| Delaware(State      or other jurisdiction of incorporation or organization) |   | 36-2472404(I.R.S.      Employer Identification No.)  |
|-----------------------------------------------------------------------------|--------|-----------------------------------------------------------|

|   | Large      accelerated filer [  ] |   | Accelerated      filer [  ]    |
|--------|---------------------------------------------|--------|-----------------------------------------------|
|   | Non-accelerated      filer [X]              |   | Smaller      reporting Company [  ] |

----

INDEX

INDEX

|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | PageReference |
|--------|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART      I.   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      1.   |   | Business      (A)                                                                                                                                          | 3             |
|   | Item      1A.  |   | Risk      Factors                                                                                                                                          | 3             |
|   | Item      1B.  |   | Unresolved Staff      Comments                                                                                                                             | 6             |
|   | Item      2.   |   | Properties      (A)                                                                                                                                        | 6             |
|   | Item      3.   |   | Legal      Proceedings                                                                                                                                     | 6             |
|   | Item      4.   |   | Submission of Matters to a Vote of Security Holder      (A)                                                                                                | 6             |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART      II.  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      5.   |   | Market for the Registrant’s Common Equity and Related      Stockholder Matters                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 7             |
|   | Item      6.   |   | Selected Financial Data      (A)                                                                                                                           | 7             |
|   | Item      7.   |   | Management's Discussion and Analysis of Financial Condition      and Results of Operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 7             |
|   | Item      7A.  |   | Quantitative and Qualitative Disclosures About Market      Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 20            |
|   | Item      8.   |   | Financial Statements and Supplementary Data                                                                                                                | 21            |
|   | Item      9.   |   | Changes in and Disagreements with Accountants on Accounting      and Financial Disclosure                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 52            |
|   | Item      9A.  |   | Controls and      Procedures                                                                                                                               | 52            |
|   | Item      9B.  |   | Other      Information                                                                                                                                     | 56            |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART      III. |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      10.  |   | Directors and Executive Officers of the Registrant      (A)                                                                                                | 57            |
|   | Item      11.  |   | Executive Compensation      (A)                                                                                                                            | 57            |
|   | Item      12.  |   | Security Ownership of Certain Beneficial Owners and      Management and Related Transactions (A)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 57            |
|   | Item      13.  |   | Certain Relationships and Related Transactions      (A)                                                                                                    | 57            |
|   | Item      14.  |   | Principal Accountant Fees and      Services                                                                                                                | 57            |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | PART      IV.  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Item      15.  |   | Exhibits, Financial Statement Schedules and Reports on Form      8-K                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 58            |
|   |           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |          |
|   | Signature      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | 59            |

| (A)      -Omitted or amended or reduced as the registrant is a wholly-owned      subsidiary of Navistar, Inc., which is a wholly-owned subsidiary of      Navistar International Corporation, and meets the conditions set forth in      General Instructions I (1) (a) and (b) of Annual Report on Form 10-K and      is, therefore, filing this report with the reduced disclosure      format. |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

INDEX

Business

RiskFactors

----

INDEX

----

INDEX

----

INDEX

UnresolvedStaff Comments

Properties

LegalProceedings

Submission of Matters to a Vote ofSecurity Holders

----

INDEX

Market for the Registrant’sCommon Equity and Related Stockholder Matters

Selected FinancialData

Management’s Discussion andAnalysis of Financial Condition and Results of Operations

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2008   |   |   | 2007   |   |   | Change |   |   | %      Change |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing      revenue                                                                                           |   | $      | 263.3  |   |   | $      | 325.2 |   |   | $ | (61.9 | ) |   |   | (19.0 | ) |
| Securitization      income                                                                                       |   |   | 12.2   |   |   |   | 73.2 |   |   |   | (61.0 | ) |   |   | (83.3 | ) |
| Operating      leases and other      revenue                                                                     |   |   | 49.1   |   |   |   | 55.0 |   |   |   | (5.9 | ) |   |   | (10.7 | ) |
| Total      revenues                                                                                              |   |   | 324.6  |   |   |   | 453.4 |   |   |   | (128.8 | ) |   |   | (28.4 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |   | 199.1  |   |   |   | 248.2 |   |   |   | (49.1 | ) |   |   | (19.8 | ) |
| Credit,      collections and      administrative                                                                 |   |   | 56.9   |   |   |   | 50.6 |   |   |   | 6.3 |   |   |   | 12.5 |   |
| Provision      for credit      losses                                                                            |   |   | 32.2   |   |   |   | 19.6 |   |   |   | 12.6 |   |   |   | 64.3 |   |
| Depreciation      on operating      leases                                                                       |   |   | 17.0   |   |   |   | 18.5 |   |   |   | (1.5 | ) |   |   | (8.1 | ) |
| Derivative      expense                                                                                          |   |   | 55.0   |   |   |   | 8.9 |   |   |   | 46.1 |   |   |   | 518.0 |   |
| Other      expenses                                                                                              |   |   | 9.2    |   |   |   | 2.2 |   |   |   | 7.0 |   |   |   | 318.2 |   |
| Total      expenses                                                                                              |   |   | 369.4  |   |   |   | 348.0 |   |   |   | 21.4 |   |   |   | 6.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before      taxes                                                                             |   |   | (44.8  | )      |   |   | 105.4 |   |   |   | (150.2 | ) |   | N.M. |   |
| Income      tax (benefit)      expense                                                                           |   |   | (14.1  | )      |   |   | 38.1 |   |   |   | (52.2 | ) |   | N.M. |   |
| Net      income(loss)                                                                                            |   | $      | (30.7  | )      |   | $      | 67.3 |   |   | $ | (98.0 | ) |   | N.M. |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2008   |   |   | 2007   |   |   | Change |   |   | %      Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance      leases                                                                 |   | $      | 221.4  |   |   | $      | 262.4 |   |   | $ | (41.0 | ) |   |   | (15.6 | ) |
| Wholesale      notes                                                                                      |   |   | 15.9   |   |   |   | 28.1 |   |   |   | (12.2 | ) |   |   | (43.4 | ) |
| Retail      and wholesale      accounts                                                                   |   |   | 26.0   |   |   |   | 34.7 |   |   |   | (8.7 | ) |   |   | (25.1 | ) |
| Total      financing      revenue                                                                         |   | $      | 263.3  |   |   | $      | 325.2 |   |   | $ | (61.9 | ) |   |   | (19.0 | ) |

----

INDEX

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007   |   |   | 2006   |   |   | Change |   |   | %      Change |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Financing      revenue                                                                                           |   | $      | 325.2  |   |   | $      | 289.3 |   |   | $ | 35.9 |   |   |   | 12.4 |   |
| Securitization      income                                                                                       |   |   | 73.2   |   |   |   | 73.3 |   |   |   | (0.1 | ) |   |   | (0.1 | ) |
| Operating      leases and other      revenue                                                                     |   |   | 55.0   |   |   |   | 55.2 |   |   |   | (0.2 | ) |   |   | (0.4 | ) |
| Total      revenues                                                                                              |   |   | 453.4  |   |   |   | 417.8 |   |   |   | 35.6 |   |   |   | 8.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost      of      borrowing                                                                                      |   |   | 248.2  |   |   |   | 204.9 |   |   |   | 43.3 |   |   |   | 21.1 |   |
| Credit,      collections and      administrative                                                                 |   |   | 50.6   |   |   |   | 47.5 |   |   |   | 3.1 |   |   |   | 6.5 |   |
| Provision      for credit      losses                                                                            |   |   | 19.6   |   |   |   | 8.4 |   |   |   | 11.2 |   |   |   | 133.0 |   |
| Depreciation      on operating      leases                                                                       |   |   | 18.5   |   |   |   | 22.1 |   |   |   | (3.6 | ) |   |   | (16.3 | ) |
| Derivative      expense                                                                                          |   |   | 8.9    |   |   |   | 6.6 |   |   |   | 2.3 |   |   |   | 34.8 |   |
| Other      expenses                                                                                              |   |   | 2.2    |   |   |   | 1.1 |   |   |   | 1.1 |   |   |   | 100.0 |   |
| Total      expenses                                                                                              |   |   | 348.0  |   |   |   | 290.6 |   |   |   | 57.4 |   |   |   | 19.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before      taxes                                                                                    |   |   | 105.4  |   |   |   | 127.2 |   |   |   | (21.8 | ) |   |   | (17.1 | ) |
| Income      tax      expense                                                                                     |   |   | 38.1   |   |   |   | 47.0 |   |   |   | (8.9 | ) |   |   | (18.9 | ) |
| Net      income                                                                                                  |   | $      | 67.3   |   |   | $      | 80.2 |   |   | $ | (12.9 | ) |   |   | (16.1 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2007   |   |   | 2006   |   |   | Change |   |   | %      Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Retail      notes and finance      leases                                                                 |   | $      | 262.4  |   |   | $      | 243.3 |   |   | $ | 19.1 |   |   |   | 7.9 |   |
| Wholesale      notes                                                                                      |   |   | 28.1   |   |   |   | 23.7 |   |   |   | 4.4 |   |   |   | 18.6 |   |
| Retail      and wholesale      accounts                                                                   |   |   | 34.7   |   |   |   | 22.3 |   |   |   | 12.4 |   |   |   | 55.6 |   |
| Total      financing      revenue                                                                         |   | $      | 325.2  |   |   | $      | 289.3 |   |   | $ | 35.9 |   |   |   | 12.4 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | As      of           |    |   |                 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|---------|--------|----------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | October      31,2008 |    |   | October      31,2007 |   |   | Change |   |   | %Change |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |
| Cash      and cash      equivalents                                                                            |   | $                    | 34.4    |   |                 | $      | 10.6 |   |   | $ | 23.8 |   |   |   | 224.5 |   |
| Finance      receivables,      net                                                                             |   |                 | 3,090.2 |   |                 |   | 3,732.7 |   |   |   | (642.5 | ) |   |   | (17.2 | ) |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 | 229.6   |   |                 |   | 319.1 |   |   |   | (89.5 | ) |   |   | (28.0 | ) |
| Net      accounts due from      affiliates                                                                     |   |                 | 17.5    |   |                 |   | 60.1 |   |   |   | (42.6 | ) |   |   | (70.9 | ) |
| Net      investment in operating      leases                                                                   |   |                 | 72.9    |   |                 |   | 78.3 |   |   |   | (5.4 | ) |   |   | (6.9 | ) |
| Vehicle      inventory                                                                                         |   |                 | 42.0    |   |                 |   | 23.2 |   |   |   | 18.8 |   |   |   | 81.0 |   |
| Restricted      cash and cash      equivalents                                                                 |   |                 | 515.4   |   |                 |   | 370.5 |   |   |   | 144.9 |   |   |   | 39.1 |   |
| Unsecured      loans to      affiliates                                                                        |   |                 | -       |   |                 |   | 60.0 |   |   |   | (60.0 | ) |   | N.M. |   |
| Other      assets                                                                                              |   |                 | 123.0   |   |                 |   | 81.7 |   |   |   | 41.3 |   |   |   | 50.6 |   |
| Total      assets                                                                                              |   | $                    | 4,125.0 |   |                 | $      | 4,736.2 |   |   | $ | (611.2 | ) |   |   | (12.9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Senior      and secured      borrowings                                                                        |   | $                    | 3,679.1 |   |                 | $      | 4,269.1 |   |   | $ | (590.0 | ) |   |   | (13.8 | ) |
| Other      liabilities                                                                                         |   |                 | 173.3   |   |                 |   | 199.0 |   |   |   | (25.7 | ) |   |   | (12.9 | ) |
| Total      liabilities                                                                                         |   |                 | 3,852.4 |   |                 |   | 4,468.1 |   |   |   | (615.7 | ) |   |   | (13.8 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Total      shareowner’s      equity                                                                      |   |                 | 272.6   |   |                 |   | 268.1 |   |   |   | 4.5 |   |   |   | 1.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
|  Total      liabilities and shareowner’s equity                                                                                                                                                                                                                                                                                                                                                                                     |   | $                    | 4,125.0 |   |                 | $      | 4,736.2 |   |   | $ | (611.2 | ) |   |   | (12.9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                 |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |

----

INDEX

|                                                         |   | As      of October 31, |   |
|--------------------------------------------------------------|--------|------------------------|--------|
|                                                         |   | 2008                   |   |   | 2007 |   |   | Change |   |
|                                                         |   |                   |   |   |   |   |   |   |   |
| Delinquencies                                                |   |                   |   |   |   |   |   |   |   |
| Retail      notes & finance leases greater than 60 days. |   |                   | 1.1    | % |   |   | 0.6 | % |   |   | 0.5 | % |
| Wholesale      notes greater than 60 days                    |   |                   | 0.4    | % |   |   | 0.3 | % |   |   | 0.1 | % |
| Wholesale      accounts greater than 60 days                 |   |                   | 2.0    | % |   |   | 5.8 | % |   |   | (3.8 | %) |
|                                                         |   |                   |   |   |   |   |   |   |   |   |   |   |
| Allowance      to finance receivable coverage ratio          |   |                   | 1.0    | % |   |   | 0.7 | % |   |   | 0.3 | % |

| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Years      Ended October 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 2008                         |   |   | 2007 |   |   | 2006 |   |
| Charge-offs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                         |   |   |   |   |   |   |   |
| Retail      notes & finance leases charge-offs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $                            | 25.4   |   |   | $ | 9.9 |   |   | $ | 6.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |   |   |   |   |   |   |   |   |   |   |
|         Wholesale notes      charge-offs                                                                                  |   |                         | 1.8    |   |   |   | 1.0 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |   |   |   |   |   |   |   |   |   |   |
|         Wholesale accounts      charge-offs                                                                               |   |                         | 0.5    |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |   |   |   |   |   |   |   |   |   |   |
| Retail      notes & finance leases charge-offs to liquidations                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                         | 1.9    | % |   |   | 1.0 | % |   |   | 0.5 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |   |   |   |   |   |   |   |   |   |   |
|         Wholesale notes charge-offs to liquidations                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                         | 0.1    | % |   |   | - |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         |   |   |   |   |   |   |   |   |   |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Retail      Notes and Finance      Leases                                                                          |   | $      | 27.5   |   |   | $      | 23.5 |   |
| Accounts                                                                                                           |   |   | 0.9    |   |   |   | 0.4 |   |
| Total                                                                                                                                                                |   | $      | 28.4   |   |   | $      | 23.9 |   |

----

INDEX

|                                                                                                                                                                                                      |  Fitch |   | Standardand      Poor’s |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|-------------------------------|
| Senior      unsecured debt                                                                                                                                                                                | BB-         |   | BB-                           |
|                                                                                                                                                                                                      |        |   |                          |
| Outlook      as of October 31, 2008                                                                                                                                                                       | Negative    |   | Negative                      |
|                                                                                                                                                                                                      |        |   |                          |
| During      February and May 2008, Standard and Poor’s and Fitch, respectively,      removed both NIC and NFC from the credit watch with negative implications      while outlook remains Negative. |

----

INDEX

| Due      in Fiscal                                                                                                                                                                                                                                                                                                         |   | 2009   |   |   |   | 2010-2011 |    |   |   | 2012-2013 |   |   | After      2013 |   |    | Total  |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|-----------|---------|--------|--------|-----------|--------|--------|-----------------|--------|---------|--------|--------|
| Senior      borrowings (1)                                                 |   | $      | 6.2    |   |   | $         | 1,551.4 |   |   | $         | -      |   |            | $      | -       |   |   | $ | 1,557.6 |   |
| Secured      borrowings(1)                                                 |   |   | 40.8   |   |   |      | 357.1   |   |   |      | 543.6  |   |            |   | 1,180.0 |   |   |   | 2,121.5 |   |
| Operating      leases                                                      |   |   | 1.6    |   |   |      | 3.4     |   |   |      | 3.7    |   |            |   | 2.8     |   |   |   | 11.5 |   |
| Interest      (2)                                                          |   |   | 167.6  |   |   |      | 199.7   |   |   |      | 122.7  |   |            |   | 51.0    |   |   |   | 541.0 |   |
| Total                                                                                                                        |   | $      | 216.2  |   |   | $         | 2,111.6 |   |   | $         | 670.0  |   |            | $      | 1,233.8 |   |   | $ | 4,231.6 |   |

|                              | Maturity           |   | 2008   |    |   | 2007   |   |
|-----------------------------------|--------------------|--------|--------|---------|--------|--------|--------|
| Investor      certificate         | July      2008     |   | $      | -       |   |   | $      | 200.0 |   |
| Investor      certificate         | February      2010 |   |   | 212.0   |   |   |   | 212.0 |   |
| Variable      funding certificate | October      2009  |   |   | 800.0   |   |   |   | 800.0 |   |
|                              |               |   |   |    |   |   |   |   |   |
|                              | Total              |   | $      | 1,012.0 |   |   | $      | 1,212.0 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Revolver      bank      loan                                                                                                  |   | $      | 800.0  |   |   | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                         |   |   | (454.0 | )      |   |   | (419.0 | ) |
| Mexican      sub-revolver loan      utilized                                                                                  |   |   | (100.0 | )      |   |   | (100.0 | ) |
| Total      availability                                                                                                                                |   | $      | 246.0  |   |   | $      | 281.0 |   |

----

INDEX

----

INDEX

----

INDEX

----

INDEX

Quantitative and QualitativeDisclosures About Market Risk

----

INDEX

Financial Statements and SupplementaryData

| Consolidated Financial      Statements:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Page     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Report      of Independent Registered Public Accounting      Firm                                                                                                                                                             | 22       |
| Consolidated      Statements of OperationsYears      ended October 31, 2008, 2007 and      2006                                                                                                                                                                       |  23 |
| Consolidated      Statements of Shareowner’s Equity and Comprehensive Income      (Loss)Years      ended October 31, 2008, 2007 and      2006                                                                                                                   |  24 |
| Consolidated      Statements of Financial ConditionAs      of October 31, 2008 and      2007                                                                                                                                                                          |  25 |
| Consolidated      Statements of Cash FlowsYears      ended October 31, 2008, 2007 and      2006                                                                                                                                                                       |  26 |
| Notes      to  Consolidated Financial      Statements                                                                                                                                                               | 27       |

----

INDEX

|   | /s/   KPMG      LLP |
|--------|------------------------------------|

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | For      the years endedOctober      31 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|--------|
| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2008                                    |   |   | 2007 |   |   | 2006 |   |
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                    |   |   |   |   |   |   |   |
| Retail      notes and finance leases      revenue                                                                                          |   | $                                       | 221.4  |   |   | $ | 262.4 |   |   | $ | 243.3 |   |
| Operating      leases      revenue                                                                                                         |   |                                    | 22.3   |   |   |   | 23.9 |   |   |   | 29.3 |   |
| Wholesale      notes      interest                                                                                                         |   |                                    | 15.9   |   |   |   | 28.1 |   |   |   | 23.7 |   |
| Retail      and wholesale accounts      interest                                                                                           |   |                                    | 26.0   |   |   |   | 34.7 |   |   |   | 22.3 |   |
| Securitization      income                                                                                                                 |   |                                    | 12.2   |   |   |   | 73.2 |   |   |   | 73.3 |   |
| Other      revenues                                                                                                                        |   |                                    | 26.8   |   |   |   | 31.1 |   |   |   | 25.9 |   |
| Total      revenues                                                                                                                                                      |   |                                    | 324.6  |   |   |   | 453.4 |   |   |   | 417.8 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Cost      of borrowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Interest      expense                                                                                                                                          |   |                                    | 186.8  |   |   |   | 238.0 |   |   |   | 194.6 |   |
| Other                                                                                                                                                          |   |                                    | 12.3   |   |   |   | 10.2 |   |   |   | 10.3 |   |
| Credit,      collections and      administrative                                                                                           |   |                                    | 56.9   |   |   |   | 50.6 |   |   |   | 47.5 |   |
| Provision      for credit      losses                                                                                                      |   |                                    | 32.2   |   |   |   | 19.6 |   |   |   | 8.4 |   |
| Depreciation      on operating      leases                                                                                                 |   |                                    | 17.0   |   |   |   | 18.5 |   |   |   | 22.1 |   |
| Derivative      expense                                                                                                                    |   |                                    | 55.0   |   |   |   | 8.9 |   |   |   | 6.6 |   |
| Other      expenses                                                                                                                        |   |                                    | 9.2    |   |   |   | 2.2 |   |   |   | 1.1 |   |
| Total      expenses                                                                                                                                                      |   |                                    | 369.4  |   |   |   | 348.0 |   |   |   | 290.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |
| Income      (loss) before      taxes                                                                                                       |   |                                    | (44.8  | ) |   |   | 105.4 |   |   |   | 127.2 |   |
| Income      tax (benefit)      expense                                                                                                     |   |                                    | (14.1  | ) |   |   | 38.1 |   |   |   | 47.0 |   |
| Net      income      (loss)                                                                                                                |   | $                                       | (30.7  | ) |   | $ | 67.3 |   |   | $ | 80.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                    |   |   |   |   |   |   |   |   |   |   |

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INDEX

| Millions      of dollars                                                                                                                                                                                                                                                                                                                           |   | Capital      Stock |   |   | Paid-In      Capital |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensive      Loss |   |   | Total  |   |   | ComprehensiveIncome      (Loss) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|----------------------|--------|--------|------------------|--------|--------|-----------------------------------------|--------|--------|--------|--------|--------|---------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                               |   |               |   |   |                 |   |   |             |   |   |                                    |   |   |   |   |   |                            |   |
| Balance      at October 31, 2005                                                                                                                                                                                                                                                                                                                   |   | $                  | 1.6    |   |                 | $      | 139.6  |             |   | $      | 379.6                                   |   |   | $      | (7.9   | )      |                            | $      | 512.9 |   |   | $ | 81.0 |   |
| 2006      Activity:                                                                                                                                                                                                                                                                                                                                |   |               |   |   |                 |   |   |             |   |   |                                    |   |   |   |   |   |                            |   |   |   |   |   |   |   |
| Net      income                                                                                                        |   |               | -      |   |                 |   | -      |             |   |   | 80.2                                    |   |   |   | -      |   |                            |   | 80.2 |   |   |   | 80.2 |   |
| Pension      adjustment, (net of tax $3.8)                                                                                                                                                                                                                                                                                                         |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | 6.2    |   |                            |   | 6.2 |   |   |   | 6.2 |   |
| Balance      at October 31, 2006                                                                                                                                                                                                                                                                                                                   |   | $                  | 1.6    |   |                 | $      | 139.6  |             |   | $      | 459.8                                   |   |   | $      | (1.7   | )      |                            | $      | 599.3 |   |   | $ | 86.4 |   |
| 2007      Activity:                                                                                                                                                                                                                                                                                                                                |   |               |   |   |                 |   |   |             |   |   |                                    |   |   |   |   |   |                            |   |   |   |   |   |   |   |
| Net      income                                                                                                        |   |               | -      |   |                 |   | -      |             |   |   | 67.3                                    |   |   |   | -      |   |                            |   | 67.3 |   |   |   | 67.3 |   |
| Pension      adjustment, (net of tax $0.2)                                                                                                                                                                                                                                                                                                         |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | 0.3    |   |                            |   | 0.3 |   |   |   | 0.3 |   |
| Impact      of  adopting SFAS No. 158(net      of tax      $0.6)                                             |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | 1.2    |   |                            |   | 1.2 |   |   |   | - |   |
| Cash      dividend paid to parent company                                                                                                                                                                                                                                                                                                          |   |               | -      |   |                 |   | -      |             |   |   | (400.0                                  | )      |   |   | -      |   |                            |   | (400.0 | ) |   |   | - |   |
| Balance      at October 31, 2007                                                                                                                                                                                                                                                                                                                   |   | $                  | 1.6    |   |                 | $      | 139.6  |             |   | $      | 127.1                                   |   |   | $      | (0.2   | )      |                            | $      | 268.1 |   |   | $ | 67.6 |   |
| 2008      Activity:                                                                                                                                                                                                                                                                                                                                |   |               |   |   |                 |   |   |             |   |   |                                    |   |   |   |   |   |                            |   |   |   |   |   |   |   |
| Net      loss                                                                                                          |   |               | -      |   |                 |   | -      |             |   |   | (30.7                                   | )      |   |   | -      |   |                            |   | (30.7 | ) |   |   | (30.7 | ) |
| Pension      adjustment, (net of tax $4.5)                                                                                                                                                                                                                                                                                                         |   |               | -      |   |                 |   | -      |             |   |   | -                                       |   |   |   | (7.5   | )      |                            |   | (7.5 | ) |   |   | (7.5 | ) |
| Impact      of adopting FIN 48                                                                                                                                                                                                                                                                                                                     |   |               | -      |   |                 |   | -      |             |   |   | (2.5                                    | )      |   |   | -      |   |                            |   | (2.5 | ) |   |   | - |   |
| Capital      contribution from parent company                                                                          |   |               | -      |   |                 |   | 60.0   |             |   |   | -                                       |   |   |   | -      |   |                            |   | 60.0 |   |   |   | - |   |
| Cash      dividend paid to parent company                                                                                                                                                                                                                                                                                                          |   |               | -      |   |                 |   | -      |             |   |   | (14.8                                   | )      |   |   | -      |   |                            |   | (14.8 | ) |   |   | - |   |
| Balance      at October 31, 2008                                                                                                                                                                                                                                                                                                                   |   | $                  | 1.6    |   |                 | $      | 199.6  |             |   | $      | 79.1                                    |   |   | $      | (7.7   | )      |                            | $      | 272.6 |   |   | $ | (38.2 | ) |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | As      ofOctober      31 |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|------------|
| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2008                      |       |   | 2007 |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                      |       |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      |       |   |   |   |
| Cash      and cash      equivalents                                                                                                        |   | $                         |  34.4 |   |   | $ | 10.6 |   |
| Finance      receivables, net of unearned income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      |       |   |   |   |   |   |
| Finance      receivables                                                                                                                                                           |   |                      | 2,906.3    |   |   |   | 3,544.5 |   |
| Finance      receivables from      affiliates                                                                                                                                      |   |                      | 212.3      |   |   |   | 212.1 |   |
| Allowance      for      losses                                                                                                                                                     |   |                      | (28.4      | ) |   |   | (23.9 | ) |
| Finance      receivables,      net                                                                                                         |   |                      | 3,090.2    |   |   |   | 3,732.7 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      |       |   |   |   |   |   |
| Amounts      due from sales of      receivables                                                                                            |   |                      | 229.6      |   |   |   | 319.1 |   |
| Net      accounts due from      affiliates                                                                                                 |   |                      | 17.5       |   |   |   | 60.1 |   |
| Net      investment in operating      leases                                                                                               |   |                      | 72.9       |   |   |   | 78.3 |   |
| Vehicle      inventory                                                                                                                     |   |                      | 42.0       |   |   |   | 23.2 |   |
| Restricted      cash and cash      equivalents                                                                                             |   |                      | 515.4      |   |   |   | 370.5 |   |
| Unsecured      loans to      affiliates                                                                                                    |   |                      | -          |   |   |   | 60.0 |   |
| Other      assets                                                                                                                          |   |                      | 123.0      |   |   |   | 81.7 |   |
| Total      assets                                                                                                                                                                  |   | $                         | 4,125.0    |   |   | $ | 4,736.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      |       |   |   |   |   |   |
| LIABILITIES      AND SHAREOWNER’S EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                      |       |   |   |   |   |   |
| Senior      and secured      borrowings                                                                                                    |   | $                         | 3,679.1    |   |   | $ | 4,269.1 |   |
| Other      liabilities                                                                                                                     |   |                      | 173.3      |   |   |   | 199.0 |   |
| Total      liabilities                                                                                                                                                             |   |                      | 3,852.4    |   |   |   | 4,468.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      |       |   |   |   |   |   |
| Shareowner’s      equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                      |       |   |   |   |   |   |
| Capital      stock ($1 par value, 2,000,000 shares authorized, 1,600,000 shares      issued      and outstanding)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                      | 1.6        |   |   |   | 1.6 |   |
| Paid-in      capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      | 199.6      |   |   |   | 139.6 |   |
| Retained      earnings                                                                                                                     |   |                      | 79.1       |   |   |   | 127.1 |   |
| Accumulated      other comprehensive      loss                                                                                             |   |                      | (7.7       | ) |   |   | (0.2 | ) |
| Total      shareowner’s      equity                                                                                                  |   |                      | 272.6      |   |   |   | 268.1 |   |
| Total      liabilities and shareowner’s      equity                                                                                                                          |   | $                         | 4,125.0    |   |   | $ | 4,736.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                      |       |   |   |   |   |   |

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INDEX

| Navistar      Financial Corporation and SubsidiariesConsolidated      Statements of Cash Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | For      the years endedOctober      31 |   |
| Millions      of dollars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |
| Cash      flow from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |
| Net      income      (loss)                                                                                                                                             |   | $ | (30.7 | ) |   | $ | 67.3 |   |   | $ | 80.2 |   |
| Adjustments      to reconcile net income to cash flow from operations:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      loss on sales of finance      receivables                                                                                                                                                    |   |   | 23.8 |   |   |   | 9.3 |   |   |   | 7.0 |   |
| Net      loss on sale and impairment of equipment under operating leases and      vehicle inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 9.7 |   |   |   | 1.5 |   |   |   | 1.3 |   |
| Depreciation      and      amortization                                                                                                                                                               |   |   | 24.8 |   |   |   | 25.2 |   |   |   | 29.1 |   |
| Provision      for credit      losses                                                                                                                                                                 |   |   | 32.2 |   |   |   | 19.6 |   |   |   | 8.4 |   |
| Net      change in amounts due from sales of receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 89.5 |   |   |   | 387.7 |   |   |   | (265.6 | ) |
| Net      change in finance receivables - wholesale notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (12.4 | ) |   |   | 140.4 |   |   |   | (28.5 | ) |
| Net      change in finance receivables from affiliates - wholesale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (44.8 | ) |   |   | 37.7 |   |   |   | (147.9 | ) |
| Net      change in net accounts due from      affiliates                                                                                                                                              |   |   | 42.6 |   |   |   | (41.4 | ) |   |   | 11.0 |   |
| Net      change in other assets and      liabilities                                                                                                                                                  |   |   | (78.6 | ) |   |   | 7.8 |   |   |   | 27.9 |   |
| Net      cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 56.1 |   |   |   | 655.1 |   |   |   | (277.1 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flow from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Originations      of retail notes and finance leases, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (868.7 | ) |   |   | (1,185.6 | ) |   |   | (1,587.0 | ) |
| Net      change in restricted cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (144.9 | ) |   |   | 280.5 |   |   |   | (107.2 | ) |
| Collections      on retail notes and finance lease receivables,net      of change in unearned finance income, includes affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 1,312.0 |   |   |   | 1,305.7 |   |   |   | 1,226.9 |   |
| Net      change in finance receivables from affiliates - accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 7.3 |   |   |   | (10.4 | ) |   |   | (3.4 | ) |
| Net      change in finance receivables -      accounts                                                                                                                  |   |   | 71.8 |   |   |   | (105.6 | ) |   |   | (87.6 | ) |
| Proceeds      from sale of vehicle      inventory                                                                                                                       |   |   | 92.8 |   |   |   | 30.1 |   |   |   | 30.8 |   |
| Purchase      of equipment leased to      others                                                                                                                        |   |   | (29.3 | ) |   |   | (24.3 | ) |   |   | (49.7 | ) |
| Proceeds      from sale of equipment under operating      leases                                                                                                        |   |   | 17.7 |   |   |   | 15.5 |   |   |   | 45.3 |   |
| Loans      to      affiliates                                                                                                                                           |   |   | (20.0 | ) |   |   | (110.0 | ) |   |   | - |   |
| Loan      repayment from      affiliates                                                                                                                                |   |   | 80.0 |   |   |   | 50.0 |   |   |   | - |   |
| Net      cash provided by (used in) investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 518.7 |   |   |   | 245.9 |   |   |   | (531.9 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      flow from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      change in senior bank revolver, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 35.0 |   |   |   | (253.7 | ) |   |   | 507.0 |   |
| Proceeds      from issuance of senior bank term debt, net of issuance    costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | - |   |   |   | 217.2 |   |   |   | - |   |
| Principal      payments on senior bank term      debt                                                                                                                   |   |   | (6.2 | ) |   |   | (5.1 | ) |   |   | (4.0 | ) |
| Proceeds      from issuance of secured borrowings, net of issuance costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 1,069.9 |   |   |   | 887.0 |   |   |   | 1,632.1 |   |
| Payments      on secured      borrowings                                                                                                                                |   |   | (1,694.9 | ) |   |   | (1,361.4 | ) |   |   | (1,323.5 | ) |
| Dividends      paid to parent      company                                                                                                                              |   |   | (14.8 | ) |   |   | (400.0 | ) |   |   | - |   |
| Capital      contribution  from parent      company                                                                                                           |   |   | 60.0 |   |   |   | - |   |   |   | - |   |
| Net      cash (used in) provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (551.0 | ) |   |   | (916.0 | ) |   |   | 811.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change      in cash and cash      equivalents                                                                                                  |   |   | 23.8 |   |   |   | (15.0 | ) |   |   | 2.6 |   |
| Cash      and cash equivalents, beginning of      year                                                                                         |   |   | 10.6 |   |   |   | 25.6 |   |   |   | 23.0 |   |
| Cash      and cash equivalents, end of      year                                                                                               |   | $ | 34.4 |   |   | $ | 10.6 |   |   | $ | 25.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      paid                                                                                                                                                      |   | $ | 191.6 |   |   | $ | 237.5 |   |   | $ | 191.1 |   |
| Income      taxes paid, net of      refunds                                                                                                                             |   |   | 73.0 |   |   |   | 32.4 |   |   |   | 33.1 |   |
| Transfers      of loans and leases to vehicle      inventory                                                                                                            |   |   | 121.3 |   |   |   | 49.6 |   |   |   | 28.9 |   |

----

INDEX

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INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Finance      receivables from affiliates net of unearned income and dealer reserve      (Dealcor retail)                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 140.4  |   |   | $      | 177.7 |   |
| Finance      receivables from affiliates (Dealcor wholesale)                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 71.9   |   |   |   | 34.4 |   |
| Net      accounts due from      affiliates                                                                             |   |   | 17.5   |   |   |   | 60.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2008   |    |   | 2007   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Retail      notes, net of unearned      income                                                                                                                                |   | $      | 2,468.0 |   |   | $      | 3,012.3 |   |
| Finance      leases, net of unearned      income                                                                                                                              |   |   | 122.7   |   |   |   | 157.2 |   |
| Wholesale      notes held for      sale                                                                                                                                       |   |   | 118.0   |   |   |   | 105.6 |   |
| Accounts      (includes retail and      wholesale)                                                                                                                            |   |   | 197.6   |   |   |   | 269.4 |   |
| Finance      receivables from affiliates, net of unearned      income                                                                                                         |   |   | 212.3   |   |   |   | 212.1 |   |
| Total      finance      receivables                                                                                                                                           |   |   | 3,118.6 |   |   |   | 3,756.6 |   |
| Allowance      for      losses                                                                                                                                                |   |   | (28.4   | )      |   |   | (23.9 | ) |
| Total      finance receivables,      net                                                                                                                                      |   | $      | 3,090.2 |   |   | $      | 3,732.7 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                    |   | Retail      notes |    |   | Finance      leases |   |   | Wholesale      notes |   |   | Accounts |   |   | Affiliates |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|
| Due      in fiscal year:                                                                                                                                                                                                                                                                                                |   |              |    |   |                |   |   |                 |   |   |     |   |   |       |   |
| 2009                                                                    |   | $                 | 929.8   |   |                | $      | 54.9   |                 |   | $      | 118.0    |   |   | $          | 197.6  |   |   | $ | 108.2 |   |
| 2010                                                                    |   |              | 740.3   |   |                |   | 37.2   |                 |   |   | -        |   |   |       | -      |   |   |   | 34.2 |   |
| 2011                                                                    |   |              | 521.8   |   |                |   | 24.3   |                 |   |   | -        |   |   |       | -      |   |   |   | 34.4 |   |
| 2012                                                                    |   |              | 308.7   |   |                |   | 13.5   |                 |   |   | -        |   |   |       | -      |   |   |   | 19.5 |   |
| 2013                                                                    |   |              | 148.9   |   |                |   | 7.1    |                 |   |   | -        |   |   |       | -      |   |   |   | 11.0 |   |
| Thereafter                                                              |   |              | 51.0    |   |                |   | 1.8    |                 |   |   | -        |   |   |       | -      |   |   |   | 5.9 |   |
| Gross      finance      receivables                                               |   |              | 2,700.5 |   |                |   | 138.8  |                 |   |   | 118.0    |   |   |       | 197.6  |   |   |   | 213.2 |   |
| Unearned      finance      income                                                 |   |              | (232.5  | )      |                |   | (16.1  | )                    |   |   | -        |   |   |       | -      |   |   |   | (0.9 | ) |
| Finance      receivables, net of unearned income                                                                                                                                                                                                                                                                   |   | $                 | 2,468.0 |   |                | $      | 122.7  |                 |   | $      | 118.0    |   |   | $          | 197.6  |   |   | $ | 212.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Allowance      for losses, beginning of      year                                                                          |   | $      | 23.9   |   |   | $      | 15.3   |   |   | $ | 13.6 |   |
| Provision      for credit      losses                                                                                      |   |   | 32.2   |   |   |   | 19.6   |   |   |   | 8.4 |   |
| Charge-offs                                                                                                                |   |   | (27.7  | )      |   |   | (11.0  | )      |   |   | (6.7 | ) |
| Allowance      for losses, end of      year                                                                                                                                  |   | $      | 28.4   |   |   | $      | 23.9   |   |   | $ | 15.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Impaired      receivables with specific loss reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 47.1   |   |   | $      | 28.3   |   |   | $ | 17.6 |   |
| Impaired      receivables without specific loss reserves.                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 3.8    |   |   |   | 0.9    |   |   |   | - |   |
| Impaired      receivables guaranteed by Navistar, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 8.7    |   |   |   | 8.9    |   |   |   | 12.6 |   |
| Total      impaired      receivables                                                                                      |   | $      | 59.6   |   |   | $      | 38.1   |   |   | $ | 30.2 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Specific      loss reserves recorded by      NFC                                                                          |   | $      | 4.6    |   |   | $      | 3.1    |   |   | $ | 1.1 |   |
| Specific      loss reserves recorded by Navistar, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 16.1   |   |   |   | 6.8    |   |   |   | 1.8 |   |
| Average      balance of impaired finance receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 46.8   |   |   |   | 27.5   |   |   |   | 5.8 |   |
| Finance      receivables over 60 days delinquent                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 18.6   |   |   |   | 23.0   |   |   |   | 13.1 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Vehicle      inventory, beginning of year                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $      | 23.2   |   |   | $      | 5.2 |   |
| Net      additions                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 121.3  |   |   |   | 49.6 |   |
| Impairment      loss                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (4.9   | )      |   |   | - |   |
| Net      book value of repossessed assets sold                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (97.6  | )      |   |   | (31.6 | ) |
| Vehicle      inventory, end of      year                                                                       |   | $      | 42.0   |   |   | $      | 23.2 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Investment      in equipment under operating      leases                                                                          |   | $      | 119.5  |   |   | $      | 124.2 |   |
| Less:      Accumulated      depreciation                                                                                          |   |   | (47.5  | )      |   |   | (46.3 | ) |
|          Net      investment in equipment under operating leases                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 72.0   |   |   |   | 77.9 |   |
| Rent      receivable net of reserve for past due operating leases                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 0.9    |   |   |   | 0.4 |   |
| Net      investment in operating      leases                                                                                      |   | $      | 72.9   |   |   | $      | 78.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Federal      and      foreign                                                                                                                       |   | $      | 0.6    |   |   | $      | 43.2   |   |   | $ | 49.8 |   |
| State      and      local                                                                                                                           |   |   | 1.7    |   |   |   | 3.0    |   |   |   | 4.0 |   |
|      Total      current                                                                                                    |   |   | 2.3    |   |   |   | 46.2   |   |   |   | 53.8 |   |
| Deferred      (primarily      federal)                                                                                                              |   |   | (16.4  | )      |   |   | (8.1   | )      |   |   | (6.8 | ) |
|      Total      income tax (benefit)      expense                                                                          |   | $      | (14.1  | )      |   | $      | 38.1   |   |   | $ | 47.0 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Statutory      federal income tax expense (benefit) rate                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (35.0  | )%     |   |   | 35.0   | %      |   |   | 35.0 | % |
| State      income taxes net of federal income taxes                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 1.2    |   |   |   | 1.3    |   |   |   | 2.1 |   |
| Other                                                                          |   |   | 2.3    |   |   |   | (0.1   | )      |   |   | (0.1 | ) |
| Effective      income tax      rate                                                                                              |   |   | (31.5  | )%     |   |   | 36.2   | %      |   |   | 37.0 | % |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred      tax assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
| Pension      and other postretirement      benefits                                                                                                                                  |   | $      | 8.6    |   |   | $      | 5.5 |   |
| Allowance      for      losses                                                                                                                                                       |   |   | 10.4   |   |   |   | 8.9 |   |
| Secured      borrowings                                                                                                                                                              |   |   | 47.8   |   |   |   | 48.2 |   |
| Market      value adjustments on derivatives and retained      interest                                                                                                              |   |   | 23.1   |   |   |   | 8.3 |   |
| Other                                                                                                                                                                                |   |   | 8.6    |   |   |   | 4.7 |   |
| Less      valuation      allowance                                                                                                                                                   |   |   | (1.5   | )      |   |   | (1.0 | ) |
| Total      deferred tax      assets                                                                                                                                                            |   |   | 97.0   |   |   |   | 74.6 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Deferred      tax liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Lease      transactions                                                                                                                                                              |   |   | (27.0  | )      |   |   | (25.8 | ) |
| Equipment      under operating      lease                                                                                                                                            |   |   | (23.6  | )      |   |   | (24.7 | ) |
| Total      deferred tax      liabilities                                                                                                                                                       |   |   | (50.6  | )      |   |   | (50.5 | ) |
| Net      deferred tax      assets                                                                                                                                                                                                                                                             |   | $      | 46.4   |   |   | $      | 24.1 |   |

----

INDEX

| Balance      at November 1,      2007                                                                                           |   | $      | 9.1  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|
| Increase      related to prior year tax      positions                                                                          |   |   | 1.7  |   |
| Decrease      related to prior year tax      positions                                                                          |   |   | (0.8 | )      |
| Increase      related to current year tax positions                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 0.3  |   |
| Balance      at October 31,      2008                                                                                                                                             |   | $      | 10.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |    |   |   |   |    | Weighted      Average Interest Rate |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|-------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2008   |    |   | 2007   |   |    | 2008                                |   |   | 2007 |   |
| Senior      bank credit facility at variable rates due July 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | $      | 1,057.6 |   |   | $      | 1,028.9 |                                |   |   | 5.7 | % |   |   | 6.8 | % |
| Revolving      retail warehouse facility at variable rates due June 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 500.0   |   |   |   | 500.0   |                                |   |   | 4.6 | % |   |   | 5.4 | % |
| Borrowings      secured by asset-backed securities at various rates, currently      between 3.3% and 4.9% due serially through 2014                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 1,989.6 |   |   |   | 2,607.7 |                                |   |   | 3.8 | % |   |   | 4.8 | % |
| Borrowings      secured by operating and finance leases at rates currently between 2.6%      and 6.6% due serially through June 2011                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 131.9   |   |   |   | 132.5   |                                |   |   | 4.5 | % |   |   | 5.2 | % |
| Total      senior and secured      borrowings                                                                                |   | $      | 3,679.1 |   |   | $      | 4,269.1 |                                |   |   | 4.5 | % |   |   | 5.4 | % |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   | 2008   |   |   | 2007   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Revolver      bank      loan                                                                                           |   | $      | 800.0  |   |   | $      | 800.0 |   |
| NFC      revolving loan      utilized                                                                                  |   |   | (454.0 | )      |   |   | (419.0 | ) |
| Mexican      sub-revolver loan utilized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (100.0 | )      |   |   | (100.0 | ) |
| Total      availability                                                                                                                         |   | $      | 246.0  |   |   | $      | 281.0 |   |

----

INDEX

----

INDEX

| 2009                                                         |   | $      | 47.0    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| 2010                                                         |   |   | 1,597.0 |   |
| 2011                                                         |   |   | 311.5   |   |
| 2012                                                                                                                                                                                                                                                                                                                                                 |   |   | 219.2   |   |
| 2013                                                                                                                                                                                                                                                                                                                                                 |   |   | 324.4   |   |
| Thereafter                                                                                                                                                                                                                                                                                                                                           |   |   | 1,180.0 |   |
| Total                                                                                                          |   | $      | 3,679.1 |   |

|                                                                                                                                                                                                                                                                                                                                                                                             |   | Pension      Benefits |   |   | Other      Benefits |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                             |   | 2008                  |   |   | 2007                |   |   | 2008 |   |   | 2007 |   |
| Change in benefitobligation                                                                                                                                                                                                                                                                                                                                                                      |   |                  |   |   |                |   |   |   |   |   |   |   |
| Benefit      obligation at beginning of year                                                                                                                                                                                                                                                                                                                                                     |   | $                     | 65.5   |   |                | $      | 70.0 |   |   | $ | 20.4 |   |   | $ | 26.0 |   |
| Service      cost                                                                                        |   |                  | 0.3    |   |                |   | 0.3 |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Interest      on      obligation                                                                         |   |                  | 3.9    |   |                |   | 3.9 |   |   |   | 1.2 |   |   |   | 1.2 |   |
| Actuarial      net      loss                                                                             |   |                  | (13.1  | )      |                |   | (4.4 | ) |   |   | (5.4 | ) |   |   | (6.0 | ) |
| Plan      participants’      contributions                                                         |   |                  | -      |   |                |   | - |   |   |   | 0.2 |   |   |   | 0.3 |   |
| Benefits      paid                                                                                       |   |                  | (4.7   | )      |                |   | (4.3 | ) |   |   | (1.5 | ) |   |   | (1.4 | ) |
| Subsidy      receipts                                                                                    |   |                  | -      |   |                |   | - |   |   |   | 0.2 |   |   |   | 0.2 |   |
| Benefit      obligation at end of      year                                                              |   | $                     | 51.9   |   |                | $      | 65.5 |   |   | $ | 15.2 |   |   | $ | 20.4 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Change in plan assets                                                                                                                                                                                                                                                                                                                                                                            |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Fair      value of plan assets at beginning of year                                                                                                                                                                                                                                                                                                                                              |   | $                     | 68.1   |   |                | $      | 60.7 |   |   | $ | 9.5 |   |   | $ | 8.0 |   |
| Actual      return on plan      assets                                                                   |   |                  | (21.5  | )      |                |   | 11.2 |   |   |   | (3.1 | ) |   |   | 2.0 |   |
| Employer      contributions                                                                              |   |                  | 0.5    |   |                |   | 0.5 |   |   |   | 0.1 |   |   |   | 0.1 |   |
| Benefits      paid                                                                                       |   |                  | (4.7   | )      |                |   | (4.3 | ) |   |   | (0.5 | ) |   |   | (0.6 | ) |
| Fair      value of plan assets at end of year                                                                                                                                                                                                                                                                                                                                                    |   | $                     | 42.4   |   |                | $      | 68.1 |   |   | $ | 6.0 |   |   | $ | 9.5 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |
| Funded      (unfunded)      status                                                                       |   | $                     | (9.5   | )      |                | $      | 2.6 |   |   | $ | (9.2 | ) |   | $ | (10.9 | ) |

| Amounts      recognized in the consolidated statements of      financial condition consist of:                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Other      assets                                                                       |   | $      | -      |   |   | $      | 9.1    |   |   | $      | -      |   |   | $ | - |   |
| Other      liabilities                                                                  |   |   | (9.5   | )      |   |   | (6.5   | )      |   |   | (9.2   | )      |   |   | (10.9 | ) |
| Net      amount      recognized                                                         |   | $      | (9.5   | )      |   | $      | 2.6    |   |   | $      | (9.2   | )      |   | $ | (10.9 | ) |

| Amounts      recognized in our accumulated other comprehensive loss (pretax) consist      of:                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net      actuarial loss      (gain)                                                           |   | $      | 15.0   |   |   | $      | 1.6    |   |   | $      | (2.7   | )      |   | $ | (1.2 | ) |
| Prior      service cost      (credit)                                                         |   |   | 0.1    |   |   |   | -      |   |   |   | -      |   |   |   | - |   |
| Net      amount      recognized                                                               |   | $      | 15.1   |   |   | $      | 1.6    |   |   | $      | (2.7   | )      |   | $ | (1.2 | ) |

----

INDEX

|                                                                                                                                                                                                                                                                                         |   | Pension      Benefits |   |   | Other      Benefits |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                         |   | 2008                  |   |   | 2007                |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Service      cost for benefits earned during the period                                                                                                                                                                                                                                 |   | $                     | 0.3    |   |                | $      | 0.3 |   |   | $ | 0.4 |   |   | $ | 0.1 |   |   | $ | 0.1 |   |   | $ | 0.2 |   |
| Interest      on      obligation                                           |   |                  | 3.9    |   |                |   | 3.9 |   |   |   | 3.9 |   |   |   | 1.2 |   |   |   | 1.2 |   |   |   | 1.4 |   |
| Amortization      of cumulative losses                                                                                                                                                                                                                                                       |   |                  | 0.2    |   |                |   | 0.5 |   |   |   | 0.7 |   |   |   | - |   |   |   | - |   |   |   | 0.4 |   |
| Less      expected return on assets                                                                                                                                                                                                                                                          |   |                  | (5.9   | )      |                |   | (5.3 | ) |   |   | (5.0 | ) |   |   | (0.8 | ) |   |   | (0.7 | ) |   |   | (0.7 | ) |
| Net      postretirement benefits expense (income):                                                                                                                                                                                                                                           |   | $                     | (1.5   | )      |                | $      | (0.6 | ) |   | $ | - |   |   | $ | 0.5 |   |   | $ | 0.6 |   |   | $ | 1.3 |   |

| Actuarial      net loss      (gain)                                             |   | $      | 13.6 |   |   | $      | -    |   |   | $      | -     |   |   | $      | (1.5 | )      |   | $      | -   |   |   | $      | -   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------|--------|--------|--------|------|--------|--------|--------|-------|--------|--------|--------|------|--------|--------|--------|-----|--------|--------|--------|-----|--------|
| Prior      service cost      (credit)                                           |   |   | 0.1  |   |   |   | -    |   |   |   | -     |   |   |   | -    |   |   |   | -   |   |   |   | -   |   |
| Amortization      of cumulative losses                                                                                                                                                                                                                                                            |   |   | (0.2 | )      |   |   | -    |   |   |   | -     |   |   |   | -    |   |   |   | -   |   |   |   | -   |   |
| Minimum      pension liability adjustment                                                                                                                                                                                                                                                    |   |   | -    |   |   |   | (0.5 | )      |   |   | (10.0 | )      |   |   | -    |   |   |   | -   |   |   |   | -   |   |
| Total      recognized in other comprehensive loss                                                                                                                                                                                                                                                 |   |   | 13.5 |   |   |   | (0.5 | )      |   |   | (10.0 | )      |   |   | (1.5 | )      |   |   | -   |   |   |   | -   |   |
| Total      recognized in net periodic benefit cost (income) and other comprehensive      loss                                                                                                                                                                                                     |   | $      | 12.0 |   |   | $      | (1.1 | )      |   | $      | (10.0 | )      |   | $      | (1.0 | )      |   | $      | 0.6 |   |   | $      | 1.3 |   |

----

INDEX

|                                                                                         |   | Pension      Benefits |   |   | Other      Benefits |   |
|----------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                         |   | 2008                  |   |   | 2007                |   |   | 2008 |   |   | 2007 |   |
| Discount      rate used to determine present value of benefit obligation at end of      year |   |                  | 8.4    | %      |                |   | 6.1 | % |   |   | 8.4 | % |   |   | 6.1 | % |
|  Expected      rate of increase in future compensation levels                           |   |                  | 3.5    | %      |                |   | 3.5 | % |   |   | N/A |   |   |   | N/A |   |

|                                                                                                                                                                                                                                                                                                        |   | Pension      Benefits |   |   | Other      Benefits |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|                                                                                                                                                                                                                                                                                                        |   | 2008                  |   |   | 2007                |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Discount      rate                                                                                                                                                                                                                                                                                          |   |                  | 6.1    | %      |                |   | 5.7 | % |   |   | 5.6 | % |   |   | 6.1 | % |   |   | 5.7 | % |   |   | 5.7 | % |
| Expected      long-term rate of return on plan       assets                                         |   |                  | 9.0    | %      |                |   | 9.0 | % |   |   | 9.0 | % |   |   | 9.0 | % |   |   | 9.0 | % |   |   | 9.0 | % |
| Expected      rate of increase in future compensation      levels                                        |   |                  | 3.5    | %      |                |   | 3.5 | % |   |   | 3.5 | % |   |   | N/A |   |   |   | N/A |   |   |   | N/A |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | One-PercentagePoint      Increase |   |   | One-PercentagePoint      Decrease |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
| Effect      on total of service and interest cost components                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $                                 | 0.2    |   |                              | $      | (0.1 | ) |
|  Effect      on postretirement benefit      obligation                                                                           |   |                              | 1.3    |   |                              |   | (1.1 | ) |

----

INDEX

|                                                                                                                                                                                                                                                       |   | Pension      Benefits |   |   | Other      Benefits |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------|--------|--------|---------------------|--------|
|  Asset      Category                                                                                                                                                                                                                                  |   | Target      Range     |   |   | 2008                |   |   | 2007 |   |   | TargetRange |   |   | 2008 |   |   | 2007 |   |
| Equity      securities                                       |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NIC      common      stock                                                  |   |                  |   |   |                | -      |   |   |   | - |   |   |   |   |   |   | 10 | % |   |   | 13 | % |
| Other      equity securities                                                                                                                                                                                                                               |   |                  |   |   |                | 73     | % |   |   | 77 | % |   |   |   |   |   | 50 | % |   |   | 60 | % |
| Hedge      funds                                                            |   |                  |   |   |                | -      |   |   |   | - |   |   |   |   |   |   | 15 | % |   |   | 11 | % |
| Total      equity securities                                                                                                                                                                                                                               |   |                  | 60-80  | %      |                |   | 73 | % |   |   | 77 | % |   |   | 75-85 | % |   |   | 75 | % |   |   | 84 | % |
|                                                                                                                                                                                                                                                       |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt      securities                                                        |   |                  |   |   |                |   | 27 | % |   |   | 23 | % |   |   |   |   |   |   | 20 | % |   |   | 14 | % |
| Other,      including cash                                                                                                                                                                                                                                 |   |                  |   |   |                |   | - |   |   |   | - |   |   |   |   |   |   |   | 5 | % |   |   | 2 | % |
| Total      debt securities and other                                                       |   |                  | 20-40  | %      |                |   | 27 | % |   |   | 23 | % |   |   | 15-25 | % |   |   | 25 | % |   |   | 16 | % |
|                                                                                                                                                                                                                                                       |   |                  |   |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                                                                                                            |   | PensionBenefit      Payments |   |   | Other      PostretirementBenefit      Payments |   |   | PostretirementBenefit      Subsidy Receipts |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|--------|------------------------------------------------|--------|--------|---------------------------------------------|--------|
| 2009                                                              |   | $                            | 4.7    |   |                                           | $      | 1.4    |                                        |   | $ | 0.2 |   |
| 2010                                                              |   |                         | 4.9    |   |                                           |   | 1.6    |                                        |   |   | 0.2 |   |
| 2011                                                              |   |                         | 5.0    |   |                                           |   | 1.7    |                                        |   |   | 0.2 |   |
| 2012                                                              |   |                         | 5.0    |   |                                           |   | 1.7    |                                        |   |   | 0.3 |   |
| 2013                                                              |   |                         | 5.4    |   |                                           |   | 1.8    |                                        |   |   | 0.3 |   |
| 2014      through      2018                                       |   |                         | 25.6   |   |                                           |   | 9.2    |                                        |   |   | 1.7 |   |

----

INDEX

| Year      Ended October 31                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
| 2009                                                                                       |   | $      | 1.6    |   |
| 2010                                                                                       |   |   | 1.7    |   |
| 2011                                                                                       |   |   | 1.7    |   |
| 2012                                                                                       |   |   | 1.8    |   |
| 2013                                                                                       |   |   | 1.9    |   |
| 2014      and      beyond                                                                  |   |   | 2.8    |   |
| Total                                                                                                                    |   | $      | 11.5   |   |

| Type      of Funding           |   |  Maturity |   | Maximum      Amountof      Guaranty |              |   | OutstandingBalance |   |
|--------------------------------|--------|----------------|--------|-------------------------------------|-------------------|--------|--------------------|--------|
| Revolving      credit facility |   |           | (1     | )                                   | August      2013  |   | $                  | 13.6   |   |   | $ | 12.9 |   |
| Revolving      credit facility |   |           | (1     | )                                   | October      2009 |   |               | 7.7    |   |   |   | - |   |
| Revolving      credit facility |   |           | (1     | )                                   | May      2011     |   |               | 15.5   |   |   |   | 15.5 |   |
| Revolving      credit facility |   |           | (1     | )                                   | October      2009 |   |               | 7.7    |   |   |   | - |   |
| Revolving      credit facility |   |           | (1     | )                                   | March      2009   |   |               | 25.0   |   |   |   | 14.9 |   |
| Revolving      credit facility |   |           | (1     | )                                   | April      2011   |   |               | 21.3   |   |   |   | 18.0 |   |
| Revolving      credit facility |   |           | (1     | )                                   | July      2013    |   |               | 15.5   |   |   |   | 13.1 |   |
| Revolving      credit facility |   |           | (1     | )                                   | July      2013    |   |               | 18.6   |   |   |   | 8.7 |   |
| Revolving      credit facility |   |           | (1     | )                                   | August      2013  |   |               | 27.9   |   |   |   | 35.5 |   |
| Revolving      credit facility |   |           | (2     | )                                   | July      2010    |   |               | 100.0  |   |   |   | 100.0 |   |
|                           |   |           |   |                                | Total             |   | $                  | 252.8  |   |   | $ | 218.6 |   |

----

INDEX

| Instrument                   | Maturity           |   | OutstandingNotional |   |   | FairValue |   |
|------------------------------|--------------------|--------|---------------------|--------|--------|-----------|--------|
| Interest      rate swaps (1) | December      2010 |   | $                   | 31.8   |   |      | $      | - |   |
| Interest      rate caps (2)  | December      2010 |   |                | 0.6    |   |      |   | - |   |

----

INDEX

|                                                                                                                                                                                                       |   | Other      Assets |    |   | Other      Liabilities |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
| As      of October 31, 2008                                                                                                                                                                                |   | NotionalAmount    |    |   | Fair      Value        |   |   | NotionalAmount |   |   | Fair      Value |   |
| Interest      rate swaps                                                                                                                                                                                   |   | $                 | 1,636.4 |   |                   | $      | 38.7 |   |   | $ | 3,469.0 |   |   | $ | 79.6 |   |
| Interest      rate caps purchased                                                                                                                                                                          |   |              | 500.0   |   |                   |   | 3.3 |   |   |   | - |   |   |   | - |   |
| Interest      rate caps sold                                                                                                                                                                               |   |              | -       |   |                   |   | - |   |   |   | 500.0 |   |   |   | 3.3 |   |
| Total      derivatives                               |   | $                 | 2,136.4 |   |                   | $      | 42.0 |   |   | $ | 3,969.0 |   |   | $ | 82.9 |   |

|                                                                                                                                                                                                       |   | Other      Assets |    |   | Other      Liabilities |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|------------------------|--------|
| As      of October 31, 2007                                                                                                                                                                                |   | NotionalAmount    |    |   | Fair      Value        |   |   | NotionalAmount |   |   | Fair      Value |   |
| Interest      rate swaps                                                                                                                                                                                   |   | $                 | 1,651.4 |   |                   | $      | 18.0 |   |   | $ | 3,364.7 |   |   | $ | 35.4 |   |
| Interest      rate caps purchased                                                                                                                                                                          |   |              | 500.0   |   |                   |   | 2.1 |   |   |   | - |   |   |   | - |   |
| Interest      rate caps sold                                                                                                                                                                               |   |              | -       |   |                   |   | - |   |   |   | 500.0 |   |   |   | 2.1 |   |
| Total      derivatives                               |   | $                 | 2,151.4 |   |                   | $      | 20.1 |   |   | $ | 3,864.7 |   |   | $ | 37.5 |   |

|                              | Location      of Gain or (Loss) Recognized on Derivatives |   | Amount      of Gain or (Loss)Recognized      on Derivatives |   |
|-----------------------------------|-----------------------------------------------------------|--------|-------------------------------------------------------------|--------|
|                              |                                                      |   | 2008                                                        |   |   | 2007 |   |   | 2006 |   |
| Interest      rate swaps          | Derivative      expense                                   |   | $                                                           | (55.0  | ) |   | $ | (8.9 | ) |   | $ | (6.6 | ) |
| Interest      rate caps purchased | Derivative      expense                                   |   |                                                        | 1.2    |   |   |   | (1.0 | ) |   |   | (3.0 | ) |
| Interest      rate caps sold      | Derivative      expense                                   |   |                                                        | (1.2   | ) |   |   | 1.0 |   |   |   | 3.0 |   |
| Total                             |                                                      |   | $                                                           | (55.0  | ) |   | $ | (8.9 | ) |   | $ | (6.6 | ) |

----

INDEX

|                                                  | Maturity           |   | 2008   |    |   | 2007   |   |
|-------------------------------------------------------|--------------------|--------|--------|---------|--------|--------|--------|
| Investor      certificate                             | July      2008     |   | $      | -       |   |   | $      | 200.0 |   |
| Investor      certificate                             | February      2010 |   |   | 212.0   |   |   |   | 212.0 |   |
| Variable      funding certificate (“VFC”) | October      2009  |   |   | 800.0   |   |   |   | 800.0 |   |
|                                                  | Total              |   | $      | 1,012.0 |   |   | $      | 1,212.0 |   |

|                          |  Maturity   |   | October      31,2008 |   |   | October      31,2007 |   |
|-------------------------------|------------------|--------|----------------------|--------|--------|----------------------|--------|
| Conduit      funding facility | August      2009 |   | $                    | 100.0  |   |                 | $      | 100.0 |   |
| Funding      utilized         |             |   |                 | (47.5  | )      |                 |   | (60.3 | ) |
| Total    availability         |             |   | $                    | 52.5   |   |                 | $      | 39.7 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | October      31,2008 |   |   | October      31,2007 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|----------------------|--------|
| Excess      seller’s      interest                                                                                                 |   | $                    | 218.7  |   |                 | $      | 296.1 |   |
| Interest      only      strip                                                                                                            |   |                 | 2.1    |   |                 |   | 11.3 |   |
| Restricted      cash      reserves                                                                                                       |   |                 | 8.8    |   |                 |   | 11.7 |   |
| Total amounts due from sales of      receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                    | 229.6  |   |                 | $      | 319.1 |   |

----

INDEX

|                                                |                                                   |   |                                     |   | Adverse      Fair ValueChange      atOctober      31, 2008 |   |
|-----------------------------------------------------|--------------------------------------------------------|--------|------------------------------------------|--------|------------------------------------------------------------|--------|
|                                                | 2008                                                   |   | 2007                                     |   |                                                       | 10     | % |   |   | 20 | % |
| Discount      rate (annual)                         |        14.6  to   23.0%       |   | 10.3  to      18.8%            |   | $                                                          | 2.4    |   |   | $ | 4.7 |   |
| Estimated      credit losses                        |          0.0  to   0.24% |   |        0.0  to 0.18%      |   |                                                       | 0.1    |   |   |   | 0.1 |   |
| Payment      speed (percent of portfolio per month) |          8.8  to   75.7% |   |        9.9  to 69.2% |   |                                                       | 1.3    |   |   |   | 2.6 |   |

| 2008                                                                                                                                                                                                                                          |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                             |   | $                 | 2,468.0 |   |                | $      | 122.7  |                 |   | $      | 839.4    |   |   | $          | 320.7  |   |   | $      | 309.5 |   |   | $ | 4,060.3 |   |
| Less      sold receivables – off-balance      sheet                               |   |              | -       |   |                |   | -      |                 |   |   | (721.4   | )      |   |       | (123.1 | )      |   |   | (97.2 | ) |   |   | (941.7 | ) |
| Total      on-balance sheet                                                                                                                                                                                                                   |   | $                 | 2,468.0 |   |                | $      | 122.7  |                 |   | $      | 118.0    |   |   | $          | 197.6  |   |   | $      | 212.3 |   |   | $ | 3,118.6 |   |

| 2007                                                                                                                                                                                                                                          |   | Retail      Notes |    |   | Finance      Leases |   |   | Wholesale      Notes |   |   | Accounts |   |   | Affiliates |   |   | Total  |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|---------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
| Serviced      portfolio                                             |   | $                 | 3,012.3 |   |                | $      | 157.2  |                 |   | $      | 1,024.6  |   |   | $          | 424.2  |   |   | $      | 383.5 |   |   | $ | 5,001.8 |   |
| Less      sold receivables – off-balance      sheet                               |   |              | -       |   |                |   | -      |                 |   |   | (919.0   | )      |   |       | (154.8 | )      |   |   | (171.4 | ) |   |   | (1,245.2 | ) |
| Total      on-balance sheet                                                                                                                                                                                                                   |   | $                 | 3,012.3 |   |                | $      | 157.2  |                 |   | $      | 105.6    |   |   | $          | 269.4  |   |   | $      | 212.1 |   |   | $ | 3,756.6 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Fair      value      adjustments                                                                                  |   | $      | 1.3    |   |   | $      | 4.6    |   |   | $ | (6.6 | ) |
| Excess      spread      income                                                                                    |   |   | 19.6   |   |   |   | 53.5   |   |   |   | 64.4 |   |
| Servicing      fees      revenue                                                                                  |   |   | 10.0   |   |   |   | 15.3   |   |   |   | 16.3 |   |
| Losses      on sales of      receivables                                                                          |   |   | (23.8  | )      |   |   | (9.3   | )      |   |   | (7.0 | ) |
| Investment      income                                                                                            |   |   | 5.1    |   |   |   | 9.1    |   |   |   | 6.2 |   |
| Securitization      income                                                                                                                                          |   | $      | 12.2   |   |   | $      | 73.2   |   |   | $ | 73.3 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Proceeds      from sales of finance      receivables                                                                          |   | $      | 4,455.8 |   |   | $      | 5,056.1 |   |   | $ | 8,160.2 |   |
| Servicing      fees                                                                                                           |   |   | 9.2     |   |   |   | 15.9    |   |   |   | 16.1 |   |
| Cash      from net excess      spread                                                                                         |   |   | 16.9    |   |   |   | 49.7    |   |   |   | 60.8 |   |
| Investment      income                                                                                                        |   |   | 3.7     |   |   |   | 7.1     |   |   |   | 5.1 |   |
| Net      cash from securitization transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 4,485.6 |   |   | $      | 5,128.8 |   |   | $ | 8,242.2 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                                             |   | 2008                |    |   | 2007      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|---------|--------|-----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                             |   | Carrying      Value |    |   | FairValue |   |   | Carrying      Value |   |   | FairValue |   |
| Financial      assets:                                                                                                                                                                                                                                                                                                                                                                           |   |                |    |   |      |   |   |   |   |   |   |   |
| Cash      and cash      equivalents                                                                 |   | $                   | 34.4    |   |      | $      | 34.4 |   |   | $ | 10.6 |   |   | $ | 10.6 |   |
| Finance      receivables:                                                                                                                                                                                                                                                                                                                                                                        |   |                |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Retail      notes                                                                                                                                          |   |                | 2,468.0 |   |      |   | 2,220.5 |   |   |   | 3,012.3 |   |   |   | 2,776.3 |   |
| Affiliates                                                                                                                                                 |   |                | 212.3   |   |      |   | 198.6 |   |   |   | 212.1 |   |   |   | 200.3 |   |
| Accounts      (wholesale and retail)                                                                                                                                                                                                                                                                                                                                                             |   |                | 197.6   |   |      |   | 197.6 |   |   |   | 269.4 |   |   |   | 269.4 |   |
| Wholesale      notes                                                                                                                                       |   |                | 118.0   |   |      |   | 118.0 |   |   |   | 105.6 |   |   |   | 105.6 |   |
| Restricted      cash and cash  equivalents                                                                                                                                                                                                                                                                                                                                             |   |                | 515.4   |   |      |   | 515.4 |   |   |   | 370.5 |   |   |   | 370.5 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                                                                                       |   |                | 229.6   |   |      |   | 229.6 |   |   |   | 319.1 |   |   |   | 319.1 |   |
|                                                                                                                                                                                                                                                                                                                                                                                             |   |                |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Financial      liabilities:                                                                                                                                                                                                                                                                                                                                                                      |   |                |    |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Senior      and secured      borrowings                                                             |   |                | 3,679.1 |   |      |   | 3,662.5 |   |   |   | 4,269.1 |   |   |   | 4,254.7 |   |
| Derivative      financial      instruments                                                          |   |                | 40.9    |   |      |   | 40.9 |   |   |   | 17.4 |   |   |   | 17.4 |   |

----

INDEX

|                                                                                                                                                                                                                                                                                                                                                                            |   | 1st      Quarter EndedJanuary      31, |   |   | 2nd Quarter      EndedApril      30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|-------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                            |   | 2008                                   |   |   | 2007                                      |   |   | 2008 |   |   | 2007 |   |
| Financing      revenue                                                                       |   | $                                      | 73.2   |   |                                      | $      | 81.8 |   |   | $ | 69.8 |   |   | $ | 83.6 |   |
| Securitization      income                                                                   |   |                                   | 9.9    |   |                                      |   | 28.4 |   |   |   | 8.1 |   |   |   | 14.3 |   |
| Operating      leases and other revenue                                                                                                                                                                                                                                                                                                                                         |   |                                   | 13.9   |   |                                      |   | 13.2 |   |   |   | 12.7 |   |   |   | 15.4 |   |
| Interest      expense                                                                        |   |                                   | 62.3   |   |                                      |   | 58.7 |   |   |   | 46.8 |   |   |   | 59.2 |   |
| Credit,      collection and administrative                                                                                                                                                                                                                                                                                                                                      |   |                                   | 12.2   |   |                                      |   | 11.5 |   |   |   | 18.0 |   |   |   | 13.1 |   |
| Provision      for credit      losses                                                        |   |                                   | 4.6    |   |                                      |   | 0.6 |   |   |   | 6.0 |   |   |   | 4.1 |   |
| Depreciation      on operating leases                                                                                                                                                                                                                                                                                                                                           |   |                                   | 4.5    |   |                                      |   | 4.9 |   |   |   | 4.0 |   |   |   | 4.6 |   |
| Derivative      expense      (income)                                                        |   |                                   | 40.2   |   |                                      |   | (6.0 | ) |   |   | (1.7 | ) |   |   | 6.2 |   |
| Net      income      (loss)                                                                  |   |                                   | (19.2  | )      |                                      |   | 33.1 |   |   |   | 7.3 |   |   |   | 14.9 |   |

|                                                                                                                                                                                                                                                                                                                                                                            |   | 3rd      Quarter EndedJuly      31, |   |   | 4th Quarter      EndedOctober      31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|--------|--------|---------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                            |   | 2008                                |   |   | 2007                                        |   |   | 2008 |   |   | 2007 |   |
| Financing      revenue                                                                       |   | $                                   | 61.8   |   |                                        | $      | 83.2 |   |   | $ | 58.5 |   |   | $ | 76.6 |   |
| Securitization      income                                                                   |   |                                | 2.7    |   |                                        |   | 19.3 |   |   |   | (8.5 | ) |   |   | 11.2 |   |
| Operating      leases and other revenue                                                                                                                                                                                                                                                                                                                                         |   |                                | 9.6    |   |                                        |   | 13.6 |   |   |   | 12.9 |   |   |   | 12.8 |   |
| Interest      expense                                                                        |   |                                | 38.3   |   |                                        |   | 60.4 |   |   |   | 39.4 |   |   |   | 59.7 |   |
| Credit,      collection and administrative                                                                                                                                                                                                                                                                                                                                      |   |                                | 13.4   |   |                                        |   | 13.5 |   |   |   | 13.3 |   |   |   | 12.5 |   |
| Provision      for credit      losses                                                        |   |                                | 13.3   |   |                                        |   | 3.6 |   |   |   | 8.3 |   |   |   | 11.3 |   |
| Depreciation      on operating leases                                                                                                                                                                                                                                                                                                                                           |   |                                | 4.3    |   |                                        |   | 4.4 |   |   |   | 4.2 |   |   |   | 4.6 |   |
| Derivative      expense      (income)                                                        |   |                                | 1.1    |   |                                        |   | (1.9 | ) |   |   | 15.4 |   |   |   | 10.6 |   |
| Net      income      (loss)                                                                  |   |                                | (1.4   | )      |                                        |   | 20.9 |   |   |   | (17.4 | ) |   |   | (1.6 | ) |

|                                                                                                                                                                                                                                                                                                                               |   | As      ofJanuary      31, |    |   | As      of April      30, |   |    | As      ofJuly      31, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|---------|--------|--------------------------------|--------|---------|-------------------------|--------|
|                                                                                                                                                                                                                                                                                                                               |   | 2008                       |    |   | 2007                           |   |    | 2008                    |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Finance      receivables,      net                                                 |   | $                          | 3,710.9 |   |                           | $      | 4,054.2 |                    |   | $ | 3,556.1 |   |   | $ | 4,073.1 |   |   | $ | 3,136.2 |   |   | $ | 3,807.7 |   |
| Amounts      due from sales of receivables                                                                                                                                                                                                                                                                                         |   |                       | 205.8   |   |                           |   | 352.9   |                    |   |   | 240.1 |   |   |   | 352.7 |   |   |   | 263.4 |   |   |   | 290.3 |   |
| Restricted      cash and cash equivalents                                                                                                                                                                                                                                                                                          |   |                       | 817.7   |   |                           |   | 360.4   |                    |   |   | 691.2 |   |   |   | 480.0 |   |   |   | 636.7 |   |   |   | 592.5 |   |
| Total      assets                                                                  |   |                       | 5,105.4 |   |                           |   | 5,013.9 |                    |   |   | 4,792.1 |   |   |   | 5,122.4 |   |   |   | 4,359.3 |   |   |   | 4,883.4 |   |
| Senior      and secured borrowings                                                                                                                                                                                                                                                                                                 |   |                       | 4,653.5 |   |                           |   | 4,216.1 |                    |   |   | 4,352.7 |   |   |   | 4,464.1 |   |   |   | 3,926.2 |   |   |   | 4,315.9 |   |
| Total      liabilities and shareowner’s equity                                                                                                                                                                                                                                                                               |   |                       | 5,105.4 |   |                           |   | 5,013.9 |                    |   |   | 4,792.1 |   |   |   | 5,122.4 |   |   |   | 4,359.3 |   |   |   | 4,883.4 |   |

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INDEX

Changes in and Disagreements with Accountantson Accounting and Financial Disclosure

Controls and Procedures

| ·   | We      re-emphasized the importance of internal controls and ethical behavior      through more visible and consistent messaging across the      organization.  Under the direction of our Chief Executive      Officer and Chief Financial Officer and other members of our senior      management, we are actively engaged in implementing efforts to address our      control deficiencies and in promoting the importance of conducting      business and accounting activities in compliance with our code of      conduct. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      continued investing in our finance and accounting organization. We have      continued to increase the skills and experience of our finance and      accounting staff and to enhance communication across the organization. We      continued to focus on developing the competency of our finance and      accounting team by updating GAAP-compliant policies and procedures,      increasing formal and informal training and augmenting our staff with      outside expertise. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      availed ourselves of the heavy investment made by NIC in the      Sarbanes-Oxley compliance function to enable a more effective assessment      and remediation process over our internal control over financial      reporting, while also investing in our own internal resources with respect      to the Sarbanes-Oxley compliance function.  NIC also fully      outsourced the company’s internal audit function to a nationally      recognized public accounting firm to further the goal of increasing the      function’s monitoringeffectiveness. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      continued making fundamental changes in both how we govern information      systems and in the design of controls around those      systems.  Under the guidance of NIC’s Chief Information Officer,      we adopted and implemented Control Objectives for Information and related      Technology (COBIT®),      a recognized industry standard control framework, as the foundation of our      design of information technology (“IT”) general controls and instilled      more guidance and discipline regarding IT logical access and program      changes. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Under      the direction of NIC’s CEO, NIC’s Chief Risk Officer has established an      Enterprise Risk Management (ERM) function and a Risk Committee to help      institute a process for monitoring and managing risk in a holistic and      integrated approach. The goal is to implement the ERM process across the      organization by embedding risk management into management’s discipline and      our strategic planning process to enable achievement of our strategic,      operational and financial goals. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

| ·   | Information Technology General      Controls. Our remediation actions  included: |
|--------------------|----------------------------------------------------------------------------------|

| ­   | In      2008, we completed the design and implementation of our computer      operation’s controls at various data center locations.  We have      strengthened the retention of evidence to confirm that our computer      operation’s controls are functioning as designed and we validated the      operational effectiveness of these controls through    testing. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | In      order to remediate our material weakness in logical access and help ensure      that access was adequately restricted, we enhanced our user provisioning      process and monitoring by executing semi-annual reviews of access to our      key financial systems, databases, and supporting      infrastructure.  During the course of executing the semi-annual      reviews, we removed unnecessary access for certain identified      individuals.  In addition, we enhanced the user termination      process by implementing a weekly reporting feed from the human resource      system to the security administrators in order to remove terminations on a      more timely basis. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | In      the area of program changes, we have enhanced the governance around our      system development life cycle process.  We continue to emphasize      the importance of following our standard system development life cycle      process for changes.  This includes retaining appropriate      documentation as evidence that supports that changes were documented,      tested, and approved before moving into our production      environment.  In addition, we have implemented monitoring      controls over production program changes where we were not able to      completely segregate responsibilities between developers and individuals      that move production program changes into  production. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

| ·   | Journal      Entries. Our remediation actions  included: |
|--------------------|---------------------------------------------------------------|

| ­   | In      2008, we continued to reinforce our journal entry policy and procedures to      accounting and finance personnel through regular communications and      training. We re-emphasized the importance of ensuring proper journal entry      review and approval, support and posting  accuracy. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | We      utilized monitoring procedures to frequently test journal entries and      report any noncompliance to our Controller and Chief Financial      Officer.  As a result, targeted follow up was performed which      included training, implementing changes to the way journal entries are      processed and other corrective actions to improve    compliance. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pension and Other      Postretirement Benefits Accounting (OPEB). We utilize the services of      the pension and benefits group of NIC to address our pension accounting      needs. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Remediation      actions included: |
|--------------------|------------------------------------|

| ­   | Formal      and informal meetings are conducted quarterly amongst key personnel to      review the appropriateness of critical assumptions, business analytics,      and significant events.  Revised procedures increased the level      of involvement and coordination among the different constituents,      including Human Resources, Treasury, Corporate Accounting, Actuaries,      Health and Productivity and NIC’s Chief Financial Officer and VP Corporate      Controller. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | Accountability      for planning, coordinating and monitoring the postretirement benefit      accounting activities has been centralized under NIC’s Assistant Corporate      Controller. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | NIC’s      Chief Financial Officer and VP, Corporate Controller are actively involved      in the assumption setting process for postretirement benefits and review      overall analytics and the related variance  explanations. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | NIC’s      Pension and Benefits group developed formal business analytics to analyze      the appropriateness of the pension and OPEB related      balances.  These analytics are reviewed with the key      constituents and areas of concern are researched and    resolved. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | NIC’s      Corporate Accounting function formalized a policy and guidance for      accounting for Pension and Postretirement Benefits and hired additional      resources with relevant accounting knowledge to further improve accounting      for postretirement benefits. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Accounting Policies and      Procedures. Remediation actions  included: |
|--------------------|------------------------------------------------------------------------------|

| ­   | Management      at NIC implemented a policy committee to determine accounting policies      needed and to review and approve updates to accounting policies and      procedures.  This committee issued numerous accounting policies      and procedures and provided guidance to accounting personnel throughout      Navistar, Inc who are responsible for complying with the company’s      policies.  These newly issued policies along with the      committee’s guidance provide a consistent source for accounting personnel      at NFC and throughout Navistar, Inc., to use when applying accounting      treatment to applicable accountingtransactions. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | Management      at NIC and NFC formalized a process to review new US GAAP accounting      pronouncements, identify those relevant to the company, and issue related      policies and or procedures to comply with the    pronouncements. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | A      robust learning and development program was implemented that provides      detailed guidance about the accounting policies and other technical      accounting topics to company personnel throughout Navistar, Inc with      responsibility for our internal control over financial reporting. To      formally emphasize the company’s commitment to the control environment,      NIC issued a new policy requiring all accounting and finance personnel to      maintain a minimum level of relevant professional    development. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | NFC      management continued to work with management at NIC as the company      utilized its process of preparing white papers that document technical      accounting positions and accounting practices followed across the company.      These white papers are prepared and reviewed by technical accounting      resources to help ensure we are in compliance with U.S.    GAAP. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ­   | The      company’s Sarbanes-Oxley documentation is comprehensive and key controls      are directly linked to significant accounting policies. This documentation      enables us to monitor the operating effectiveness of company controls      through annual testing. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

| ·   | Pertain      to the maintenance of records that, in reasonable detail, accurately and      fairly reflect the transactions and dispositions of assets of the      company. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with GAAP and that      receipts and expenditures of the company are being made in accordance with      authorization of our management and our Board of  Directors. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use, or disposition of our assets that could      have a material effect on our consolidated financial      statements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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INDEX

| ·   | Our      leadership team is committed to achieving and maintaining a strong control      environment, high ethical standards and financial reporting integrity.      This commitment will continue to be communicated to and reinforced with      our employees. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      will continue to foster awareness and understanding of standards and      principles for accounting and financial reporting. This includes the      implementation and clarification of specific accounting policies and      procedures and effective execution of our accounting training      program. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | We      will continue to monitor adherence to company accounting policies and      procedures through the testing of key controls directly linked to these      accounting policies to test for operating effectiveness and help ensure      critical accounting procedures are being performed    correctly. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Conducting      additional analyses and substantive procedures, including preparation of      account reconciliations and making additional adjustments as necessary to      confirm the accuracy and completeness of our financial      reporting. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Hiring      additional resources and retaining outside consultants with relevant      accounting experience, skills and knowledge, working under our supervision      and direction to assist with the account closing and financial statement      preparation process. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Other Information

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INDEX

Items 10
11
12
13

Principal Accountant Fees andServices

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INDEX

Exhibits, and Financial Statement Schedules andReport on Form 8K

|   | 3    | Articles of Incorporation and      By-Laws                                                                                                                                  | E-1  |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------|
|   | 4    |  Instruments Defining Rights of Security Holders,      including      Indentures                                                                                       | E-2  |
|   | 10   |  Material      Contracts                                                                                                                                               | E-3  |
|   | 12   |  Calculation of Ratio of Earnings to Fixed      Charges                                                                                                                | E-21 |
|   | 15   |  Financial Statement      Schedules                                                                                                                                    | E-22 |
|   | 31.1 |  CEO Certification Pursuant to Rule 13a-14(a) and      15d-14(a)                                                                                                       | E-25 |
|   | 31.2 |  CFO Certification Pursuant to Rule 13a-14(a) and      15d-14(a)                                                                                                       | E-27 |
|   | 32   |  CEO and CFO Certification Pursuant to Section 1350 of      Chapter 1350 of Chapter 63 of Title 18 of the United States      Code                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | E-29 |

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INDEX

SIGNATURE

|                                     | Navistar Financial      Corporation                                                                                                              |
|------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                     |                                                                                                                                             | (Registrant) |
|                                     |                                                                                                                                             |   |
| Date:        December 30, 2008 |                           By:  /s/ | DAVID L. DERFELT |
|                                     |                                                                                                                                             | David      L. Derfelt |
|                                     |                                                                                                                                             | V.P.,      and Controller |
|                                     |                                                                                                                                             | (Principal      Accounting  Officer) |

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INDEX

|   | Signature                                                                                                                                                                                                                                                                                               |   | Title                                                                                        |   | Date              |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|-------------------|
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | WILLIAM V.      MCMENAMINWilliam      V. McMenamin                                                                                                                                                                                                                                                      |   | Vice      President, Chief Financial Officer and Treasurer(Principal      Financial Officer) |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | DAVID L.  DERFELTDavid      L. Derfelt                                                                                                                                                                                                                                                        |   | Vice      President and Controller(Principal      Accounting Officer)                        |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | PAMELA J. TURBEVILLEPamela      J. Turbeville                                                                                                                                                                                                                                                           |   | Chief      Executive Officer; Director(Principal      Executive Officer)                     |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | JOHN V. MULVANEY, SR.John      V. Mulvaney, Sr.                                                                                                                                                                                                                                                         |   | Director                                                                                |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | DAVID J. JOHANNESONDavid      J. Johanneson                                                                                                                                                                                                                                                             |   | Director                                                                                |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | TERRY M. ENDSLEY                                           Terry      M. Endsley |   | President;      Director                                                                |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | RICHARD C. TARAPCHAKRichard      C. Tarapchak                                                                                                                                                                                                                                                           |   | Director                                                                                |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | WILLIAM A. CATONWilliam      A.  Caton                                                                                                                                                                                                                                                        |   | Director                                                                                |   | December 30, 2008 |
|   |                                                                                                                                                                                                                                                                                                    |   |                                                                                         |   |              |
| /s/    | ALICE M. PETERSONAlice      M. Peterson                                                                                                                                                                                                                                                                 |   | Director                                                                                |   | December 30,2008  |

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INDEX