EXHIBIT 10.3

                            SERVICING TERM AGREEMENT

                         (UACSC 1999 MASTER OWNER TRUST)

     SERVICING   TERM   AGREEMENT  (as  the  same  may  be  amended,   restated,
supplemented or modified from time to time, the "Servicing Term  Agreement",  or
this  "Agreement"),  dated as of September 6, 2002 by and among UNION ACCEPTANCE
CORPORATION,  as servicer (the  "Servicer"),  WACHOVIA TRUST  COMPANY,  NATIONAL
ASSOCIATION formerly First Union Trust Company,  National Association,  as owner
trustee (the "Owner Trustee"), BNY MIDWEST TRUST COMPANY, as successor to Harris
Trust and Savings Bank, as indenture  trustee (the  "Indenture  Trustee"),  MBIA
INSURANCE  CORPORATION,  as  financial  guaranty  insurer  (the  "Insurer")  and
CANADIAN  IMPERIAL  BANK  OF  COMMERCE,   as  the   administrative   agent  (the
"Administrative Agent").

     WHEREAS, UAC Securitization Corporation, the Servicer and the Owner Trustee
are parties to the Trust and Servicing  Agreement  dated as of July 23, 1999 (as
the same may be amended, restated,  supplemented or otherwise modified from time
to time, the "Servicing Agreement");

     WHEREAS,  in  consideration  of  good  and  valuable   consideration,   the
sufficiency of which is hereby acknowledged,  the parties hereto mutually desire
to enter into the Servicing Term Agreement as hereinafter set forth.

     NOW, THEREFORE, the parties hereby agree as follows:

     SECTION  1.  Defined  Terms.  As used  in this  Agreement,  and  except  as
otherwise  provided  in this  Section 1,  capitalized  terms shall have the same
meanings assigned thereto in the Servicing Agreement.

          (a) As used  herein,  "Back-up  Servicing  Agreement"  shall  have the
     following definition:

               "Back-up  Servicing   Agreement"  shall  mean  the  agreement  or
          agreements  pursuant  to which an  entity  acceptable  to the  Insurer
          agrees to perform back-up servicing  functions as provided therein and
          to act as  successor  Servicer  under the  Servicing  Agreement  if so
          required.

     SECTION 2.  Servicing  Term.  Pursuant  to Section  13.05 of the  Servicing
Agreement,  the parties hereby consent and agree that the initial term of UAC as
Servicer shall terminate at 11:59 p.m. on September 6, 2002; provided,  however,
UAC shall act as successor  Servicer for a second term  commencing at 12:00 a.m.
on  September  7, 2002 and  terminating  at 11:59 a.m.  on October 31, 2002 (the
"Servicing  Term"),  unless such term is extended for an additional  60-day term
(such term, an "Extended Servicing Term") by a written notification  executed by
the Insurer and sent to UAC (with a copy to the Indenture  Trustee) prior to the
expiration of such Servicing Term. Any Extended  Servicing Term may be similarly
extended prior to its  expiration.  The Insurer will give the Indenture  Trustee
ten (10) days  prior  written  notice  of its  determination  not to extend  the
Servicing  Term or an Extended  Servicing  Term, in the event that the Indenture
Trustee  is to  become  the  successor  Servicer.  Upon  the  expiration  of the
Servicing  Term or any subsequent  Extended  Serving Term without  renewal,  all
rights  and  obligations  of UAC as  successor  Servicer  under the  Transaction
Documents  shall  terminate  and all  authority  and  power of UAC as  successor
Servicer shall pass to and be vested in the back-up servicer designated pursuant
to the Back-up  Servicing  Agreement or such other entity as shall be designated
by the Insurer.  UAC shall, on or before September 11, 2002 and on the date that
is three (3) Business Days from the end of each  Collection  Period,  deliver to
the Insurer a tape containing the master record of the Receivables as of the end
of the previous  Collection  Period in such form as the Insurer shall reasonably
require.  UAC  hereby  agrees to  cooperate  with the  Insurer  and the  back-up
servicer  designated  pursuant  to the  Back-up  Servicing  Agreement  or  other
successor  Servicer in  effectuating  the  complete  transfer of the  servicing,
administration and collection functions from UAC to the back-up servicer or such
other successor  Servicer in accordance with the Transaction  Documents and this
Agreement.

     SECTION 3.  Effectiveness.  This Agreement shall become effective as of the
date first written above when  counterparts  of this  Agreement  shall have been
accepted and agreed to by each of the parties hereto.

     SECTION 4. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN  ACCORDANCE  WITH  THE LAWS OF THE  STATE  OF NEW  YORK,  WITHOUT  REGARD  TO
CONFLICTS OF LAW PRINCIPLES WHICH MAY REQUIRE THE APPLICATION OF THE LAWS OF ANY
OTHER JURISDICTION.

     SECTION 5.  Severability;  Counterparts.  This Agreement may be executed in
any  number  of  counterparts  and  by  different  parties  hereto  in  separate
counterparts,  each of which when so executed  shall be deemed to be an original
and all of  which  when  taken  together  shall  constitute  one  and  the  same
instrument.   Any  provisions  of  this   Agreement   which  are  prohibited  or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability  without  invalidating the
remaining provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render  unenforceable such provision in any
other jurisdiction.

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     IN WITNESS  WHEREOF,  the parties  hereto have executed and delivered  this
Agreement as of the date first written above.


                               UNION ACCEPTANCE CORPORATION

                               By: _______________________________
                                   Name:
                                   Title:


                               WACHOVIA TRUST COMPANY,
                               NATIONAL ASSOCIATION, formerly First
                               Union Trust Company, National Association,
                               not in its individual capacity but solely on
                               behalf of the Issuer as Owner Trustee under
                               the Servicing Agreement

                               By: _______________________________
                                   Name:
                                   Title:


                               BNY MIDWEST TRUST COMPANY,
                               not in its individual capacity but solely
                               as Indenture Trustee

                               By: _______________________________
                                   Name:
                                   Title:

                               CANADIAN IMPERIAL BANK OF
                               COMMERCE

                               By: _______________________________
                                   Name:
                                   Title:

                               By: _______________________________
                                   Name:
                                   Title:


                               MBIA INSURANCE CORPORATION

                               By: _______________________________
                                   Name:
                                   Title: