<PAGE>   1


                                                                   Exhibit 10.47

                                THIRD AMENDMENT

         THIRD AMENDMENT (the "Third Amendment") dated as of December 1, 1995
to Purchase and Administration Agreement dated as of October 1, 1990, as
amended by a First Amendment dated as of February 15, 1994 and a Second
Amendment dated as of December 1, 1994 (as amended, the "Purchase and
Administration Agreement") among Retailer Funding Corporation (the "Company"),
Keyboard Acceptance Corporation (formerly BPO Finance Corporation) (the
"Seller") and Baldwin Piano & Organ Company (the "Parent") to which General
Electric Capital Corporation (GECC) has joined as a consenting party. Except as
otherwise defined herein, capitalized terms used herein and defined in the
Purchase and Administration Agreement shall be used herein as so defined.

                             W I T N E S S E T H :

         WHEREAS, the Company, the Seller and the Parent have entered into the
Purchase and Administration Agreement and now desire to amend certain of the
provisions thereof:

         NOW, THEREFORE, it is agreed:

         1. The definition of "Wind-Down Date" in Section 101 of the Purchase 
and Administration Agreement is hereby amended by deleting clause (iv) thereof 
and substituting in place therefor the following:

         "(iv) [Reserved],"

         2. The Seller hereby confirms its obligation pursuant to Section 712
of the Purchase and Administration Agreement to pay all reasonable costs and
expenses incurred by the Company or GECC in connection with the preparation,
execution and delivery of this Third Amendment, including but not limited to
the reasonable fees and expenses of counsel to the Company and GECC and any
rating agency charges in connection with this Third Amendment.

         3. This Third Amendment is limited as specified and shall not
constitute a modification, acceptance or waiver of any other provision of the
Purchase and Administration Agreement.

<PAGE>   2

         4. This Third Amendment shall become effective (the "Amendment
Effective Date") on the date on which the Company, the Seller, the Parent and
GECC shall have each executed and delivered to the other a counterpart of this
Third Amendment.

         5. From and after the Amendment Effective Date, all references to the
Purchase and Administration Agreement in the Purchase and Administration
Agreement, each of the other company Documents and each of the Seller Documents
shall be deemed to be references to the Purchase and Administration Agreement
as amended hereby.

         6. This Third Amendment may be executed on separate counterparts by
the parties hereto, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument.

         7. This Third Amendment and the rights and obligations hereunder shall
be construed in accordance with and governed by the laws of the State of New
York.

                                      -2-

<PAGE>   3

         IN WITNESS WHEREOF, each of the parties hereto has caused a
counterpart of this Third Amendment to be duly executed and delivered as of the
date first above written.

                        RETAILER FUNDING CORPORATION

                        By: /s/ R. DOUGLAS DONALDSON  
                            ------------------------------
                            Title: R. Douglas Donaldson
                                       Treasurer
                           

                        KEYBOARD ACCEPTANCE CORPORATION
                        (formerly BPO Finance Corporation)

                        By: /s/ C. R. JUENGLING
                            -------------------------------
                            Title: Vice President


                        BALDWIN PIANO & ORGAN COMPANY

                        By: /s/ C. R. JUENGLING
                            ------------------------------
                            Title: Vice President


Consented and agreed to:

GENERAL ELECTRIC CAPITAL CORPORATION,
  as Collateral Agent


By: /s/ HAROLD GOEHL
    -----------------------
    Title: Attorney-in-Fact

                                      -3-