guarantee Agreement for the
          benefit  of  the  Holders from  time  to  time  of the  Preferred
          Securities.

                                      ARTICLE I

                                     DEFINITIONS

               SECTION 1.01.  Definitions.    As  used  in  this  Guarantee
          Agreement, the terms  set forth below  shall, unless the  context
          otherwise requires, have the  following meanings.  Capitalized or
          otherwise  defined terms  used but  not otherwise  defined herein
          shall  have  the meanings  assigned to  such  terms in  the Trust
          Agreement as in effect on the date hereof.

               "Affiliate" of  any specified Person means  any other Person
          directly  or indirectly  controlling  or controlled  by or  under
          direct  or indirect  common control  with such  specified Person.
<PAGE>






          For  the purposes  of this definition,  "control" when  used with
          respect to any  specified Person  means the power  to direct  the
          management and  policies of such Person,  directly or indirectly,
          whether through  the ownership of voting  securities, by contract
          or otherwise;  and the terms "controlling"  and "controlled" have
          meanings correlative to the foregoing.

               "Common Securities" means the securities representing common
          ownership interests in the assets of the Trust.

               "Event  of Default"  means  a failure  by  the Guarantor  to
          perform  any  of its  payment  obligations  under this  Guarantee
          Agreement.

               "Guarantee Payments"  shall mean  the following  payments or
          distributions, without duplication, with respect to the Preferred
          Securities, to the extent not paid or made by or on behalf of the
          Trust:    (i)  any  accrued  and  unpaid distributions  that  are
          required to be  paid on such Preferred Securities but if and only
          to  the extent  the  Trust  has  funds  legally  and  immediately
          available  therefor to  make  such payment;  (ii) the  redemption
          price, including all accrued and unpaid distributions to the date
          of  redemption  (the "Redemption  Price"),  with  respect to  the
          Preferred  Securities called for  redemption by the  Trust but if
          and  only to  the extent  that the  Trust has  funds  legally and
          immediately available therefor  sufficient to make such  payment;
          and (iii) upon a voluntary or involuntary dissolution, winding-up
          or  termination of the Trust  (other than in  connection with the
          distribution of Junior Subordinated Notes to the holders of Trust
          Securities or the redemption of all of the Preferred Securities),
          the lesser of (a) the aggregate of the liquidation amount and all
          accrued and  unpaid distributions on the  Preferred Securities to
          the date  of payment, to  the extent the Trust  has funds legally
          and immediately available  therefor, and (b) the amount of assets
          of the Trust  remaining available for distribution  to Holders in
          liquidation  of  the  Trust  (in either  case,  the  "Liquidation
          Distribution").

               "Holder" shall mean  any holder, as registered  on the books
          and records of the Trust, of  any Preferred Securities; provided,
          however, that in determining whether the holders of the requisite
          percentage  of  Preferred  Securities  have  given  any  request,
          notice, consent  or waiver hereunder, "Holder"  shall not include
          the Guarantor or any Affiliate of the Guarantor.

               "Indenture" means the  Subordinated Note Indenture  dated as
          of  January 1,  1996, among  the Guarantor, as  Subordinated Note
          Issuer, and  Chemical Bank,  as trustee,  as supplemented  by the
          Supplemental  Indenture  dated  as of  January  1,  1996, by  and
          between the Guarantor and Chemical Bank, as Trustee.



                                          2
<PAGE>






               "Majority  in  liquidation amount  of  Preferred Securities"
          means  a  vote  by  Holder(s)  of  Preferred  Securities,  voting
          separately as a class, of more than 50% of the liquidation amount
          of  all   Preferred  Securities   outstanding  at  the   time  of
          determination.

               "Officers'  Certificate" means a  certificate signed  by the
          Chairman of the  Board, the President or a Vice President, and by
          the  Treasurer,  an  Assistant  Treasurer, the  Secretary  or  an
          Assistant  Secretary,  of the  Guarantor,  and  delivered to  the
          Trustee.   Any  Officers' Certificate  delivered with  respect to
          compliance  with a  condition or  covenant provided  for in  this
          Guarantee Agreement shall include:

                    (a)  a statement that each officer signing          the
               Officers' Certificate has read the covenant or condition and
               the definitions relating thereto;

                    (b)  a brief  statement of the nature and  scope of the
               examination or investigation undertaken  by each officer  in
               rendering the Officers' Certificate;

                    (c)  a statement  that each such officer  has made such
               examination or investigation as,  in such officer's opinion,
               is  necessary to enable such  officer to express an informed
               opinion  as to whether or not such covenant or condition has
               been complied with; and

                    (d)  a statement  as to whether, in the opinion of each
               such officer,  such condition or covenant  has been complied
               with.

               "Person"  means  any  individual, corporation,  partnership,
          joint venture, trust,  unincorporated organization or  government
          or any agency or political subdivision thereof.

               "Responsible Officer"  means, with respect  to the  Trustee,
          any vice president, any  assistant vice president, the secretary,
          any  assistant secretary, the treasurer, any assistant treasurer,
          any  senior  trust  officer,  trust officer  or  assistant  trust
          officer or any other officer of the Corporate Trust Department of
          the Trustee  customarily  performing functions  similar to  those
          performed by any of the above designated officers and also means,
          with respect  to a particular  corporate trust matter,  any other
          officer to whom such matter is referred because of that officer's
          knowledge of and familiarity with the particular subject.

               "Successor Trustee" means a successor Trustee possessing the
          qualifications to act as Trustee under Section 4.01.

               "Trust Indenture Act" means the Trust Indenture Act of 1939,
          as amended.

                                          3
<PAGE>






               "Trustee" means Chemical Bank  until a Successor Trustee has
          been appointed  and has accepted such appointment pursuant to the
          terms of this Guarantee Agreement  and thereafter means each such
          Successor Trustee.

                                      ARTICLE II

                                 TRUST INDENTURE ACT

               SECTION 2.01.  Trust Indenture Act; Application.

               (a)  This Guarantee Agreement  is subject to the  provisions
          of  the Trust Indenture Act that are  required to be part of this
          Guarantee  Agreement  and shall,  to  the  extent applicable,  be
          governed by such provisions; and

               (b)  If  and  to  the  extent that  any  provision  of  this
          Guarantee Agreement  limits,  qualifies  or  conflicts  with  the
          duties imposed by  Section 310  to 317, inclusive,  of the  Trust
          Indenture Act, such imposed duties shall control.

               SECTION 2.02.  Lists of Holders of Securities.

               (a)  The Guarantor shall furnish or cause to be furnished to
          the  Trustee (a) semiannually, not later than June 1 and December
          1  in  each  year, a  list,  in  such  form  as the  Trustee  may
          reasonably  require, of the  names and  addresses of  the Holders
          ("List of Holders") as of a  date not more than 15 days  prior to
          the time such  list is furnished, and (b) at  such other times as
          the  Trustee may  request in  writing, within  30 days  after the
          receipt by the  Guarantor of any such request, a  List of Holders
          as of a date not more than 15 days prior to the time such list is
          furnished; provided that, the Guarantor shall not be obligated to
          provide such List of Holders at any time the List of Holders does
          not differ  from the  most recent  List of Holders  given to  the
          Trustee by the Guarantor.   The Trustee may  destroy any List  of
          Holders  previously given  to  it on  receipt of  a  new List  of
          Holders.

               (b)  The  Trustee  shall comply  with its  obligations under
          Sections 311(a), 311(b) and 312(b) of the Trust Indenture Act.

               SECTION 2.03.  Reports by the Trustee.  Within 60 days after
          May 15 of each year, the  Trustee shall provide to the Holders of
          the Preferred Securities such reports as are  required by Section
          313(a) of the Trust Indenture Act, if any, in the form and in the
          manner  provided by Section 313 of the  Trust Indenture Act.  The
          Trustee shall also comply with  the other requirements of Section
          313 of the Trust Indenture Act.

               SECTION 2.04.  Periodic  Reports to Trustee.   The Guarantor
          shall  provide  to  the   Trustee  such  documents,  reports  and

                                          4
<PAGE>






          information as required  by Section 314 (if any)  in the form, in
          the manner and at the times  required by Section 314 of the Trust
          Indenture Act, and shall  provide, within 120 days after  the end
          of  the  Guarantor's  fiscal  year,  the  compliance  certificate
          required by Section 314(a)(4)  of the Trust Indenture Act  in the
          form and in the manner required by such Section.

               SECTION 2.05.  Evidence   of   Compliance  with   Conditions
          Precedent.   The  Guarantor shall  provide  to the  Trustee  such
          evidence  of compliance  with any  conditions precedent,  if any,
          provided  for in this Guarantee  Agreement that relate  to any of
          the  matters set forth in  Section 314(c) of  the Trust Indenture
          Act.   Any  certificate or  opinion required  to  be given  by an
          officer pursuant to Section 314(c)(1) may be given in the form of
          an Officers' Certificate.

               SECTION 2.06.  Events of Default; Waiver.   The Holders of a
          Majority in  liquidation amount  of Preferred Securities  may, by
          vote, on  behalf of all of  the Holders, waive any  past Event of
          Default and its consequences.   Upon such waiver, any  such Event
          of Default shall cease to exist, and any Event of Default arising
          therefrom shall be deemed  to have been cured, for  every purpose
          of this Guarantee Agreement,  but no such waiver shall  extend to
          any subsequent or other default or Event of Default or impair any
          right consequent thereon.

               SECTION 2.07.  Event of Default; Notice.

               (a)  The Trustee shall, within  90 days after the occurrence
          of an Event  of Default,  transmit by mail,  first class  postage
          prepaid, to the Holders,  notices of all Events of  Default known
          to the Trustee, unless  such defaults have been cured  before the
          giving of  such  notice,  provided  that  the  Trustee  shall  be
          protected in withholding such notice if and so long as the  board
          of directors,  the executive committee,  or a trust  committee of
          directors  and/or Responsible  Officers  of the  Trustee in  good
          faith  determines that the withholding  of such notice  is in the
          interests of the Holders.

               (b)  The Trustee shall  not be deemed  to have knowledge  of
          any  Event of  Default  unless the  Trustee  shall have  received
          written  notice,  or  a  Responsible  Officer  charged  with  the
          administration of the Trust Agreement shall have obtained written
          notice, of such Event of Default.

               SECTION 2.08.  Conflicting Interests.   The Trust  Agreement
          shall be  deemed to be  specifically described in  this Guarantee
          Agreement for the  purposes of  clause (i) of  the first  proviso
          contained in Section 310(b) of the Trust Indenture Act.

                                     ARTICLE III


                                          5
<PAGE>






                         POWERS, DUTIES AND RIGHTS OF TRUSTEE

               SECTION 3.01.  Powers and Duties of the Trustee.

               (a)  This Guarantee  Agreement shall be held  by the Trustee
          for  the  benefit  of the  Holders,  and  the  Trustee shall  not
          transfer  this  Guarantee  Agreement  to any  Person  except  the
          Trustee shall assign rights  hereunder to a Holder to  the extent
          such  assignment is  necessary to  exercise such  Holder's rights
          pursuant  to  Section  5.04  or  to  a  Successor  Trustee   upon
          acceptance by such Successor Trustee of its appointment to act as
          Successor  Trustee.  The right, title and interest of the Trustee
          shall  automatically  vest in  any  Successor  Trustee, and  such
          vesting  and cessation of title shall be effective whether or not
          conveyancing documents have been  executed and delivered pursuant
          to the appointment of such Successor Trustee.

               (b)  If an Event of Default has occurred  and is continuing,
          the  Trustee  shall  enforce  this Guarantee  Agreement  for  the
          benefit of the Holders.

               (c)  The  Trustee, before  the  occurrence of  any Event  of
          Default and after the curing or waiving of all Events of  Default
          that  may have  occurred, shall  undertake  to perform  only such
          duties as are specifically set forth in this Guarantee Agreement,
          and  no  implied covenants  shall  be  read into  this  Guarantee
          Agreement against the Trustee.   In case an Event of Default  has
          occurred (that has not  been cured or waived pursuant  to Section
          2.06), the Trustee shall  exercise such of the rights  and powers
          vested in it by this Guarantee Agreement, and use the same degree
          of care  and skill in its  exercise thereof, as a  prudent person
          would exercise or use  under the circumstances in the  conduct of
          his or her own affairs.

               (d)  No  provision  of  this  Guarantee  Agreement shall  be
          construed to  relieve  the Trustee  from  liability for  its  own
          negligent  action, its own negligent  failure to act,  or its own
          willful misconduct, except that:

                    (i)       prior  to  the  occurrence  of any  Event  of
               Default and after the  curing or waiving of all  such Events
               of Default that may have occurred:

                         (A)  the  duties and  obligations  of the  Trustee
                    shall be determined solely by the express provisions of
                    this Guarantee Agreement, and  the Trustee shall not be
                    liable except  for the  performance of such  duties and
                    obligations  as are  specifically  set  forth  in  this
                    Guarantee Agreement; and

                         (B)  in  the absence of  bad faith on  the part of
                    the Trustee,  the Trustee may conclusively  rely, as to

                                          6
<PAGE>






                    the truth of the statements and the correctness of  the
                    opinions  expressed therein,  upon any  certificates or
                    opinions furnished to the Trustee and conforming to the
                    requirements  of this  Guarantee Agreement; but  in the
                    case  of any such certificates or  opinions that by any
                    provision  hereof  are  specifically  required   to  be
                    furnished to the  Trustee, the Trustee shall be under a
                    duty to  examine the same  to determine whether  or not
                    they  conform to  the  requirements of  this  Guarantee
                    Agreement;

                    (ii)      the Trustee shall not be liable for any error
               of judgment made in  good faith by a Responsible  Officer of
               the  Trustee, unless it shall be proved that the Trustee was
               negligent  in ascertaining  the pertinent  facts upon  which
               such judgment was made;

                    (iii)     the  Trustee shall not be liable with respect
               to any action  taken or omitted  to be taken  by it in  good
               faith in accordance with  the direction of the Holders  of a
               Majority  in liquidation amount  of the Preferred Securities
               relating to the  time, method  and place  of conducting  any
               proceeding  for  any remedy  available  to  the Trustee,  or
               exercising  any trust  or power  conferred upon  the Trustee
               under this Guarantee Agreement; and

                    (iv)      no  provision  of  this  Guarantee  Agreement
               shall require the Trustee to expend or risk its own funds or
               otherwise   incur  personal   financial  liability   in  the
               performance of any of its duties  or in the exercise of  any
               of  its  rights  or  powers,  if   the  Trustee  shall  have
               reasonable grounds for believing  that the repayment of such
               funds or liability is not reasonably assured to it under the
               terms  of  this  Guarantee Agreement  or  adequate indemnity
               against such risk or liability  is not reasonably assured to
               it.

               SECTION 3.02.  Certain Rights of Trustee.

               (a)  Subject to the provisions of Section 3.01:

                    (i)       the  Trustee  may  rely  and  shall be  fully
               protected  in  acting or  refraining  from  acting upon  any
               resolution,  certificate,  statement,  instrument,  opinion,
               report,  notice, request,  direction, consent,  order, bond,
               debenture, note,  other evidence  of  indebtedness or  other
               paper  or document believed by it to  be genuine and to have
               been  signed,  sent or  presented  by  the proper  party  or
               parties;




                                          7
<PAGE>






                    (ii)      any  direction  or   act  of  the   Guarantor
               contemplated   by   this   Guarantee  Agreement   shall   be
               sufficiently evidenced by an Officers' Certificate;

                    (iii)     whenever,  in  the  administration   of  this
               Guarantee  Agreement, the  Trustee shall  deem  it desirable
               that  a  matter  be  proved or  established  before  taking,
               suffering  or omitting  any  action  hereunder, the  Trustee
               (unless  other evidence  is herein  specifically prescribed)
               may, in the  absence of bad faith  on its part, request  and
               rely upon  an Officers'  Certificate which, upon  receipt of
               such request, shall be promptly delivered by the Guarantor;

                    (iv)      the  Trustee may consult  with counsel of its
               choice,  and the written  advice or opinion  of such counsel
               with respect  to legal  matters shall  be full and  complete
               authorization and protection in respect of any action taken,
               suffered or omitted  by it  hereunder in good  faith and  in
               accordance with such advice or opinion; such counsel may  be
               counsel  to the Guarantor or  any of its  Affiliates and may
               include any  of its  employees; the  Trustee shall  have the
               right  at  any  time  to seek  instructions  concerning  the
               administration of this Guarantee Agreement from any court of
               competent jurisdiction;

                    (v)       the Trustee shall  be under no obligation  to
               exercise  any of the  rights or powers vested  in it by this
               Guarantee  Agreement  at the  request  or  direction of  any
               Holder,  unless  such  Holder  shall have  provided  to  the
               Trustee  such  adequate  security  and  indemnity  as  would
               satisfy a reasonable person in the  position of the Trustee,
               against the costs,  expenses (including attorneys'  fees and
               expenses)  and liabilities that  might be incurred  by it in
               complying  with such  request or  direction,  including such
               reasonable  advances as  may  be requested  by the  Trustee;
               provided that  nothing contained in this  Section 3.02(a)(v)
               shall be  taken to relieve the Trustee,  upon the occurrence
               of  an Event of Default,  of its obligation  to exercise the
               rights and powers vested in it by this Guarantee Agreement;

                    (vi)      the Trustee  shall not  be bound to  make any
               investigation  into  the  facts  or matters  stated  in  any
               resolution,  certificate,  statement,  instrument,  opinion,
               report,  notice, request,  direction, consent,  order, bond,
               debenture,  note, other  evidence of  indebtedness or  other
               paper or  document, but the Trustee, in  its discretion, may
               make such  further inquiry or investigation  into such facts
               or matters as it may see fit;

                    (vii)     the Trustee may execute  any of the trusts or
               powers  hereunder or  perform  any duties  hereunder  either
               directly  or  by or  through  agents or  attorneys,  and the

                                          8
<PAGE>






               Trustee  shall  not be  responsible  for  any misconduct  or
               negligence on  the part of  any agent or  attorney appointed
               with due care by it hereunder; and

                    (viii)    whenever  in  the   administration  of   this
               Guarantee Agreement  the Trustee shall deem  it desirable to
               receive instructions with respect to enforcing any remedy or
               right or taking any other  action hereunder, the Trustee (i)
               may request instructions from  the Holders, (ii) may refrain
               from  enforcing such  remedy or right  or taking  such other
               action until such instructions are received, and (iii) shall
               be protected in acting in accordance with such instructions.

               (b)  No  provision  of  this  Guarantee  Agreement shall  be
          deemed to impose any duty or obligation on the Trustee to perform
          any act or acts or exercise any right,  power, duty or obligation
          conferred or imposed on it in any jurisdiction in which  it shall
          be  illegal,  or in  which the  Trustee  shall be  unqualified or
          incompetent  in accordance  with applicable  law, to  perform any
          such act  or acts or to  exercise any such right,  power, duty or
          obligation.   No permissive power  or authority available  to the
          Trustee shall be construed to be a duty.

               SECTION 3.03.  Compensation; Fees; Indemnity.

               The Guarantor agrees:

               (a)  to pay  to the  Trustee  from time  to time  reasonable
          compensation for  all services rendered by  the Trustee hereunder
          (which  compensation shall not be limited by any provision of law
          in regard to the compensation of a trustee of an express trust);

               (b)  except  as  otherwise  expressly  provided  herein,  to
          reimburse the  Trustee upon request for  all reasonable expenses,
          disbursements and  advances incurred  or made  by the  Trustee in
          accordance  with  any  provision   of  this  Guarantee  Agreement
          (including  the  reasonable  compensation  and  the  expenses and
          disbursements  of  its  agents  and  counsel),  except  any  such
          expense, disbursement  or advance as  may be attributable  to its
          negligence or bad faith; and

               (c)  to indemnify the  Trustee for, and to hold  the Trustee
          harmless against, any  and all loss, damage, claims, liability or
          expense incurred  without negligence  or bad  faith on  its part,
          arising  out  of  or  in   connection  with  the  acceptance   or
          administration of this  Guarantee Agreement, including  the costs
          and expenses of defending  itself against any claim or  liability
          in  connection with  the exercise  or performance  of any  of its
          powers or duties hereunder.

          The provisions of this Section 3.03 shall survive the termination
          of this Guarantee Agreement.

                                          9
<PAGE>






                                      ARTICLE IV

                                       TRUSTEE

               SECTION 4.01.  Trustee; Eligibility.

               (a)  There shall at all times be a Trustee which shall:

                    (i)  not be an Affiliate of the Guarantor; and

                    (ii) be  a  corporation  organized and  doing  business
               under the laws of the United States of America or any  State
               or  Territory thereof or of  the District of  Columbia, or a
               corporation  or  Person  permitted  by  the  Securities  and
               Exchange Commission to act as an institutional trustee under
               the  Trust  Indenture Act,  authorized  under  such laws  to
               exercise corporate  trust powers, having a  combined capital
               and   surplus  of   at   least  50   million  U.S.   dollars
               ($50,000,000), and subject to supervision  or examination by
               Federal,   State,  Territorial   or  District   of  Columbia
               authority.    If  such  corporation  publishes   reports  of
               condition  at  least annually,  pursuant  to law  or  to the
               requirements  of  the  supervising  or  examining  authority
               referred  to above, then,  for the purposes  of this Section
               4.01(a)(ii),  the  combined  capital  and  surplus  of  such
               corporation shall be  deemed to be its  combined capital and
               surplus  as set forth in its most recent report of condition
               so published.

               (b)  If at any time  the Trustee shall cease to  be eligible
          to so act  under Section 4.01(a),  the Trustee shall  immediately
          resign  in  the manner  and with  the effect  set out  in Section
          4.02(c).

               (c)  If the  Trustee has  or shall acquire  any "conflicting
          interest" within  the  meaning of  Section  310(b) of  the  Trust
          Indenture Act, the  Trustee and Guarantor  shall in all  respects
          comply  with the  provisions  of  Section  310(b)  of  the  Trust
          Indenture Act, subject  to the  rights of the  Trustee under  the
          penultimate paragraph thereof.

               SECTION 4.02.  Appointment,   Removal  and   Resignation  of
          Trustee.

               (a)  Subject  to   Section  4.02(b),  the  Trustee   may  be
          appointed or removed without cause at any time by the Guarantor.

               (b)  The  Trustee shall  not  be removed  until a  Successor
          Trustee has been appointed  and has accepted such  appointment by
          written  instrument  executed  by   such  Successor  Trustee  and
          delivered to the Guarantor.


                                          10
<PAGE>






               (c)  The Trustee appointed to office shall hold office until
          a  Successor  Trustee  shall have  been  appointed  or  until its
          removal  or resignation.    The Trustee  may  resign from  office
          (without  need   for  prior  or  subsequent   accounting)  by  an
          instrument in  writing executed by  the Trustee and  delivered to
          the  Guarantor, which resignation  shall not take  effect until a
          Successor  Trustee  has  been  appointed and  has  accepted  such
          appointment by  instrument in writing executed  by such Successor
          Trustee and delivered to the Guarantor and the resigning Trustee.

               (d)  If no  Successor Trustee shall have  been appointed and
          accepted appointment as  provided in this Section  4.02 within 60
          days  after  delivery  to  the  Guarantor  of  an  instrument  of
          resignation,  the resigning  Trustee  may petition  any court  of
          competent jurisdiction  for appointment  of a  Successor Trustee.
          Such court may  thereupon, after prescribing such notice, if any,
          as it may deem proper, appoint a Successor Trustee.

                                      ARTICLE V

                                      GUARANTEE

               SECTION 5.01.  Guarantee.    The  Guarantor irrevocably  and
          unconditionally  agrees  to  pay  in  full  to  the  Holders  the
          Guarantee  Payments (without  duplication of  amounts theretofore
          paid by the  Trust), as and when due, regardless  of any defense,
          right  of set-off or counterclaim which the Guarantor may have or
          assert  against any person.  The Guarantor's obligation to make a
          Guarantee  Payment may  be  satisfied by  direct  payment of  the
          required  amounts by the Guarantor  to the Holders  or by causing
          the Trust to pay such amounts to the Holders.

               SECTION 5.02.  Waiver of Notice  and Demand.  The  Guarantor
          hereby waives  notice of  acceptance of this  Guarantee Agreement
          and   of  any  liability  to  which  it  applies  or  may  apply,
          presentment,  demand   for  payment,  any  right   to  require  a
          proceeding  first against  the Trust or  any other  Person before
          proceeding against the Guarantor,  protest, notice of nonpayment,
          notice of  dishonor, notice of  redemption and all  other notices
          and demands.

               SECTION 5.03.  Obligations Not Affected.  The  obligation of
          the Guarantor to make the Guarantee Payments under this Guarantee
          Agreement shall  in no way  be affected or impaired  by reason of
          the happening from time to time of any of the following:

               (a)  the  release   or  waiver,  by  operation   of  law  or
          otherwise, of the performance  or observance by the Trust  of any
          express  or  implied  agreement,  covenant,  term   or  condition
          relating to the Preferred Securities to be performed  or observed
          by the Trust;


                                          11
<PAGE>






               (b)  the extension of time  for the payment by the  Trust of
          all  or  any  portion  of the  Distributions,  Redemption  Price,
          Liquidation  Distribution or  any  other sums  payable under  the
          terms  of the Preferred Securities  or the extension  of time for
          the performance of any other obligation under, arising out of, or
          in  connection  with, the  Preferred  Securities  (other than  an
          extension of time for payment of Distributions, Redemption Price,
          Liquidation Distribution  or other sum payable  that results from
          the  extension  of  any  interest payment  period  on  the Junior
          Subordinated Notes permitted by the Indenture);

               (c)  any failure,  omission, delay  or lack of  diligence on
          the part of the Holders to enforce, assert or exercise any right,
          privilege,  power or remedy conferred on  the Holders pursuant to
          the terms of the Preferred Securities,  or any action on the part
          of the Trust granting indulgence or extension of any kind;

               (d)  the voluntary or involuntary  liquidation, dissolution,
          sale  of  any collateral,  receivership,  insolvency, bankruptcy,
          assignment   for  the   benefit  of   creditors,  reorganization,
          arrangement,  composition or  readjustment of  debt of,  or other
          similar  proceedings affecting, the Trust or any of the assets of
          the Trust;

               (e)  any  invalidity of,  or  defect or  deficiency in,  the
          Preferred Securities;

               (f)  the   settlement  or   compromise  of   any  obligation
          guaranteed hereby or hereby incurred; or

               (g)  any  other circumstance whatsoever that might otherwise
          constitute  a  legal  or  equitable  discharge  or  defense of  a
          guarantor,  it being  the intent  of this  Section 5.03  that the
          obligations  of the  Guarantor  hereunder shall  be absolute  and
          unconditional under any and all circumstances.

               There shall be no  obligation of the Holders to  give notice
          to,  or  obtain consent  of, the  Guarantor  with respect  to the
          happening of any of the foregoing.

               SECTION 5.04.  Rights of  Holders.  The  Guarantor expressly
          acknowledges  that:    (i)   this  Guarantee  Agreement  will  be
          deposited with the  Trustee to  be held  for the  benefit of  the
          Holders; (ii) the Trustee has the right to enforce this Guarantee
          Agreement  on behalf  of  the Holders;  (iii)  the Holders  of  a
          Majority in  liquidation amount of the  Preferred Securities have
          the right to direct  the time, method and place of conducting any
          proceeding  for any remedy available to the Trustee in respect of
          this  Guarantee  Agreement  or  exercising  any  trust  or  power
          conferred  upon  the  Trustee  under  this  Guarantee  Agreement,
          provided  that such direction shall  not be in  conflict with any
          rule  of  law or  with this  Guarantee  Agreement, and  could not

                                          12
<PAGE>






          involve the Trustee in  personal liability in circumstances where
          reasonable  indemnity would  not  be adequate;  and  (iv) if  the
          Trustee  fails  to  enforce  this Guarantee  Agreement  as  above
          provided, any  Holder may  institute a legal  proceeding directly
          against the Guarantor to enforce its rights under  this Guarantee
          Agreement, without first instituting  a legal proceeding  against
          the  Trustee or any other  person or entity;  it being understood
          and intended that  no one or more of such  Holders shall have any
          right in any  manner whatsoever by virtue of, or  by availing of,
          any provision  of this Guarantee Agreement to  affect, disturb or
          prejudice the rights of any other of such Holders or to obtain or
          to seek to  obtain priority or preference over  any other of such
          Holders or to enforce  any right under this  Guarantee Agreement,
          except  in the  manner  herein provided  and  for the  equal  and
          ratable benefit of all of such Holders.

               SECTION 5.05.  Guarantee   of   Payment.     This  Guarantee
          Agreement creates a guarantee of  payment and not of  collection.
          This Guarantee Agreement will not be discharged except by payment
          of the Guarantee Payments in full (without duplication).

               SECTION 5.06.  Subrogation.      The   Guarantor  shall   be
          subrogated  to all  (if any)  rights of  the Holders  against the
          Trust in  respect of  any  amounts paid  to  the Holders  by  the
          Guarantor under this Guarantee Agreement; provided, however, that
          the  Guarantor  shall  not  (except to  the  extent  required  by
          mandatory provisions of law) be  entitled to enforce or  exercise
          any  rights which  it may acquire  by way  of subrogation  or any
          indemnity, reimbursement  or other agreement,  in all cases  as a
          result of payment under this Guarantee Agreement, if, at the time
          of  any such payment, any  amounts of Guarantee  Payments are due
          and unpaid under this  Guarantee Agreement.  If any  amount shall
          be  paid to the Guarantor in violation of the preceding sentence,
          the Guarantor agrees to hold such amount in trust for the Holders
          and to pay over such amount to the Holders.

               SECTION 5.07.  Independent   Obligations.     The  Guarantor
          acknowledges that  its obligations  hereunder are  independent of
          the  obligations  of the  Trust  with  respect to  the  Preferred
          Securities and that  the Guarantor shall  be liable as  principal
          and as  debtor hereunder to  make Guarantee Payments  pursuant to
          the  terms  of  this  Guarantee  Agreement   notwithstanding  the
          occurrence of any  event referred to  in subsections (a)  through
          (g), inclusive, of Section 5.03 hereof.

                                      ARTICLE VI

                                    SUBORDINATION

               SECTION 6.01.  Subordination.  This Guarantee Agreement will
          constitute an unsecured obligation of the Guarantor and will rank
          (i)  subordinate  and junior  in right  of  payment to  all other

                                          13
<PAGE>






          liabilities of  the Guarantor, including the  Junior Subordinated
          Notes, except those obligations or liabilities made pari passu or
          subordinate  by their terms, (ii) pari passu with the most senior
          preferred  or  preference stock  now or  hereafter issued  by the
          Guarantor and with any guarantee now or hereafter entered into by
          the  Guarantor   in  respect  of  any   preferred  or  preference
          securities of any Affiliate of the Guarantor, and (iii) senior to
          all common stock of the Guarantor.

                                     ARTICLE VII

                                     TERMINATION

               SECTION 7.01.  Termination.  This Guarantee  Agreement shall
          terminate and be of no  further force and effect upon:   (i) full
          payment of the Redemption Price of all Preferred Securities, (ii)
          the distribution of  Junior Subordinated Notes to  the Holders in
          exchange  for all of the Preferred Securities, or (iii) upon full
          payment  of  the amounts  payable  in accordance  with  the Trust
          Agreement  upon liquidation  of the  Trust.   Notwithstanding the
          foregoing, this Guarantee Agreement will continue to be effective
          or will be  reinstated, as the case  may be, if  at any time  any
          Holder  must restore  payment of  any sums  paid with  respect to
          Preferred Securities or under this Guarantee Agreement.

                                     ARTICLE VIII

                                    MISCELLANEOUS

               SECTION 8.01.  Successors  and Assigns.   All guarantees and
          agreements contained  in this Guarantee Agreement  shall bind the
          successors, assigns,  receivers, trustees and  representatives of
          the Guarantor and shall inure to the benefit of  the Holders then
          outstanding.  Except in  connection with a consolidation, merger,
          conveyance, transfer,  or lease  involving the Guarantor  that is
          permitted  under Article  Eight of  the Indenture,  the Guarantor
          shall not assign its obligations hereunder.

               SECTION 8.02.  Amendments.    Except  with  respect  to  any
          changes which do not  materially and adversely affect  the rights
          of  Holders  (in  which  case  no  consent  of  Holders  will  be
          required),  this Guarantee Agreement may only be amended with the
          prior  approval  of  the Holders  of  not  less  than 66-2/3%  in
          liquidation amount  of all the  outstanding Preferred Securities.
          The provisions of Article Six  of the Trust Agreement  concerning
          meetings of Holders shall apply to the giving of such approval.

               SECTION 8.03.  Notices.    Any  notice,  request   or  other
          communication required  or permitted to be  given hereunder shall
          be in  writing, duly signed by the  party giving such notice, and
          delivered, telecopied or mailed by first class mail as follows:


                                          14
<PAGE>






               (a)  if  given to  the Guarantor, to  the address  set forth
          below or such other address  as the Guarantor may give  notice of
          to the Trustee and the Holders:

                         Alabama Power Company
                         600 North 18th Street
                         Birmingham, Alabama  35291
                         Attn:  Corporate Secretary

                         with copy to:

                         Southern Company Services, Inc.
                         64 Perimeter Center East
                         Atlanta, Georgia  30346
                         Facsimile No.: (770) 821-4460
                         Attention:     Corporate Finance Department

               (b)  if  given to the Trust,  in care of  the Trustee, or to
          the  Trustee at the Trust's (and the Trustee's) address set forth
          below   or such  other address  as the Trustee  on behalf  of the
          Trust may give notice to the Holders:

                         Alabama Power Capital Trust I
                         c/o Chemical Bank
                         450 W. 33rd Street
                         New York, New York 10001
                         Attn:  Corporate Trustee Administration Department

               (c)  if given to any Holder, at the address set forth on the
          books and records of the Trust.

               All notices  hereunder shall be  deemed to  have been  given
          when received  in person,  telecopied with receipt  confirmed, or
          mailed  by first  class mail,  postage prepaid  except that  if a
          notice  or  other  document  is refused  delivery  or  cannot  be
          delivered because of  a changed  address of which  no notice  was
          given, such notice or other document shall be deemed to have been
          delivered on the date of such refusal or inability to deliver.

               SECTION 8.04.  Benefit.   This Guarantee Agreement is solely
          for the benefit of  the Holders and, subject to  Section 3.01(a),
          is not separately transferable from the Preferred Securities.

               SECTION 8.05.  Interpretation.  In this Guarantee Agreement,
          unless the context otherwise requires:

               (a)  capitalized terms used in this  Guarantee Agreement but
          not defined in  the preamble hereto have  the respective meanings
          assigned to them in Section 1.01;

               (b)  a term defined anywhere in this Guarantee Agreement has
          the same meaning throughout;

                                          15
<PAGE>






               (c)  all references  to "the  Guarantee Agreement"  or "this
          Guarantee Agreement" are to this Guarantee Agreement as modified,
          supplemented or amended from time to time;

               (d)  all references in this Guarantee  Agreement to Articles
          and Sections  are  to Articles  and  Sections of  this  Guarantee
          Agreement unless otherwise specified;

               (e)  a  term defined in the Trust Indenture Act has the same
          meaning when  used in  this Guarantee Agreement  unless otherwise
          defined  in  this  Guarantee  Agreement  or  unless  the  context
          otherwise requires;

               (f)  a  reference to  the singular  includes the  plural and
          vice versa; and

               (g)  the masculine,  feminine or neuter genders  used herein
          shall include the masculine, feminine and neuter genders.

               SECTION 8.06.  Governing  Law.    THIS  GUARANTEE  AGREEMENT
          SHALL BE GOVERNED BY AND  CONSTRUED AND INTERPRETED IN ACCORDANCE
          WITH THE LAWS  OF THE STATE  OF NEW YORK.   THE GUARANTOR  HEREBY
          IRREVOCABLY  SUBMITS TO  THE  JURISDICTION OF  THE UNITED  STATES
          DISTRICT  COURT FOR  THE SOUTHERN  DISTRICT OF  NEW YORK  AND ANY
          COURT IN THE STATE OF NEW YORK  LOCATED IN THE CITY AND COUNTY OF
          NEW YORK IN ANY ACTION, SUIT OR PROCEEDING BROUGHT AGAINST IT AND
          RELATED  TO OR IN CONNECTION WITH THIS GUARANTEE AGREEMENT OR THE
          TRANSACTIONS CONTEMPLATED THEREBY, AND TO THE EXTENT PERMITTED BY
          APPLICABLE  LAW, THE  GUARANTOR HEREBY  WAIVES AND AGREES  NOT TO
          ASSERT BY  WAY OF MOTION, AS  A DEFENSE OR OTHERWISE  IN ANY SUCH
          SUIT, ACTION OR PROCEEDING,  ANY CLAIM THAT IT IS  NOT PERSONALLY
          SUBJECT TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT, ACTION
          OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE
          OF  THE  SUIT, ACTION  OR PROCEEDING  IS  IMPROPER, OR  THAT THIS
          GUARANTEE AGREEMENT OR ANY DOCUMENT OR ANY INSTRUMENT REFERRED TO
          HEREIN OR THE SUBJECT MATTER HEREOF MAY NOT BE LITIGATED IN OR BY
          SUCH  COURTS.   TO THE  EXTENT PERMITTED  BY APPLICABLE  LAW, THE
          GUARANTOR AGREES NOT TO SEEK  AND HEREBY WAIVES THE RIGHT TO  ANY
          REVIEW OF  THE JUDGMENT OF  ANY SUCH  COURT BY ANY  COURT OF  ANY
          OTHER NATION OR JURISDICTION WHICH MAY BE CALLED UPON TO GRANT AN
          ENFORCEMENT OF SUCH JUDGMENT.  THE GUARANTOR AGREES  THAT SERVICE
          OF PROCESS MAY BE MADE UPON IT BY CERTIFIED OR REGISTERED MAIL TO
          THE  ADDRESS FOR NOTICES SET FORTH IN THIS GUARANTEE AGREEMENT OR
          ANY METHOD AUTHORIZED BY THE LAWS OF NEW YORK.

               This   instrument  may   be  executed   in  any   number  of
          counterparts, each of which  so executed shall be deemed to be an
          original, but all such counterparts shall together constitute but
          one and the same instrument.

               THIS  GUARANTEE AGREEMENT is executed as of the day and year
          first above written.

                                          16
<PAGE>






                                   ALABAMA POWER COMPANY



                                   By:                                     
                                   Name:     Art P. Beattie
                                   Title:    Vice President, Secretary and
                                             Treasurer

                                   CHEMICAL BANK


                                   By:                                     
                                   Name:                                   
                                   Title:                                  






































                                          17
<PAGE>

                                                                Exhibit H




                                 Balch & Bingham
                               Birmingham, Alabama
                                  205-251-8100



                                February 8, 1996


Securities and Exchange Commission
Washington, DC 20549

RE:      Statement on Form U-1
         of Alabama Power Company
         (herein called the "Company") et al.
         File No. 70-8461

Ladies and Gentlemen:

We have read the statement on Form U-1, as amended, referred to above and are
furnishing this opinion with respect to the issuance and sale by Alabama Power
Capital Trust I (the "Trust") of its Trust Preferred Securities and the related
issuance by the Company of its Guarantee and Junior Subordinated Notes (all as
defined therein).

We are of the opinion that:

(a)      the Company is validly organized and duly existing as a corporation
         under the laws of the State of Alabama;

(b)      the Trust has been duly formed and is validly existing as a business
         trust under the laws of the State of Delaware;

(c)      the transactions have been consummated in accordance with such 
         statement on Form U-1, as amended;

(d)      all state laws applicable to such transactions have been complied with;

(e)      the Company's obligations with respect to the Guarantee and the Junior
         Subordinated Notes are valid and binding obligations of the Company in
         accordance with their terms;



<PAGE>




Securities and Exchange Commission
February 8, 1995
Page 2


(f)      the Trust's obligations with respect to the Trust Preferred Securities
         are valid and binding obligations of Alabama Power Capital in
         accordance with their terms; and

(g)      the consummation of the transactions did not violate the legal rights
         of the holders of any securities issued by the Company, the Trust, or
         any associate company thereof.

We hereby give our written consent to the use of this opinion in connection with
the above-mentioned statement on Form U-1 and to the filing thereof with the
commission at the time of the filing of the certificate pursuant to Rule 24.


                                                  Very truly yours,

                                                  /s/Balch & Bingham




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