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FINANCIAL                                                    FINANCIAL GUARANTY
SECURITY                                                       INSURANCE POLICY
ASSURANCE(Registered)


Obligor: As described in Endorsement No. 1                  Policy No.: 50895-N
Obligations: $220,000,000 ABFS Mortgage              Date of Issuance: 12/22/99
Loan Trust 1999-4 Mortgage Backed Notes,
Series 1999-4, Class A-1, Class A-2 and Class A-3


                  FINANCIAL SECURITY ASSURANCE INC. ("Financial Security"), for
consideration received, hereby UNCONDITIONALLY AND IRREVOCABLY GUARANTEES to
each Holder, subject only to the terms of this Policy (which includes each
endorsement hereto), the full and complete payment by the Obligor of Scheduled
Payments of principal of, and interest on, the Obligations.

                  For the further protection of each Holder, Financial Security
irrevocably and unconditionally guarantees:

                  (a) payment of the amount of any distribution of principal
         of, or  interest on, the Obligations made during the Term of this
         Policy to such Holder that is subsequently avoided in whole or in part
         as a preference payment under applicable law (such payment to be made
         by Financial Security in accordance with Endorsement No. 1 hereto).

                  (b) payment of any amount required to be paid under this
         Policy by Financial Security following Financial Security's receipt of
         notice as described in Endorsement No. 1 hereto.

                  Financial Security shall be subrogated to the rights of each
Holder to receive payments under the Obligations to the extent of any payment by
Financial Security hereunder.

                  Except to the extent expressly modified by an endorsement
hereto, the following terms shall have the meanings specified for all purposes
of this Policy. "Holder" means the registered owner of any Obligation as
indicated on the registration books maintained by or on behalf of the Obligor
for such purpose or, if the Obligation is in bearer form, the holder of the
Obligation. Scheduled Payments" means payments which are scheduled to be made
during the Term of this Policy in accordance with the original terms of the
Obligations when issued and without regard to any amendment or modification of
such Obligations thereafter; payments which become due on an accelerated basis
as a result of (a) a default by the Obligor, (b) an election by the Obligor to
pay principal on an accelerated basis or (c) any other cause, shall not
constitute "Scheduled Payments" unless Financial Security shall elect, in its
sole discretion, to pay such principal due upon such acceleration together with
any accrued interest to the date of

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acceleration. "Term of this Policy" shall have the meaning set forth in
Endorsement No. 1 hereto.

                  This Policy sets forth in full the undertaking of Financial
Security, and shall not be modified, altered or affected by any other agreement
or instrument, including any modification or amendment thereto, or by the
merger, consolidation or dissolution of the Obligor. Except to the extent
expressly modified by an endorsement hereto, the premiums paid in respect of
this Policy are nonrefundable for any reason whatsoever, including payment, or
provision being made for payment, of the Obligations prior to maturity. This
Policy may not be canceled or revoked during the Term of this Policy. THIS
POLICY IS NOT COVERED BY THE PROPERTY/CASUALTY INSURANCE SECURITY FUND SPECIFIED
IN ARTICLE 76 OF THE NEW YORK INSURANCE LAW.

                  In witness whereof,  FINANCIAL  SECURITY  ASSURANCE INC. has
caused this Policy to be executed on its behalf by its Authorized Officer.


                                              FINANCIAL SECURITY ASSURANCE INC.

                                              By:
                                                 ------------------------------
                                                       AUTHORIZED OFFICER


A subsidiary of Financial Security Assurance
  Holdings Ltd.
350 Park Avenue, New York, N.Y.  10022-6022                      (212) 826-0100
Form 100NY (5/89)

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                              ENDORSEMENT NO. 1 TO
                       FINANCIAL GUARANTY INSURANCE POLICY


FINANCIAL SECURITY ASSURANCE INC.

OBLIGOR:                                   ABFS MORTGAGE LOAN TRUST 1999-4

OBLIGATIONS:                               $218,900,000 ABFS Mortgage Loan Trust
                                           1999-4 Mortgage Backed Notes, Series
                                           1999-4, Class A-1, Class A-2 and
                                           Class A-3

POLICY NO.                                 50895-N

DATE OF ISSUANCE:                          December 22, 1999

         1.       Definitions. For all purposes of this Policy, the terms
                  specified below shall have the meanings or constructions
provided below. Capitalized terms used herein and not otherwise defined herein
shall have the meanings provided in the Indenture unless the context shall
otherwise require.

                  "Business Day" means any day other than (i) a Saturday or
Sunday, or (ii) a day on which banking institutions in New York are authorized
or obligated by law or executive order to be closed.

                  "Holder" shall not include the Obligor or any affiliates or
successors thereof in the event the Obligor, or any such affiliate or successor,
is a registered or beneficial owner of the Obligation.

                  "Indenture" means the Indenture, dated as of December 1, 1999,
between ABFS Mortgage Loan Trust 1999-4 as Issuer and the Indenture Trustee, as
amended from time to time with the consent of Financial Security.

                  "Indenture Trustee" means The Bank of New York, in its
capacity as Indenture Trustee under the Indenture and the Sale and Servicing
Agreement and any successor in such capacity.

                  "Policy" means this Financial Guaranty Insurance Policy and
includes each endorsement thereto.

                  "Receipt" and "Received" mean actual delivery to Financial
Security and to the Fiscal Agency (as defined below), if any, at or prior to
12:00 noon, New York City time, on a Business Day; delivery either on a day that
is not a Business Day, or after 12:00 noon, New York City time, shall be deemed
to be Received on the next succeeding Business Day. If any notice or

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Policy No.: 50895-N                         Date of Issuance: December 22, 1999

certificate given hereunder by the Indenture Trustee is not in proper form or
is not properly completed, executed or delivered, it shall be deemed not to have
been Received, and Financial Security or its Fiscal Agent shall promptly so
advise the Indenture Trustee and the Indenture Trustee may submit an amended
notice.

                  "Sale and Servicing Agreement" means the Sale and Servicing
Agreement, dated as of December 1, 1999, among ABFS Mortgage Loan Trust 1999-4
as Issuer, American Business Credit, Inc. as Servicer, Chase Bank of Texas, N.A.
as Collateral Agent, Prudential Securities Secured Financing Corporation as
Depositor and the Indenture Trustee, as amended from time to time with the
consent of Financial Security.

                  "Scheduled Payments" means, with respect to any Payment Date
and the Obligations, the Insured Payments, without regard to any amendment or
modification of the Notes, the Indenture or the Sale and Servicing Agreement,
except such amendments or modifications to which Financial Security has given
its prior written consent. Scheduled Payments shall not include any amounts due
in respect of the Obligations attributable to any increase in interest rate,
penalty or other sum payable by the Obligor by reason of any default or event of
default in respect of the Obligations, or by reason of any deterioration of the
creditworthiness of the Obligor, nor shall Scheduled Payments include, nor shall
coverage be provided under this Policy in respect of, any taxes, withholding or
other charge imposed by any governmental authority due in connection with the
payment of any Scheduled Payment to a Holder.

                  "Term of This Policy" means the period from and including the
Date of Issuance to and including the date on which (i) all Scheduled Payments
have been paid that have been required to be paid by the Obligor within the
meaning of Section 4.01 of the Indenture, (ii) any period during which any
Scheduled Payment could have been avoided in whole or in part as a preference
payment under applicable bankruptcy, insolvency, receivership or similar law has
expired, and (iii) if any proceedings requisite to avoidance as a preference
payment have been commenced prior to the occurrence of (i) and (ii), a final and
non-appealable order in resolution of each such proceeding has been entered.

         2. Notices and Conditions to Payment in Respect of Scheduled Payments.
Following Receipt by Financial Security of a notice and certificate from the
Indenture Trustee in the form attached as Exhibit A to this Endorsement,
Financial Security will pay any amount payable hereunder in respect of Scheduled
Payments out of the funds of Financial Security on the later to occur of (a)
12:00 noon, New York City time, on the second Business Day following such
Receipt; and (b) 12:00 noon, New York City time, on the Payment Date to which
such claim relates. Payments due hereunder in respect of Scheduled Payments will
be disbursed by wire transfer of immediately available funds to the Policy
Payments Account established pursuant to the Sale and Servicing Agreement or, if
no such Policy Payments Account has been established, to the Indenture Trustee.

                  Financial Security shall be entitled to pay any amount
hereunder in respect of Scheduled Payments on the Obligations, including any
amounts due on the Obligations on an accelerated basis, whether or not any
notice and certificate shall have been Received by

                                      A-2

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Policy No.: 50895-N                         Date of Issuance: December 22, 1999

Financial Security as provided above; provided, however, that by acceptance of
this Policy the Indenture Trustee agrees to provide upon request to Financial
Security a notice and certificate in respect of any such payments made by
Financial Security. Financial Security shall be entitled to pay hereunder any
amount due on the Obligations on an accelerated basis at any time or from time
to time, in whole or in part, prior to the scheduled date of payment thereof.
Scheduled Payments insured hereunder shall not include interest, in respect of
principal paid hereunder on an accelerated basis, accruing from after the date
of such payment of principal. Financial Security's obligations hereunder in
respect of Scheduled Payments shall be discharged to the extent such amounts are
paid by the Issuer in accordance with the Indenture or disbursed by Financial
Security as provided herein whether or not such funds are properly applied by
the Indenture Trustee except as otherwise proved in paragraph 3 of this
Endorsement.

         3. Notices and Conditions to Payment in Respect of Scheduled Payments
Avoided as Preference Payments. If any Scheduled Payment is avoided as a
preference payment under applicable bankruptcy, insolvency, receivership or
similar law, Financial Security will pay such amount out of the funds of
Financial Security on the later of (a) the date when due to be paid pursuant to
the Order referred to below or (b) the first to occur of (i) the fourth Business
Day following Receipt by Financial Security from the Indenture Trustee of (A) a
certified copy of the order of the court or other governmental body which
exercised jurisdiction to the effect that the relevant Holder is required to
return principal or interest distributed with respect to the Obligations during
the Term of this Policy because such distributions were avoidable as preference
payments under applicable bankruptcy law (the "Order"), (B) a certificate of the
relevant Holder that the Order has been entered and is not subject to any stay
and (C) an assignment duly executed and delivered by the relevant Holder, in
such form as is reasonably required by Financial Security and provided to the
relevant Holder by Financial Security, irrevocably assigning to Financial
Security all rights and claims of the relevant Holder relating to or arising
under the Obligations against the estate of the Obligor or otherwise with
respect to such preference payment or (ii) the date of Receipt by Financial
Security from the Indenture Trustee of the items referred to in clauses (A), (B)
and (C) above if, at least four Business Days prior to such date of Receipt,
Financial Security shall have Received written notice from the Indenture Trustee
that such items were to be delivered on such date and such date was specified in
such notice. Such payment shall be disbursed to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order and not to the
Indenture Trustee or any Holder directly (unless a Holder has previously paid
such amount to the receiver, conservator, debtor-in-possession or trustee in
bankruptcy named in the Order, in which case such payment shall be disbursed to
the Indenture Trustee for distribution to such Holder upon proof of such payment
reasonably satisfactory to Financial Security). In connection with the
foregoing, Financial Security shall have the rights provided pursuant to Section
6.06 of the Sale and Servicing Agreement and Section 8.03(f) of the Indenture.

         4. Governing Law. This Policy shall be governed by and construed in
accordance with the laws of the State of New York, without giving effect to the
conflict of laws principles thereof.

                                       A-3

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Policy No.: 50895-N                         Date of Issuance: December 22, 1999

         5. Fiscal Agent. At any time during the Term of this Policy, Financial
Security may appoint a fiscal agent (the "Fiscal Agent") for purposes of this
Policy by written notice to the Indenture Trustee at the notice address
specified in the Indenture specifying the name and notice address of the Fiscal
Agent. From and after the date of receipt of such notice by the Indenture
Trustee, (i) copies of all notices and documents required to be delivered to
Financial Security pursuant to this Policy shall be simultaneously delivered to
the Fiscal Agent and to Financial Security and shall not be deemed Received
until Received by both and (ii) all payments required to be made by Financial
Security under this Policy may be made directly by Financial Security or by the
Fiscal Agent on behalf of Financial Security. The Fiscal Agent is the agent of
Financial Security only and the Fiscal Agent shall in no event be liable to any
Owner for any acts of the Fiscal Agent or any failure of Financial Security to
deposit, or cause to be deposited, sufficient funds to make payments due under
this Policy.

         6. Waiver of Defenses. To the fullest extent permitted by applicable
law, Financial Security agrees not to assert, and hereby waives, for the benefit
of each Owner, all rights (whether by counterclaim, setoff or otherwise) and
defenses (including, without limitation, the defense of fraud), whether acquired
by subrogation, assignment or otherwise, to the extent that such rights and
defenses may be available to Financial Security to avoid payment of its
obligations under this Policy in accordance with the express provisions of this
Policy. Notices. All notices to be given hereunder shall be in writing (except
as otherwise specifically provided herein) and shall be mailed by registered
mail or personally delivered or telecopied to Financial Security as follows:

                           Financial Security Assurance Inc.
                           350 Park Avenue
                           New York, NY 10022
                           Attention: Senior Vice President - Surveillance
                            Department
                             Re: ABFS Mortgage Loan Trust 1999-4
                           Telecopy No.: (212) 339-3518
                           Confirmation: (212) 826-0100

                  Financial Security may specify a different address or
addresses by writing mailed or delivered to the Indenture Trustee.

Priorities. In the event any term or provision of the face of this Policy is
inconsistent with the provisions of this Endorsement, the provisions of this
Endorsement shall take precedence and shall be binding.

         9. Exclusions From Insurance Guaranty Funds. This Policy is not covered
by the Property/Casualty Insurance Security Fund specified in Article 76 of the
New York Insurance Law. This Policy is not covered by the Florida Insurance
Guaranty Association created under Part II of Chapter 631 of the Florida
Insurance Code. In the event Financial Security were to become insolvent, any
claims arising under this Policy are excluded from coverage by the California
Insurance Guaranty Association, established pursuant to Article 14.2 of Chapter
1 of Part 2 of Division 1 of the California Insurance Code.

                                      A-4

<PAGE>

Policy No.: 50895-N                         Date of Issuance: December 22, 1999

         10. Surrender of Policy. The Indenture Trustee shall surrender this
Policy to Financial Security for cancellation upon expiration of the Term of
this Policy.

                  IN WITNESS  WHEREOF,  FINANCIAL  SECURITY  ASSURANCE INC. has
caused this Endorsement No. 1 to be executed by its Authorized Officer.


                                              FINANCIAL SECURITY ASSURANCE INC.


                                              By:
                                                 ------------------------------
                                                       Authorized Officer

                                      A-5

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Policy No.: 50895-N                         Date of Issuance: December 22, 1999

                                                                      Exhibit A
                                                               To Endorsement 1


                         NOTICE OF CLAIM AND CERTIFICATE

Financial Security Assurance Inc.
350 Park Avenue
New York, NY 10022

                  The undersigned, a duly authorized officer of The Chase
Manhattan Bank (the "Indenture Trustee"), hereby certifies to Financial Security
Assurance Inc. ("Financial Security"), with reference to Financial Guaranty
Insurance Policy No. 50895, dated December 22, 1999 (the "Policy"), issued by
Financial Security in respect of ABFS Mortgage Loan Trust 1999-4, Mortgage
Backed Notes, Series 1999-4:

         (i)      The Indenture Trustee is the Indenture Trustee under the
                  Indenture for the Holders.

         (ii)     The sum of all amounts on deposit or scheduled to be on
                  deposit) in the Note Account and available for distribution to
                  the Holders pursuant to the Indenture and the Sale and
                  Servicing Agreement will be $_______________ (the "Shortfall")
                  less than the aggregate amount of Scheduled Payments due on
                  _______________.

         (iii)    The Trustee is making a claim under the Policy for the
                  Shortfall to be applied to the payment of Scheduled Payments.

         (iv)     The Indenture Trustee agrees that, following receipt of funds
                  from Financial Security, it shall (a) hold such amounts in
                  trust and apply the same directly to the payment of
                  Scheduled Payments on the Obligations when due; (b) not
                  apply such funds for any other purpose; (c) not commingle
                  such funds with other funds held by the Indenture Trustee
                  and (d) maintain an accurate record of such payments with
                  respect to each Obligation the corresponding claim on the
                  Policy and proceeds thereof and, if the Obligation is
                  required to be surrendered for such payment, shall stamp on
                  each such Obligation the legend "$[insert applicable amount]
                  paid by Financial Security and the balance hereof has been
                  cancelled and reissued" and then shall deliver such
                  Obligation to Financial Security.

         (v)      The Indenture  Trustee,  on behalf of the Holders,  hereby
                  assigns to Financial Security the rights of the Holders with
                  respect to the Trust Estate to the extent of any payments
                  under the Policy, including, without limitation, any amounts
                  due to the Holders in respect of securities law violations
                  arising from the offer and sale of the Obligations. The
                  foregoing assignment is in addition to, and not in
                  limitation of, rights of subrogation otherwise available to
                  Financial Security in respect of such

                                      A-6

<PAGE>

Policy No.: 50895-N                         Date of Issuance: December 22, 1999

                  payments. The Indenture Trustee shall take such action and
                  deliver such instruments as may be reasonably requested or
                  required by Financial Security to effectuate the purpose or
                  provisions of this clause (v).

         (vi)     The Indenture Trustee,  on its behalf and on behalf of the
                  Holders, hereby appoints Financial Security as agent and
                  attorney-in-fact for the Indenture Trustee and each such
                  Holder in any legal proceeding with respect to the
                  Obligations. The Indenture Trustee hereby agrees that
                  Financial Security may at any time during the continuation
                  of any proceeding by or against the Seller under the United
                  States Bankruptcy Code or any other applicable bankruptcy,
                  insolvency, receivership, rehabilitation or similar law (an
                  "Insolvency Proceeding") direct all matters relating to such
                  Insolvency Proceeding, including without limitation, (A) all
                  matters relating to any claim in connection with an
                  Insolvency Proceeding seeking the avoidance as a
                  preferential transfer of any payment with respect to the
                  Obligations (a "Preference Claim"), (B) the direction of any
                  appeal of any order relating to any Preference Claim at the
                  expense of Financial Security but subject to reimbursement
                  as provided in the Insurance Agreement and (C) the posting
                  of any surety, supersedeas or performance bond pending any
                  such appeal. In addition, the Indenture Trustee hereby
                  agrees that Financial Security shall be subrogated to, and
                  the Indenture Trustee on its behalf and on behalf of each
                  Holder, hereby delegates, and assigns, to the fullest extent
                  permitted by law, the rights of the Indenture Trustee and
                  each Holder in the conduct of any Insolvency Proceeding,
                  including, without limitation, all rights of any party to an
                  adversary proceeding or action with respect to any court
                  order issued in connection with any such Insolvency
                  Proceeding.

         (vii)    Payment should be made by wire transfer directed to the
                  [SPECIFY INSURANCE ACCOUNT].

                  Unless the context otherwise requires, capitalized terms used
in this Notice of Claim and Certificate and not defined herein shall have the
meanings provided in the Policy.

                                      A-7

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Policy No.: 50895-N                         Date of Issuance: December 22, 1999

                  IN WITNESS WHEREOF, the Indenture Trustee has executed and
delivered this Notice of Claim and Certificate as of the ____ day of
___________________, _____.


                                              THE BANK OF NEW YORK
                                              as Indenture Trustee


                                              By:
                                                 -------------------------------
                                              Title:
                                                    ----------------------------



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For Financial Security or Fiscal Agent Use Only

Wire transfer sent _______________ by ____________________________

Confirmation Number ______________________________

                                       A-8