<PAGE>



                          SALE AND SERVICING AGREEMENT



                                      among



                   TOYOTA AUTO RECEIVABLES 2003-A OWNER TRUST,
                                   as Issuer,


                      TOYOTA AUTO FINANCE RECEIVABLES LLC,
                                   as Seller,


                                       and



                        TOYOTA MOTOR CREDIT CORPORATION,
                                   as Servicer




                            Dated as of March 1, 2003



<PAGE>


<TABLE>
<CAPTION>
                                                     ARTICLE I
                                                    DEFINITIONS
<S>                   <C>                                                                                   <C>
SECTION 1.01          Definitions................................................................................1
SECTION 1.02          Usage of Terms............................................................................23


                                                     ARTICLE II
                                             CONVEYANCE OF RECEIVABLES

SECTION 2.01          Conveyance of Receivables.................................................................24
SECTION 2.02          Custody of Receivables Files..............................................................25
SECTION 2.03          Acceptance by Owner Trustee...............................................................26


                                                    ARTICLE III
                                                  THE RECEIVABLES

SECTION 3.01          Representations and Warranties of the Seller with Respect to the Receivables..............26
SECTION 3.02          Remedies..................................................................................29
SECTION 3.03          Duties of Servicer as Custodian...........................................................30
SECTION 3.04          Instructions; Authority To Act............................................................31
SECTION 3.05          Custodian's Indemnification...............................................................31
SECTION 3.06          Effective Period and Termination..........................................................31


                                                     ARTICLE IV
                                    ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01          Duties of Servicer........................................................................32
SECTION 4.02          Collection and Allocation of Receivable Payments..........................................33
SECTION 4.03          Rebates on Full Prepayments...............................................................33
SECTION 4.04          Realization upon Receivables..............................................................33
SECTION 4.05          Physical Damage Insurance.................................................................34
SECTION 4.06          Maintenance of Security Interests in Financed Vehicles....................................34
SECTION 4.07          Covenants of Servicer.....................................................................34
SECTION 4.08          Remedies..................................................................................35
SECTION 4.09          Servicing Fee and Expenses................................................................35
SECTION 4.10          Servicer's Certificate....................................................................36
SECTION 4.11          Annual Statement as to Compliance; Notice of Default......................................36
SECTION 4.12          Annual Accountants' Report................................................................36
SECTION 4.13          Access to Certain Documentation and Information Regarding Receivables.....................37
SECTION 4.14          Appointment of Subservicer................................................................37
SECTION 4.15          Amendments to Schedule of Receivables.....................................................37
SECTION 4.16          Reports to Securityholders and Rating Agencies............................................38



                                                         i


<PAGE>


                                                     ARTICLE V
                                ACCOUNTS; PAYMENTS AND DISTRIBUTIONS; STATEMENTS TO
                                                  SECURITYHOLDERS

SECTION 5.01          Establishment of Collection Account and Payahead Account..................................38
SECTION 5.02          Collections...............................................................................40
SECTION 5.03          Application of Collections................................................................41
SECTION 5.04          Advances; Swap Payments...................................................................41
SECTION 5.05          Additional Deposits.......................................................................43
SECTION 5.06          Payments and Distributions................................................................43
SECTION 5.07          Reserve Account...........................................................................47
SECTION 5.08          Revolving Liquidity Note..................................................................48
SECTION 5.09          Statements to Certificateholder, Noteholders, and Swap Counterparty.......................49
SECTION 5.10          Net Deposits..............................................................................50


                                                     ARTICLE VI
                                                     THE SELLER

SECTION 6.01          Representations of Seller.................................................................50
SECTION 6.02          Company Existence.........................................................................52
SECTION 6.03          Liability of Seller; Indemnities..........................................................52
SECTION 6.04          Merger or Consolidation of, or Assumption of the Obligations of, Seller...................53
SECTION 6.05          Limitation on Liability of Seller and Others..............................................53
SECTION 6.06          Seller May Own Certificate or Notes.......................................................54


                                                    ARTICLE VII
                                                    THE SERVICER

SECTION 7.01          Representations of Servicer...............................................................54
SECTION 7.02          Indemnities of Servicer...................................................................55
SECTION 7.03          Merger or Consolidation of, or Assumption of the Obligations of, Servicer.................56
SECTION 7.04          Limitation on Liability of Servicer and Others............................................57
SECTION 7.05          TMCC Not To Resign as Servicer............................................................57


                                                    ARTICLE VIII
                                                      DEFAULT

SECTION 8.01          Servicer Default..........................................................................58
SECTION 8.02          Appointment of Successor..................................................................59
SECTION 8.03          Repayment of Advances; Compensation Payable...............................................60
SECTION 8.04          Notification..............................................................................60


                                                     ARTICLE IX
                                                    TERMINATION

SECTION 9.01          Optional Purchase of All Receivables......................................................61
SECTION 9.02          Termination of the Trust Agreement........................................................62


                                                        ii


<PAGE>


                                                     ARTICLE X
                                                   MISCELLANEOUS

SECTION 10.01         Amendment.................................................................................62
SECTION 10.02         Protection of Title to Trust..............................................................64
SECTION 10.03         Notices...................................................................................65
SECTION 10.04         Assignment by the Seller or the Servicer..................................................66
SECTION 10.05         Limitations on Rights of Others...........................................................66
SECTION 10.06         Severability..............................................................................66
SECTION 10.07         Separate Counterparts.....................................................................66
SECTION 10.08         Headings..................................................................................66
SECTION 10.09         Governing Law.............................................................................66
SECTION 10.10         Assignment by Issuer......................................................................66
SECTION 10.11         Nonpetition Covenants.....................................................................66
SECTION 10.12         Limitation of Liability of Owner Trustee and Indenture Trustee............................67

SCHEDULE A            Schedule of Receivables.................................................................SA-1
EXHIBIT A             Form of Servicer's Certificate...........................................................A-1



                                                      iii
</TABLE>


<PAGE>


         SALE AND SERVICING AGREEMENT dated as of March 1, 2003, among TOYOTA
AUTO RECEIVABLES 2003-A OWNER TRUST, a Delaware statutory trust (the "Issuer"),
TOYOTA AUTO FINANCE RECEIVABLES LLC, a Delaware limited liability company ("TAFR
LLC" or the "Seller"), and TOYOTA MOTOR CREDIT CORPORATION, a California
corporation ("TMCC" or the "Servicer").

         WHEREAS the Issuer desires to purchase a portfolio of receivables
arising in connection with retail installment sales contracts secured by new or
used automobiles and light duty trucks generated by Toyota Motor Credit
Corporation in the ordinary course of business and sold to the Seller;

         WHEREAS the Seller is willing to sell such receivables to the Issuer;
 and

         WHEREAS the Servicer is willing to service such receivables;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, the parties hereto agree as follows:


                                   ARTICLE I

                                   DEFINITIONS

         SECTION 1.01 Definitions. Except as otherwise provided in this
Agreement, whenever used herein, the following words and phrases, unless the
context otherwise requires, shall have the following meanings:

                  "Actual Payment" means, with respect to a Receivable and a
Collection Period, all payments received by the Servicer from or for the account
of the related Obligor on such Receivable during such Collection Period (and, in
the case of the first Collection Period, all payments received by the Servicer
from or for the account of such Obligor since the Cutoff Date through the last
day of such Collection Period), net of any Supplemental Servicing Fees
attributable to such Receivable. Actual Payments do not include Applied Payments
Ahead.

                  "Actuarial Receivable" means any Receivable which provides for
the allocation of payments according to the "actuarial" method.

                  "Administration Agreement" means the Administration Agreement
dated as of March 1, 2003, among the Administrator, the Issuer, the Owner
Trustee and the Indenture Trustee.

                  "Administrative Purchase Payment" means, with respect to a
Payment Date and to (1) an Administrative Receivable which is a Precomputed
Receivable purchased by the Servicer as of the close of business on the last day
of the related Collection Period, (a) the sum of (i) all Scheduled Payments on
such Receivable due after the last day of such Collection Period, (ii) an amount
equal to any reimbursement of Outstanding Advances made pursuant to Section
5.04(c) with respect to such Receivable and (iii) all past due Scheduled
Payments for which an Advance has not been made, minus (b) all Payments Ahead
with respect to such Receivable then on




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<PAGE>


deposit in the Payahead Account and the Rebate, if any, paid to the Obligor on a
Precomputed Receivable on or before the date of such purchase and (2) an
Administrative Receivable which is a Simple Interest Receivable purchased by the
Servicer during the related Collection Period, the sum of (a) the unpaid
Principal Balance owed by the Obligor in respect of such Receivable plus (b)
interest on such unpaid Principal Balance at a rate equal to the related APR to
the last day in the related Collection Period.

                  "Administrative Receivable" means a Receivable which the
Servicer is required to purchase pursuant to Section 3.02 or 4.08 or which the
Servicer has elected to purchase pursuant to Section 9.01.

                  "Administrator" means TMCC, or any successor Administrator
under the Administration Agreement.

                  "Advance" means a Precomputed Advance or Simple Interest
Advance.

                  "Affiliate" means, with respect to any specified Person, any
other Person controlling or controlled by or under 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 term "controlling" and
"controlled" have meanings correlative to the foregoing.

                  "Aggregate Net Losses" means, with respect to a Collection
Period, an amount equal to the aggregate Principal Balance of all Receivables
that became Defaulted Receivables during such Collection Period minus the sum of
(x) all Net Liquidation Proceeds collected during such Collection Period with
respect to Defaulted Receivables and (y) all amounts received during such
Collection Period in respect of the Receivables liquidated in prior Collection
Periods net of any Liquidation Expenses incurred during such Collection Period
in connection with the recovery of such amounts.

                  "Agreement" means this Sale and Servicing Agreement among the
Toyota Auto Receivables 2003-A Owner Trust, as Issuer, TAFR LLC, as seller, and
TMCC, as servicer, as the same may be amended or supplemented from time to time.

                  "Amount Financed" in respect of a Receivable means the
aggregate amount advanced under such Receivable toward the purchase price of the
related Financed Vehicle and any related costs, including but not limited to
accessories, insurance premiums, service and warranty contracts and other items
customarily financed as part of retail automobile and light duty truck
installment sale contracts.

                  "Annual Percentage Rate" or "APR" of a Receivable means the
annual rate of finance charges specified in such Receivable.

                  "Applied Payment Ahead" means, with respect to a Precomputed
Receivable and a Collection Period as to which (a) the Actual Payment is less
than the Scheduled Payment and (b) a Deferred Prepayment is on deposit in the
Payahead Account, an amount equal to the lesser


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<PAGE>


of (i) such Deferred Prepayment and (ii) the amount by which the Scheduled
Payment exceeds the Actual Payment.

                  "Available Collections" means, with respect to any Payment
Date, the total of the following amounts received by the Servicer on or in
respect of the Receivables during (or for application with respect to) the
related Collection Period (in the case of the Precomputed Receivables, computed
in accordance with the actuarial method and in the case of the Simple Interest
Receivables, computed in accordance with the simple interest method):

                  (a) the sum of all (i) collections on or in respect of all
Receivables other than Defaulted Receivables (including Applied Payments Ahead,
but otherwise excluding Payments Ahead), (ii) Net Liquidation Proceeds, (iii)
Advances made by the Servicer, (iv) all Warranty Purchase Payments, (v) all Swap
Payments Incoming, (vi) all Swap Termination Payments made by the Swap
Counterparty to the Issuer and (vii) all Administrative Purchase Payments, less

                  (b) the sum of all (i) amounts received on or in respect of a
particular Receivable (other than a Defaulted Receivable) to the extent of the
aggregate Outstanding Advances in respect of such Receivable, (ii) Net
Liquidation Proceeds with respect to a particular Receivable to the extent of
the aggregate Outstanding Advances in respect of such Receivable, (iii)
recoveries from collections on other Receivables to the extent of Advances made
by the Servicer on a particular Receivable that the Servicer has determined are
Nonrecoverable Advances, (iv) late fees, extension fees and other administrative
fees and expenses or similar charges (which are payable to the Servicer as
Supplemental Servicing Fees) collected by the Servicer, (v) all Swap Payments
Outgoing, (vi) all Swap Termination Payments made by the Issuer to the Swap
Counterparty and (vii) Rebates.

                  "Basic Documents" means the Receivables Purchase Agreement,
the Trust Agreement, the Certificate of Trust, this Sale and Servicing
Agreement, the Indenture, the Administration Agreement, the Securities Account
Control Agreement, the Note Depository Agreement, the Revolving Liquidity Note
Agreement, the Revolving Liquidity Note and the other documents and certificates
delivered in connection herewith and therewith.

                  "Basic Servicing Fee" means the fee payable to the Servicer on
each Payment Date, calculated pursuant to Section 4.09, for services rendered
during the related Collection Period, which shall be equal to one-twelfth of the
Servicing Fee Rate multiplied by the Pool Balance as of the first day of the
related Collection Period or, with respect to the first Payment Date, the
Original Pool Balance.

                  "Book-Entry Notes" means beneficial interests in Notes,
ownership and transfer of which shall be made through book entries by a Clearing
Agency as described in the Trust Agreement and the Indenture, respectively.

                  "Business Day" means any day other than a Saturday, a Sunday
or a day on which banking institutions in New York, New York, Chicago, Illinois,
Wilmington, Delaware or San Francisco, California are authorized or obligated by
law, executive order or governmental decree to be closed.

                  "Certificate" means a certificate evidencing the Subordinated
Seller's Interest.


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<PAGE>


                  "Certificateholder" means the registered holder of the
Subordinated Seller's Interest.

                   "Charge-off Rate" means, with respect to a Collection Period,
the percentage equivalent of a fraction, the numerator of which is the Aggregate
Net Losses for such Collection Period, and the denominator of which is the
average of (i) the Pool Balance on the last day of the Collection Period
immediately preceding such Collection Period and (ii) the Pool Balance on the
last day of such Collection Period; such quotient is then multiplied by twelve
to arrive at an annualized percentage.

                  "Class" means any one of the classes of Notes.

                  "Class A Note Balance" as of any date of determination, means
the aggregate of the outstanding principal balances of the Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes and Class A-4 Notes.

                  "Class A-1 Final Scheduled Payment Date" means the Payment
Date in March 2004.

                  "Class A-1 Initial Principal Balance" means $432,500,000.

                  "Class A-1 Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of (x) the Class A-1 Interest
Distributable Amount for such Payment Date and any outstanding Class A-1
Interest Carryover Shortfall from the immediately preceding Payment Date
(together with interest on such outstanding Class A-1 Interest Carryover
Shortfall at the Class A-1 Rate, to the extent lawful, calculated on the same
basis as interest on the Class A-1 Notes for the same period), over (y) the
amount of interest distributed to the Class A-1 Noteholders on such Payment
Date.

                  "Class A-1 Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
the actual number of days in such Interest Period and a year assumed to consist
of 360 days) on the Class A-1 Principal Balance as of the immediately preceding
Payment Date (after giving effect to payments of principal made on such
immediately preceding Payment Date) at the Class A-1 Rate or, in the case of the
first Payment Date, on the Class A-1 Initial Principal Balance.

                  "Class A-1 Note" means any of the 1.17188% Asset Backed Notes,
Class A-1, issued under the Indenture.

                  "Class A-1 Noteholder" means any Person in whose name a Class
A-1 Note is registered in the Note Register.

                  "Class A-1 Principal Balance" as of any date means the Class
A-1 Initial Principal Balance less all amounts paid to the holders of Class A-1
Notes in respect of principal pursuant to Section 5.06 hereof.

                  "Class A-1 Rate" means 1.17188% per annum.



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<PAGE>


                  "Class A-2 Final Scheduled Payment Date" means the Payment
Date in August 2005.

                  "Class A-2 Initial Principal Balance" means $375,000,000.

                  "Class A-2 Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of (x) the Class A-2 Interest
Distributable Amount for such Payment Date and any outstanding Class A-2
Interest Carryover Shortfall from the immediately preceding Payment Date
(together with interest on such outstanding Class A-2 Interest Carryover
Shortfall at the Class A-2 Rate, to the extent lawful, calculated on the same
basis as interest on the Class A-2 Notes for the same period), over (y) the
amount of interest distributed to the Class A-2 Noteholders on such Payment
Date.

                  "Class A-2 Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
a 360 day year consisting of twelve 30 day months) on the Class A-2 Principal
Balance as of the immediately preceding Payment Date (after giving effect to
payments of principal made on such immediately preceding Payment Date) at the
Class A-2 Rate or, in the case of the first Payment Date, on the Class A-2
Initial Principal Balance.

                  "Class A-2 Note" means any of the 1.28% Asset Backed Notes,
Class A-2, issued under the Indenture.

                  "Class A-2 Noteholder" means any Person in whose name a Class
A-2 Note is registered in the Note Register.

                  "Class A-2 Principal Balance" as of any date means the Class
A-2 Initial Principal Balance less all amounts paid to the holders of Class A-2
Notes in respect of principal pursuant to Section 5.06 hereof.

                  "Class A-2 Rate" means 1.28% per annum.

                  "Class A-3A Final Scheduled Payment Date" means the Payment
Date in March, 2007.

                  "Class A-3A Initial Principal Balance" means $364,000,000.

                  "Class A-3A Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of (x) the Class A-3A Interest
Distributable Amount for such Payment Date and any outstanding Class A-3A
Interest Carryover Shortfall from the immediately preceding Payment Date
(together with interest on such outstanding Class A-3A Interest Carryover
Shortfall at the Class A-3A Rate, to the extent lawful, calculated on the same
basis as interest on the Class A-3A Notes for the same period), over (y) the
amount of interest distributed to the Class A-3A Noteholders on such Payment
Date.

                  "Class A-3A Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
the actual number of days in such Interest Period and a year assumed to consist
of 360 days) on the Class A-3A Principal Balance



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<PAGE>


as of the immediately preceding Payment Date (after giving effect to payments of
principal made on such immediately preceding Payment Date) at the Class A-3A
Rate or, in the case of the first Payment Date, on the Class A-3A Initial
Principal Balance.

                  "Class A-3A Note" means any of the Floating Rate Asset Backed
Notes, Class A-3A, issued under the Indenture.

                  "Class A-3A Noteholder" means any Person in whose name a Class
A-3A Note is registered in the Note Register. "Class A-3A Notional Balance"
means the Class A-3A Principal Balance as of the first day of the applicable
Interest Period.

                  "Class A-3A Notional Fixed Rate" means 1.8925%.

                  "Class A-3A Principal Balance" as of any date means the Class
A-3A Initial Principal Balance less all amounts paid to the holders of Class
A-3A Notes in respect of principal pursuant to Section 5.06 hereof.

                  "Class A-3A Rate" means with respect to any Interest Period,
LIBOR plus .02%.

                  "Class A-3B Final Scheduled Payment Date" means the Payment
Date in March, 2007.

                  "Class A-3B Initial Principal Balance" means $125,000,000.

                  "Class A-3B Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of (x) the Class A-3B Interest
Distributable Amount for such Payment Date and any outstanding Class A-3B
Interest Carryover Shortfall from the immediately preceding Payment Date
(together with interest on such outstanding Class A-3B Interest Carryover
Shortfall at the Class A-3B Rate, to the extent lawful, calculated on the same
basis as interest on the Class A-3B Notes for the same period), over (y) the
amount of interest distributed to the Class A-3B Noteholders on such Payment
Date.

                  "Class A-3B Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
a 360 day year consisting of twelve 30 day months) on the Class A-3B Principal
Balance as of the immediately preceding Payment Date (after giving effect to
payments of principal made on such immediately preceding Payment Date) at the
Class A-3B Rate or, in the case of the first Payment Date, on the Class A-3B
Initial Principal Balance.

                  "Class A-3B Note" means any of the 1.69% Asset Backed Notes,
Class A-3B, issued under the Indenture.

                  "Class A-3B Noteholder" means any Person in whose name a Class
A-3B Note is registered in the Note Register.



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<PAGE>


                  "Class A-3B Principal Balance" as of any date means the Class
A-3B Initial Principal Balance less all amounts paid to the holders of Class
A-3B Notes in respect of principal pursuant to Section 5.06 hereof.

                  "Class A-3B Rate" means 1.69% per annum.

                  "Class A-4 Final Scheduled Payment Date" means the Payment
Date in March, 2010.

                  "Class A-4 Initial Principal Balance" means $206,000,000.

                  "Class A-4 Interest Carryover Shortfall" means, with respect
to any Payment Date, the excess, if any, of (x) the Class A-4 Interest
Distributable Amount for such Payment Date and any outstanding Class A-4
Interest Carryover Shortfall from the immediately preceding Payment Date
(together with interest on such outstanding Class A-4 Interest Carryover
Shortfall at the Class A-4 Rate, to the extent lawful, calculated on the same
basis as interest on the Class A-4 Notes for the same period), over (y) the
amount of interest distributed to the Class A-4 Noteholders on such Payment
Date.

                  "Class A-4 Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
a 360 day year consisting of twelve 30 day months) on the Class A-4 Principal
Balance as of the immediately preceding Payment Date (after giving effect to
payments of principal made on such immediately preceding Payment Date) at the
Class A-4 Rate or, in the case of the first Payment Date, on the Class A-4
Initial Principal Balance.

                  "Class A-4 Note" means any of the Floating Rate Asset Backed
Notes, Class A-4, issued under the Indenture.

                  "Class A-4 Noteholder" means any Person in whose name a Class
A-4 Note is registered in the Note Register.

                  "Class A-4 Principal Balance" as of any date means the Class
A-4 Initial Principal Balance less all amounts paid to the holders of Class A-4
Notes in respect of principal pursuant to Section 5.06 hereof.

                  "Class A-4 Rate" means 2.20%.

                  "Clearing Agency" means an organization registered as a
"clearing agency" pursuant to Section 17A of the Exchange Act.

                  "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.

                  "Closing Date" means March 27, 2003.



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<PAGE>


                  "Code" means the Internal Revenue Code of 1986, as amended,
and the Treasury Regulations promulgated thereunder.

                  "Collection Account" means the account or accounts designated
as such and established and maintained pursuant to Section 5.01.

                  "Collection Period" means, with respect to any Payment Date,
the calendar month immediately preceding the month in which such Payment Date
occurs (and, in the case of the first Collection Period, the period from the
Cutoff Date through the last day of the calendar month immediately preceding the
month in which such Payment Date occurs).

                  "Commission" means the Securities and Exchange Commission, and
any successor thereto.

                  "Current Receivable" means each Receivable that is not a
Defaulted Receivable or a Liquidated Receivable.

                  "Cutoff Date" means March 1, 2003.

                  "Dealer" means the dealer of automobile and/or light duty
trucks who sold a Financed Vehicle and who originated and assigned the
Receivable relating to such Financed Vehicle to TMCC under an existing agreement
between such dealer and TMCC.

                  "Dealer Recourse" means, with respect to a Receivable, all
recourse rights against the Dealer which originated the Receivable, and any
successor Dealer.

                  "Defaulted Receivable" means a Receivable (other than an
Administrative Receivable or a Warranty Receivable) as to which (i) all or any
part of a Scheduled Payment is 150 or more days past due and the Servicer has
not repossessed the related Financed Vehicle, or (ii) the Servicer has, in
accordance with its customary servicing procedures, determined that eventual
payment in full is unlikely and either repossessed and liquidated the related
Financed Vehicle or repossessed and held the related Financed Vehicle in its
repossession inventory for 90 days, whichever occurs first.

                  "Definitive Notes" shall have the meaning ascribed thereto in
the Indenture.

                  "Deferred Prepayment" means, with respect to a Precomputed
Receivable and a Collection Period, the aggregate amount, if any, of Payments
Ahead remitted to the Servicer in respect of such Receivable during one or more
prior Collection Periods and currently held by the Servicer or in the Payahead
Account.

                  "Delinquency Percentage" means, with respect to a Collection
Period, the percentage equivalent of a fraction, the numerator of which is the
number of (i) all outstanding Receivables 60 days or more delinquent (after
taking into account permitted extensions) as of the last day of such Collection
Period (excluding Receivables as to which the Financed Vehicle has been
liquidated during that Collection Period), determined in accordance with the
Servicer's normal practices, plus (ii) all repossessed Financed Vehicles that
have not been liquidated (to the extent the related Receivable is not otherwise
reflected in clause (i) above), and the denominator


                                        8


<PAGE>


of which is the aggregate number of Current Receivables on the last day of such
Collection Period.

                  "Depositor" means the Seller in its capacity as Depositor
under the Trust Agreement.

                  "Determination Date" means, with respect to any Payment Date,
the second Business Day preceding such Payment Date.

                  "DTC" means The Depository Trust Company, and its successors.

                  "Eligible Deposit Account" means either (a) a segregated
account with an Eligible Institution or (b) a segregated trust account with the
corporate trust department of a depository institution organized under the laws
of the United States of America or any one of the states thereof or the District
of Columbia (or any domestic branch of a foreign bank), having corporate trust
powers and acting as trustee for funds deposited in such account, so long as any
of the securities of such depository institution shall have a credit rating from
each Rating Agency in one of its generic rating categories that signifies
investment grade.

                  "Eligible Institution" means (a) the corporate trust
department of the Indenture Trustee or the Owner Trustee or (b) a depository
institution organized under the laws of the United States of America or any one
of the states thereof or the District of Columbia (or any domestic branch of a
foreign bank), which (i) has either (A) a long-term unsecured debt rating of
"AA-" or better by Standard & Poor's and "Aa3" or better by Moody's or (B) an
account or accounts in which funds will be held therein for 30 days or less
which are maintained with a depository institution or trust company, the
short-term unsecured debt obligations of which are rated "A-1+" or better by
Standard & Poor's or if not rated by Standard & Poor's then otherwise approved
by Standard & Poor's and rated "P-1" or better by Moody's, or if not rated by
Moody's then otherwise approved by Moody's, and (ii) whose deposits are insured
by the FDIC. If so qualified, the Indenture Trustee or the Owner Trustee may be
considered an Eligible Institution for the purposes of clause (b) of this
definition.

                  "Eligible Investments" means, at any time, any one or more of
the following obligations and securities:

         (a) obligations of, and obligations fully guaranteed as to timely
payment of principal and interest by, the United States or any agency thereof,
provided such obligations are backed by the full faith and credit of the United
States;

         (b) general obligations of or obligations guaranteed by FNMA, or (ii)
any state of the United States, the District of Columbia or the Commonwealth of
Puerto Rico then rated the highest available credit rating of each Rating Agency
for such obligations;

         (c) certificates of deposit issued by any depository institution or
trust company (including the Indenture Trustee) incorporated under the laws of
the United States or of any state thereof, the District of Columbia or the
Commonwealth of Puerto Rico and subject to supervision and examination by
banking authorities of one or more of such jurisdictions,



                                        9


<PAGE>


provided that the short-term unsecured debt obligations of such depository
institution or trust company are then rated the highest available rating of each
Rating Agency for such obligations;

         (d) certificates of deposit, demand or time deposits of, bankers'
acceptances issued by, or federal funds sold by, any depository institution or
trust company (including the Indenture Trustee) incorporated under the laws of
the United States or any State and subject to supervision and examination by
federal and/or State banking authorities and the deposits of which are fully
insured by the Federal Deposit Insurance Corporation, so long as at the time of
such investment or contractual commitment providing for such investment either
such depository institution or trust company is an Eligible Institution (or if
such investment will mature after more than one month, the long-term, unsecured
debt of the issuer has the highest available rating from each Rating Agency) or
as to which the Indenture Trustee shall have received a letter from each Rating
Agency to the effect that such investment would not result in the qualification,
downgrading or withdrawal of the ratings then assigned to any Notes issued by
the Issuer;

         (e) certificates of deposit issued by any bank, trust company, savings
bank or other savings institution that is an Eligible Institution and is fully
insured by the FDIC (or if such investment will mature after more than one
month, the long-term, unsecured debt of the issuer has the highest available
rating from each Rating Agency);

         (f) repurchase obligations held by the Indenture Trustee that are
acceptable to the Indenture Trustee with respect to any security described in
clauses (a), (b) or (g) hereof or any other security issued or guaranteed by any
other agency or instrumentality of the United States, in either case entered
into with a federal agency or a depository institution or trust company (acting
as principal) described in clause (d) above (including the Indenture Trustee);
provided, however, that repurchase obligations entered into with any particular
depository institution or trust company (including the Indenture Trustee) will
not be Eligible Investments to the extent that the aggregate principal amount of
such repurchase obligations with such depository institution or trust company
held by the Indenture Trustee on behalf of the Noteholders or the Seller, as the
case may be, shall exceed 10% of either the Pool Balance or of the principal
balance of all the face amount of all Eligible Investments so held thereby;

         (g) securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States or any State so
long as at the time of such investment or contractual commitment providing for
such investment (i) the long-term, unsecured debt, or if such securities are
commercial paper, the short-term unsecured debt, of such corporation has the
highest available rating from each Rating Agency or (ii) the Indenture Trustee
shall have received a letter from each Rating Agency to the effect that such
investment would not result in the qualification, downgrading or withdrawal of
the ratings then assigned to any of the Notes;

         (h) money market funds so long as such funds are rated "Aaa" by Moody's
(so long as Moody's is a Rating Agency) and "AAAm" by Standard & Poor's (so long
as Standard & Poor's is a Rating Agency), including any such fund for which the
Indenture Trustee or an Affiliate thereof serves as an investment advisor,
administrator, shareholder servicing agent and/or custodian or subcustodian, and
notwithstanding that (i) such Person charges and collects fees and expenses from
such funds for services rendered, (ii) such Person charges and collects




                                       10


<PAGE>


fees and expenses for services rendered pursuant to the Trust Agreement, the
Indenture or the Securities Account Control Agreement and (iii) services
performed for such funds and pursuant to any such agreement may converge at any
time. Each of the Seller and the Servicer hereby specifically authorizes the
Indenture Trustee, Owner Trustee, Securities Intermediary or an Affiliate
thereof to charge and collect all fees and expenses from such funds for services
rendered to such funds, in addition to any fees and expenses such Person may
charge and collect for services rendered pursuant to any such Agreement; and

         (i) such other investments acceptable to each Rating Agency (as
approved in writing by each Rating Agency) as will not result in the
qualification, downgrading or withdrawal of the ratings then assigned by such
Rating Agency to any of the Notes; provided that each of the foregoing
investments shall mature no later than the Payment Date next succeeding such
investment, and shall be required to be held to such maturity.

                  None of the foregoing will be considered a Eligible Investment
                  if:

                  (1) it constitutes a certificated security, bankers'
         acceptance, commercial paper, negotiable certificate of deposit or
         other obligation that constitutes "financial assets" within the meaning
         of Section 8-102(a)(9)(c) of the UCC unless a security entitlement with
         respect to such Eligible Investment has been created, in favor of the
         Indenture Trustee or Owner Trustee, as appropriate, in accordance with
         Section 8-501(b) of the UCC and the related securities intermediary has
         agreed not to comply with entitlement orders of any secured party other
         than the Indenture Trustee, Seller or Owner Trustee, as the case may
         be; or

                  (2) it constitutes a book-entry security held through the
         Federal Reserve System pursuant to federal book-entry regulations,
         unless, in accordance with applicable law, (A) a book-entry
         registration thereof is made to an appropriate book-entry account
         maintained with a Federal Reserve Bank by the Indenture Trustee,
         Securities Intermediary or Owner Trustee, as appropriate, or by a
         custodian therefor, (B) a deposit advice or other written confirmation
         of such book-entry registration is issued to such Person, (C) any such
         custodian makes entries in its books and records identifying that such
         book-entry security is held through the Federal Reserve System pursuant
         to federal book-entry regulations and belongs to such trustee and
         indicating that such custodian holds such Eligible Investment solely as
         agent for the Indenture Trustee, Securities Intermediary or Owner
         Trustee, as appropriate, (D) the Indenture Trustee, Securities
         Intermediary or Owner Trustee, as appropriate, makes entries in its
         books and records establishing that it holds such security solely in
         such capacity, and (E) any additional or alternative procedures as may
         hereafter become necessary to effect complete transfer of ownership
         thereof to such trustee are satisfied, consistent with changes in
         applicable law or regulations or the interpretation thereof.

                  Notwithstanding anything to the contrary contained in this
definition, no Eligible Investment may be purchased at a premium and no Eligible
Investment shall be an "interest only" instrument.



                                       11


<PAGE>


                  For purposes of this definition, any reference to the highest
available credit rating of an obligation shall mean the highest available credit
rating for such obligation (excluding any "+" signs associated with such
rating), or such lower credit rating (as approved in writing by each Rating
Agency) as will not result in the qualification, downgrading or withdrawal of
the rating then assigned by such Rating Agency to any of the Notes. Also for
purposes of this definition, any reference to a Rating Agency refers only to a
Rating Agency that has, at the request of TMCC, rated the Notes.

                  "Event of Default" shall have the meaning specified in the
Indenture.

                  "Excess Payment" means, with respect to a Receivable and a
Collection Period, the amount, if any, by which the Actual Payment exceeds the
sum of (i) the Scheduled Payment, and (ii) any Overdue Payment.

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

                  "FDIC" means the Federal Deposit Insurance Corporation, and
its successors.

                  "FNMA" means the Federal National Mortgage Association, and
its successors.

                  "Financed Vehicle" means, with respect to a Receivable, the
related automobile or light duty truck, as the case may be, together with all
accessions thereto, securing the related Obligor's indebtedness under such
Receivable.

                  "Holder" or "Securityholder" means the registered holder of a
Note as evidenced by the Note Register or the Certificateholder, as the case may
be, except that, solely for the purposes of giving certain consents, waivers,
requests or demands pursuant to the Trust Agreement or the Indenture, the
interest evidenced by the Certificate or any Note registered in the name of TAFR
LLC or TMCC, or any Person actually known to a Trust Officer of the Owner
Trustee or the Indenture Trustee to be controlling, controlled by or under
common control with TAFR LLC or TMCC, shall not be taken into account in
determining whether the requisite percentage necessary to effect any such
consent, waiver, request or demand shall have been obtained.

                  "Indenture" means the Indenture dated as of March 1, 2003,
between the Issuer and the Indenture Trustee.

                  "Indenture Trustee" means the Person acting as Indenture
Trustee under the Indenture, its successors in interest and any successor
trustee under the Indenture.

                  "Insolvency Event" means, with respect to a specified Person,
(a) the filing of a decree or order for relief by a court having jurisdiction in
the premises in respect of such Person or any substantial part of its property
in an involuntary case under any applicable federal or state bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official for such Person or for any substantial part of its property, or
ordering the winding-up or liquidation of such Person's affairs, and such decree
or order shall remain unstayed and in effect for a period of 60 consecutive
days; or (b) the commencement by such Person of a voluntary case under any
applicable federal or



                                       12


<PAGE>


state bankruptcy, insolvency or other similar law now or hereafter in effect, or
the consent by such Person to the entry of an order for relief in an involuntary
case under any such law, or the consent by such Person to the appointment of or
taking possession by a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of
its property, or the making by such Person of any general assignment for the
benefit of creditors, or the failure by such Person generally to pay its debts
as such debts become due, or the taking of action by such Person in furtherance
of any of the foregoing.

                  "Insurance Policy" means, with respect to a Receivable, an
insurance policy covering physical damage, credit life, credit disability,
theft, mechanical breakdown or similar event relating to the related Financed
Vehicle or Obligor.

                  "Interest Determination Date" means the second London Banking
Day prior to the Interest Reset Date for the related Interest Period.

                  "Interest Period" with respect to any Payment Date and (i) the
Class A-1 and Class A-3A Notes means the period from (and including) a Payment
Date to (but excluding) the next Payment Date, except that the first interest
accrual period will be from (and including) the Closing Date to (but excluding)
April 15, 2003; and (ii) the Class A-2, Class A-3B and Class A-4 Notes means the
period from (and including) the 15th day of each calendar month to (but
excluding) the 15th day of the succeeding calendar month, except that the first
interest accrual period will be from (and including) the Closing Date to (but
excluding) April 15, 2003.

                  "Interest Rate Swap Agreement" means the 1992 ISDA Master
Agreement dated as of March 27, 2003, including all schedules and confirmations
thereto, between the Issuer and the Swap Counterparty, as the same may be
amended, supplemented, renewed, extended or replaced from time to time.

                  "Interest Reset Date" means, with respect to the Class A-3A
Notes, the first day of the applicable Interest Period.

                  "Investment Company Act" means the Investment Company Act of
1940, as amended.

                  "Issuer" means Toyota Auto Receivables 2003-A Owner Trust.

                  "LIBOR" means the rate for deposits in U.S. dollars for a
one-month period which appears on the Telerate Page 3750 as of 11:00 a.m.,
London time, on the Interest Determination Date; provided that, the following
procedures will be followed if LIBOR cannot be determined as described above:

                  (a) With respect to an Interest Determination Date on which no
rate appears on Telerate Page 3750, LIBOR for the applicable Interest
Determination Date will be the rate calculated by the Calculation Agent (as
defined in the Interest Rate Swap Agreement) as the arithmetic mean of at least
two quotations obtained by the Calculation Agent after requesting the principal
London offices of each of four major reference banks in the London interbank
market, which may include the Calculation Agent and its affiliates, as selected
by the Calculation Agent, to provide the Calculation Agent with its offered
quotation for deposits in U.S. dollars for a one-



                                       13


<PAGE>


month period, commencing on the second London Banking Day immediately following
the applicable Interest Determination Date, to prime banks in the London
interbank market at approximately 11:00 a.m., London time, on such Interest
Determination Date and in a principal amount that is representative for a single
transaction in U.S. dollars in that market at that time. If at least two such
quotations are provided, LIBOR determined on the applicable Interest
Determination Date will be the arithmetic mean of the quotations.

                  (b) If fewer than two quotations referred to in clause (a)
above are provided, LIBOR determined on the applicable Interest Determination
Date will be the rate calculated by the Calculation Agent as the arithmetic mean
of the rates quoted at approximately 11:00 a.m. in New York on the applicable
Interest Determination Date by three major banks, which may include the
Calculation Agent and its affiliates, in New York, selected by the Calculation
Agent for loans in U.S. dollars to leading European banks, having a maturity of
one-month and in a principal amount that is representative for a single
transaction in U.S. dollars in that market at that time.

                  (c) If the banks so selected by the Calculation Agent are not
quoting as mentioned in clause (b) above, LIBOR for the applicable Interest
Determination Date will be LIBOR in effect on the applicable Interest
Determination Date.

                  "Lien" means any security interest, lien, charge, pledge,
equity or encumbrance of any kind other than tax liens, mechanics' liens and any
liens that attach to a Receivable or any property, as the context may require,
by operation of law.

                  "Liquidated Receivable" means a Receivable that (i) has been
the subject of a Prepayment in full, or (ii) has been paid in full or as to
which the Servicer has determined that the final amounts in respect of such
payment have been paid with respect to a Defaulted Receivable, regardless of
whether all or any part of such payment has been made by the Obligor under such
Receivable, the Seller pursuant to this Agreement, the Servicer pursuant to this
Agreement or pursuant to the Receivables Purchase Agreement, an insurer pursuant
to an Insurance Policy or otherwise.

                  "Liquidation Expenses" means, with respect to a Defaulted
Receivable, the amount charged by the Servicer, in accordance with its customary
servicing procedures, to or for its account for repossessing, refurbishing and
disposing of the related Financed Vehicle and other out-of-pocket costs related
to such liquidation.

                  "Liquidation Proceeds" means, with respect to a Defaulted
Receivable, all amounts realized with respect to such Receivable from whatever
sources (including, without limitation, proceeds of any Insurance Policy), net
of amounts that are required by law or such Receivable to be refunded to the
related Obligor.

                   "London Banking Day" means any day on which commercial banks
in London are open for general business (including dealings in foreign exchange
and foreign currency deposits).

                  "Monthly Remittance Conditions" means, collectively, (i) TMCC
is the Servicer, (ii) either (a) TMCC's short-term unsecured debt is rated P-1
by Moody's and A-1 by Standard





                                       14


<PAGE>


& Poor's (so long as Moody's and Standard & Poor's are Rating Agencies), or (b)
certain arrangements are made that are acceptable to the Rating Agencies and
(iii) no Event of Default or Servicer Default shall have occurred and be
continuing (unless waived by the appropriate Noteholders).

                  "Moody's" means Moody's Investors Service, or its successor.

                  "Net Liquidation Proceeds" means, with respect to a Defaulted
Receivable, Liquidation Proceeds less Liquidation Expenses.

                  "Nonrecoverable Advance" means any Outstanding Advance as to
which the Servicer determines that any recovery from payments made on or with
respect to such Receivable is unlikely; provided that the Servicer cannot deem
any Outstanding Advance made at the option of the Servicer pursuant to Section
4.02 to be a Nonrecoverable Advance unless it delivers to the Indenture Trustee
and Owner Trustee an Officer's Certificate to the effect that such Outstanding
Advance, when made, was reasonably likely to be reimbursed from collections in
respect of interest on the related Receivable representing interest accrued on
such Receivable at the related APR less the Servicing Fee Rate.

                  "Note" means a Class A-1 Note, a Class A-2 Note, a Class A-3A
Note, a Class A-3B Note or a Class A-4 Note.

                  "Note Depository Agreement" has the meaning assigned in the
Indenture.

                  "Note Owner" has the meaning assigned in the Indenture.

                  "Note Pool Factor" means, with respect to each Class of Notes
as of the close of business on any Payment Date, a seven-digit decimal figure
equal to the outstanding principal balance of such Class of Notes (after giving
effect to any reductions thereof to be made on such Payment Date) divided by the
original outstanding principal balance of such Class of Notes. The Note Pool
Factor for each Class of Notes will be 1.0000000 as of the Closing Date;
thereafter, the related Note Pool Factor will decline to reflect reductions in
the outstanding principal balance of such Class of Notes.

                  "Note Register" means the register maintained by the Indenture
Trustee pursuant to the Indenture recording the name of each registered Holder
of a Note.

                  "Noteholder" means any Holder of a Note.

                  "Noteholders' Percentage" for any Payment Date means
95.82916440%, except that on the Payment Date following (a) the cessation of a
period during which either the Specified Delinquency Percentage or Specified
Charge-off Rate Percentage exceeded 2.25% or (b) the rescission of an
acceleration of the Notes after an Event of Default, the Noteholders' Percentage
is the lesser of (x) the percentage equivalent of a fraction the numerator of
which is the aggregate of the outstanding principal balances of the Class A-2,
Class A-3A, Class A-3B and Class A-4 Notes as of the Payment Date (prior to
making any distributions on such Payment Date) and the denominator of which is
the Pool Balance as of the last day of the related Collection Period and (y) the
Noteholders' Percentage for the previous Payment Date.



                                       15


<PAGE>


                  "Obligor" on a Receivable means the purchaser or co-purchasers
of the related Financed Vehicle purchased in part or in whole by the execution
and delivery of such Receivable or any other Person who owes or may be liable
for payments under such Receivable.

                  "Officer's Certificate" means a certificate signed by the
President, any Vice President, the chief financial officer, the chief accounting
officer, the Treasurer or any Assistant Treasurer, or the Secretary or any
Assistant Secretary of the Issuer, the Seller or the Servicer, as the case may
be.

                  "Opinion of Counsel" means one or more written opinions of
counsel who may, except as otherwise provided herein, be an employee of or
counsel to the Issuer, the Seller or the Servicer, which counsel shall be
acceptable to the Indenture Trustee, the Owner Trustee or the Rating Agencies,
as the case may be.

                  "Optional Purchase Percentage" means 10%.

                  "Optional Purchase Price" means an amount equal to the
aggregate Administrative Purchase Payments for the Receivables (including
Receivables that became Defaulted Receivables in the Collection Period preceding
the Payment Date on which that purchase is effected), plus the appraised value
of any other property held by the Trust, such value to be determined by an
appraiser mutually agreed upon by the Servicer, the Owner Trustee and the
Indenture Trustee, and shall succeed to all interests in and to the Trust (less
liquidated expenses); provided, however, that the Optional Purchase Price shall
be equal to or greater than the Outstanding Amount plus all accrued and unpaid
interest on each Class of Notes (including, without duplication, any Class A-1
Interest Carryover Shortfall, Class A-2 Interest Carryover Shortfall, Class A-3A
Interest Carryover Shortfall, Class A-3B Interest Carryover Shortfall or Class
A-4 Interest Carryover Shortfall) through the Payment Date on which the Owner
Trust Estate is to be purchased by the Servicer, or successor to the Servicer
plus any amounts payable by the Issuer to the Swap Counterparty under the
Interest Rate Swap Agreement and any amounts due to Toyota Motor Credit
Corporation under the Revolving Liquidity Note.

                  "Original Pool Balance" means $1,549,070,312.

                  "Outstanding Advances" means, with respect to a Receivable and
the last day of a Collection Period, the sum of all Advances made as of or prior
to such date, minus all payments or collections as of or prior to such date
which are specified in Section 5.04(b) as applied to reimburse all unpaid
Advances with respect to such Receivable.

                  "Outstanding Amount" means the aggregate principal amount of
all Notes, or, if indicated by the context, all Notes of any Class, outstanding
at the date of determination.

                  "Overdue Payment" means, with respect to any Receivable (other
than an Administrative Receivable or a Warranty Receivable), payments made by or
on behalf of the Obligor which are not Supplemental Servicing Fees and therefor
shall be applied first to reimburse the Servicer for Outstanding Advances made
with respect to such Receivable pursuant to Section 5.03(a).



                                       16


<PAGE>


                  "Owner Trust Estate" means all right, title and interest of
the Trust in and to the property and rights assigned to the Trust pursuant to
Article II of this Agreement, all funds on deposit from time to time in the
accounts created pursuant to Section 5.01 of this Agreement (excluding any net
investment income with respect to amounts held in such accounts) and all other
property of the Trust from time to time, including any rights of the Owner
Trustee and the Trust pursuant to this Agreement and the Administration
Agreement, rights of the Owner Trustee and the Trust pursuant to the Revolving
Liquidity Note Agreement and Revolving Liquidity Note, and as assignee of the
rights and interests of the Depositor under the Receivables Purchase Agreement.

                  "Owner Trustee" means U.S. Bank Trust National Association,
not in its individual capacity but solely as Owner Trustee under the Trust
Agreement, or any successor Owner Trustee under the Trust Agreement.

                  "Payahead Account" means the account or accounts designated as
such and established and maintained pursuant to Section 5.01.

                  "Payment Ahead" means, with respect to a Precomputed
Receivable and a Collection Period, any Excess Payment not representing
prepayment in full of such Precomputed Receivable which the Servicer, in
accordance with its customary servicing practices, will apply towards the
payment of Scheduled Payments in one or more future Collection Periods.

                  "Payment Date" means, with respect to a Collection Period, the
fifteenth calendar day of the following calendar month, or if such day is not a
Business Day, the next succeeding Business Day, commencing April 15, 2003.

                  "Person" means any legal person, including any individual,
corporation, partnership, limited liability company, joint venture, association,
joint stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.

                  "Pool Balance" means, as of any date, the aggregate Principal
Balance of the Receivables (exclusive of all Administrative Receivables for
which the Servicer has paid the Administrative Purchase Payment, Warranty
Receivables for which the Seller has paid the Warranty Purchase Payment and
Defaulted Receivables) as of the close of business on such date.

                  "Pool Factor" as of any Payment Date, means a seven-digit
decimal figure equal to the Pool Balance as of such Payment Date divided by the
Original Pool Balance.

                  "Precomputed Advance" means an advance in respect of principal
or interest on a Precomputed Receivable in the amount determined as set forth in
Section 5.04(a).

                  "Precomputed Receivable" means any Actuarial Receivable or
Rule of 78s Receivable.

                  "Prepayment" means (i) with respect to any Precomputed
Receivable and any Collection Period, any prepayment in full or Excess Payment
which the Servicer, in accordance with its customary servicing practices, will
apply towards the payment of Scheduled Payments due during or prior to such
Collection Period or (ii) with respect to any Simple Interest




                                       17


<PAGE>


Receivable, any prepayment, whether in part or in full, in respect of such
Simple Interest Receivable.

                  "Principal Balance" means, with respect to any Receivable as
of any date, the Amount Financed minus the sum of the following amounts: (i) in
the case of a Precomputed Receivable, that portion of all Scheduled Payments due
on or prior to such date allocable to principal, computed in accordance with the
actuarial method, (ii) in the case of a Simple Interest Receivable, that portion
of all Scheduled Payments actually received on or prior to such date allocable
to principal, (iii) any Warranty Purchase Payment or Administrative Purchase
Payment with respect to such Receivable allocable to principal, and (iv) any
Prepayments or other payments applied to reduce the unpaid principal balance of
such Receivable. The Principal Balance of a Defaulted Receivable is zero.

                  "Principal Distribution Amount" means, with respect to any
Payment Date, an amount equal to the excess, if any, of (a) the Pool Balance as
of the end of the Collection Period preceding the related Collection Period, or,
as of the Cutoff Date, in the case of the first Collection Period, over (b) the
Pool Balance as of the end of the related Collection Period together with any
portion of the Principal Distribution Amount that would have been required to be
paid pursuant to Section 5.06(c)(iii) on any prior Payment Date had there been
sufficient funds available therefor; provided, however, that (i) the Principal
Distribution Amount on the Class A-1 Final Scheduled Payment Date shall not be
less than the amount that is necessary to reduce the outstanding principal
amount of the Class A-1 Notes to zero; (ii) the Principal Distribution Amount on
the Class A-2 Final Scheduled Payment Date shall not be less than the amount
that is necessary to reduce the outstanding principal amount of the Class A-2
Notes to zero; (iii), the Principal Distribution Amount on the Class A-3A Final
Scheduled Payment Date shall not be less than the amount that is necessary to
reduce the outstanding principal amount of the Class A-3A Notes to zero; (iv)
the Principal Distribution Amount on the Class A-3B Final Scheduled Payment Date
shall not be less than the amount that is necessary to reduce the outstanding
principal amount of the Class A-3B Notes to zero and (v) the Principal
Distribution Amount on the Class A-4 Final Scheduled Payment Date shall not be
less than the amount that is necessary to reduce the outstanding principal
amount of the Class A-4 Notes to zero.

                  "Rating Agency" means either or each of Moody's and Standard &
Poor's, as indicated by the context.

                  "Rebate" means, with respect to a Precomputed Receivable and
any date, the rebate, calculated on an actuarial basis, under such Precomputed
Receivable that is or would be payable to the related Obligor for unearned
finance charges or any other charges subject to rebate if such Obligor were to
prepay such Receivable in full on such date.

                  "Receivable" means any retail installment sale contract
executed by an Obligor in respect of a Financed Vehicle, and all proceeds
thereof and payments thereunder, which Receivable shall be identified in the
Schedule of Receivables.

                  "Receivable File" means the documents specified in Section
2.02 pertaining to a particular Receivable.



                                       18


<PAGE>


                  "Receivables Purchase Agreement" means that certain
Receivables Purchase Agreement, dated as of March 1, 2003, between the Seller
and TMCC.

                  "Record Date" means, with respect to the Notes of any Class
and each Payment Date, the calendar day immediately preceding such Payment Date
or, if Definitive Notes representing any Class of Notes have been issued, the
last day of the month immediately preceding the month in which such Payment Date
occurs. Any amount stated "as of a Record Date" or "on a Record Date" shall give
effect to (i) all applications of collections, and (ii) all payments and
distributions to any party under this Agreement, the Indenture and the Trust
Agreement or to the related Obligor, as the case may be, in each case as
determined as of the opening of business on the related Record Date.

                  "Recoveries" means, with respect to any Receivable that
becomes a Liquidated Receivable, monies collected in respect thereof, from
whatever source, during any Collection Period following the Collection Period in
which such Receivable became a Liquidated Receivable, net of the sum of any
amounts expended by the Servicer for the account of the Obligor and any amounts
required by law to be remitted to the Obligor.

                  "Released Administrative Amount" means, with respect to a
Payment Date and to an Administrative Receivable, the Deferred Prepayment, if
any, for such Administrative Receivable.

                  "Released Warranty Amount" means, with respect to a Payment
Date and to a Warranty Receivable, the Deferred Prepayment, if any, for such
Warranty Receivable.

                  "Relevant Trustee" means (i) with respect to the control over
or appropriate designation denoting ownership or control over any property
comprising a portion of the Owner Trust Estate (as defined in the Trust
Agreement) that either is not conveyed or pledged to the Indenture Trustee for
the benefit of the Noteholders and Certificateholder pursuant to the Granting
Clause of the Indenture or that has been released from the lien of the
Indenture, the Owner Trustee, and (ii) with respect to any property comprising a
portion of the Trust Estate (as defined in the Indenture) that has not been
released from the lien of the Indenture, the Indenture Trustee; provided,
however, that with respect to any property that is under the joint or separate
control of a co-trustee or separate trustee under the Trust Agreement or the
Indenture, respectively, "Relevant Trustee" shall refer to either or both of the
Owner Trustee and such co-trustee or separate trustee or to either or both of
the Indenture Trustee and such co-trustee or separate trustee, as the case may
be.

                  "Reserve Account" means the account designated as such,
established and maintained pursuant to Section 5.07.

                  "Revolving Liquidity Note" means the Revolving Liquidity Note
issued pursuant to the Revolving Liquidity Note Agreement.

                  "Revolving Liquidity Note Agreement" means that certain
Revolving Liquidity Note Agreement, dated as of March 27, 2003, between TMCC and
the Trust.



                                       19


<PAGE>


                  "Rule of 78s Receivable" means any Receivable which provides
for the allocation of payments according to the "sum of periodic balances" or
"sum of monthly payments" method.

                  "Schedule of Receivables" means the schedule of receivables
attached as Schedule A to this Agreement, as it may be amended from time to
time.

                  "Scheduled Payment" means, with respect to any Payment Date
and to a Receivable, the payment set forth in such Receivable as due from the
Obligor in the related Collection Period; provided, however, that in the case of
the first Collection Period, the Scheduled Payment shall include all such
payments due from the Obligor on or after the Cutoff Date.

                  "Securities Account Control Agreement" means the Securities
Account Control Agreement dated March 1, 2003, among the Seller, The Bank of New
York, as Securities Intermediary thereunder, and The Bank of New York, as
Indenture Trustee, pursuant to which the Reserve Fund will be established and
maintained.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Securityholder" see the definition of "Holder."

                  "Seller" means TAFR LLC, and its successors in interest to the
extent permitted hereunder.

                  "Servicer" means TMCC, as the servicer of the Receivables, and
each successor to TMCC (in the same capacity) pursuant to Section 7.03 or 8.02.

                  "Servicer's Certificate" means an Officer's Certificate of the
Servicer delivered pursuant to Section 4.10, substantially in the form attached
hereto as Exhibit A.

                  "Servicer Default" means an event specified in Section 8.01.

                  "Servicing Fee Rate" means 1.00% per annum.

                  "Simple Interest Advance" means an advance in respect of
interest on any Simple Interest Receivable in the amount determined as set forth
in Section 5.04(a).

                  "Simple Interest Method" means the method of allocating a
fixed level payment to principal and interest, pursuant to which the portion of
such payment that is allocated to interest is equal to the product of the fixed
rate of interest multiplied by the unpaid principal balance multiplied by the
period of time elapsed since the preceding payment of interest was made and the
remainder of such payment is allocable to principal.

                  "Simple Interest Receivable" means any Receivable which
provides for the allocation of payments according to the simple interest method.

                  "Specified Charge-off Rate Percentage" means on any Payment
Date the average of the Charge-off Rates for the three preceding Collection
Periods.



                                       20


<PAGE>


                  "Specified Delinquency Percentage" means on any Payment Date
the average of the Delinquency Percentages for the three preceding Collection
Periods.

                  "Specified Reserve Account Balance" means with respect to any
Payment Date zero, except (i) for any Payment Date on which the conditions set
forth in Section 5.08(b) require deposits into the Reserve Account, in which
case the Specified Reserve Account Balance shall be $7,745,352 (0.50% of the
original outstanding Principal Balance of the Receivables as of the Cutoff
Date), or, (ii) if either the Specified Delinquency Percentage or the Specified
Charge-off Rate Percentage exceeds 2.25% on any Payment Date, the Specified
Reserve Account Balance shall be (A) the greater of (a) $7,745,352 (0.50% of the
outstanding principal balance of the Receivables as of the Cutoff Date) and (b)
3.50% of the Class A Note Balance as of such Payment Date (after giving effect
to any principal payments made on the Notes on such Payment Date), less (B) so
long as none of the events described in the second paragraph of Section 5.08(b)
has occurred, an amount equal to the principal balance of the Revolving
Liquidity Note that has not been drawn (plus any portion thereof drawn but
reimbursed) on or prior to such date of determination; provided further, that
(x) if the circumstances described in clauses (i) and (ii) are both applicable,
the provisions of clause (ii) shall apply and (y) the Specified Reserve Balance
with respect to any date shall not exceed the sum of the Class A Note Balance as
of the preceding Payment Date (after giving effect to any principal payments
made on the Notes on such preceding Payment Date).

                  "Standard & Poor's" means Standard & Poor's, a Division of
The McGraw-Hill Companies, Inc., and its successors.

                  "Subordinated Seller's Interest" means the undivided interest
in the Trust evidenced by the certificate issued pursuant to Section 3.02 of the
Trust Agreement that includes the right to receive (to the extent of amounts
available therefor) payments of principal pursuant to Section 5.06(c)(vii) and
of certain additional amounts pursuant to Section 5.06(c)(viii) and Section
5.06(d)(vi) herein. The Subordinated Seller's Interest shall be deemed to have a
principal balance of $46,570,312 as of the Closing Date, which will be reduced
by amounts distributed in respect of the Subordinated Seller's Interest pursuant
to Section 5.06(c)(vii) as described herein.

                  "Subordinated Seller's Interest  Percentage" for any Payment
Date is 100% minus the Noteholders' Percentage for such Payment Date.

                  "Successor Servicer" means any entity appointed as a successor
to the Servicer pursuant to Section 8.02.

                  "Supplemental Servicing Fee" means, with respect to any
Payment Date, all late fees, prepayment charges, extension fees and other
administrative fees and expenses or similar charges allowed by applicable law
with respect to the Receivables received by the Servicer during the related
Collection Period.

                  "Swap Counterparty" shall mean Toyota Motor Credit
Corporation, as swap counterparty under the Interest Rate Swap Agreement, or any
successor or replacement swap counterparty from time to time under the Interest
Rate Swap Agreement.






                                       21


<PAGE>


                  "Swap Event of Default" means (i) the failure of the Issuer or
the Swap Counterparty to pay any amount when due under the Interest Rate Swap
Agreement after giving effect to any applicable grace period; (ii) the
occurrence of certain events of insolvency or bankruptcy of the Issuer or the
Swap Counterparty as specified in the Interest Rate Swap Agreement and (iii)
certain other standard events of default under the 1992 ISDA Master Agreement as
specified in the Interest Rate Swap Agreement including "Breach of Agreement"
(not applicable to the Issuer), "Misrepresentation" (not applicable to the
Issuer) and "Merger without Assumption," as described in Sections 5(a)(ii),
5(a)(iv) and 5(a)(viii) of the 1992 ISDA Master Agreement.

                  "Swap Payments Incoming" means on any Payment Date the net
amount, if any, then payable by a Swap Counterparty to the Issuer, excluding any
Swap Termination Payments.

                  "Swap Payments Outgoing" means on any Payment Date the net
amount, if any, then payable by the Issuer to the Swap Counterparty, excluding
any Swap Termination Payments.

                  "Swap Termination Event" means (i) certain events of
insolvency of bankruptcy of the Issuer or the Swap Counterparty as specified in
the Interest Rate Swap Agreement; (ii) any Event of Default under the Indenture
that results in the acceleration of the Notes or involving an uncured payment
default; (iii) the Issuer or Swap Counterparty becomes subject to registration
as an "investment company" under the Investment Company Act of 1940; and (iv)
certain standard termination events under the 1992 ISDA Master Agreement as
specified in the Interest Rate Swap Agreement including "Illegality," "Tax
Event" and "Tax Event Upon Merger," each as more fully described in Sections
5(b)(i), 5(b)(ii) and 5(b)(iii) of the 1992 ISDA Master Agreement.

                   "Swap Termination Payment" means any termination payment
payable by the Issuer to the Swap Counterparty or by the Swap Counterparty to
the Issuer under the Interest Rate Swap Agreement.

                  "TAFR LLC" means Toyota Auto Finance Receivables LLC, a
Delaware limited liability company, or its successors.

                   "TMCC" means Toyota Motor Credit Corporation, a California
corporation, and its successors and assigns.

                  "Total Servicing Fee" means the sum of the Basic Servicing Fee
and the Supplemental Servicing Fee.

                  "Trust" means the Issuer.

                  "Trust Agreement" means the Trust Agreement dated as of
February 24, 2003, as amended by the Amended and Restated Trust Agreement dated
as of March 1, 2003, by and between the Seller and the Owner Trustee.

                  "Trust Estate" means all money, instruments, rights and other
property that are subject or intended to be subject to the lien and security
interest of this Indenture for the benefit


                                       22


<PAGE>


of the Noteholders (including, without limitation, all property and interests
granted to the Indenture Trustee pursuant to the granting clause of the
Indenture), including all proceeds thereof.

                  "Trust Officer" means, in the case of the Indenture Trustee,
any officer within the Corporate Trust Office of the Indenture Trustee,
including any Vice President, Assistant Vice President, Secretary, Assistant
Secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject and, with respect to the Owner Trustee, any officer in the
Corporate Trust Administration Department of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement and the Basic
Documents on behalf of the Owner Trustee.

                  "UCC" means the Uniform Commercial Code as in effect in the
relevant jurisdiction.

                  "United States" means the United States of America.

                  "Warranty Purchase Payment" means, with respect to a Payment
Date and to (1) a Warranty Receivable which is a Precomputed Receivable
repurchased by the Seller as of the close of business on the last day of the
related Collection Period, (a) the sum of (i) all Scheduled Payments on such
Receivable due after the last day of such Collection Period, (ii) all past due
Scheduled Payments for which an Advance has not been made, (iii) an amount equal
to any reimbursement of Outstanding Advances made pursuant to Section 5.04(b)
with respect to such Receivable and (iv) an amount equal to all other
Outstanding Advances made pursuant to Section 5.04(c) with respect to such
Receivable, minus (b) the sum of (i) the Rebate, if any, paid to the Obligor on
a Precomputed Receivable on or before the date of such purchase (except to the
extent specified in Section 4.03) and (ii) any other proceeds in respect of such
Receivable received during any Collection Period prior to or during such
Collection Period (to the extent applied to reduce the Principal Balance of such
Receivable on such Payment Date), and (2) a Warranty Receivable which is a
Simple Interest Receivable repurchased by the Seller as of the close of business
on the last day of the related Collection Period, the sum of (a) the unpaid
principal balance owed by the Obligor in respect of such Receivable plus (b)
interest on such unpaid principal balance at a rate equal to the related APR to
the last day in the related Collection Period.

                  "Warranty Receivable" means a Receivable which the Seller is
required to repurchase pursuant to Section 4.08.

         SECTION 1.02 Usage of Terms. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments thereto or changes therein entered into in accordance with
their respective terms and not prohibited by this Agreement; references to
Persons include their permitted successors and assigns; and the term "including"
means "including without limitation."


                                       23


<PAGE>


                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES

         SECTION 2.01 Conveyance of Receivables. (a) Upon the execution of this
Agreement by the parties hereto, the Seller, pursuant to the mutually agreed
upon terms contained in this Agreement, shall sell, transfer, assign and
otherwise convey to the Issuer, without recourse (but subject to the Seller's
obligations in this Agreement), all of its right, title and interest in and to
the Receivables and any proceeds related thereto, including any Dealer Recourse
and such other items as shall be specified in this Agreement. Concurrently
therewith and in exchange therefor, the Issuer shall deliver to, or to the order
of, the Seller the Notes and the Certificate.

         (b) In consideration of the foregoing and other good and valuable
consideration to be delivered to the Seller hereunder, on behalf of the Issuer,
the Seller does hereby sell, transfer, assign and otherwise convey to the
Issuer, in trust for the benefit of the Certificateholder, without recourse
(subject to the Seller's obligations herein):

                  (i) all right, title and interest of the Seller in and to the
         Receivables and all monies due thereon or paid thereunder or in respect
         thereof (including proceeds of the repurchase of Receivables by the
         Seller pursuant to Section 3.02 or the purchase of Receivables by the
         Servicer pursuant to Section 4.08 or 9.01) on or after the Cutoff Date;

                  (ii)     the interest of the Seller in the security interests
         in the Financed Vehicles granted by the Obligors pursuant to the
         Receivables and any accessions thereto;

                  (iii) the interest of the Seller in any proceeds of any
         physical damage insurance policies covering Financed Vehicles and in
         any proceeds of any credit life or credit disability insurance policies
         relating to the Receivables or the Obligors;

                  (iv)     the interest of the Seller in any Dealer Recourse;

                  (v) the right of the Seller to realize upon any property
         (including the right to receive future Liquidation Proceeds) that shall
         have secured a Receivable and have been repossessed pursuant to the
         terms thereof;

                  (vi)     the rights and interests of the Seller under the
         Receivables Purchase Agreement;

                  (vii) all other assets comprising the Owner Trust Estate
         (other than the Revolving Liquidity Note and Revolving Liquidity Note
         Agreement, which are assets of the Owner Trust Estate but are not sold
         by the Seller);

                  (viii)   all proceeds of the foregoing; and

                  (ix) all present and future claims, demands, causes of action
         and choses in action in respect of any or all of the foregoing and all
         payments on or under of every kind and nature whatsoever in respect of
         any or all of the foregoing, including all proceeds of the conversion
         thereof, voluntary or involuntary, into cash or other liquid property,
         all cash



                                       24


<PAGE>


         proceeds, accounts, accounts receivable, notes, drafts, acceptances,
         chattel paper, checks, deposit accounts, insurance proceeds,
         condemnation awards, rights to payment of any and every kind and other
         forms of obligations and receivables, instruments and other property
         which at any time constitute all or part of or are included in the
         proceeds of any of the foregoing (collectively, the "Collateral").

         (c) It is the intention of the Seller that the transfer and assignment
contemplated by this Agreement shall constitute a sale of the Receivables from
the Seller to the Issuer and the beneficial interest in and title to the
Receivables shall not be part of the Seller's estate in the event of the filing
of a bankruptcy petition by or against the Seller under any bankruptcy law. The
Seller agrees to execute and file all filings (including filings under the UCC)
necessary in any jurisdiction to provide third parties with notice of the sale
of the Receivables pursuant to this Agreement and to perfect such sale under the
UCC.

         (d) Although the parties hereto intend that the transfer and assignment
contemplated by this Agreement be a sale, in the event such transfer and
assignment is deemed to be other than a sale, the parties intend that all
filings described in the foregoing paragraph shall give the Issuer a first
priority perfected security interest in, to and under the Receivables, and other
property conveyed hereunder and all proceeds of any of the foregoing. This
Agreement shall be deemed to be the grant of a security interest from the Seller
to the Issuer, and the Issuer shall have all the rights, powers and privileges
of a secured party under the UCC.

         (e) In connection with the foregoing conveyance, the Servicer shall
maintain its computer system so that, from and after the time of sale of the
Receivables to the Issuer under this Agreement, the Servicer's master computer
records (including any back-up archives) that refer to any Receivable indicate
clearly the interest of the Issuer in such Receivable and that the Receivable is
owned and controlled by the Issuer. Indication of the Issuer's ownership of a
Receivable shall be deleted from or modified on the Servicer's computer systems
when, and only when, the Receivable has been paid in full, repurchased or
assigned pursuant to this Agreement.

         (f) Ownership and control of the Receivables, as between the Issuer and
the Indenture Trustee (on behalf of the Noteholders and Certificateholder) shall
be governed by the Indenture.

         SECTION 2.02 Custody of Receivables Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Owner Trustee
on behalf of the Issuer, upon the execution and delivery of this Agreement,
appoints the Servicer, and the Servicer accepts such appointment, to act as the
agent of the Issuer as custodian of the following documents or instruments (the
parties hereto expressly acknowledging and agreeing that the Servicer may
appoint a third party to act as the agent of the Servicer to maintain possession
of such documents or instruments as contemplated by Sections 3.01(v) and 3.03(b)
of this Agreement) which are hereby constructively delivered to the Issuer with
respect to each Receivable:

                  (a)      the fully executed original of the Receivable;

                  (b)      documents evidencing or related to any Insurance
         Policy;



                                       25


<PAGE>


                  (c) the original credit application of each Obligor, fully
         executed by such Obligor on TMCC's customary form, or on a form
         approved by TMCC, for such application;

                  (d) the original certificate of title (or evidence that such
         certificate of title has been applied for) or such documents that the
         Servicer shall keep on file, in accordance with TMCC's customary
         procedures, evidencing the security interest in the related Financed
         Vehicle; and

                  (e) any and all other documents that the Seller or the
         Servicer, as the case may be, shall keep on file, in accordance with
         its customary procedures, relating to such Receivable or the related
         Obligor or Financed Vehicle.

         SECTION 2.03 Acceptance by Owner Trustee. The Owner Trustee hereby
acknowledges its acceptance, on behalf of the Issuer, pursuant to this
Agreement, of all right, title and interest in and to the Receivables conveyed
by the Seller pursuant to this Agreement and declares and shall declare from and
after the date hereof that the Owner Trustee holds and shall hold such right,
title and interest, upon the terms and conditions set forth in this Agreement.


                                  ARTICLE III

                                 THE RECEIVABLES

         SECTION 3.01 Representations and Warranties of the Seller with Respect
to the Receivables. The Seller makes the following representations and
warranties as to the Receivables on which the Issuer is deemed to have relied in
acquiring the Receivables. Such representations and warranties speak as of the
execution and delivery of this Agreement and as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables to the Issuer, and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

                  (a) Characteristics of Receivables. Each Receivable (i) shall
         have been originated in the United States by a Dealer for the retail
         sale of the related Financed Vehicle in the ordinary course of such
         Dealer's business, shall have been fully and properly executed by the
         parties thereto, shall have been purchased by TMCC from such Dealer
         under an existing agreement with TMCC and shall have been validly
         assigned by such Dealer to TMCC in accordance with the terms of such
         agreement and shall have been subsequently sold by TMCC to the Seller
         pursuant to the Receivables Purchase Agreement, (ii) shall have created
         or shall create a valid, subsisting and enforceable first priority
         security interest in favor of TMCC in the related Financed Vehicle,
         which security interest has been assigned by TMCC to the Seller and
         shall be assignable, and shall be so assigned, by the Seller to the
         Issuer hereby, (iii) shall, except as otherwise provided in this
         Agreement, provide for monthly payments that fully amortize the Amount
         Financed by maturity (except for minimally different payments in the
         first or last month in the life of the Receivable) and provide for a
         finance charge or yield interest at its APR, in either case calculated
         based on the Rule of 78s, the Simple Interest Method or the actuarial
         method, (iv) shall contain customary and enforceable provisions, such
         that the rights and



                                       26


<PAGE>


         remedies of the holder thereof shall be adequate for realization
         against the Collateral of the benefits of the security and (v) shall
         provide for, in the event that such Receivable is prepaid, a prepayment
         that fully pays the Principal Balance and includes accrued but unpaid
         interest.

                  (b) Schedule of Receivables. The information set forth in the
         Schedule of Receivables shall be true and correct in all material
         respects as of the opening of business on the Cutoff Date, and no
         selection procedures adverse to the Securityholders shall have been
         utilized in selecting the Receivables from those automobile and light
         duty truck receivables of TMCC which met the selection criteria set
         forth in this Section and this Agreement.

                  (c) Compliance with Law. To the knowledge of the Seller, each
         Receivable, including each form of contract used to originate each
         Receivable and each sale of the related Financed Vehicle, shall have
         complied at the time such form of contract was used or such sale was
         originated or made, and shall comply at the time of execution of this
         Agreement, in all material respects with all requirements of applicable
         federal, state and local laws, and regulations thereunder, including
         usury laws, the Federal Truth-in-Lending Act, the Equal Credit
         Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting
         Act, the Fair Debt Collection Practices Act, the Federal Trade
         Commission Act, the Magnuson-Moss Warranty Act, Federal Reserve Board
         Regulations B, M and Z (to the extent applicable), state adaptations of
         the National Consumer Act and of the Uniform Consumer Credit Code and
         other consumer credit, equal credit opportunity and disclosure laws,
         except with respect to applicable Florida documentary stamp taxes as to
         which the effect of noncompliance will not have a material adverse
         effect on such Receivable.

                  (d) Binding Obligation. Each Receivable shall constitute the
         legal, valid and binding payment obligation in writing of the related
         Obligor, enforceable by the holder thereof in accordance with its
         terms, except as enforceability may be limited by bankruptcy,
         insolvency, reorganization, moratorium and other similar laws affecting
         the enforcement of creditors' rights in general and by general
         principles of equity, regardless of whether such enforceability shall
         be considered in a proceeding in equity or at law.

                  (e) No Bankrupt Obligors. None of the Receivables shall be
         due, to the best knowledge of the Seller, from any Obligor who is
         presently the subject of a bankruptcy proceeding or is bankrupt or is
         insolvent.

                  (f) No Government Obligors. None of the Receivables shall be
         due from the United States or any state, or from any agency, department
         or instrumentality of the United States or any state or local
         government.

                  (g) Employee Obligors. None of the Receivables shall be due
         from any employee of the Seller, TMCC or any of their respective
         Affiliates.

                  (h) Security Interest in Financed Vehicles. Immediately prior
         to the sale, assignment and transfer thereof, each Receivable shall be
         secured by a validly perfected


                                       27


<PAGE>


         first priority security interest in the related Financed Vehicle in
         favor of TMCC as secured party or all necessary and appropriate action
         with respect to such Receivable shall have been taken to perfect a
         first priority security interest in such Financed Vehicle in favor of
         TMCC as secured party.

                  (i) Receivables in Force. No Receivable shall have been
         satisfied, subordinated or rescinded, nor shall any Financed Vehicle
         have been released in whole or in part from the lien granted by the
         related Receivable.

                  (j) No Waivers. No provision of a Receivable shall have been
         waived in such a manner that such Receivable fails to meet all of the
         other representations and warranties made by the Seller herein with
         respect thereto.

                  (k) No Amendments. No Receivable shall have been amended or
         modified in such a manner that the total number of Scheduled Payments
         has been increased or that the related Amount Financed has been
         increased or that such Receivable fails to meet all of the other
         representations and warranties made by the Seller herein with respect
         thereto.

                  (l) No Defenses. No facts shall be known to the Seller which
         would give rise to any right of rescission, setoff, counterclaim or
         defense, nor shall the same have been asserted or threatened, with
         respect to any Receivable.

                  (m) No Liens. To the knowledge of the Seller, no liens or
         claims shall have been filed as of the date of this Agreement,
         including liens for work, labor or materials relating to a Financed
         Vehicle, that shall be liens prior to, or equal or coordinate with, the
         security interest in such Financed Vehicle granted by the related
         Receivable, which Liens shall not have been released or satisfied as of
         the Closing Date.

                  (n) No Default; No Repossession. Except for payment defaults
         that, as of the Cutoff Date, have been continuing for a period of not
         more than 30 days, no default, breach, violation or event permitting
         acceleration under the terms of any Receivable shall have occurred as
         of the Cutoff Date; no continuing condition that with notice or the
         lapse of time would constitute a default, breach, violation or event
         permitting acceleration under the terms of any Receivable shall have
         arisen; the Seller shall not have waived any of the foregoing; and no
         Financed Vehicle has been repossessed without reinstatement as of the
         Cutoff Date.

                  (o) Insurance. The terms of each Receivable require the
         Obligor to obtain and maintain physical damage insurance covering the
         related Financed Vehicle in accordance with TMCC's normal requirements.
         The terms of each Receivable allow, but do not require TMCC to (and
         TMCC, in accordance with its current normal servicing procedures, does
         not) obtain any such coverage on behalf of the Obligor.

                  (p) Good Title. It is the intention of the Seller that the
         transfer and assignment herein contemplated, taken as a whole,
         constitute a sale of the Receivables from the Seller to the Issuer and
         that the beneficial interest in and title to the Receivables not be
         part of the debtor's estate in the event of the filing of a bankruptcy
         petition by or against the Seller under any bankruptcy law. No
         Receivable has been sold, transferred, assigned



                                       28


<PAGE>


         or pledged by the Seller to any Person other than the Issuer, and no
         provision of a Receivable shall have been waived, except for a waiver
         that would not violate clause (j) above; immediately prior to the
         transfer and assignment herein contemplated, the Seller had good and
         marketable title to each Receivable free and clear of all Liens and
         rights of others; immediately upon the transfer and assignment thereof,
         the Issuer shall have good and marketable title to each Receivable,
         free and clear of all Liens and rights of others; and the transfer and
         assignment herein contemplated has been perfected under the UCC.

                  (q) Lawful Assignment. No Receivable shall have been
         originated in, or shall be subject to the laws of, any jurisdiction
         under which the sale, transfer and assignment of such Receivable under
         this Agreement or pursuant to a transfer of the related certificate of
         title shall be unlawful, void or voidable.

                  (r) All Filings Made. As of the Closing Date, all filings
         (including UCC filings) necessary in any jurisdiction to provide third
         parties with notice of the transfer and assignment herein contemplated,
         to perfect the sale of the Receivables from the Seller to the Issuer
         and to give the Issuer a first priority perfected security interest in
         the Receivables shall have been made.

                  (s) One Original. There shall be only one original executed
         copy of each Receivable.

                  (t) Chattel Paper. Each Receivable constitutes "tangible
         chattel paper" or "electronic chattel paper" each as defined in the
         UCC.

                  (u) Additional Representations and Warranties. (i) Each
         Receivable shall have an original number of Scheduled Payments of not
         less than 12 nor more than 72 and, as of the Cutoff Date, a remaining
         number of Scheduled Payments of not less than 4 nor more than 72; (ii)
         each Receivable provides for the payment of a finance charge based on
         an APR ranging from 0.00% to 10.00%; (iii) each Receivable shall have
         had an original principal balance of not less than $1,595 and not more
         than $122,693 and, as of the Cutoff Date, an unpaid principal balance
         of not less than $297 nor more than $59,896; (iv) no Receivable was
         originated under a special financing program; (v) no Receivable shall
         have a Scheduled Payment that is more than 30 days past due as of the
         Cutoff Date; (vi) no Financed Vehicle was subject to force-placed
         insurance as of the Cutoff Date; (vii) there is no Receivable as to
         which payments ahead of more than 6 Scheduled Payments have been
         received from or on behalf of the related Obligor; and (viii) each
         Receivable is being serviced by Toyota Motor Credit Corporation.

                  (v) Location of Receivable Files. Each Receivable File shall
         be kept at one of the locations listed in the Schedule of Receivables
         or at such other office as shall be specified to the Owner Trustee and
         the Indenture Trustee as provided in Section 3.03(b).

         SECTION 3.02 Remedies. The Seller, the Servicer or the Owner Trustee,
as the case may be, shall inform the other parties to this Agreement and the
Indenture Trustee promptly, in writing, upon the discovery of any breach of the
Seller's representations and warranties made pursuant to Section 3.01 or 6.01
that materially and adversely affects the interests of the Issuer in



                                       29


<PAGE>


any Receivable. As of the last day of the second Collection Period following the
Collection Period in which it discovers or receives notice of such breach (or,
at the Seller's election, the last day of the first Collection Period following
the Collection Period in which it discovers or receives notice of such breach),
the Seller shall, unless such breach shall have been cured in all material
respects, repurchase such Receivable and, if necessary, the Seller shall enforce
the obligation of TMCC under the Receivables Purchase Agreement to repurchase
such Receivable from the Seller. Notwithstanding the foregoing, the obligation
of the Seller to repurchase a Receivable shall not be conditioned on the
performance by TMCC of its obligation to repurchase such Receivable from the
Seller pursuant to the Receivables Purchase Agreement. This repurchase
obligation shall obtain for all representations and warranties of the Seller
contained in this Agreement whether or not the Seller has knowledge of the
breach at the time of the breach or at the time the representations and
warranties were made. In consideration of the repurchase of any such Receivable,
on the Business Day immediately preceding the related Payment Date, the Seller
shall remit the Warranty Purchase Payment of such Receivable to the Collection
Account in the manner specified in Section 5.05 and shall be entitled to receive
the Released Warranty Amount. Except as described below, the sole remedy of the
Owner Trustee, the Issuer, the Indenture Trustee (by operation of the assignment
of the Owner Trustee's rights hereunder pursuant to the Indenture) or any
Securityholder with respect to a breach of the Seller's representations and
warranties pursuant to this Agreement shall be to require the Seller to
repurchase the related Receivable pursuant to this Section and to enforce TMCC's
obligation to the Seller to repurchase such Receivables pursuant to the
Receivables Purchase Agreement. The Owner Trustee shall have no duty to conduct
any affirmative investigation as to the occurrence of any condition requiring
the repurchase of any Receivable pursuant to this Section. In connection with
such repurchase, the Owner Trustee and Indenture Trustee shall take all steps
necessary to effect a transfer of such Receivable as set forth in Section
9.01(d). The Seller hereby indemnifies the Issuer for any civil liabilities
relating to a determination that the disclosures in the forms of contracts used
to originate Receivables in Massachusetts violate Massachusetts General Laws
Chapter 255B, Section 14, or Massachusetts General Laws Chapter 140D and the
regulations promulgated by the Division of Banks thereunder with respect to
Truth-in-Lending appearing at 209 CMR 32.00.

         SECTION 3.03 Duties of Servicer as Custodian.

         (a) Safekeeping. The Servicer shall hold, at one of the locations
listed in the Schedule of Receivables or at such other office as shall be
specified to the Owner Trustee and the Indenture Trustee as provided in section
3.03(b), the Receivable Files as custodian for the benefit of the Issuer and
maintain such accurate and complete accounts, records and computer systems
pertaining to each Receivable File as shall enable the Issuer to comply with
this Agreement. The Servicer covenants and agrees that it shall hold the
Receivable Files in such a manner as to prevent any other Person from obtaining
control of any electronic chattel paper (as defined in the UCC) included
therein, within the meaning of section 9-105 of the UCC. In performing its
duties as custodian the Servicer shall act with reasonable care, using that
degree of skill and attention that the Servicer exercises with respect to the
receivable files relating to comparable automotive receivables that the Servicer
services for itself or others. The Servicer shall promptly report to the Issuer
and the Indenture Trustee any failure on its part to hold the Receivable Files
and maintain its accounts, records and computer systems as herein provided and
shall promptly take appropriate action to remedy any such failure. Nothing
herein shall be



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deemed to require an initial review or any periodic review by the Issuer, the
Owner Trustee or the Indenture Trustee of the Receivable Files.

         (b) Maintenance of and Access to Records. The Servicer shall maintain
each Receivable File at one of its offices specified in Schedule B or at such
other office of the Servicer or a third party agent retained by the Servicer as
shall be specified to the Issuer and the Indenture Trustee by written notice not
later than 90 days after any change in location. The Servicer shall make
available to the Issuer, the Swap Counterparty and the Indenture Trustee or
their respective duly authorized representatives, attorneys or auditors a list
of locations of the Receivable Files and the related accounts, records and
computer systems maintained by the Servicer at such times during normal business
hours as the Issuer or the Indenture Trustee shall instruct with reasonable
advance notice.

         (c) Release of Documents. Upon instruction from the Indenture Trustee,
the Servicer shall release any Receivable File to the Indenture Trustee, the
Indenture Trustee's agent or the Indenture Trustee's designee, as the case may
be, at such place or places as the Indenture Trustee may designate, as soon as
practicable.

         SECTION 3.04 Instructions; Authority To Act. The Servicer shall be
deemed to have received proper instructions with respect to the Receivable Files
upon its receipt of written instructions signed by a Trust Officer of the Owner
Trustee or the Indenture Trustee. A certified copy of a bylaw or of a resolution
of the board of directors of the Owner Trustee or of the Indenture Trustee shall
constitute conclusive evidence of the authority of such Trust Officer to act,
and shall be considered conclusive evidence of the authority of such Trust
Officer to act until receipt by the Servicer of written notice to the contrary
given by the Owner Trustee or Indenture Trustee, as the case may be.

         SECTION 3.05 Custodian's Indemnification. The Servicer as custodian
shall indemnify the Issuer, the Owner Trustee and the Indenture Trustee and each
of their respective officers, directors, employees and agents for any and all
liabilities, obligations, losses, compensatory damages, payments, costs or
expenses of any kind whatsoever that may be imposed on, incurred by or asserted
against any of them as the result of any improper act or omission in any way
relating to the maintenance and custody by the Servicer as custodian of the
Receivable Files; provided, however, that the Servicer shall not be liable to
the Owner Trustee for any portion of any such amount resulting from the willful
misfeasance, bad faith or negligence of the Owner Trustee or Indenture Trustee
and the Servicer shall not be liable to the Indenture Trustee for any portion of
any such amount resulting from the willful misfeasance, bad faith or negligence
of the Indenture Trustee or Owner Trustee.

         SECTION 3.06 Effective Period and Termination. The Servicer's
appointment as custodian shall become effective as of the date hereof, and shall
continue in full force and effect until terminated pursuant to this Section. If
TMCC shall resign as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of any Servicer shall have
been terminated under Section 8.01, the appointment of TMCC (as Servicer) as
custodian shall be terminated hereunder without further action by the Indenture
Trustee, Owner Trustee, Noteholders or the Certificateholder. The Indenture
Trustee or, with the consent of the Indenture Trustee, the Owner Trustee may
terminate the Servicer's appointment as custodian, with cause,



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<PAGE>


at any time upon written notification to the Servicer, and without cause upon 30
days' prior written notification to the Servicer. The Owner Trustee, Indenture
Trustee or Noteholders may terminate the Servicer as custodian hereunder in the
same manner as the Owner Trustee, Indenture Trustee or Noteholders may terminate
the rights and obligations of the Servicer under Section 8.01. As soon as
practicable after any termination of such appointment, the Servicer shall
deliver the Receivable Files to the Relevant Trustee or the agent thereof at
such place or places as the Relevant Trustee may reasonably designate.


                                   ARTICLE IV

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01 Duties of Servicer. The Servicer, for the benefit of the Issuer and
the Securityholders (to the extent provided herein), shall manage, service,
administer and make collections on the Receivables with reasonable care, using
that degree of skill and attention that the Servicer exercises with respect to
comparable automotive receivables that it services for itself or others. The
Servicer's duties shall include collection and posting of all payments,
responding to inquiries of Obligors or by federal, state or local government
authorities with respect to the Receivables, investigating delinquencies,
sending payment information to Obligors, reporting tax information to Obligors
in accordance with its customary practices, accounting for collections,
furnishing monthly and annual statements to the Owner Trustee and the Indenture
Trustee with respect to payments and distributions and making Advances and
performing the other duties specified herein. The Servicer shall follow its
customary standards, policies and procedures as in effect from time to time and
shall have full power and authority, acting alone, to do any and all things in
connection with such managing, servicing, administration and collection that it
may deem necessary or desirable. Nothing in the foregoing or in any other
section of this Agreement shall be construed to prevent the Servicer from
implementing new programs, whether on an intermediate, pilot or permanent basis,
or on a regional or nationwide basis, or from modifying its standards, policies
and procedures as long as, in each case, the Servicer does or would implement
such programs or modify its standards, policies and procedures in respect of
comparable assets serviced for itself in the ordinary course of business.

         Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Owner Trustee, the Indenture Trustee, the Securityholders or any of
them, any and all instruments of satisfaction or cancellation, or partial or
full release or discharge, and all other comparable instruments, with respect to
such Receivables and the Financed Vehicles. The Servicer is hereby authorized to
communicate with Obligors in the ordinary course of its servicing of the
Receivables and Financed Vehicles in its own name. The Servicer is hereby
authorized to commence, in its own name or in the name of the Issuer, a legal
proceeding to enforce a Defaulted Receivable or to commence or participate in a
legal proceeding (including without limitation a bankruptcy proceeding) relating
to or involving a Receivable, including a Defaulted Receivable. If the Servicer
shall commence or participate in a legal proceeding to enforce a Receivable, the
Issuer shall thereupon be deemed to have automatically assigned to the Servicer,
solely for the purpose of collection on behalf of the party retaining an
interest in such Receivable, such Receivable and the other property conveyed to
the Issuer hereby with respect to such Receivable for purposes of


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<PAGE>



commencing or participating in any such proceeding as a party or claimant, and
the Servicer is authorized and empowered by the Owner Trustee to execute and
deliver in the Servicer's name any notices, demands, claims, complaints,
responses, affidavits or other documents or instruments in connection with any
such proceeding. If in any enforcement suit or legal proceeding it shall be held
that the Servicer may not enforce a Receivable on the ground that it shall not
be a real party in interest or a holder entitled to enforce such Receivable, the
Owner Trustee on behalf of the Issuer shall, at the Servicer's expense and
direction, take steps to enforce such Receivable, including bringing suit in its
name or the name of the Owner Trustee, the Indenture Trustee, the
Certificateholder and/or the Noteholders. The Owner Trustee shall furnish the
Servicer with any powers of attorney and other documents and take any other
steps which the Servicer may deem necessary or appropriate to enable the
Servicer to carry out its servicing and administrative duties under this
Agreement.

         SECTION 4.02 Collection and Allocation of Receivable Payments. The
Servicer shall make reasonable efforts to collect all payments called for under
the terms and provisions of the Receivables as and when the same shall become
due and shall follow such customary collection procedures as it follows with
respect to comparable automotive receivables that it services for itself or
others. The Servicer shall be authorized to grant extensions, rebates or
adjustments on a Receivable in accordance with the customary servicing standards
of the Servicer without the prior consent of the Owner Trustee, Indenture
Trustee or any Securityholder; provided, however, that if, as a result of any
change in the related APR or the Amount Financed, any increase in the total
number of Scheduled Payments or any extension of payments such that the
Receivable will be outstanding later than the Class A-4 Final Scheduled Payment
Date, the amount of any Scheduled Payment due in a subsequent Collection Period
is reduced, the Servicer shall be obligated to either repurchase such Receivable
pursuant to Section 4.08 or to make an Advance in respect of such Receivable in
each subsequent Collection Period equal to the amount by which such Scheduled
Payment has been reduced. In addition, in the event that any such rescheduling
or extension of a Receivable modifies the terms of such Receivable in such a
manner as to release the security interest in the related Financed Vehicle or
constitute a cancellation of such Receivable and the creation of a new
automobile or light duty truck receivable, the Servicer shall purchase such
Receivable pursuant to Section 4.08, and the receivable created shall not be
included as an asset of the Issuer. The Servicer may, in accordance with its
customary servicing procedures, waive any prepayment charge, late payment charge
or any other fees that may be collected in the ordinary course of servicing the
Receivables.

         SECTION 4.03 Rebates on Full Prepayments. In the event that the amount
of a full Prepayment by an Obligor under a Precomputed Receivable, after
adjustment for the applicable Rebate, is less than the amount that would be
payable under the actuarial method if a full Prepayment were made at the end of
the billing month under such Precomputed Receivable, either because the Rebate
calculated under the terms of such Precomputed Receivable is greater than the
amount calculable under the actuarial method or because the Servicer's customary
servicing procedure is to credit a greater Rebate, the Servicer, as part of its
servicing duties, shall remit such difference by deposit into the Collection
Account pursuant to Section 5.05.

         SECTION 4.04 Realization upon Receivables. On behalf of the Issuer, the
Servicer shall use its best efforts, consistent with its customary servicing
procedures, to repossess or otherwise comparably convert the ownership of any
Financed Vehicle that it has reasonably determined



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<PAGE>


should be repossessed or otherwise converted following a default under the
Receivable secured by the Financed Vehicle (and shall specify such Receivables
to the Relevant Trustee no later than the Determination Date following the end
of the Collection Period in which the Servicer shall have made such
determination). The Servicer shall follow such practices and procedures as it
shall deem necessary or advisable and as shall be customary and usual in its
servicing of automobile and light duty truck receivables, which practices and
procedures may include reasonable efforts to realize upon any Dealer Recourse,
selling the related Financed Vehicle at public or private sale and other actions
to realize upon such a Receivable. The Servicer shall be entitled to recover its
Liquidation Expenses with respect to each Defaulted Receivable. All Net
Liquidation Proceeds realized in connection with any such action with respect to
a Receivable shall be deposited by the Servicer in the Collection Account in the
manner specified in Section 5.02. The foregoing is subject to the proviso that,
in any case in which the Financed Vehicle shall have suffered damage, the
Servicer shall not expend funds in connection with any repair or towards the
repossession of such Financed Vehicle unless it shall determine in its
discretion that such repair and/or repossession shall increase the Liquidation
Proceeds of the related Receivable by an amount greater than the amount of such
expenses.

         SECTION 4.05 Physical Damage Insurance. The Servicer shall, in
accordance with its customary servicing procedures, require that each Obligor
shall have delivered proof that it has obtained physical damage insurance
covering the related Financed Vehicle at the date of origination of the related
Receivable, but shall not obtain any such coverage on behalf of any Obligor. The
Servicer shall be required to monitor the maintenance by any Obligor of such
insurance only to the same extent, if any, that the Servicer monitors such
maintenance by obligors with respect to retail automobile sales contracts that
are held for the account of TMCC.

         SECTION 4.06 Maintenance of Security Interests in Financed Vehicles.
The Servicer shall, in accordance with its customary servicing procedures and at
its own expense, take such steps as are necessary to maintain perfection of the
security interest created by each Receivable in the related Financed Vehicle.
The Issuer hereby authorizes the Servicer to take such steps as are necessary to
again perfect such security interest on behalf of the Issuer and the Indenture
Trustee in the event of the relocation of a Financed Vehicle or for any other
reason. In the event that the assignment of a Receivable to the Issuer is
insufficient, without a notation on the related Financed Vehicle's certificate
of title, to grant to the Issuer a first priority perfected security interest in
the related Financed Vehicle, the Servicer hereby agrees to serve as the agent
of the Issuer for the purpose of perfecting the security interest of the Issuer
in such Financed Vehicle and agrees that the Servicer's listing as the secured
party on the certificate of title is in this capacity as agent of the Issuer.

         SECTION 4.07 Covenants of Servicer. The Servicer hereby makes the
following covenants to the Issuer on which the Issuer has relied in purchasing
the Receivables and issuing the Certificate, and on which the Indenture Trustee
will rely in undertaking the trusts set forth in the Indenture and acting for
the Noteholders.

                  (a) Liens in Force. Except as contemplated by this Agreement,
         the Servicer shall not release in whole or in part any Financed Vehicle
         from the security interest securing the related Receivable.


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<PAGE>


                  (b) No Impairment. The Servicer shall do nothing to impair the
         rights of the Securityholders in the Receivables.

                  (c) No Amendments. Except as provided in Section 4.02, the
         Servicer shall not amend or otherwise modify any Receivable such that
         the total number of Scheduled Payments, the Amount Financed or the APR
         is altered, or extend the maturity of such Receivable beyond the Class
         A-4 Final Scheduled Payment Date.

         SECTION 4.08 Remedies. The Servicer shall inform the Owner Trustee and
Indenture Trustee promptly, in writing, upon the actual knowledge of one of its
officers of, and the Owner Trustee shall inform the Servicer and the Indenture
Trustee promptly, in writing, upon the actual knowledge of one of its Trust
Officers of, any breach pursuant to Section 4.06 or 4.07 that materially and
adversely affects the interests of the Issuer in a Receivable, or if an
extension, rescheduling or modification of a Receivable is made by the Servicer
as described in Section 4.02 and the Servicer does not elect to make Advances to
cover resulting reductions in interest accruals as provided in Section 4.02, the
party discovering such event shall give prompt written notice to the others. As
of the last day of the second Collection Period following the Collection Period
in which it discovers or receives notice of such event (or, at the Servicer's
election, the last day of the first Collection Period following the Collection
Period in which it discovers or receives notice of such breach), the Servicer
shall, unless such event shall have been cured in all material respects or such
modification has been rescinded or the Servicer has elected to and does make all
required Advances, purchase from the Issuer such Receivable. In consideration of
the purchase of any such Receivable, on the Business Day immediately preceding
the related Payment Date the Servicer shall remit the Administrative Purchase
Payment to the Collection Account in the manner specified in Section 5.05, and
shall be entitled to receive the Released Administrative Amount. Upon such
deposit of the Administrative Purchase Payment, the Servicer shall for all
purposes of this Agreement be deemed to have released all claims for
reimbursement of Outstanding Advances made in respect of such Receivable. Except
as otherwise provided in Section 7.02, the sole remedy of the Owner Trustee, the
Issuer, the Indenture Trustee or any Securityholders against the Servicer with
respect to a breach pursuant to Section 4.02, 4.06 or 4.07 shall be to require
the Servicer to purchase the related Receivables pursuant to this Section. The
Owner Trustee shall have no duty to conduct any affirmative investigation as to
the occurrence of any condition requiring the repurchase of any Receivable
pursuant to this Section. In connection with such repurchase, the Owner Trustee
and Indenture Trustee shall take all steps necessary to effect a transfer of
such Receivable to the Servicer as set forth in Section 9.01(d).

         SECTION 4.09 Servicing Fee and Expenses. As compensation for the
performance of its obligations hereunder, the Servicer shall be entitled to
receive on each Payment Date, out of Available Collections, the Total Servicing
Fee. The Basic Servicing Fee in respect of a Collection Period shall be
calculated based on a 360 day year comprised of twelve 30-day months. Except to
the extent otherwise provided herein, the Servicer shall be required to pay all
expenses incurred by it in connection with its activities under this Agreement
(including fees and disbursements of the Owner Trustee, the Indenture Trustee,
the Administrator and the independent accountants, taxes imposed on the
Servicer, expenses incurred by the Servicer in connection with its preparation
of reports hereunder, expenses incurred by the Indenture Trustee in connection
with a sale or liquidation of the Trust Estate under Section 5.04(c) of the
Indenture


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<PAGE>


and all other fees and expenses not expressly stated under this Agreement to be
for the account of the Certificateholder).

         SECTION 4.10 Servicer's Certificate. On or before each Determination
Date, the Servicer shall deliver to the Owner Trustee, each Paying Agent, the
Swap Counterparty (unless TMCC or an Affiliate thereof is the Servicer and the
Swap Counterparty at the time of delivery), the Indenture Trustee and the
Seller, with a copy to each Rating Agency, a Servicer's Certificate
substantially in the form of Exhibit A hereto, containing the information
necessary to make the payments to be made on the related Payment Date and the
information necessary for the Owner Trustee and the Indenture Trustee to send
statements to the Securityholders pursuant to the Trust Agreement or Indenture,
as the case may be. The Servicer shall also specify therein the identity of any
Receivable that the Servicer or the Seller became obligated to repurchase or
that the Servicer has determined to be a Defaulted Receivable during the related
Collection Period. Receivables purchased or to be purchased by the Servicer or
the Seller and Receivables that the Servicer has determined during such
Collection Period to be Defaulted Receivables and with respect to which payment
of the Administrative Purchase Payment or Warranty Purchase Payment has been
provided from whatever source as of last day of such Collection Period shall be
identified by the related Obligor's account number (as specified in the Schedule
of Receivables).

         SECTION 4.11 Annual Statement as to Compliance; Notice of Default. (a)
Within 120 days after March 31 of each calendar year (commencing with the fiscal
year ended March 31, 2003), the Servicer shall deliver an Officer's Certificate
to the Owner Trustee, the Swap Counterparty (unless TMCC or an Affiliate thereof
is the Servicer and the Swap Counterparty at the time of delivery) and the
Indenture Trustee to the effect that a review of the activities of the Servicer
during the prior fiscal year (or since the Closing Date in the case of the first
such Officer's Certificate) has been made under the supervision of the officer
executing such Officer's Certificate with a view to determining whether during
such period the Servicer has performed and observed all of its obligations under
this Agreement, and either (i) stating that, to the best of his or her
knowledge, no default by the Servicer under this Agreement has occurred and is
continuing, or (ii) if such a default has occurred and is continuing, specifying
such default and the nature and status thereof.

         (b) The Servicer shall deliver to the Owner Trustee, the Indenture
Trustee, the Swap Counterparty (unless TMCC or an Affiliate thereof is the
Servicer and the Swap Counterparty at the time of delivery) and the Rating
Agencies, promptly after having obtained knowledge thereof, but in no event
later than five Business Days thereafter, written notice in an Officer's
Certificate of any event which with the giving of notice or lapse of time, or
both, would become a Servicer Default under Section 8.01(a) or (b).

         SECTION 4.12 Annual Accountants' Report. Within 120 days after March 31
of each fiscal year for the Servicer (commencing with the fiscal year ended
March 31, 2003), the Servicer shall deliver to the Owner Trustee and the
Indenture Trustee a report prepared by the Independent Accountants of the
Servicer concerning their review of the activities of the Servicer during the
preceding 12-month period ended March 31 (or other applicable period in the case
of the first such report or letter) to the effect that such accountants have
reviewed certain records and documents relating to the servicing of the
Receivables under this Agreement (using



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<PAGE>


procedures specified in such report or letter) and as a result of such review,
and in connection with such procedures, they are reporting such exceptions, if
any, as shall be set forth therein. Such report or letter shall also indicate
that the firm is independent with respect to the Seller and the Servicer within
the meaning of the Code of Professional Ethics of the American Institute of
Certified Public Accountants.

                  In the event such Independent Accountants require the Owner
Trustee or Indenture Trustee to agree to the procedures performed by such firm,
the Servicer shall direct the Owner Trustee or Indenture Trustee in writing to
so agree; it being understood and agreed that the Owner Trustee or Indenture
Trustee will deliver such letter of agreement in conclusive reliance upon the
direction of the Servicer, and the Owner Trustee and Indenture Trustee need make
no independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures.

         SECTION 4.13 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Swap Counterparty, the Owner
Trustee and Indenture Trustee reasonable access to the documentation regarding
the Receivables as provided in Section 3.03(b). The Servicer will provide such
access to any Securityholder only in such cases where the Certificateholder or
Noteholders shall be required by applicable statutes or regulations to review
such documentation. In each case, such access shall be afforded without charge,
but only upon reasonable request and during the normal business hours at the
respective offices of the Servicer. Nothing in this Section shall derogate from
the obligation of the Servicer to observe any applicable law prohibiting
disclosure of information regarding the Obligors and the failure of the Servicer
to provide access to information as a result of such obligation shall not
constitute a breach of this Section.

         SECTION 4.14 Appointment of Subservicer. The Servicer may at any time
appoint a subservicer to perform all or any portion of its obligations as
Servicer hereunder if each Rating Agency has received reasonable advance notice
of the Servicer's intention to do so and has not notified the Servicer that such
an appointment would or might result in the qualification, reduction or
withdrawal of a rating then assigned by such rating Agency to any Class of
Notes; provided, however, that the Servicer shall remain obligated and be liable
to the Issuer, the Owner Trustee, the Indenture Trustee, the Swap Counterparty,
the Certificateholder and the Noteholders for the servicing and administering of
the Receivables in accordance with the provisions hereof without diminution of
such obligation and liability by virtue of the appointment of such subservicer
and to the same extent and under the same terms and conditions as if the
Servicer alone were servicing and administering the Receivables. The Servicer
has appointed such a subservicer to perform its title administration services.
The fees and expenses of the subservicer shall be as agreed between the Servicer
and its subservicer from time to time, and none of the Issuer, the Owner
Trustee, the Indenture Trustee, the Swap Counterparty, the Certificateholder or
the Noteholders shall have any responsibility therefor.

         SECTION 4.15 Amendments to Schedule of Receivables. If the Servicer,
during a Collection Period, assigns to a Receivable an account number that
differs from the original account number identifying such Receivable on the
Schedule of Receivables, the Servicer shall deliver to the Issuer, the Owner
Trustee and the Indenture Trustee, on or before the Payment Date relating to
such Collection Period, an amendment to the Schedule of Receivables reporting



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<PAGE>


the newly assigned account number, together with the old account number of each
such Receivable. The first such delivery of amendments to the Schedule of
Receivables shall include monthly amendments reporting account numbers appearing
on the Schedule of Receivables with the new account numbers assigned to such
Receivables during any prior Collection Period.

         SECTION 4.16 Reports to Securityholders and Rating Agencies. The Owner
Trustee shall send a copy of each Officer's Certificate delivered pursuant to
Section 4.11 and each report of independent accountants delivered pursuant to
Section 4.12 to the Rating Agencies within five days of its receipt thereof from
the Servicer or accountants. A copy of any such Officer's Certificate or
accountants report may be obtained by any Certificateholder, Noteholder or Note
Owner by a request in writing to the Owner Trustee addressed as set forth in
Section 10.03 hereof. Upon the telephone request of the Owner Trustee, the
Indenture Trustee will promptly furnish the Owner Trustee a list of Noteholders
as of the date specified by the Owner Trustee.


                                   ARTICLE V

                      ACCOUNTS; PAYMENTS AND DISTRIBUTIONS;
                          STATEMENTS TO SECURITYHOLDERS

         SECTION 5.01 Establishment of Collection Account and Payahead Account.

         (a) The Servicer on behalf of the Owner Trustee and the Indenture
Trustee, shall establish the Collection Account and Payahead Account in the name
of the Indenture Trustee for the benefit of the Securityholders. Except as
otherwise provided in this Agreement, each such account shall be an account
initially established with the Indenture Trustee and maintained with the
Indenture Trustee so long as (i) the commercial paper or other short-term
unsecured debt obligations of the Indenture Trustee are rated "P-1" or better by
Moody's, or if not so rated by Moody's then otherwise approved by Moody's, and
"A-1+" or better by Standard & Poor's if rated by Standard & Poor's, or if not
so rated by Standard & Poor's then otherwise approved by Standard & Poor's, in
each case at the time of any deposit therein, or (ii) such account is a
segregated trust account located in the corporate trust department of the
Indenture Trustee bearing a designation clearly indicating that the funds
deposited therein (other than interest or investment earnings thereon) are held
in trust for the benefit of the Securityholders, and the Indenture Trustee has a
long-term deposit rating from Moody's (so long as Moody's is a Rating Agency) of
at least "A1" (or such lower rating as Moody's shall approve in writing) and
corporate trust powers under applicable federal and state laws and is organized
under the laws of the United States or any state thereof, the District of
Columbia or the Commonwealth of Puerto Rico. Except as otherwise provided in
this Agreement, in the event that the Indenture Trustee no longer meets either
of the foregoing requirements, then the Servicer shall, with the Indenture
Trustee's assistance as necessary, cause the Collection Account and Payahead
Account to be moved to a bank or trust company that satisfies either of such
requirements.

         (b) For so long as the depository institution or trust company then
maintaining the Collection Account and Payahead Account meets the requirements
of Section 5.01(a)(i) or (a)(ii), all amounts held in these accounts shall, to
the extent permitted by applicable laws, rules and regulations, be invested, as
directed in writing by the Servicer, in Eligible Investments; otherwise such
amounts shall be maintained in cash. Earnings on investment of funds in these



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accounts (net of losses and investment expenses) shall be paid to the Servicer
on each Payment Date as servicing compensation, and any losses and investment
expenses shall be charged against the funds on deposit in the related account.

         (c) For so long as The Bank of New York or U.S. Bank Trust National
Association is the Relevant Trustee, the Collection Account and Payahead Account
shall be maintained with The Bank of New York as described in clause (ii) of the
second sentence of Section 5.01(a). In the event that the long-term debt rating
of the Relevant Trustee does not satisfy clause (ii) of the second sentence of
Section 5.01(a), the Servicer shall, with the assistance of the Relevant Trustee
as necessary, cause the Collection Account and the Payahead Account to be moved
to an institution or an account otherwise satisfying the requirements of Section
5.01(a).

         (d) Subject to the foregoing, the Servicer, on behalf of the Owner
Trustee and the Indenture Trustee, shall establish and maintain as the
Collection Account an Eligible Deposit Account in the name of and under the
exclusive control of the Indenture Trustee, bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the
Noteholders and the Certificateholder. On the Closing Date, the Owner Trustee
will transfer, or cause to be transferred, to such Collection Account all funds
or investments on deposit in the Collection Account established pursuant to the
Trust Agreement for the benefit of the Certificateholder, and all of the
proceeds thereof, and will transfer all of its right, title and interest in the
Collection Account, all funds or investments held or to be held therein and all
proceeds thereof, whether or not on behalf of the Certificateholder, to the
Indenture Trustee for the benefit of the Swap Counterparty, the Noteholders, the
holder of the Revolving Liquidity Note and Certificateholder. The Indenture
Trustee will be obligated to transfer all amounts remaining on deposit in the
Collection Account on the Payment Date on which the Notes of all Classes have
been paid in full , the Revolving Liquidity Note has been paid in full and the
Interest Rate Swap Agreement has been terminated and all Swap Payments Outgoing
and all Swap Termination Payments payable to the Swap Counterparty have been
paid (or substantially all of the Trust Estate is otherwise released from the
lien of the Indenture) to the Collection Account established pursuant to the
Trust Agreement for the benefit of the Certificateholder, and to take all
necessary or appropriate actions to transfer all of its right, title and
interest in the Collection Account, all funds or investments held or to be held
therein and all proceeds thereof, whether or not on behalf of the Swap
Counterparty, the holder of the Revolving Liquidity Note or the Noteholders and
the Certificateholder, to the Owner Trustee for the benefit of the
Certificateholder, subject to the limitations set forth in the Indenture with
respect to amounts held for payment to the Swap Counterparty, the holder of the
Revolving Liquidity Note or Noteholders that do not promptly deliver a Note for
payment on such Payment Date.

         (e) With respect to the Collection Account and all property held
therein, the Owner Trustee agrees, by its acceptance hereof that, on the terms
and conditions set forth in the Indenture, for so long as Notes of any Class,
the Revolving Liquidity Note or the Interest Rate Swap Agreement remain
outstanding, the Indenture Trustee shall possess all right, title and interest
therein (excluding interest or investment income thereon payable to the
Servicer), and that such account shall be under the sole dominion and control of
the Indenture Trustee for the benefit of the Swap Counterparty, the holder of
the Revolving Liquidity Note and the Noteholders and the Certificateholder, as
the case may be, as set forth in the Indenture. Subject to the right of the
Indenture Trustee to make withdrawals therefrom, as directed by the Servicer,



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for the purposes and in the amounts set forth in Section 5.06, the Payahead
Account and all funds held therein shall be the property of the Servicer and not
the property of the Issuer, the Owner Trustee or the Indenture Trustee. The
Issuer, Owner Trustee, Seller and Indenture Trustee will treat the Payahead
Account, all funds therein and all net investment income with respect thereto as
assets of the Servicer for federal income tax and all other purposes. The
parties hereto agree that the Servicer shall have the power, revocable by the
Indenture Trustee or by the Owner Trustee with the consent of the Indenture
Trustee, to instruct the Indenture Trustee to make withdrawals and payments from
the Collection Account and the Payahead Account for the purpose of permitting
the Servicer, Indenture Trustee or the Owner Trustee to carry out its respective
duties hereunder or under the Indenture or the Trust Agreement, as the case may
be.

         SECTION 5.02 Collections. (a) Except as otherwise provided in this
Agreement, the Servicer shall remit daily to the Collection Account all payments
received by or on behalf of the Obligors on or in respect of the Receivables
(other than, in the case of Precomputed Receivables, payments constituting
Payments Ahead) and all Net Liquidation Proceeds within two Business Days after
receipt thereof. Notwithstanding the foregoing, for so long as the Monthly
Remittance Conditions are satisfied, the Servicer shall not be required to remit
such collections to the Collection Account on the foregoing daily basis but
shall be entitled to retain such collections, without segregation from its other
funds, until the Business Day before each Payment Date at which time the
Servicer shall remit all such collections in respect of the related Collection
Period to the Collection Account in immediately available funds. Commencing with
the first day of the first Collection Period that begins at least two Business
Days after the day on which any Monthly Remittance Condition ceases to be
satisfied and for so long as any Monthly Remittance Condition is not satisfied,
all collections then held by the Servicer shall be immediately deposited into
the Collection Account and all future collections on or in respect of the
Receivables and all Net Liquidation Proceeds shall be remitted by the Servicer
to the Collection Account on a daily basis within two Business Days after
receipt thereof.

         (b) Except as otherwise provided in this Agreement, the Servicer shall
deposit all Payments Ahead in the Collection Account within two Business Days
after receipt thereof, which Payments Ahead shall be transferred to the Payahead
Account pursuant to Section 5.06(a)(ii). Notwithstanding the foregoing, so long
as all Monthly Remittance Conditions are satisfied, the Servicer will not be
required to deposit Payments Ahead in the Payahead Account within two Business
Days after receipt thereof but shall be entitled to retain such Payments Ahead,
without segregation from its other funds, until such time as the Servicer shall
be required to remit Applied Payments Ahead to the Collection Account pursuant
to Section 5.06(a)(i). Commencing with the first day of the first Collection
Period that begins at least two Business Days after the day on which any Monthly
Remittance Condition ceases to be satisfied and for so long as all Monthly
Remittance Conditions are not satisfied, all Payments Ahead then held by the
Servicer shall be immediately deposited into the Payahead Account and all future
Payments Ahead shall be remitted by the Servicer to the Payahead Account within
two Business Days after receipt thereof.

         (c) The Servicer shall give the Owner Trustee, the Indenture Trustee
and each Rating Agency written notice of the failure of any Monthly Remittance
Condition (and any subsequent curing of a failed Monthly Remittance Condition)
as soon as practical after the occurrence thereof. Notwithstanding the failure
of any Monthly Remittance Condition, the Servicer may



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<PAGE>


utilize an alternative collection or Payment Ahead remittance schedule (which
may be the remittance schedule previously utilized prior to the failure of such
Monthly Remittance Condition), if the Servicer provides to the Owner Trustee and
Indenture Trustee written confirmation from each Rating Agency that such
alternative remittance schedule will not result in the qualification, reduction
or withdrawal of the rating then assigned to any Class of Notes.

         SECTION 5.03 Application of Collections. As of the Business Day
immediately preceding the related Payment Date, all collections for the related
Collection Period shall be applied by the Servicer as follows:

         (a) With respect to each Receivable (other than an Administrative
Receivable or a Warranty Receivable), payments made by or on behalf of the
Obligor which are not Supplemental Servicing Fees shall be applied first to
reimburse the Servicer for Outstanding Advances made with respect to such
Receivable (each such payment, an "Overdue Payment"). Next, the amount of any
payment in excess of Supplemental Servicing Fees and Outstanding Advances with
respect to such Receivable shall be applied to the Scheduled Payment with
respect to such Receivable. If the amount of such payment remaining after the
applications described in the two preceding sentences (i) equals (together with
any Deferred Prepayment) the unpaid principal balance of such Receivable, it
shall be applied to prepay the principal balance of such Receivable, or (ii) is
less than the unpaid principal balance of such Receivable, it shall constitute
an Excess Payment with respect to such Receivable.

         (b) With respect to each Administrative Receivable and Warranty
Receivable, payments made by or on behalf of the Obligor shall be applied in the
same manner, except that any Released Administrative Amount or Released Warranty
Amount shall be remitted to the Servicer or the Seller, as applicable. A
Warranty Purchase Payment or an Administrative Purchase Payment with respect to
any Receivable shall be applied, first, to reduce Outstanding Advances with
respect to such Receivable and then to the Scheduled Payment, in each case to
the extent that the payments by the Obligor shall be insufficient, and then to
prepay the unpaid principal balance of such Receivable in full.

         SECTION 5.04 Advances; Swap Payments.

         (a) As of the close of business on the last day of each Collection
Period, if the payments by or on behalf of the Obligor on a Precomputed
Receivable (other than an Administrative Receivable or a Warranty Receivable)
after application under Section 5.03(a) shall be less than the Scheduled Payment
(determined as of the Closing Date), whether as a result of any modification or
extension granted to the Obligor or otherwise, then the Deferred Prepayment, if
any, with respect to such Precomputed Receivable shall be applied by the
Servicer to the extent of the shortfall, and such Deferred Prepayment shall be
reduced accordingly. Subject to the provisions of the last sentence of this
paragraph, the Servicer shall deposit an amount equal to such shortfall (each, a
"Precomputed Advance") in the Collection Account on the Business Day immediately
preceding the related Payment Date. In addition, as of the last day of a
Collection Period, if the payments during such Collection Period by or on behalf
of the Obligor on or in respect of a Simple Interest Receivable (other than an
Administrative Receivable or a Warranty Receivable) after application under
Section 5.03(a) shall be less than the Scheduled Payment (determined as of the
Closing Date), whether as a result



                                       41


<PAGE>


of any modification or extension granted to the Obligor or otherwise, then an
amount equal to the product of the principal balance of such Receivable as of
the first day of the related Collection Period and one-twelfth of its Annual
Percentage Rate minus the amount of interest actually received on such
Receivable during the Collection Period (each, a "Simple Interest Advance")
shall be deposited by the Servicer into the Collection Account on the Business
Day immediately preceding the related Payment Date. If such a calculation in
respect of a Simple Interest Receivable results in a negative number, an amount
equal to such negative amount shall be paid to the Servicer in reimbursement of
any outstanding Simple Interest Advances made with respect to such Receivable.
In addition, in the event that a Simple Interest Receivable becomes a Liquidated
Receivable, the amount of accrued and unpaid interest thereon (but not including
interest for the current Collection Period) shall, up to the amount of any
outstanding Simple Interest Advances made with respect to such Receivable, be
withdrawn from the Collection Account and paid to the Servicer in reimbursement
of such outstanding Simple Interest Advances. No Advances will be made with
respect to the Principal Balance of Simple Interest Receivables. The Servicer
shall not be required to make an Advance (other than a Simple Interest Advance
in respect of an interest shortfall arising from the Prepayment of a Simple
Interest Receivable) to the extent that the Servicer, in its sole discretion,
shall determine that such Advance is unlikely to be recovered from subsequent
payments made by or on behalf of the related Obligor, Liquidation Proceeds, by
the Administrative Purchase Payment or by the Warranty Purchase Payment with
respect to such Receivable or otherwise.

         (b) The Servicer shall be entitled to reimbursement for Outstanding
Advances, without interest, with respect to a Receivable from the following
sources with respect to such Receivable: (i) subsequent payments made by or on
behalf of the related Obligor, (ii) Liquidation Proceeds and (iii) the Warranty
Purchase Payment; provided, however, that in the case of Advances made pursuant
to Section 4.02, the Servicer shall be entitled to reimbursement only from
amounts received in respect of such Receivable that are in excess of the amount
of the Scheduled Payment in the related Collection Period.

         (c) To the extent that the Servicer has determined that any Outstanding
Advance is a Nonrecoverable Advance, the Servicer may, in the relevant
Servicer's Certificate, set forth the amount of such Nonrecoverable Advance, and
on the related Payment Date, the Relevant Trustee shall promptly remit to the
Servicer from Actual Payments on deposit in the Collection Account an amount
equal to the amount of such Nonrecoverable Advance. The Servicer's determination
of Available Collections for any Collection Period shall take into account the
amount of Nonrecoverable Advances specified in any such Officer's Certificate.

         (d) For so long as the Monthly Remittance Conditions are satisfied, in
lieu of causing the Servicer first to deposit and then the Relevant Trustee to
remit to the Servicer the amounts described in clauses (i) through (iii) in
Section 5.04(b) reimbursable in respect on Outstanding Advances, or the amounts
described in Section 5.04(c) applicable in respect of Nonrecoverable Advances,
the Servicer may deduct such amounts from deposits otherwise to be made into the
Collection Account.

         (e) In addition, for so long as the Monthly Remittance Conditions are
satisfied and TMCC or an Affiliate thereof is both the Servicer and the Swap
Counterparty, the Servicer may (i) deduct any Swap Payments Outgoing and Swap
Termination Payments owed by the



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<PAGE>


Issuer to the Swap Counterparty from deposits otherwise to be made into the
Collection Account by the Servicer and (ii) add any Swap Payments Incoming and
Swap Termination Payments owed by the Swap Counterparty to the Issuer to
deposits otherwise to be made into the Collection Account by the Servicer, and
any such payments will be deemed to satisfy the Swap Counterparty's or the
Issuer's (as applicable) payment obligations to the Issuer and the Swap
Counterparty, respectively, under the Interest Rate Swap Agreement.

         (f) In addition, for so long as the Monthly Remittance Conditions are
satisfied and TMCC or any Affiliate thereof is the Servicer and TMCC is the
holder of the Revolving Liquidity Note, the Servicer may (i) deduct any amounts
payable to the holder of the Revolving Liquidity Note to the extent amounts
would be available therefor pursuant to Sections 5.06(c)(v) or (vi) or Section
5.06(d)(iv) or (v) from deposits otherwise to be made into the Collection
Account by the Servicer and (ii) add any amounts required to be drawn on the
Revolving Liquidity Note by the Issuer to deposits otherwise to be made into the
Collection Account by the Servicer, and any such payments will be deemed to
satisfy the obligations of the holder of the Revolving Liquidity Note to fund
such draws by the Issuer pursuant to the Revolving Liquidity Note and Revolving
Liquidity Note Agreement.

         SECTION 5.05 Additional Deposits. (a) The following additional deposits
shall be made to the Collection Account: (i) the Seller shall remit the
aggregate Warranty Purchase Payments with respect to Warranty Receivables
pursuant to Section 3.02, (ii) the Servicer shall remit the aggregate
Administrative Purchase Payments with respect to Administrative Receivables
pursuant to Section 4.08 and the amount required upon any optional purchase of
the Receivables by the Servicer, or any successor to the Servicer, pursuant to
Section 9.01; (iii) the Servicer shall remit (A) the amount required to be
remitted in respect of certain full Prepayments pursuant to Section 4.03, (B)
the aggregate Advances pursuant to Sections 4.02, 5.03 and 5.04(a), (C) the
amount of Payments Ahead and Applied Payments Ahead withdrawn by the Servicer or
Indenture Trustee at the direction of the Servicer from the Payahead Account for
application with respect to such Collection Period, and (D) all Swap Payments
Incoming and Swap Termination Payments received from the Swap Counterparty; and
(iv) the Indenture Trustee shall deposit the amounts described in Sections 5.06,
5.07 and 5.08 drawn on the Revolving Liquidity Note or withdrawn from the
Reserve Account into the Collection Account, pursuant to Sections 5.06, 5.07 and
5.08.

                  (b) All deposits required to be made pursuant to this Section
by the Seller or the Servicer, as the case may be, may be made in the form of a
single deposit and shall be made in immediately available funds, no later than
5:00 P.M., New York City time, on the Business Day immediately preceding the
related Payment Date. At the direction of the Servicer, the Relevant Trustee
shall invest such amounts in Eligible Investments maturing not later than 3:00
P.M. New York City Time, on the related Payment Date.

         SECTION 5.06 Payments and Distributions.

         (a) On each Payment Date, the Indenture Trustee shall cause to be made
the following transfers and distributions in immediately available funds in the
amounts set forth in the Servicer's Certificate for such Payment Date (except
that if the Collection Account, Payahead Account and Reserve Fund are not all
maintained by the Indenture Trustee, transfers to



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<PAGE>


be made between such accounts as described in Section 5.05, 5.06 and 5.07 shall
be made on the Business Day immediately preceding each Payment Date):

                  (i) from the Payahead Account (or directly from the Servicer
         in the case of Payments Ahead held by the Servicer pursuant to Section
         5.02(a) or (b)) to the Collection Account, the aggregate Applied
         Payments Ahead; and

                  (ii) if the Servicer is not permitted to hold Payments Ahead
         pursuant to Section 5.02(a) or (b), from the Collection Account to the
         Payahead Account, the aggregate Payments Ahead for the related
         Collection Period.

                  In addition, on each Payment Date, the Indenture Trustee shall
cause to be paid from the Collection Account any Swap Payments Outgoing and Swap
Termination Payment payable by the Issuer to the Swap Counterparty under the
Interest Rate Swap Agreement, provided that such amounts were not deducted from
amounts remitted to the Collection Account by the Servicer pursuant to Section
5.04(e).

         (b) On each Determination Date, the Servicer shall calculate (i) the
Available Collections and the amounts to be paid to Noteholders of each Class
and the Certificateholder pursuant to Section 5.06(c) or 5.06(d), as the case
may be, (ii) the Swap Payments Outgoing, the Swap Payments Incoming, and any
Swap Termination Payments, (iii) the amount, if any, to be drawn under the
Revolving Liquidity Note or paid to the holder thereof (including in respect of
interest accrued thereon) or withdrawn from or required to be deposited into the
Reserve Account and (iv) all other distributions, deposits and withdrawals to be
made on the related Payment Date.

         (c) Subject to Section 5.06(d), on each Payment Date, the Relevant
Trustee shall make the following payments and distributions from the Collection
Account in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Payment Date; provided, however, that such
payments and distributions shall be made only from those funds deposited in the
Collection Account for the related Collection Period and available therefore as
Available Collections:

                  (i) to the Servicer, the Total Servicing Fee (including any
         unpaid Total Servicing Fees from one or more prior Collection Periods);

                  (ii) on a pro rata basis (based on the amounts distributable
         pursuant to this clause to each such Class), to the Holders of the
         Class A-1 Notes, the Class A-1 Interest Distributable Amount and any
         outstanding Class A-1 Interest Carryover Shortfall, to the Holders of
         the Class A-2 Notes, the Class A-2 Interest Distributable Amount and
         any outstanding Class A-2 Interest Carryover Shortfall, to the Holders
         of the Class A-3A Notes, the Class A-3A Interest Distributable Amount
         and any outstanding Class A-3A Interest Carryover Shortfall, to the
         Holders of the Class A-3B Notes, the Class A-3B Interest Distributable
         Amount and any outstanding Class A-3B Interest Carryover Shortfall and
         to the Holders of the Class A-4 Notes, the Class A-4 Interest
         Distributable Amount and any outstanding Class A-4 Interest Carryover
         Shortfall;



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<PAGE>


                  (iii) to the Class A-1 Notes until the principal amount
         thereof is reduced to zero, an amount equal to the Principal
         Distribution Amount; and after the principal amount of the Class A-1
         Notes is reduced to zero, to the Class A-2 Notes until the principal
         amount of the Class A-2 Notes is reduced to zero, then to the Class
         A-3A Notes and Class A-3B Notes pro rata and concurrently until the
         respective principal amounts of the Class A-3A Notes and Class A-3B
         Notes are reduced to zero, and then to the Class A-4 Notes until the
         principal amount of the Class A-4 Notes is reduced to zero, either (x)
         an amount sufficient to reduce the aggregate outstanding principal
         amount of Class A Notes to an amount equal to the product of the
         Noteholders' Percentage and the Pool Balance as of the last day of the
         related Collection Period or (y) if either the Specified Delinquency
         Percentage or Specified Charge-off Rate Percentage exceeds 2.25% as of
         such Payment Date, all remaining amounts up to the Principal
         Distribution Amount;

                  (iv) if the amount on deposit in the Reserve Account is less
         than the related Specified Reserve Account Balance on such Payment
         Date, to the Reserve Account, the amount necessary to cause the balance
         of funds therein to equal the Specified Reserve Account Balance;

                  (v) to the holder of the Revolving Liquidity Note, the amount
         of any unreimbursed draw previously funded thereunder in accordance
         with the Revolving Liquidity Note Agreement (to the extent such amount
         has not been netted by the Servicer from deposits into the Collection
         Account pursuant to Section 5.04(f));

                  (vi) to the holder of the Revolving Liquidity Note, the amount
         of any accrued and unpaid interest on any draw previously funded
         thereunder in accordance with the Revolving Liquidity Note Agreement
         (to the extent such amount has not been netted by the Servicer from
         deposits into the Collection Account pursuant to Section 5.04(f));

                  (vii) to the Certificateholder, except on any Payment Date
         that occurs after the Class A Notes are accelerated unless or until
         such acceleration has been rescinded or during a period in which either
         the Specified Delinquency Percentage or the Specified Charge-off Rate
         Percentage exceeds 2.25%, an amount sufficient to reduce the aggregate
         outstanding principal balance of the Certificate to an amount equal to
         the product of the Subordinated Seller's Interest Percentage and the
         Pool Balance as of the last day of the related Collection Period; and

                  (viii) any remaining amounts will be distributed to the
         Certificateholder by the Indenture Trustee.

         (d) Notwithstanding the provisions of Section 5.06(c), after an Event
of Default occurs that results in the acceleration of the Notes and unless and
until such acceleration has been rescinded, on each Payment Date, the Relevant
Trustee shall make the following payments and distributions from the Collection
Account in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Payment Date; provided, however, that such
payments and distributions shall be made only from Available Collections
deposited in the Collection Account for the related Collection Period:



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<PAGE>


                  (i) to the Servicer, the Total Servicing Fee (including any
         unpaid Total Servicing Fees from one or more prior Collection Periods);

                  (ii) on a pro rata basis (based on the amounts distributable
         pursuant to this clause to each such Class), to the Holders of the
         Class A-1 Notes, the Class A-1 Interest Distributable Amount and any
         outstanding Class A-1 Interest Carryover Shortfall, to the Holders of
         the Class A-2 Notes, the Class A-2 Interest Distributable Amount and
         any outstanding Class A-2 Interest Carryover Shortfall, to the Holders
         of the Class A-3A Notes, the Class A-3A Interest Distributable Amount
         and any outstanding Class A-3A Interest Carryover Shortfall, to the
         Holders of the Class A-3B Notes, the Class A-3B Interest Distributable
         Amount and any outstanding Class A-3B Interest Carryover Shortfall and
         to the Holders of the Class A-4 Notes, the Class A-4 Interest
         Distributable Amount and any outstanding Class A-4 Interest Carryover
         Shortfall;

                  (iii) to the Holders of Class A-1 Notes, Class A-2 Notes,
         Class A-3A Notes, Class A-3B Notes and the Class A-4 Notes, on a pro
         rata basis (based on the Outstanding Amount of each such Class), until
         the total amount paid to such Holders in respect of principal from the
         Closing Date is equal to the Class A-1 Initial Principal Balance, Class
         A-2 Initial Principal Balance, the Class A-3A Initial Principal
         Balance, the Class A-3B Initial Principal Balance and the Class A-4
         Initial Principal Balance, respectively;

                  (iv) to the holder of the Revolving Liquidity Note, the amount
         of any unreimbursed draw previously funded thereunder in accordance
         with the Revolving Liquidity Note Agreement (to the extent such amount
         has not been netted by the Servicer from deposits into the Collection
         Account pursuant to Section 5.04(f));

                  (v) to the holder of the Revolving Liquidity Note, the amount
         of any accrued and unpaid interest on any draw previously funded
         thereunder in accordance with the Revolving Liquidity Note Agreement
         (to the extent such amount has not been netted by the Servicer from
         deposits into the Collection Account pursuant to Section 5.04(f)); and

                  (vi) any remaining funds will be distributed to the
         Certificateholder by the Indenture Trustee.

         (e) For purposes of determining whether an Event of Default pursuant to
Section 5.01(b) of the Indenture has occurred, the amount of principal required
to be paid to the Holders of any Class of Notes on any Payment Date is the
amount available to be paid thereto pursuant to Sections 5.06(c)(iii) or
5.06(d)(iii); provided however that (i) the Class A-1 Notes are required to be
paid in full on or before the Class A-1 Final Scheduled Payment Date, meaning
that Holders of Class A-1 Notes are entitled to have received on or before such
date payments in respect of principal in an aggregate amount equal to the Class
A-1 Initial Principal Balance together with all interest accrued thereon through
such date; (ii) the Class A-2 Notes are required to be paid in full on or before
the Class A-2 Final Scheduled Payment Date, meaning that Holders of Class A-2
Notes are entitled to have received on or before such date payments in respect
of principal in an aggregate amount equal to the Class A-2 Initial Principal
Balance together with all interest accrued thereon through such date, (iii) the
Class A-3A Notes are required to be paid in full on or before the Class A-3A
Final Scheduled Payment Date, meaning that Holders of Class A-3A



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<PAGE>


Notes are entitled to have received on or before such date payments in respect
of principal in an aggregate amount equal to the Class A-3A Initial Principal
Balance together with all interest accrued thereon through such date; (iv) the
Class A-3B Notes are required to be paid in full on or before the Class A-3B
Final Scheduled Payment Date, meaning that Holders of Class A-3B Notes are
entitled to have received on or before such date payments in respect of
principal in an aggregate amount equal to the Class A-3B Initial Principal
Balance together with all interest accrued thereon through such date; and (v)
the Class A-4 Notes are required to be paid in full on or before the Class A-4
Final Scheduled Payment Date, meaning that Holders of Class A-4 Notes are
entitled to have received on or before such date payments in respect of
principal in an aggregate amount equal to the Class A-4 Initial Principal
Balance together with all interest accrued thereon through such date.

         (f) Except with respect to the final payment upon retirement of a Note
or Certificate, the Servicer shall on each Payment Date instruct the Relevant
Trustee to pay or distribute to each Securityholder of record on the related
Record Date by check mailed to such Securityholder at the address of such Holder
appearing in the Note Register, or herein (in the case of the Certificate) (or,
if DTC, its nominee or a Clearing Agency is the relevant Holder, by wire
transfer of immediately available funds or pursuant to other arrangements), the
amount to be paid or distributed to such Securityholder pursuant to such
Holder's Note or Certificate. With respect to the final payment upon retirement
of a Note or of the Certificate, the Servicer shall on the relevant final
Payment Date instruct the Relevant Trustee to pay or distribute the amounts due
thereon only upon delivery for cancellation of the certificate representing such
Note or Certificate in accordance with the Indenture or the Trust Agreement, as
the case may be.

         SECTION 5.07 Reserve Account.

         (a) The Seller will, pursuant to the Securities Account Control
Agreement and the Indenture, establish and maintain with the Indenture Trustee a
segregated trust account (the "Reserve Account") which will include any money
and other property deposited and held therein pursuant to Section 5.06(c)(iv)
and this Section. Under the circumstances specified in Section 5.08(b), the
holder of the Revolving Liquidity Note will be obligated to fund a draw of the
entire amount available to be drawn thereunder, which amounts will be applied by
the Indenture Trustee pursuant to the written direction of the Servicer to fund
certain shortfalls as described in Section 5.08 and be deposited into the
Reserve Account until the amount on deposit therein equals the Specified Reserve
Account Balance. On any Payment Date on which the amount on deposit in the
Reserve Account is less than the Specified Reserve Account Balance (which may be
the case whether or not any of the circumstances specified in Section 5.08 has
occurred and is continuing), the Indenture Trustee will, as directed in writing
by the Servicer in accordance with Section 5.06(c)(iv), deposit into the Reserve
Account Available Collections until the amount on deposit therein equals the
Specified Reserve Account Balance. On each Payment Date, to the extent that
Available Collections are insufficient to fully fund the payments and
distributions described in clauses (i) through (iii) of Section 5.06(c) or in
clauses (i) through (iii) of Section 5.06(d), the Indenture Trustee will
withdraw amounts then on deposit in the Reserve Account (excluding net
investment income on Eligible Investments which amounts are payable to the
Seller therefrom), up to the amounts of any such deficiencies, and deposit such
amounts into the Collection Account for application pursuant to such clauses.
Also on each Payment Date, as directed in writing by the Servicer, the Indenture
Trustee will apply any amounts remaining on



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deposit in the Reserve Account in excess of the Specified Reserve Account
Balance first to repay any unreimbursed draws on the Revolving Liquidity Note
and any interest accrued thereon (in that order), and then will release to the
Seller any remaining amounts in excess of the Specified Reserve Account Balance.
Upon the termination of the trusts established under the Trust Agreement and the
Indenture, as directed in writing by the Servicer, the Indenture Trustee will
repay any unreimbursed draws on the Revolving Liquidity Note and any interest
accrued thereon (in that order) and will release to the Seller any amounts
remaining on deposit in the Reserve Account. Upon any such distribution to the
Seller, the Issuer, Owner Trustee, Certificateholder, Indenture Trustee, holder
of the Revolving Liquidity Note and Noteholders will have no further rights in,
or claims to, such amounts, except to the extent that funds may be drawn again
pursuant to the terms of the Revolving Liquidity Note Agreement.

         (b) Any amounts held in the Reserve Account shall be invested by the
Indenture Trustee, as directed in writing by the Servicer, in Eligible
Investments. Earnings on investment of funds in the Reserve Account shall be
paid to the Seller on each Payment Date, and losses and any investment expenses
shall be charged against the funds on deposit therein. The Indenture Trustee
shall incur no liability for the selection of investments or for losses thereon
absent its own negligence or willful misfeasance. The Indenture Trustee shall
have no liability in respect of losses incurred as a result of the liquidation
of any investment prior to its stated maturity date or the failure of the
Servicer to provide timely written investment directions.

         (c) Subject to the right of the Indenture Trustee to make withdrawals
therefrom, as directed by the Servicer, for the purposes and in the amounts set
forth in Section 5.06, the Reserve Account and all funds held therein shall be
the property of the Seller and not the property of the Issuer, the Owner Trustee
or the Indenture Trustee. The Issuer, Owner Trustee, Seller and Indenture
Trustee will treat the Reserve Account, all funds therein and all net investment
income with respect thereto as assets of the Seller for federal income tax and
all other purposes.

         (d) The Seller will grant to the Indenture Trustee, for the benefit of
the Noteholders, a security interest in any funds (including Eligible
Investments) in the Reserve Account and the proceeds thereof, and the Indenture
Trustee shall have all of the rights of a secured party under the UCC with
respect thereto; provided that all income from the investment of funds in the
Reserve Account and the right to receive such income are retained by the Seller
and are not transferred, assigned or otherwise conveyed hereunder. If for any
reason the Reserve Account is no longer an Eligible Deposit Account, the
Indenture Trustee shall promptly cause the Reserve Account to be moved to
another institution or otherwise changed so that the Reserve Account becomes an
Eligible Deposit Account.

         Neither the Owner Trustee nor the Indenture Trustee shall enter into
any subordination or intercreditor agreement with respect to the Reserve
Account.

         SECTION 5.08 Revolving Liquidity Note.

         (a) Pursuant to the Revolving Liquidity Note Agreement, the Seller will
issue a Revolving Liquidity Note, with a maximum draw amount of $7,745,352, to
be initially held by TMCC. On the Business Day preceding each Payment Date with
respect to which Available



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<PAGE>


Collections are insufficient to fund any payment to be made to the Noteholders
pursuant to Section 5.06(c)(ii) or (iii) or 5.06(d) (ii) or (iii), the Relevant
Trustee will be entitled to make draw requests (to the maximum draw amount) in
the amount of any such shortfalls that are not funded from amounts on deposit in
the Reserve Account and that are therefore to be funded by the holder of the
Revolving Liquidity Note. Amounts so funded by the holder of the Revolving
Liquidity Note will be applied by the Indenture Trustee pursuant to the written
direction of the Servicer to fund such shortfalls in the order of priority of
payments specified in Section 5.06.

         (b) In addition, if the Servicer's short-term unsecured debt rating
falls below P-1 by Moody's or A-1+ by S&P (or in either case, such lower ratings
as may be permitted by Moody's and S&P) or if the Servicer fails to fund any
amount drawn under the Revolving Liquidity Note, then the Relevant Trustee shall
demand payment of the entire undrawn amount of the Revolving Liquidity Note.
Amounts so funded by TMCC will be applied by the Indenture Trustee pursuant to
the written direction of the Servicer, first, to fund any shortfalls described
in Section 5.08(a) in the order of priority of payments specified in Section
5.06, and then shall be deposited into the Reserve Account until the amount on
deposit therein equals the Specified Reserve Account Balance. From and after the
occurrence of any event described in this Section 5.08(b), the Reserve Account
must be maintained as detailed in Section 5.7.

         SECTION 5.09 Statements to Certificateholder, Noteholders, and Swap
Counterparty.

         (a) On or prior to each Payment Date, the Servicer shall provide to the
Indenture Trustee (with a copy to the Rating Agencies and each Paying Agent) for
the Indenture Trustee to forward on such Payment Date to each Noteholder of
record as of the most recent Record Date and to the Owner Trustee (with a copy
to each Paying Agent) for the Owner Trustee to forward to each Certificateholder
of record as of the most recent Record Date a statement substantially in the
form of Exhibit A, to the Swap Counterparty (unless TMCC or an Affiliate thereof
is the Servicer and the Swap Counterparty at the time of delivery) and to the
holder of the Revolving Liquidity Note (unless TMCC or an Affiliate thereof is
the holder of the Revolving Liquidity Note at the time of delivery), setting
forth at least the following information as to the Notes and the Certificate to
the extent applicable:

                  (i) the amount paid or distributed in respect of interest in
         respect of each Class of Notes;

                  (ii) the amount paid or distributed in respect of principal on
         or with respect to each Class of Notes;

                  (iii) the amount paid or distributed to the Certificateholder
         in respect of principal on or with respect to the Subordinated Seller's
         Interest;

                  (iv) any excess amounts paid or distributed to the
         Certificateholder;

                  (v) the Pool Balance as of the close of business on the last
         day of the preceding Collection Period;

                  (vi) the Outstanding Amount, the Class A-1 Principal Balance,
         the Class A-2 Principal Balance, the Class A-3A Principal Balance, the
         Class A-3B Principal Balance,



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<PAGE>


         the Class A-4 Principal Balance, and the Note Pool Factor for each
         Class of Notes, in each case after giving effect to all payments in
         respect of principal on such Payment Date;

                  (vii) the amount of the Servicing Fee paid to the Servicer
         with respect to the related Collection Period;

                  (viii) the amount of any Class A-1 Interest Carryover
         Shortfall, Class A-2 Interest Carryover Shortfall, Class A-3A Interest
         Carryover Shortfall, Class A-3B Interest Carryover Shortfall and Class
         A-4 Interest Carryover Shortfall after giving effect to all payments of
         interest on such Payment Date, and the change in such amounts from the
         preceding Payment Date;

                  (ix) the aggregate amount of Payments Ahead on deposit in the
         Payahead Account or held by the Servicer with respect to the related
         Receivables and the change in such amount from the immediately
         preceding Payment Date;

                  (x) the amount of Advances made in respect of the related
         Receivables and the related Collection Period and the amount of
         unreimbursed Advances on such Payment Date;

                  (xi) the amount of draws made under the Revolving Liquidity
         Note Agreement;

                  (xii) the balance of any Reserve Account on such Payment Date
         and the Specified Reserve Account Balance on such Payment Date, after
         giving effect to changes thereto on such Payment Date; and

                  (xiii) the Class A-3A Notional Balance, the Class A-3A Rate,
         the Swap Payment Incoming, the Swap Payment Outgoing and the Swap
         Termination Payment.

         SECTION 5.10 Net Deposits. As an administrative convenience, the
Seller, the Servicer, the Owner Trustee and the Indenture Trustee may make any
remittances pursuant to this Article net of amounts to be distributed by the
applicable recipient to such remitting party. Nonetheless, each such party shall
account to the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholder for all of the above described remittances, payments and
distributions as if all deposits, payments, distributions and transfers were
made individually.


                                   ARTICLE VI

                                   THE SELLER

         SECTION 6.01 Representations of Seller. The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date, and shall survive the sale of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.



                                       50


<PAGE>


         (a) Organization and Good Standing. The Seller shall have been duly
organized and shall be validly existing as a limited liability company in good
standing under the laws of the State of Delaware, with power and authority to
own its properties and to conduct its business as such properties shall be
currently owned and such business is presently conducted, and had at all
relevant times, and shall now have, power, authority and legal right to acquire,
own and sell the Receivables.

         (b) Due Qualification. The Seller shall be duly qualified to do
business as a foreign limited liability company in good standing, and shall have
obtained all necessary licenses and approvals in all jurisdictions in which the
ownership or lease of property or the conduct of its business shall require such
qualifications and where the failure to so qualify will have a material adverse
effect on the ability of the Seller to conduct its business or perform its
obligations under this Agreement.

         (c) Power and Authority. The Seller shall have the power and authority
to execute and deliver this Agreement and to carry out its terms; the Seller
shall have full power and authority to sell and assign the property to be sold
and assigned to and deposited as part of the Owner Trust Estate or Trust Estate,
as the case may be, and shall have duly authorized such sale and assignment to
the Issuer, the Owner Trustee or the Indenture Trustee, as the case may be; and
the execution, delivery and performance of this Agreement shall have been duly
authorized by the Seller by all necessary action.

         (d) Valid Sale; Binding Obligations. This Agreement shall evidence a
valid sale, transfer and assignment of the Receivables, enforceable against
creditors of and purchasers from the Seller; and shall constitute a legal, valid
and binding obligation of the Seller enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally or by
general equity principles.

         (e) No Violation. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms of this Agreement shall not
conflict with, result in any breach of any of the terms and provisions of, nor
constitute (with or without notice or lapse of time) a default under, the
Certificate of Formation or limited liability company agreement of the Seller or
any indenture, agreement or other instrument to which the Seller is a party or
by which it shall be bound; nor result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than the Basic Documents), nor violate any
law or, to the best of the Seller's knowledge, any order, rule or regulation
applicable to the Seller of any court or of any federal or state regulatory
body, administrative agency or other governmental instrumentality having
jurisdiction over the Seller or its properties which breach, default, conflict,
lien or violation would have a material adverse effect on the earnings, business
affairs or business prospects of the Seller.

         (f) No Proceedings. There is no action, suit or proceeding before or by
any court or governmental agency or body, domestic or foreign, now pending, or
to the Seller's knowledge, threatened, against or affecting the Seller: (i)
asserting the invalidity of this Agreement, the Trust Agreement, the Indenture,
the Securities Account Control Agreement, the Certificate or the Notes, (ii)
seeking to prevent the issuance of the Certificate or the Notes or the



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<PAGE>


consummation of any of the transactions contemplated by this Agreement, the
Trust Agreement, or the Indenture, (iii) seeking any determination or ruling
that might materially and adversely affect the performance by the Seller of its
obligations under, or the validity or enforceability of, this Agreement, the
Trust Agreement, the Indenture, the Certificate or the Notes, or (iv) relating
to the Seller and which might adversely affect the federal income tax attributes
of the Issuer, the Certificate or the Notes.

         SECTION 6.02 Company Existence. During the term of this Agreement, the
Seller will keep in full force and effect its existence, rights and franchises
as a limited liability company under the laws of the jurisdiction of its
formation and will obtain and preserve its qualification to do business in each
jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of the Basic Documents and each other instrument or
agreement necessary or appropriate to the proper administration of this
Agreement and the transactions contemplated hereby. In addition, all
transactions and dealings between the Seller and its Affiliates (including the
Issuer) will be conducted on an arm's length basis.

         SECTION 6.03 Liability of Seller; Indemnities. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

         (a) The Seller shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Indenture Trustee and the Servicer from and against any
taxes that may at any time be asserted against any such Person with respect to,
as of the date hereof, the sale of the Receivables to the Issuer or the issuance
and original sale of the Notes and the Certificates, including any sales, gross
receipts, general corporation, tangible personal property, privilege or license
taxes (but, in the case of the Issuer, not including any taxes asserted with
respect to, and as of the date of, the sale of the Receivables to the Issuer or
the issuance and original sale of the Certificate or any of the Notes, or
asserted with respect to ownership of the Receivables or federal or other income
taxes arising out of payments or distributions on the Certificate or the Notes)
and costs and expenses in defending against the same.

         (b) The Seller shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Indenture Trustee, the Issuer, the Certificateholder and
the Noteholders and any of the officers, directors, employees and agents of the
Issuer, the Owner Trustee and the Indenture Trustee from and against any loss,
liability or expense incurred by reason of (i) the Seller's willful misfeasance,
bad faith or negligence in the performance of its duties under this Agreement,
or by reason of reckless disregard of its obligations and duties under this
Agreement and (ii) the Seller's or the Issuer's violation of federal or state
securities laws in connection with the offering and sale of any of the Notes or
the Certificate.

         (c) Except as set forth in clause (a) above, the Seller shall pay any
and all taxes levied or assessed upon all or any part of the Owner Trust Estate.

         (d) Promptly after receipt by a party indemnified under this Section
6.03 or Section 3.02 (an "Indemnified Party") of notice of the commencement of
any action, such Indemnified Party will, if a claim in respect thereof is to be
made against the party providing indemnification under this Section 6.03 or
Section 3.02 (an "Indemnifying Party"), notify such



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<PAGE>


Indemnifying Party of the commencement thereof. In case any such action is
brought against any Indemnified Party under this Section 6.03 or Section 3.02
and it notifies the Indemnifying Party of the commencement thereof, the
Indemnifying Party will assume the defense thereof, with counsel reasonably
satisfactory to such Indemnified Party (who may, unless there is, as evidenced
by an opinion of counsel to the Indemnified Party stating that there is an
unwaivable conflict of interest, be counsel to the Indemnifying Party), and the
Indemnifying Party will not be liable to such Indemnified Party under this
Section for any legal or other expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof, other than reasonable
costs of investigation. The obligations set forth in this Section 6.03 and
Section 3.02 shall survive the termination of this Agreement or the resignation
or removal of the Owner Trustee or the Indenture Trustee and shall include
reasonable fees and expenses of counsel and expenses of litigation. If the
Seller shall have made any indemnity payments pursuant to this Section and the
Person to or on behalf of whom such payments are made thereafter collects any of
such amounts from others, such Person shall promptly repay such amounts to the
Seller, without interest.

         SECTION 6.04 Merger or Consolidation of, or Assumption of the
Obligations of, Seller. Any Person (a) into which the Seller may be merged or
consolidated, (b) which may result from any merger or consolidation to which the
Seller shall be a party or (c) which may succeed to the properties and assets of
the Seller substantially as a whole, which person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Seller
under this Agreement, shall be the successor to the Seller hereunder without the
execution or filing of any document or any further act by any of the parties to
this Agreement; provided, however, that (i) immediately after giving effect to
such transaction, no representation or warranty made pursuant to Section 6.01
shall have been breached (except that the representations regarding the due
organization and valid existence of the successor may be deemed to reference
jurisdictions other than Delaware), (ii) the Seller shall have delivered to the
Owner Trustee and the Indenture Trustee an Officer's Certificate and an Opinion
of Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, (iii) the Seller shall have given 10 days' written
notice to each Rating Agency of its intent or expectation to enter such
transaction and neither Rating Agency shall have notified the Seller, the Owner
Trustee or the Indenture Trustee that such transaction might or would cause it
to reduce, withdraw or modify its then current rating of any Class of Notes and
(iv) the Seller shall have delivered to the Owner Trustee and the Indenture
Trustee an Opinion of Counsel either (A) stating that, in the opinion of such
counsel, all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to preserve and
protect the interest of the Owner Trustee and Indenture Trustee, respectively,
in the Receivables and reciting the details of such filings, or (B) stating
that, in the opinion of such counsel, no such action shall be necessary to
preserve and protect such interests. Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance
with clauses (i), (ii), (iii) and (iv) above shall be conditions to the
consummation of the transactions referred to in clauses (a), (b) or (c) above.

         SECTION 6.05 Limitation on Liability of Seller and Others. The Seller
and any director, officer, employee or agent of the Seller may rely in good
faith on the advice of counsel or on any document of any kind, prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder. The Seller shall not be under any obligation to appear



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<PAGE>


in, prosecute or defend any legal action that shall not be incidental to its
obligations under this Agreement and that in its opinion may involve it in any
expense or liability.

         SECTION 6.06 Seller May Own Certificate or Notes. The Seller will own
the Certificate, and the Seller and any Affiliate thereof may in its individual
or any other capacity become the owner or pledgee of the Notes of any class with
the same rights as it would have if it were not the Seller or an Affiliate
thereof, except as expressly provided in any Basic Document.


                                  ARTICLE VII

                                  THE SERVICER

         SECTION 7.01 Representations of Servicer. The Servicer makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Receivables. The representations speak as of the execution and
delivery of this Agreement and as of the Closing Date and shall survive the sale
of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

         (a) Organization and Good Standing. The Servicer shall have been duly
organized and shall be validly existing as a corporation in good standing under
the laws of the State of California, with corporate power and authority to own
its properties and to conduct its business as such properties shall be currently
owned and such business is presently conducted, and had at all relevant times,
and shall now have, corporate power, authority and legal right to acquire, own
and sell the Receivables.

         (b) Due Qualification. The Servicer shall be duly qualified to do
business as a foreign corporation in good standing, and shall have obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business shall require such
qualifications and where the failure to so qualify will have a material adverse
effect on the ability of the Servicer to conduct its business or perform its
obligations under this Agreement.

         (c) Power and Authority. The Servicer shall have the corporate power
and authority to execute and deliver this Agreement and to carry out its terms;
and the execution, delivery and performance of this Agreement have been duly
authorized by the Servicer by all necessary corporate action.

         (d) Binding Obligations. This Agreement shall constitute a legal, valid
and binding obligation of the Servicer enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally or by
general equity principles.

         (e) No Violation. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms of this Agreement shall not
conflict with, result in any breach of any of the terms and provisions of, nor
constitute (with or without notice or lapse of time) a default under, the
articles of incorporation or bylaws of the Servicer or any indenture, agreement
or other instrument to which the Servicer is a party or by which it shall be
bound; nor



                                       54


<PAGE>


result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than this Agreement), nor violate any law or, to the best of the
Servicer's knowledge, any order, rule or regulation applicable to the Servicer
of any court or of any federal or state regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Servicer or
its properties which breach, default, conflict, lien or violation would have a
material adverse effect on the earnings, business affairs or business prospects
of the Servicer.

         (f) No Proceedings. There is no action, suit or proceeding before or by
any court or governmental agency or body, domestic or foreign, now pending, or
to the Servicer's knowledge, threatened, against or affecting the Servicer: (i)
asserting the invalidity of this Agreement, the Trust Agreement, the Indenture,
the Certificate or the Notes, (ii) seeking to prevent the issuance of the
Certificate or the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Trust Agreement or the Indenture, (iii)
seeking any determination or ruling that might materially and adversely affect
the performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Trust Agreement, the Indenture, the
Certificate or the Notes, or (iv) relating to the Servicer and which might
adversely affect the federal income tax attributes of the Issuer, the
Certificate or the Notes.

         SECTION 7.02 Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement:

         (a) The Servicer shall indemnify, defend and hold harmless the Seller,
the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholder and any of the officers, directors, employees and agents of
the Seller, the Issuer, the Owner Trustee and the Indenture Trustee from and
against any and all costs, expenses, losses, damages, claims and liabilities,
arising out of or resulting from the use, ownership or operation by the Servicer
or any Affiliate thereof of a Financed Vehicle.

         (b) The Servicer shall indemnify, defend and hold harmless the Owner
Trustee and the Indenture Trustee and their respective officers, directors,
employees and agents from and against all costs, expenses, losses, claims,
damages and liabilities arising out of or incurred in connection with the
acceptance or performance of the trusts and duties herein and in the Trust
Agreement contained, in the case of the Owner Trustee, and in the Indenture
contained, in the case of the Indenture Trustee, except to the extent that such
cost, expense, loss, claim, damage or liability: (i) in the case of the Owner
Trustee, shall be due to the willful misfeasance, bad faith or negligence
(except for errors in judgment) of the Owner Trustee or, in the case of the
Indenture Trustee, shall be due to the willful misfeasance, bad faith or
negligence (except for errors in judgment) of the Indenture Trustee; or (ii) in
the case of the Owner Trustee, shall arise from the breach by the Owner Trustee
of any of its representations or warranties set forth in Section 7.03 of the
Trust Agreement.

         (c) The Servicer shall indemnify, defend and hold harmless the Seller,
the Issuer, the Owner Trustee, the Indenture Trustee, the Certificateholder and
the Noteholders and any of the officers, directors, employees and agents of the
Seller, the Issuer, the Owner Trustee, the Indenture Trustee and the
Certificateholder from and against any and all costs, expenses, losses,



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<PAGE>


claims, damages and liabilities (including without limitation reasonable fees
and expenses of counsel) to the extent that such cost, expense, loss, claim,
damage or liability arose out of, or is imposed upon any such Person through,
the negligence, willful misfeasance or bad faith of the Servicer in the
performance of its duties under this Agreement or by reason of reckless
disregard of its obligations and duties under this Agreement, including those
that may be incurred by any such indemnified party as a result of any act or
omission by the Servicer in connection with its maintenance and custody of the
Receivables Files.

         (d) Promptly after receipt by a party indemnified under this Section
7.02 or Section 4.08 (an "Indemnified Party") of notice of the commencement of
any action, such Indemnified Party will, if a claim in respect thereof is to be
made against the party providing indemnification under this Section 7.02 or 4.08
(an "Indemnifying Party"), notify such Indemnifying Party of the commencement
thereof. In case any such action is brought against any Indemnified Party under
this Section 7.02 or 4.08 and it notifies the Indemnifying Party of the
commencement thereof, the Indemnifying Party will assume the defense thereof,
with counsel reasonably satisfactory to such Indemnified Party (who may, unless
there is, as evidenced by an opinion of counsel to the Indemnified Party stating
that there is an unwaivable conflict of interest, be counsel to the Indemnifying
Party), and the Indemnifying Party will not be liable to such Indemnified Party
under this Section for any legal or other expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof, other than reasonable
costs of investigation. The obligations set forth in this Section 7.02 and
Section 4.08 shall survive the termination of this Agreement or the resignation
or removal of the Servicer, the Owner Trustee or the Indenture Trustee and shall
include reasonable fees and expenses of counsel and expenses of litigation. If
the Servicer shall have made any indemnity payments pursuant to this Section and
the Person to or on behalf of whom such payments are made thereafter collects
any of such amounts from others, such Person shall promptly repay such amounts
to the Servicer, without interest.

         For purposes of this Section, in the event of the termination of the
rights and obligations of TMCC (or any successor thereto pursuant to Section
7.03) as Servicer pursuant to Section 8.01, or a resignation by such Servicer
pursuant to this Agreement, such Servicer shall be deemed to be the Servicer
pending appointment of a successor Servicer (other than the Indenture Trustee)
pursuant to Section 8.02.

         SECTION 7.03 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer. Any corporation (a) into which the Servicer may be
merged or consolidated, (b) which may result from any merger, conversion or
consolidation to which the Servicer shall be a party or (c) which may succeed to
all or substantially all of the business of the Servicer, which corporation in
any of the foregoing cases executes an agreement of assumption to perform every
obligation of the Servicer under this Agreement, shall be the successor to the
Servicer under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties to this Agreement; provided,
however, that (i) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 7.01 shall have been
breached (except that the representations regarding the due organization and
valid existence of the successor may be deemed to reference jurisdictions other
than California), and no Servicer Default, and no event which, after notice or
lapse of time, or both, would become a Servicer Default, shall have occurred and
be continuing, (ii) the Servicer shall have delivered to the



                                    56


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Owner Trustee and the Indenture Trustee an Officer's Certificate and an Opinion
of Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section and that all conditions
precedent provided for in this Agreement relating to such transaction have been
complied with, (iii) the Servicer shall have given 10 days' written notice to
each Rating Agency of its intent or expectation to enter such transaction and
neither Rating Agency shall have notified the Seller, the Owner Trustee or the
Indenture Trustee that such transaction might or would cause it to reduce,
withdraw or modify its then current rating of any Class of Notes, (iv)
immediately after giving effect to such transaction, the successor to the
Servicer shall become the Administrator under the Administration Agreement in
accordance with Section 8 of such Agreement and (v) the Servicer shall have
delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel
stating that, in the opinion of such counsel, either (A) all financing
statements and continuation statements and amendments thereto have been executed
and filed that are necessary fully to preserve and protect the interest of the
Owner Trustee and the Indenture Trustee, respectively, in the Receivables and
reciting the details of such filings or (B) no such action shall be necessary to
preserve and protect such interests. Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance
with clauses (i), (ii), (iii), (iv) and (v) above shall be conditions to the
consummation of the transactions referred to in clause (a), (b) or (c) above.

         SECTION 7.04 Limitation on Liability of Servicer and Others. Neither
the Servicer nor any of the directors, officers, employees or agents of the
Servicer shall be under any liability to the Seller, the Issuer, the Indenture
Trustee, the Owner Trustee, the Noteholders or the Certificateholder, except as
provided under this Agreement, for any action taken or for refraining from the
taking of any action pursuant to this Agreement or for errors in judgment;
provided, however, that this provision shall not protect the Servicer or any
such person against any liability that would otherwise be imposed by reason of
willful misfeasance, bad faith or negligence in the performance of duties or by
reason of reckless disregard of obligations and duties under this Agreement. The
Servicer and any director, officer, employee or agent of the Servicer may rely
in good faith on any document of any kind prima facie properly executed and
submitted by any person respecting any matters arising under this Agreement.

         Except as provided in this Agreement, the Servicer shall not be under
any obligation to appear in, prosecute or defend any legal action that shall not
be incidental to its duties to service the Receivables in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability;
provided, however, that the Servicer may (with the written consent of the Owner
Trustee or Indenture Trustee) undertake any reasonable action that it may deem
necessary or desirable in respect of the Basic Documents and the rights and
duties of the parties to the Basic Documents and the interests of the
Certificateholder under this Agreement and the Noteholders under the Indenture.
In such event, the reasonable legal expenses and costs for such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Estate (if any Notes are then outstanding) or the Owner Trust Estate (if
no Notes are then outstanding) and the Servicer will be entitled to be
reimbursed therefor solely from Available Collections.

         SECTION 7.05 TMCC Not To Resign as Servicer. Subject to the provisions
of Section 7.03, TMCC shall not resign from the obligations and duties hereby
imposed on it as Servicer under this



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Agreement except upon a determination that the performance of its duties under
this Agreement shall no longer be permissible under applicable law. Notice of
any such determination permitting the resignation of TMCC shall be communicated
to the Owner Trustee, the Indenture Trustee and each Rating Agency at the
earliest practicable time (and, if such communication is not in writing, shall
be confirmed in writing at the earliest practicable time) and any such
determination shall be evidenced by an Opinion of Counsel to such effect
delivered to the Owner Trustee and the Indenture Trustee concurrently with or
promptly after such notice. No such resignation shall become effective until the
Indenture Trustee or a successor Servicer shall have (i) assumed the
responsibilities and obligations of TMCC in accordance with Section 8.02 and
(ii) become the Administrator under the Administration Agreement in accordance
with Section 8 of such Agreement.


                                  ARTICLE VIII

                                     DEFAULT

         SECTION 8.01 Servicer Default. Each of the following events is a
"Servicer Default":

         (a) any failure by the Servicer (or the Seller, so long as TMCC is the
Servicer) to deliver to the Relevant Trustee for deposit in the Collection
Account, Payahead Account or Reserve Fund any required payment or to direct the
Relevant Trustee to make any required payment or distribution therefrom, which
failure continues unremedied for a period of three Business Days after discovery
of the failure by an officer of the Servicer or written notice of such failure
is received (i) by the Servicer (or the Seller, so long as TMCC is the Servicer)
from the Owner Trustee or the Indenture Trustee or (ii) to the Seller or the
Servicer, as the case may be, and to the applicable Owner Trustee and Indenture
Trustee by the Holders of Notes evidencing not less than 25% of the Class A
Notes, acting as a single Class, excluding for purposes of such calculation and
action all Securities held or beneficially owned by TMCC, TAFR LLC or any of
their Affiliates (provided that such event will not be a Servicer Default if (A)
such failure or delay is caused by an event of force majeure, (B) does not
continue for more than 10 Business Days, (C) during such period the Servicer
uses all commercially reasonable efforts to perform its obligations under this
Agreement and (D) the Servicer provides to the Owner Trustee, Indenture Trustee,
Seller and Securityholders prompt notice of such failure or delay that includes
a description of the Servicer's efforts to remedy such failure or delay);

         (b) failure by the Servicer or the Seller, as the case may be, duly to
observe or to perform in any material respect any other covenants or agreements
of the Servicer or the Seller (as the case may be) set forth in this Agreement,
which failure shall materially and adversely affect the rights of
Certificateholder or Noteholders and shall continue unremedied for a period of
90 days after the date on which written notice of such failure is received (i)
by the Servicer (or the Seller, so long as TMCC is the Servicer) from the Owner
Trustee or the Indenture Trustee or (ii) to the Seller or the Servicer, as the
case may be, and to the Owner Trustee and Indenture Trustee by the holders of
Notes evidencing not less than 25% of the Class A Notes, acting together as a
single Class, excluding for purposes of such calculation and action all
Securities held or beneficially owned by TMCC, TAFR LLC or any of their
Affiliates; or

         (c) the occurrence of an Insolvency Event with respect to the Servicer.



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At any time when a Servicer Default has occurred and is continuing, so long as
the Servicer Default shall not have been remedied, either the Indenture Trustee
or the Holders of Notes evidencing not less than 51% of the Outstanding Amount
of the Class A Notes acting as a single Class, excluding for purposes of such
calculation and action all Securities held or beneficially owned by TMCC, TAFR
LLC or any of their Affiliates, by notice then given in writing to the Servicer
(and to the Indenture Trustee and the Owner Trustee if given by the Noteholders)
may terminate all the rights and obligations (other than the obligations set
forth in Section 7.02 hereof and the rights set forth in Section 7.04 hereof) of
the Servicer under this Agreement. By the same required vote, the Noteholders
specified in the prior sentence may waive any such Servicer Default (other than
a default in the making of any required deposits or payments from or to the
Collection Account, Reserve Account or Payahead Account) for a specified period
or permanently. Upon any such waiver of a past default, such default shall cease
to exist, and any Servicer Default arising therefrom shall be deemed to have
been remedied for every purpose of this Agreement. No such waiver shall extend
to any subsequent or other default or impair any right consequent thereto.

         SECTION 8.02 Appointment of Successor.

         (a) Upon the Servicer's receipt of notice of termination pursuant to
Section 8.01 or the Servicer's resignation in accordance with the terms of this
Agreement, the predecessor Servicer shall continue to perform its functions as
Servicer under this Agreement, in the case of termination, only until the date
specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the later of (i) the date 45 days from the delivery to the
Owner Trustee and the Indenture Trustee of written notice of such resignation
(or written confirmation of such notice) in accordance with the terms of this
Agreement and (ii) the date upon which the predecessor Servicer shall become
unable to act as Servicer, as specified in the notice of resignation and
accompanying Opinion of Counsel. In the event of the Servicer's termination
hereunder, the Indenture Trustee shall appoint a Successor Servicer, and the
Successor Servicer shall accept its appointment (including its appointment as
Administrator under the Administration Agreement as set forth in Section
8.02(b)) by a written assumption in form acceptable to the Owner Trustee and the
Indenture Trustee. In the event that a Successor Servicer has not been appointed
at the time when the predecessor Servicer has ceased to act as Servicer in
accordance with this Section, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer and the Indenture Trustee
shall be entitled to the Servicing Fee. Notwithstanding the above, the Indenture
Trustee shall, if it shall be unwilling or legally unable so to act, appoint or
petition a court of competent jurisdiction to appoint any established
institution having a net worth of not less than $50,000,000 and whose regular
business shall include the servicing of automobile and/or light-duty truck
receivables, as the successor to the Servicer under this Agreement. In
connection therewith, the Indenture Trustee is authorized and empowered to offer
such successor servicer compensation up to, but not in excess of, the Total
Servicing Fee and other servicing compensation specified in this Agreement as
payable to the initial Servicer. Upon such appointment, the Indenture Trustee
will be released from the duties and obligations of acting as Successor
Servicer, such release effective upon the effective date of the servicing
agreement entered into between the Successor Servicer and the Issuer.



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         (b) Upon appointment, the successor Servicer (including the Indenture
Trustee acting as successor Servicer) shall (i) be the successor in all respects
to the predecessor Servicer and shall be subject to all the responsibilities,
duties and liabilities arising thereafter relating thereto placed on the
predecessor Servicer and shall be entitled to the Servicing Fee and all the
rights granted to the predecessor Servicer by the terms and provisions of this
Agreement and (ii) become the Administrator under the Administration Agreement
in accordance with Section 8 of such Agreement.

         (c) On or after the receipt by the Servicer of written notice of
termination pursuant to Section 8.01, all authority and power of the Servicer
under this Agreement, whether with respect to the Notes, the Certificate or the
Receivables or otherwise, shall, without further action, pass to and be vested
in the Indenture Trustee or such Successor Servicer as may be appointed under
this Section 8.02 and, without limitation, the Indenture Trustee and the Owner
Trustee are hereby authorized and empowered to execute and deliver, for the
benefit of the predecessor Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Receivables
and related documents, or otherwise. The predecessor Servicer shall cooperate
with the Successor Servicer and the Owner Trustee in effecting the termination
of the responsibilities and rights of the predecessor Servicer under this
Agreement, including, without limitation, the transfer to the Successor Servicer
for administration by it of all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or have been deposited by the predecessor
Servicer, in the Collection Account or Payahead Account or thereafter received
with respect to the Receivables and all Payments Ahead that shall at that time
be held by the predecessor Servicer. All reasonable costs and expenses
(including attorneys' fees) incurred in connection with transferring the
Receivable Files to the Successor Servicer and amending this Agreement to
reflect such succession as Servicer pursuant to this Section shall be paid by
the predecessor Servicer upon presentation of reasonable documentation of such
costs and expenses. In the event that the Indenture Trustee succeeds to the
rights and obligations of the Servicer hereunder, and a subsequent transfer of
such rights and obligations is effected pursuant to Section 8.01 or this Section
8.02 hereof, the original Servicer hereunder shall reimburse the Indenture
Trustee for all reasonable costs and expenses as described in the immediately
preceding sentence. Upon receipt of notice of the occurrence of a Servicer
Default, the Indenture Trustee shall give notice thereof to the Rating Agencies.

         SECTION 8.03 Repayment of Advances; Compensation Payable. If the
Servicer shall resign or be terminated, the Servicer shall continue to be
entitled to receive reimbursement for Outstanding Advances pursuant to Sections
5.03 and 5.04 with respect to all Advances previously made thereby in the manner
specified in such Sections, and shall continue to be entitled to all accrued and
unpaid compensation payable to the Servicer through the date of such termination
as specified in Section 4.09 of this Agreement.

         SECTION 8.04 Notification. Upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article VIII, the Owner Trustee
shall give prompt written notice thereof to Certificateholder, and the Indenture
Trustee shall give prompt written notice thereof to Noteholders, the Swap
Counterparty and the Rating Agencies.



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                                   ARTICLE IX

                                   TERMINATION

         SECTION 9.01 Optional Purchase of All Receivables.

         (a) On each Payment Date following the last day of a Collection Period
as of which the Pool Balance shall be less than the Optional Purchase Percentage
(expressed as a seven-digit decimal figure) multiplied by the Original Pool
Balance, the Servicer, or any successor to the Servicer, shall have the option
to purchase the corpus of the Owner Trust Estate (whether or not such assets
then comprise all or a portion of the Trust Estate) for an amount equal to the
Optional Purchase Price. To exercise such option, the Servicer, or any successor
to the Servicer, shall notify the Swap Counterparty, the Owner Trustee and the
Indenture Trustee of its intention to do so in writing, no later than the tenth
day of the month preceding the month in which the Payment Date as of which such
purchase is to be effected and shall, on or before the Payment Date on which
such purchase is to occur, deposit pursuant to Section 5.05 in the Collection
Account an amount equal to the Optional Purchase Price, and shall succeed to all
interests in and to the Trust Estate and the Owner Trust Estate. Amounts so
deposited will be paid and distributed as set forth in Section 5.06 of this
Agreement. Upon such deposit of the amount necessary to purchase the corpus of
the Owner Trust Estate, the Servicer shall for all purposes of this Agreement be
deemed to have released all claims for reimbursement of Outstanding Advances
made in respect of the Receivables.

         (b) Notice of any such purchase of the Owner Trust Estate shall be
given by the Owner Trustee and the Indenture Trustee to each Securityholder and
the Swap Counterparty as soon as practicable after their receipt of notice
thereof from the Servicer.

         (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes and of the
Revolving Liquidity Note, the Certificateholder will succeed to the rights of
the Noteholders under this Agreement other than Section 5.06 and the Owner
Trustee will succeed to the rights of, and assume the obligations of, the
Indenture Trustee provided for in this Agreement.

         (d) Upon the repurchase of any Receivable by the Seller or the
Servicer, pursuant to any provision hereof (including Sections 3.02, 4.08 and
9.01(a)), the Owner Trustee on behalf of the Issuer and the Certificateholder,
and the Indenture Trustee on behalf of the Noteholders, shall, without further
action, be deemed to transfer, assign, set-over and otherwise convey to the
Seller or the Servicer, as the case may be, all right, title and interest of the
Owner Trustee on behalf of the Issuer in, to and under such repurchased
Receivable, all monies due or to become due with respect thereto and all
proceeds thereof and the other property conveyed to the Issuer hereunder
pursuant to Section 2.01 with respect to such Receivable, and all security and
any documents relating thereto, such assignment being an assignment outright and
not for security; and the Seller or the Servicer, as applicable, shall thereupon
own each such Receivable, and all such related security and documents, free of
any further obligation to the Issuer, the Owner Trustee, the Certificateholder,
the Indenture Trustee, the Swap Counterparty, the holder of the Revolving
Liquidity Note or the Noteholders with respect thereto. The Owner Trustee and
Indenture Trustee shall execute such documents and instruments of transfer and
assignment and



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take such other actions as shall be reasonably requested by the Seller or the
Servicer, as the case may be, to effect the conveyance of such Receivable
pursuant to this Section. If in any enforcement suit or legal proceeding it is
held that the Seller or Servicer may not enforce a repurchased Receivable on the
ground that it is not a real party in interest or a holder entitled to enforce
the Receivable, the Owner Trustee on behalf of the Issuer and the
Certificateholder, and the Indenture Trustee on behalf of the Noteholders shall,
at the written direction and expense of the Seller or Servicer, as the case may
be, take such reasonable steps as the Seller or Servicer deems necessary to
enforce the Receivable, including bringing suit in the name or names of the
Issuer, Certificateholder or Noteholders.

         SECTION 9.02 Termination of the Trust Agreement. The respective
obligations and responsibilities of the Issuer, the Seller and the Servicer
under this Agreement shall terminate upon the termination of the Trust Agreement
pursuant to Article IX of the Trust Agreement.


                                   ARTICLE X

                                  MISCELLANEOUS

         SECTION 10.01 Amendment. This Agreement may be amended by the Seller,
the Servicer and the Issuer, with the consent of the Indenture Trustee, but
without the consent of any of the Noteholders or the Certificateholder, to cure
any ambiguity, to correct or supplement any provisions in this Agreement or for
the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions in this Agreement or of modifying in any manner the rights
of the Noteholders or the Certificateholder; provided, however, that such action
shall not, as evidenced by an Opinion of Counsel delivered to the Owner Trustee
and the Indenture Trustee, adversely affect in any material respect the
interests of any Noteholder or Certificateholder or the holder of the Revolving
Liquidity Note. This Agreement may also be amended by the Seller, the Servicer
and the Issuer, with the consent of the Indenture Trustee and the holder of the
Revolving Liquidity Note, but without the consent of any of the Noteholders or
the Certificateholder for the purpose of changing the formula for determining
the Specified Reserve Account Balance, the manner in which the Reserve Account
is funded (i.e. to allow the deposit of cash therein by any Person, but not to
change any order of priority of payments and distributions specified in Section
5.06 of the Sale and Servicing Agreement), changing the remittance schedule for
the deposit of collections with respect to the Receivables in the Collection
Account or Payahead Account pursuant to Section 5.02 hereof or changing the
definition of Eligible Investment, in each case only if the Indenture Trustee
and/or the Owner Trustee, as the case may be, (i) has received a letter from
Standard & Poor's to the effect that Standard & Poor's will not qualify, reduce
or withdraw the rating it has currently assigned to any Class of Notes as a
result of such amendment and (ii) has provided Moody's with 10 days prior
written notice of such amendment and Moody's shall not have notified the
Indenture Trustee and/or the Owner Trustee, as the case may be, that such
amendment might or would result in the qualification, reduction or withdrawal of
the rating it has currently assigned to any Class of Notes; provided that no
such amendment may increase or reduce in any manner or accelerate or delay the
timing of collections on the Receivables or payments required to be made to
Holders of



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any Class of Notes or of the Certificate without the consent of all Holders of
each affected Class or the Certificateholder, if affected.

         This Agreement may also be amended from time to time by the Seller, the
Servicer and the Issuer, with the consent of the Indenture Trustee, the consent
of (A) if the interests of Indenture Trustee or the Noteholders are affected,
the Holders of Notes evidencing not less than 51% of the outstanding Principal
Balance of each affected Class of Notes, acting as a single Class but excluding
for purposes of such calculation and action all Securities held or beneficially
owned by TMCC, TAFR LLC or any of their Affiliates, (B) if the interests of the
Issuer, Owner Trustee or Certificateholder are affected, the Holder of the
Certificate, (C) if the interests of the Swap Counterparty are affected, the
Swap Counterparty, and/or (D) if the interests of the holder of the Revolving
Liquidity Note are affected, the holder of the Revolving Liquidity Note, for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
such Noteholders, Certificateholder or the holder of the Revolving Liquidity
Note; provided, however, that no such amendment may (i) increase or reduce in
any manner the amount of, or accelerate or delay the timing of, collections of
payments on the related Receivables or payments required to be made to Holders
of any Class of Notes, the Certificateholder or the holder of the Revolving
Liquidity Note without the consent of all Holders of each affected Class of
Notes, the Certificateholder or the holder of the Revolving Liquidity Note, as
the case may be, or (ii) reduce the aforesaid percentage of the Notes, the
aforesaid Certificateholder or the aforesaid holder of the Revolving Liquidity
Note required to consent to any such amendment, without the consent of the
Holders of each Class of Notes, the Certificate or the Revolving Liquidity Note,
as the case may be, affected thereby.

         Promptly after the execution of any such amendment or consent, the
Owner Trustee shall furnish written notification of the substance of such
amendment or consent to each Noteholder, Certificateholder, the Indenture
Trustee, the Swap Counterparty (unless TMCC or an Affiliate thereof is the
Servicer, the Swap Counterparty and/or the holder of the Revolving Liquidity
Note at the time of delivery) and each of the Rating Agencies.

         It shall not be necessary for the consent of the Certificateholder,
Noteholders or holder of the Revolving Liquidity Note pursuant to this Section
to approve the particular form of any proposed amendment or consent, but it
shall be sufficient if such consent shall approve the substance thereof.

         Prior to the execution of any amendment to this Agreement, the Owner
Trustee and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement and the Opinion of Counsel referred to in Section
10.02. The Owner Trustee and the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Owner Trustee's or
the Indenture Trustee's, as applicable, own rights, duties or immunities under
this Agreement or otherwise.



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         SECTION 10.02 Protection of Title to Trust.

         (a) The Seller shall execute and file or cause to be filed such
financing statements and cause to be executed and filed such continuation
statements, all in such manner and in such places as may be required by law
fully to preserve, maintain and protect the interest of the Issuer and of the
Indenture Trustee in the Receivables and in the proceeds thereof. The Seller
shall deliver (or cause to be delivered) to the Owner Trustee and the Indenture
Trustee file-stamped copies of, or filing receipts for, any document filed as
provided above, as soon as available following such filing.

         (b) Neither the Seller nor the Servicer shall change (i) its location
of organization under Section 9-307(e) of the UCC or (ii) its name, identity or
corporate structure in any manner that would, could or might make any financing
statement or continuation statement filed in accordance with paragraph (a) above
seriously misleading within the meaning of Section 9-507 and 9-508 of the UCC,
unless it shall have given the Owner Trustee and the Indenture Trustee at least
five days' prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or
continuation statements.

         (c) Each of the Seller and the Servicer shall have an obligation to
give the Owner Trustee and the Indenture Trustee at least 60 days' prior written
notice of any relocation of its principal executive office if, as a result of
such relocation, the applicable provisions of the UCC would require the filing
of any amendment of any previously filed financing or continuation statement or
of any new financing statement and shall promptly file any such amendment or new
financing statement. The Servicer shall at all times maintain each office from
which it shall service Receivables, and its principal executive office, within
the United States of America.

         (d) The Servicer shall maintain accounts and records as to each
Receivable accurately and in sufficient detail to permit (i) the reader thereof
   to know at any time the status of such Receivable, including payments and
recoveries made and payments owing (and the nature of each) and (ii)
reconciliation between payments or recoveries on (or with respect to) each
Receivable and the amounts from time to time deposited in the Collection Account
in respect of such Receivable.

         (e) The Servicer shall maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables, the Servicer's
master computer records (including any backup archives) that refer to any
Receivable shall indicate clearly the interest of the Issuer, the Owner Trustee
and the Indenture Trustee in such Receivable and that such Receivable is owned
by the Issuer and has been pledged to the Indenture Trustee. Indication of these
respective interests in a Receivable shall be deleted from or modified on the
Servicer's computer systems when, and only when, the related Receivable shall
have become a Liquidated Receivable or been repurchased.

         (f) If at any time the Seller or the Servicer (or any subservicer
appointed by the Servicer) shall propose to sell, grant a security interest in,
or otherwise transfer any interest in automotive receivables to, any prospective
purchaser, lender or other transferee, the Servicer shall give to such
prospective purchaser, lender or other transferee computer tapes, records or
printouts (including any restored from backup archives) that, if they shall
refer in any manner



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whatsoever to any Receivable, shall indicate clearly that such Receivable has
been sold and is owned by the Issuer and has been pledged to the Indenture
Trustee.

         (g) Upon request, the Servicer shall furnish or cause to be furnished
to the Owner Trustee or to the Indenture Trustee, within five Business Days, a
list of all Receivables (by contract number and name of Obligor) then held as
part of the Owner Trust Estate, together with a reconciliation of such list to
the Schedule of Receivables and to each of the Servicer's Certificates furnished
before such request indicating removal of Receivables from the Owner Trust
Estate.

         (h) The Servicer shall deliver to the Owner Trustee and the Indenture
Trustee:

                  (A) promptly after the execution and delivery of this
         Agreement and, if required pursuant to Section 10.01, of each amendment
         hereto, an Opinion of Counsel stating that, in the opinion of such
         counsel, either (A) all financing statements and continuation
         statements have been executed and filed that are necessary fully to
         preserve and protect the interest of the Owner Trustee and the
         Indenture Trustee in the Receivables, and reciting the details of such
         filings or referring to prior Opinions of Counsel in which such details
         are given, or (B) no such action shall be necessary to preserve and
         protect such interest, in each case also specifying any action
         necessary (as of the date of such opinion) to be taken in the following
         year to preserve and protect such interest; and

                  (B) within 90 days after the beginning of each calendar year
         beginning with the first calendar year beginning more than three months
         after the Cutoff Date, an Opinion of Counsel, dated as of a date during
         such 90-day period, stating that, in the opinion of such counsel,
         either (A) all financing statements and continuation statements have
         been executed and filed that are necessary fully to preserve and
         protect the interest of the Owner Trustee and the Indenture Trustee in
         the Receivables, and reciting the details of such filings or referring
         to prior Opinions of Counsel in which such details are given, or (B) no
         such action shall be necessary to preserve and protect such interest.

         SECTION 10.03 Notices. All demands, notices, communications and
instructions upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the
case of the Servicer, to Toyota Motor Credit Corporation, 19001 S. Western
Avenue, Torrance, California 90509, Attention: Vice President, Treasury, (310)
468-4001, (b) in the case of the Seller, to Toyota Auto Finance Receivables LLC,
19300 Gramercy Place, North Building, Torrance, California 90509, Attention:
President, (310) 468-7333, (c) in the case of the Issuer or the Owner Trustee,
at the Corporate Trust Office (as defined in the Trust Agreement) with a copy to
400 N. Michigan Avenue, 2nd Floor, Chicago, Illinois 60611, (d) in the case of
the Indenture Trustee, at the Corporate Trust Office specified in the Indenture,
(e) in the case of Moody's, to Moody's Investors Service, Inc., ABS Monitoring
Department, 99 Church Street, New York, New York 10007, (f) in the case of
Standard & Poor's, to Standard & Poor's Ratings Services, a division of The
McGraw-Hill Companies, 55 Water Street, New York, New York 10041, Attention of
Asset



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Backed Surveillance Department; or, as to each of the foregoing, at such other
address as shall be designated by written notice to the other parties.

         SECTION 10.04 Assignment by the Seller or the Servicer. Notwithstanding
anything to the contrary contained herein, except as provided in Sections 6.04
and 7.03 of this Agreement and as provided in the provisions of this Agreement
concerning the resignation or termination of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer.

         SECTION 10.05 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Seller, the Servicer, the Issuer,
the Owner Trustee, the Certificateholder, the Indenture Trustee and the
Noteholders, and nothing in this Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

         SECTION 10.06 Severability. Any provision of this Agreement that is
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.

         SECTION 10.07 Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

         SECTION 10.08 Headings. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

         SECTION 10.09 Governing Law. This Agreement shall be construed in
accordance with the laws of the State of California, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

         SECTION 10.10 Assignment by Issuer. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Receivables and/or the assignment of any or all of the Issuer's rights and
obligations hereunder, under the Interest Rate Swap Agreement or under the
Revolving Liquidity Note Agreement to the Indenture Trustee.

         SECTION 10.11 Nonpetition Covenants.

         (a) Notwithstanding any prior termination of this Agreement, the
Servicer and the Seller shall not, prior to the date which is one year and one
day after the termination of this Agreement with respect to the Issuer,
acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or
sustaining a case against the Issuer under any federal or state bankruptcy,
insolvency or similar



                                       66


<PAGE>


law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Issuer or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Issuer.

         (b) Notwithstanding any prior termination of this Agreement, the
Servicer shall not, prior to the date which is one year and one day after the
termination of this Agreement with respect to the Seller, acquiesce, petition or
otherwise invoke or cause the Seller to invoke the process of any court or
government authority for the purpose of commencing or sustaining a case against
the Seller under any federal or state bankruptcy, insolvency or similar law,
appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or
other similar official of the Seller or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Seller.

         SECTION 10.12 Limitation of Liability of Owner Trustee and Indenture
Trustee.

                  Notwithstanding anything contained herein to the contrary,
this Agreement has been countersigned by U.S. Bank Trust National Association,
not in its individual capacity, but solely in its capacity as Owner Trustee on
behalf of the Issuer, and by The Bank of New York, not in its individual
capacity, but solely in its capacity as Indenture Trustee under the Indenture.
In no event shall U.S. Bank Trust National Association in its individual
capacity or The Bank of New York in its individual capacity have any liability
for the representations, warranties, covenants, agreements or other obligations
of the Issuer hereunder or in any of the certificates, notices or agreements
delivered by the Seller or Servicer, or prepared by the Seller or Servicer for
delivery by the Owner Trustee on behalf of the Issuer, pursuant hereto, as to
all of which recourse shall be had solely to the assets of the Issuer. For all
purposes of this Agreement, in the performance of its duties or obligations
hereunder or in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.



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<PAGE>


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

                                      TOYOTA AUTO RECEIVABLES 2003-A OWNER TRUST


                                      By:  U.S. Bank Trust National Association,
                                           not in its individual capacity but
                                           solely as Owner Trustee on behalf of
                                           the Issuer



                                      By: /s/ Nancie J. Arvin
                                         ---------------------------------------
                                       Name: Nancie J. Arvin
                                       Title: Vice President


                                      TOYOTA AUTO FINANCE RECEIVABLES LLC,
                                      Seller


                                      By: /s/ Lloyd Mistele
                                         ---------------------------------------
                                       Name: Lloyd Mistele
                                       Title: President


                                      TOYOTA MOTOR CREDIT CORPORATION,
                                      Servicer


                                      By: /s/ George E. Borst
                                         ---------------------------------------
                                       Name: George E. Borst
                                       Title: President and Chief Executive
                                              Officer



ACKNOWLEDGED AND ACCEPTED AS OF
THE DAY AND YEAR FIRST ABOVE WRITTEN:


THE BANK OF NEW YORK,
not in its individual capacity but solely
as Indenture Trustee


By:  /s/ John Bobko
    --------------------------------
Name: John Bobko
Title: Assistant Vice President




                                       S-1



<PAGE>


                                   SCHEDULE A

                             Schedule of Receivables


   (Omitted - Originals on file at the office of the Seller and Owner Trustee)


































                                      SA-1


<PAGE>




                                    EXHIBIT A

                         Form of Servicer's Certificate

                                 (See Attached)































                                       A-1