<Page>

                                                                     EXHIBIT 4.7












                    PREFERRED SECURITIES GUARANTEE AGREEMENT


                                 BY AND BETWEEN



                           LOCAL FINANCIAL CORPORATION


                                       AND


                              THE BANK OF NEW YORK




                           DATED AS OF _________, 2001










<Page>


                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                                                           Page No.

<S>                                                                                                            <C>
ARTICLE I           DEFINITIONS AND INTERPRETATION...............................................................1
         Section 1.1     Definitions and Interpretation..........................................................1

ARTICLE II          TRUST INDENTURE ACT..........................................................................5
         Section 2.1     Trust Indenture Act; Application........................................................5
         Section 2.2     Lists of Holders of Securities..........................................................5
         Section 2.3     Reports by the Guarantee Trustee........................................................5
         Section 2.4     Periodic Reports to Guarantee Trustee...................................................6
         Section 2.5     Evidence of Compliance with Conditions Precedent........................................6
         Section 2.6     Events of Default; Waiver...............................................................6
         Section 2.7     Event of Default; Notice................................................................6

ARTICLE III         POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE...............................................7
         Section 3.1     Powers and Duties of the Guarantee Trustee..............................................7
         Section 3.2     Certain Rights of Guarantee Trustee.....................................................9
         Section 3.3     Not Responsible for Recitals or Issuance of Guarantee..................................11

ARTICLE IV          GUARANTEE TRUSTEE...........................................................................11
         Section 4.1     Guarantee Trustee; Eligibility.........................................................11
         Section 4.2     Appointment, Removal and Resignation of Guarantee Trustee..............................12

ARTICLE V           GUARANTEE...................................................................................14
         Section 5.1     Guarantee..............................................................................14
         Section 5.2     Waiver of Notice and Demand............................................................14
         Section 5.3     Obligations not Affected...............................................................14
         Section 5.4     Rights of Holders......................................................................15
         Section 5.5     Guarantee of Payment...................................................................15
         Section 5.6     Subrogation............................................................................16
         Section 5.7     Independent Obligations................................................................16

ARTICLE VI          LIMITATION OF TRANSACTIONS; SUBORDINATION...................................................16
         Section 6.1     Limitation of Transactions.............................................................16
         Section 6.2     Ranking................................................................................17

ARTICLE VII         TERMINATION.................................................................................17
         Section 7.1     Termination............................................................................17

ARTICLE VIII        INDEMNIFICATION.............................................................................17
         Section 8.1     Exculpation............................................................................17
         Section 8.2     Indemnification........................................................................18
</Table>


                                      -i-



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<Table>
<S>                                                                                                           <C>
ARTICLE IX          MISCELLANEOUS...............................................................................18
         Section 9.1     Successors and Assigns.................................................................18
         Section 9.2     Amendments.............................................................................18
         Section 9.3     Notices................................................................................19
         Section 9.4     Benefit................................................................................19
         Section 9.5     Governing Law..........................................................................20
</Table>



















                                      -ii-

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                              CROSS REFERENCE TABLE


<Table>
<Caption>
                Section of Trust               Section of
                Indenture Act of               Guarantee
                 1939, as amended              Agreement

               <S>                                  <C>
                310(a)                               4.1(a)
                310(b)                               4.1(c), 2.8
                310(c)                               Not Applicable
                311(a)                               2.2(b)
                311(b)                               2.2(b)
                311(c)                               Not Applicable
                312(a)                               2.2(a)
                312(b)                               2.2(b)
                313...                               2.3
                314(a)                               2.4
                314(b)                               Not Applicable
                314(c)                               2.5
                314(d)                               Not Applicable
                314(e)                               1.1, 2.5, 3.2
                314(f)                               2.1, 3.2
                315(a)                               3.1(d)
                315(b)                               2.7
                315(c)                               3.1
                315(d)                               3.1(d)
                316(a)                               1.1, 2.6, 5.4
                316(b)                               5.3
                317(a)                               3.1
                317(b)                               Not Applicable
                318(a)                               2.1(a)
                318(b)                               2.1
                318(c)                               2.1(b)
</Table>

                Note: This Cross-Reference Table does not constitute part of
                this Agreement and shall not affect the interpretation of any
                of its terms or provisions.



                                     -iii-

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                    PREFERRED SECURITIES GUARANTEE AGREEMENT

      This PREFERRED SECURITIES GUARANTEE AGREEMENT (this "Preferred Securities
Guarantee"), dated as of _________, 2001, is executed and delivered by LOCAL
FINANCIAL CORPORATION, a Delaware corporation (the "Guarantor"), and THE BANK OF
NEW YORK, a New York banking corporation (the "Guarantee Trustee"), for the
benefit of the Holders (as defined herein) from time to time of the Preferred
Securities (as defined herein) of Local Financial Capital Trust I, a Delaware
statutory business trust (the "Trust").

                                    RECITALS

      WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the
"Trust Agreement"), dated as of _________, 2001, among the trustees of the
Trust named therein, the Guarantor, as sponsor, and the holders from time to
time of undivided beneficial interests in the assets of the Trust, the Trust
is issuing on the date hereof up to 1,400,000 preferred securities, having an
aggregate Liquidation Amount of up to $35,000,000 designated the ____%
Cumulative Trust Preferred Securities;

      WHEREAS, as incentive for the Holders to purchase the Preferred
Securities, the Guarantor desires irrevocably and unconditionally to agree, to
the extent set forth in this Preferred Securities Guarantee, to pay to the
Holders of the Preferred Securities the Guarantee Payments (as defined herein)
and to make certain other payments on the terms and conditions set forth herein.

      NOW, THEREFORE, in consideration of the purchase by each Holder of
Preferred Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Preferred Securities
Guarantee for the benefit of the Holders.


                                   ARTICLE I

                         DEFINITIONS AND INTERPRETATION

      1.1   DEFINITIONS AND INTERPRETATION.

      In this Preferred Securities Guarantee, unless the context otherwise
requires:

            (a)   capitalized terms used in this Preferred Securities Guarantee
                  but not defined in the preamble above have the respective
                  meanings assigned to them in this Section 1.1;

            (b)   terms defined in the Trust Agreement as at the date of
                  execution of this Preferred Securities Guarantee have the same
                  meaning when used in this


                                      -1-

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                  Preferred Securities Guarantee, unless otherwise defined in
                  this Preferred Securities Guarantee;

            (c)   a term defined anywhere in this Preferred Securities Guarantee
                  has the same meaning throughout;

            (d)   all references to "the Preferred Securities Guarantee" or
                  "this Preferred Securities Guarantee" are to this Preferred
                  Securities Guarantee as modified, supplemented or amended from
                  time to time;

            (e)   all references in this Preferred Securities Guarantee to
                  Articles and Sections are to Articles and Sections of this
                  Preferred Securities Guarantee, unless otherwise specified;

            (f)   a term defined in the Trust Indenture Act has the same meaning
                  when used in this Preferred Securities Guarantee, unless
                  otherwise defined in this Preferred Securities Guarantee or
                  unless the context otherwise requires; and

            (g)   a reference to the singular includes the plural and VICE
                  VERSA.

      "Affiliate" has the same meaning as given to that term in Rule 405 of the
Securities Act of 1933, as amended, or any successor rule thereunder.

      "Business Day" means any day other than a Saturday, Sunday, a day on which
federal or state banking institutions in New York, New York are authorized or
required by law, executive order or regulation to close or a day on which the
Corporate Trust Office of the Guarantee Trustee is closed for business.

      "Corporate Trust Office" means the office of the Guarantee Trustee at
which the corporate trust business of the Guarantee Trustee shall, at any
particular time, be principally administered, which office at the date of
execution of this Agreement is located 101 Barclay Street, 21st Floor West, New
York, New York 10286, Attention: Corporate Trust Trustee Administration.

      "Covered Person" means any Holder or beneficial owner of Preferred
Securities.

      "Debentures" means the ___% Junior Subordinated Debentures due September
30, 2031, the Debenture Issuer held by the Property Trustee of the Trust.

      "Debenture Issuer" means Local Financial Corporation, issuer of the
Debentures under the Indenture.

      "Event of Default" means a default by the Guarantor on any of its payment
or other obligations under this Preferred Securities Guarantee.


                                      -2-

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      "Guarantee Payments" means the following payments or distributions,
without duplication, with respect to the Preferred Securities, to the extent not
paid or made by the Trust: (i) any accrued and unpaid Distributions that are
required to be paid on such Preferred Securities, to the extent the Trust shall
have funds available therefor, (ii) the redemption price, including all accrued
and unpaid Distributions to the date of redemption (the "Redemption Price"), to
the extent the Trust has funds available therefor, with respect to any Preferred
Securities called for redemption by the Trust, and (iii) upon a voluntary or
involuntary dissolution, winding-up or termination of the Trust (other than in
connection with the distribution of Debentures to the Holders in exchange for
Preferred Securities as provided in the Trust Agreement), the lesser of (a) the
aggregate of the Liquidation Amount and all accrued and unpaid Distributions on
the Preferred Securities to the date of payment, to the extent the Trust shall
have funds available therefor (the "Liquidation Distribution"), and (b) the
amount of assets of the Trust remaining available for distribution to Holders in
liquidation of the Trust.

      "Guarantee Trustee" means The Bank of New York, until a Successor
Guarantee Trustee has been appointed and has accepted such appointment pursuant
to the terms of this Preferred Securities Guarantee and thereafter means each
such Successor Guarantee Trustee.

      "Guarantor" means Local Financial Corporation, a Delaware corporation.

      "Holder" shall mean any holder, as registered on the books and records of
the Trust, of any Preferred Securities; PROVIDED, HOWEVER, that, in determining
whether the holders of the requisite percentage of Preferred Securities have
given any request, notice, consent or waiver hereunder, "Holder" shall not
include the Guarantor, the Guarantee Trustee or any of their respective
Affiliates.

      "Indemnified Person" means the Guarantee Trustee, any Affiliate of the
Guarantee Trustee, or any officers, directors, shareholders, members, partners,
employees, representatives, nominees, custodians or agents of the Guarantee
Trustee.

      "Indenture" means the Indenture dated as of ________, 2001, among the
Debenture Issuer and The Bank of New York, as trustee, and any indenture
supplemental thereto pursuant to which the Debentures are to be issued to the
Property Trustee of the Trust.

      "Liquidation Amount" means the stated value of $25 per Preferred Security.

      "Liquidation Distribution" has the meaning provided therefor in the
definition of Guarantee Payments.

      "Majority in Liquidation Amount of the Preferred Securities" means the
holders of more than 50% of the Liquidation Amount of all of the Preferred
Securities.

      "Officers' Certificate" means, with respect to any Person, a certificate
signed by two authorized officers of such Person, at least one of whom shall be
the principal executive officer, principal financial officer, principal
accounting officer, treasurer or any vice president of such


                                      -3-

<Page>

Person. Any Officers' Certificate delivered with respect to compliance with a
condition or covenant provided for in this Preferred Securities Guarantee shall
include:

            (a)   a statement that each officer signing the Officers'
                  Certificate has read the covenant or condition and the
                  definition relating thereto;

            (b)   a brief statement of the nature and scope of the examination
                  or investigation undertaken by each officer in rendering the
                  Officers' Certificate;

            (c)   a statement that each such officer has made such examination
                  or investigation as, in such officer's opinion, is necessary
                  to enable such officer to express an informed opinion as to
                  whether or not such covenant or condition has been complied
                  with; and

            (d)   a statement as to whether, in the opinion of each such
                  officer, such condition or covenant has been complied with.

      "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

      "Preferred Securities" means the ____% Cumulative Trust Preferred
Securities representing undivided beneficial interests in the assets of the
Trust which rank PARI PASSU with Common Securities issued by the Trust;
provided, however, that upon the occurrence of an Event of Default, the rights
of holders of Common Securities to payment in respect of distributions and
payments upon liquidation, redemption and otherwise are subordinated to the
rights of holders of Preferred Securities.

      "Redemption Price" has the meaning provided therefor in the definition of
Guarantee Payments.

      "Responsible Officer" means, with respect to the Guarantee Trustee, any
officer within the Corporate Trust Office of the Guarantee Trustee with direct
responsibility for the administration of this Preferred Securities Guarantee,
including any vice-president, any assistant vice-president, any assistant
secretary or other officer or assistant officer of the Guarantee Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because of that
officer's knowledge of and familiarity with the particular subject.

      "Successor Guarantee Trustee" means a successor Guarantee Trustee
possessing the qualifications to act as Guarantee Trustee under Section 4.1.


                                      -4-

<Page>

      "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended.


                                   ARTICLE II

                               TRUST INDENTURE ACT

      2.1   TRUST INDENTURE ACT; APPLICATION.

            (a)   This Preferred Securities Guarantee is subject to the
                  provisions of the Trust Indenture Act that are required to be
                  part of this Preferred Securities Guarantee and shall, to the
                  extent applicable, be governed by such provisions.

            (b)   If and to the extent that any provision of this Preferred
                  Securities Guarantee limits, qualifies or conflicts with the
                  duties imposed by Section 310 to 317, inclusive, of the Trust
                  Indenture Act, such imposed duties shall control.

      2.2   LISTS OF HOLDERS OF SECURITIES.

            (a)   In the event the Guarantee Trustee is not also acting in the
                  capacity of the Property Trustee under the Trust Agreement,
                  the Guarantor shall cause to be provided to the Guarantee
                  Trustee a list, in such form as the Guarantee Trustee may
                  reasonably require, of the names and addresses of the Holders
                  of the Preferred Securities ("List of Holders") as of the date
                  (i) within one Business Day after March 15, June 15, September
                  15 and December 15, and (ii) at any other time within 30 days
                  of receipt by the Guarantor of a written request for a List of
                  Holders as of a date no more than 15 days before such List of
                  Holders is given to the Guarantee Trustee; PROVIDED, that the
                  Guarantor shall not be obligated to provide such List of
                  Holders at any time the List of Holders does not differ from
                  the most recent List of Holders caused to have been given to
                  the Guarantee Trustee by the Guarantor. The Guarantee Trustee
                  may destroy any List of Holders previously given to it on
                  receipt of a new List of Holders.

            (b)   The Guarantee Trustee shall comply with its obligations under
                  Sections 311(a), 311(b) and Section 312(b) of the Trust
                  Indenture Act.

      2.3   REPORTS BY THE GUARANTEE TRUSTEE.

      On or before July 31 of each year, commencing July 31, 2002 the Guarantee
Trustee shall provide to the Holders of the Preferred Securities such reports as
are required by Section 313 of the


                                      -5-

<Page>

Trust Indenture Act, if any, in the form and in the manner provided by Section
313 of the Trust Indenture Act. The Guarantee Trustee shall also comply with the
requirements of Section 313(d) of the Trust Indenture Act.

      2.4   PERIODIC REPORTS TO GUARANTEE TRUSTEE.

      The Guarantor shall provide to the Guarantee Trustee such documents,
reports and information as required by Section 314 (if any) and the compliance
certificate required by Section 314 of the Trust Indenture Act in the form, in
the manner and at the times required by Section 314 of the Trust Indenture Act.

      2.5   EVIDENCE OF COMPLIANCE WITH CONDITIONS PRECEDENT.

      The Guarantor shall provide to the Guarantee Trustee such evidence of
compliance with any conditions precedent, if any, provided for in this Preferred
Securities Guarantee that relate to any of the matters set forth in Section
314(c) of the Trust Indenture Act. Any certificate or opinion required to be
given by an officer pursuant to Section 314(c)(1) may be given in the form of an
Officers' Certificate.

      2.6   EVENTS OF DEFAULT; WAIVER.

      The Holders of a Majority in liquidation amount of Preferred Securities
may, by vote, on behalf of the Holders of all of the Preferred Securities, waive
any past Event of Default and its consequences. Upon such waiver, any such Event
of Default shall cease to exist, and any Event of Default arising therefrom
shall be deemed to have been cured, for every purpose of this Preferred
Securities Guarantee, but no such waiver shall extend to any subsequent or other
default or Event of Default or impair any right consequent thereon.

      2.7   EVENT OF DEFAULT; NOTICE.

            (a)   The Guarantee Trustee shall, within 90 days after the
                  occurrence of an Event of Default, transmit by mail, first
                  class postage prepaid, to the Holders of the Preferred
                  Securities, notices of all Events of Default actually known to
                  a Responsible Officer of the Guarantee Trustee, unless such
                  defaults have been cured before the giving of such notice;
                  PROVIDED, that, except in the case of a default by Guarantor
                  on any of its payment obligations, the Guarantee Trustee shall
                  be protected in withholding such notice if and so long as a
                  Responsible Officer of the Guarantee Trustee in good faith
                  determines that the withholding of such notice is in the
                  interests of the Holders of the Preferred Securities.

            (b)   The Guarantee Trustee shall not be deemed to have knowledge of
                  any Event of Default unless the Guarantee Trustee shall have
                  received written notice, or of which a Responsible Officer of
                  the Guarantee Trustee charged with the administration of the
                  Trust Agreement shall have obtained actual knowledge.


                                      -6-

<Page>

      2.8   Conflicting Interests.

      The Trust Agreement shall be deemed to be specifically described in this
Preferred Securities Guarantee for the purposes of clause (i) of the first
proviso contained in Section 310(b) of the Trust Indenture Act.


                                  ARTICLE III

                 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE

      3.1   POWERS AND DUTIES OF THE GUARANTEE TRUSTEE.

            (a)   This Preferred Securities Guarantee shall be held by the
                  Guarantee Trustee for the benefit of the Holders of the
                  Preferred Securities, and the Guarantee Trustee shall not
                  transfer this Preferred Securities Guarantee to any Person
                  except a Holder of Preferred Securities exercising his or her
                  rights pursuant to Section 5.4(b) or to a Successor Guarantee
                  Trustee on acceptance by such Successor Guarantee Trustee of
                  its appointment to act as Successor Guarantee Trustee. The
                  right, title and interest of the Guarantee Trustee shall
                  automatically vest in any Successor Guarantee Trustee, and
                  such vesting and cessation of title shall be effective whether
                  or not conveyancing documents have been executed and delivered
                  pursuant to the appointment of such Successor Guarantee
                  Trustee.

            (b)   If an Event of Default actually known to a Responsible Officer
                  of the Guarantee Trustee has occurred and is continuing, the
                  Guarantee Trustee shall enforce this Preferred Securities
                  Guarantee for the benefit of the Holders of the Preferred
                  Securities.

            (c)   The Guarantee Trustee, before the occurrence of any Event of
                  Default and after the curing of all Events of Default that may
                  have occurred, shall undertake to perform only such duties as
                  are specifically set forth in this Preferred Securities
                  Guarantee, and no implied covenants shall be read into this
                  Preferred Securities Guarantee against the Guarantee Trustee.
                  In case an Event of Default has occurred (that has not been
                  cured or waived pursuant to Section 2.6) and is actually known
                  to a Responsible Officer of the Guarantee Trustee, the
                  Guarantee Trustee shall exercise such of the rights and powers
                  vested in it by this Preferred Securities Guarantee, and use
                  the same degree of care and skill in its exercise thereof, as
                  a prudent person would exercise or use under the circumstances
                  in the conduct of his or her own affairs.

             (d)  No provision of this Preferred Securities Guarantee shall be
                  construed to relieve the Guarantee Trustee from liability for
                  its own negligent action, its own negligent failure to act, or
                  its own willful misconduct, except that:


                                      -7-

<Page>

                  (i)   prior to the occurrence of any Event of Default and
                        after the curing or waiving of all such Events of
                        Default that may have occurred:

                        (A)   the duties and obligations of the Guarantee
                              Trustee shall be determined solely by the express
                              provisions of this Preferred Securities Guarantee,
                              and the Guarantee Trustee shall not be liable
                              except for the performance of such duties and
                              obligations as are specifically set forth in this
                              Preferred Securities Guarantee, and no implied
                              covenants or obligations shall be read into this
                              Preferred Securities Guarantee against the
                              Guarantee Trustee; and

                        (B)   in the absence of bad faith on the part of the
                              Guarantee Trustee, the Guarantee Trustee may
                              conclusively rely, as to the truth of the
                              statements and the correctness of the opinions
                              expressed therein, upon any certificates or
                              opinions furnished to the Guarantee Trustee and
                              conforming to the requirements of this Preferred
                              Securities Guarantee; but in the case of any such
                              certificates or opinions that by any provision
                              hereof are specifically required to be furnished
                              to the Guarantee Trustee, the Guarantee Trustee
                              shall be under a duty to examine the same to
                              determine whether or not they conform to the
                              requirements of this Preferred Securities
                              Guarantee;

                  (ii)  the Guarantee Trustee shall not be liable for any error
                        of judgment made in good faith by a Responsible Officer
                        of the Guarantee Trustee, unless it shall be proved that
                        the Guarantee Trustee was negligent in ascertaining the
                        pertinent facts upon which such judgment was made;

                  (iii) the Guarantee Trustee shall not be liable with respect
                        to any action taken or omitted to be taken by it in good
                        faith in accordance with the direction of the Holders of
                        not less than a Majority in Liquidation Amount of the
                        Preferred Securities relating to the time, method and
                        place of conducting any proceeding for any remedy
                        available to the Guarantee Trustee, or exercising any
                        trust or power conferred upon the Guarantee Trustee
                        under this Preferred Securities Guarantee; and


                                      -8-

<Page>

                  (iv)  no provision of this Preferred Securities Guarantee
                        shall require the Guarantee Trustee to expend or risk
                        its own funds or otherwise incur personal financial
                        liability in the performance of any of its duties or in
                        the exercise of any of its rights or powers, if the
                        Guarantee Trustee shall have reasonable grounds for
                        believing that the repayment of such funds or liability
                        is not reasonably assured to it under the terms of this
                        Preferred Securities Guarantee or indemnity, reasonably
                        satisfactory to the Guarantee Trustee, against such risk
                        or liability is not reasonably assured to it.

      3.2   CERTAIN RIGHTS OF GUARANTEE TRUSTEE.

            (a)   Subject to the provisions of Section 3.1:

                  (i)   the Guarantee Trustee may conclusively rely, and shall
                        be fully protected in acting or refraining from acting
                        upon, any resolution, certificate, statement,
                        instrument, opinion, report, notice, request, direction,
                        consent, order, bond, debenture, note, other evidence of
                        indebtedness or other paper or document believed by it
                        to be genuine and to have been signed, sent or presented
                        by the proper party or parties;

                  (ii)  Any direction or act of the Guarantor contemplated by
                        this Preferred Securities Guarantee shall be
                        sufficiently evidenced by an Officers' Certificate;

                  (iii) whenever, in the administration of this Preferred
                        Securities Guarantee, the Guarantee Trustee shall deem
                        it desirable that a matter be proved or established
                        before taking, suffering or omitting any action
                        hereunder, the Guarantee Trustee (unless other evidence
                        is herein specifically prescribed) may, in the absence
                        of bad faith on its part, request and conclusively rely
                        upon an Officers' Certificate which, upon receipt of
                        such request, shall be promptly delivered by the
                        Guarantor;

                  (iv)  the Guarantee Trustee shall have no duty to see to any
                        recording, filing or registration of any instrument (or
                        any rerecording, refiling or registration thereof);

                  (v)   the Guarantee Trustee may consult with counsel, and the
                        written advice or opinion of such counsel with respect
                        to legal matters shall be full and complete
                        authorization and protection in respect of any action
                        taken, suffered or omitted by it hereunder in good faith
                        and in accordance with such advice or opinion. Such
                        counsel


                                      -9-

<Page>

                        may be counsel to the Guarantor or any of its Affiliates
                        and may include any of its employees. The Guarantee
                        Trustee shall have the right at any time to seek
                        instructions concerning the administration of this
                        Preferred Securities Guarantee from any court of
                        competent jurisdiction;

                  (vi)  the Guarantee Trustee shall be under no obligation to
                        exercise any of the rights or powers vested in it by
                        this Preferred Securities Guarantee at the request or
                        direction of any Holder, unless such Holder shall have
                        provided to the Guarantee Trustee such security and
                        indemnity, reasonably satisfactory to the Guarantee
                        Trustee, against the costs, expenses (including
                        attorneys' fees and expenses and the expenses of the
                        Guarantee Trustee's agents, nominees or custodians) and
                        liabilities that might be incurred by it in complying
                        with such request or direction, including such
                        reasonable advances as may be requested by the Guarantee
                        Trustee; PROVIDED that, nothing contained in this
                        Section 3.2(a)(vi) shall be taken to relieve the
                        Guarantee Trustee, upon the occurrence of an Event of
                        Default, of its obligation to exercise the rights and
                        powers vested in it by this Preferred Securities
                        Guarantee;

                  (vii) the Guarantee Trustee shall not be bound to make any
                        investigation into the facts or matters stated in any
                        resolution, certificate, statement, instrument, opinion,
                        report, notice, request, direction, consent, order,
                        bond, debenture, note, other evidence of indebtedness or
                        other paper or document, but the Guarantee Trustee, in
                        its discretion, may make such further inquiry or
                        investigation into such facts or matters as it may see
                        fit;

                  (viii) the Guarantee Trustee may execute any of the trusts or
                        powers hereunder or perform any duties hereunder either
                        directly or by or through agents, nominees, custodians
                        or attorneys, and the Guarantee Trustee shall not be
                        responsible for any misconduct or negligence on the part
                        of any agent or attorney appointed with due care by it
                        hereunder;

                  (ix)  no third party shall be required to inquire as to the
                        authority of the Guarantee Trustee to so act or as to
                        its compliance with any of the terms and provisions of
                        this Preferred Securities Guarantee, both of which shall
                        be conclusively evidenced by the Guarantee Trustee's or
                        its agent's taking such action; and

                  (x)   whenever in the administration of this Preferred
                        Securities Guarantee the Guarantee Trustee shall deem it
                        desirable to receive


                                      -10-

<Page>

                        instructions with respect to enforcing any remedy or
                        right or taking any other action hereunder, the
                        Guarantee Trustee (i) may request instructions from the
                        Holders of a Majority in Liquidation Amount of the
                        Preferred Securities, (ii) may refrain from enforcing
                        such remedy or right or taking such other action until
                        such instructions are received, and (iii) shall be
                        protected in conclusively relying on or acting in
                        accordance with such instructions.

            (b)   No provision of this Preferred Securities Guarantee shall be
                  deemed to impose any duty or obligation on the Guarantee
                  Trustee to perform any act or acts or exercise any right,
                  power, duty or obligation conferred or imposed on it in any
                  jurisdiction in which it shall be illegal, or in which the
                  Guarantee Trustee shall be unqualified or incompetent in
                  accordance with applicable law, to perform any such act or
                  acts or to exercise any such right, power, duty or obligation.
                  No permissive power or authority available to the Guarantee
                  Trustee shall be construed to be a duty.

      3.3   NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF GUARANTEE.

      The Recitals contained in this Guarantee shall be taken as the statements
of the Guarantor, and the Guarantee Trustee does not assume any responsibility
for their correctness. The Guarantee Trustee makes no representation as to the
validity or sufficiency of this Preferred Securities Guarantee.


                                   ARTICLE IV

                                GUARANTEE TRUSTEE

      4.1   GUARANTEE TRUSTEE; ELIGIBILITY.

            (a)   There shall at all times be a Guarantee Trustee which shall:

                  (i)   not be an Affiliate of the Guarantor; and

                  (ii)  be a corporation organized and doing business under the
                        laws of the United States of America or any state or
                        territory thereof or of the District of Columbia, or a
                        corporation or Person permitted by the Securities and
                        Exchange Commission to act as an institutional trustee
                        under the Trust Indenture Act, authorized under such
                        laws to exercise corporate trust powers, having a
                        combined capital and surplus of at least $50,000,000,
                        and subject to supervision or examination by federal,
                        state, territorial or District of Columbia authority. If
                        such corporation publishes reports of condition at least
                        annually, pursuant to law or to the requirements of the


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                        supervising or examining authority referred to above,
                        then, for the purposes of this Section 4.1(a)(ii), the
                        combined capital and surplus of such corporation shall
                        be deemed to be its combined capital and surplus as set
                        forth in its most recent report of condition so
                        published.

            (b)   If at any time the Guarantee Trustee shall cease to be
                  eligible to so act under Section 4.1(a), the Guarantee Trustee
                  shall immediately resign in the manner and with the effect set
                  out in Section 4.2(c).

            (c)   If the Guarantee Trustee has or shall acquire any "conflicting
                  interest" within the meaning of Section 310(b) of the Trust
                  Indenture Act, the Guarantee Trustee and Guarantor shall in
                  all respects comply with the provisions of Section 310(b) of
                  the Trust Indenture Act.

      4.2   APPOINTMENT, REMOVAL AND RESIGNATION OF GUARANTEE TRUSTEE.

            (a)   Subject to Section 4.2(b), the Guarantee Trustee may be
                  appointed or removed without cause at any time by the
                  Guarantor.

            (b)   The Guarantee Trustee shall not be removed in accordance with
                  Section 4.2(a) until a Successor Guarantee Trustee has been
                  appointed and has accepted such appointment by written
                  instrument executed by such Successor Guarantee Trustee and
                  delivered to the Guarantor.

            (c)   The Guarantee Trustee appointed to office shall hold office
                  until a Successor Guarantee Trustee shall have been appointed
                  or until its removal or resignation. The Guarantee Trustee may
                  resign from office (without need for prior or subsequent
                  accounting) by an instrument in writing executed by the
                  Guarantee Trustee and delivered to the Guarantor, which
                  resignation shall not take effect until a Successor Guarantee
                  Trustee has been appointed and has accepted such appointment
                  by instrument in writing executed by such Successor Guarantee
                  Trustee and delivered to the Guarantor and the resigning
                  Guarantee Trustee.

            (d)   If no Successor Guarantee Trustee shall have been appointed
                  and accepted appointment as provided in this Section 4.2
                  within 60 days after delivery to the Guarantor of an
                  instrument of resignation, the resigning Guarantee Trustee may
                  petition any court of competent jurisdiction for appointment
                  of a Successor Guarantee Trustee. Such court may thereupon,
                  after prescribing such notice, if any, as it may deem proper,
                  appoint a Successor Guarantee Trustee.

            (e)   No Guarantee Trustee shall be liable for the acts or omissions
                  to act of any Successor Guarantee Trustee.


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<Page>

            (f)   Upon termination of this Preferred Securities Guarantee or
                  removal or resignation of the Guarantee Trustee pursuant to
                  this Section 4.2, the Guarantor shall pay to the Guarantee
                  Trustee all fees and expenses accrued to the date of such
                  termination, removal or resignation.


                                   ARTICLE V

                                    GUARANTEE

      5.1   GUARANTEE.

      The Guarantor irrevocably and unconditionally agrees to pay in full to the
Holders the Guarantee Payments (without duplication of amounts theretofore paid
by the Trust), as and when due, regardless of any defense, right of set-off or
counterclaim that the Trust may have or assert. The Guarantor's obligation to
make a Guarantee Payment may be satisfied by direct payment of the required
amounts by the Guarantor to the Holders or by causing the Trust to pay such
amounts to the Holders.

      5.2   WAIVER OF NOTICE AND DEMAND.

      The Guarantor hereby waives notice of acceptance of this Preferred
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first against
the Trust or any other Person before proceeding against the Guarantor, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other
notices and demands.

      5.3   OBLIGATIONS NOT AFFECTED.

      The obligations, covenants, agreements and duties of the Guarantor under
this Preferred Securities Guarantee shall in no way be affected or impaired by
reason of the happening from time to time of any of the following:

            (a)   the release or waiver, by operation of law or otherwise, of
                  the performance or observance by the Trust of any express or
                  implied agreement, covenant, term or condition relating to the
                  Preferred Securities to be performed or observed by the Trust;

            (b)   the extension of time for the payment by the Trust of all or
                  any portion of the Distributions, Redemption Price,
                  Liquidation Distribution or any other sums payable under the
                  terms of the Preferred Securities or the extension of time for
                  the performance of any other obligation under, arising out of,
                  or in connection with, the Preferred Securities (other than an
                  extension of time for payment of Distributions, Redemption
                  Price, Liquidation Distribution or other sum payable that
                  results from the extension of any interest payment period on
                  the Debentures or any extension of the maturity date of the
                  Debentures permitted by the Indenture);

            (c)   any failure, omission, delay or lack of diligence on the part
                  of the Holders to enforce, assert or exercise any right,
                  privilege, power or remedy conferred on the Holders pursuant
                  to the terms of the Preferred Securities,


                                      -13-

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                  or any action on the part of the Trust granting indulgence or
                  extension of any kind;

            (d)   the voluntary or involuntary liquidation, dissolution, sale of
                  any collateral, receivership, insolvency, bankruptcy,
                  assignment for the benefit of creditors, reorganization,
                  arrangement, composition or readjustment of debt of, or other
                  similar proceedings affecting, the Trust or any of the assets
                  of the Trust;

            (e)   any invalidity of, or defect or deficiency in, the Preferred
                  Securities;

            (f)   any failure or omission to receive any regulatory approval or
                  consent required in connection with the Preferred Securities
                  (or the common equity securities issued by the Trust),
                  including the failure to receive any approval of the Board of
                  Governors of the Federal Reserve System required for the
                  redemption of the Preferred Securities;

            (g)   the settlement or compromise of any obligation guaranteed
                  hereby or hereby incurred; or

            (h)   any other circumstance whatsoever that might otherwise
                  constitute a legal or equitable discharge or defense of a
                  guarantor, it being the intent of this Section 5.3 that the
                  obligations of the Guarantor hereunder shall be absolute and
                  unconditional under any and all circumstances.

      There shall be no obligation of the Holders to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the foregoing.

      5.4   RIGHTS OF HOLDERS.

            (a)   Subject to Section 5.4(b), the Holders of a Majority in
                  liquidation amount of the Preferred Securities have the right
                  to direct the time, method and place of conducting of any
                  proceeding for any remedy available to the Guarantee Trustee
                  in respect of this Preferred Securities Guarantee or
                  exercising any trust or power conferred upon the Guarantee
                  Trustee under this Preferred Securities Guarantee.

            (b)   Any Holder of Preferred Securities may institute and prosecute
                  a legal proceeding directly against the Guarantor to enforce
                  its rights under this Preferred Securities Guarantee, without
                  first instituting a legal proceeding against the Trust, the
                  Guarantee Trustee or any other Person.

      5.5   GUARANTEE OF PAYMENT.

      This Preferred Securities Guarantee creates a guarantee of payment and not
of collection.


                                      -14-

<Page>

      5.6   SUBROGATION.

      The Guarantor shall be subrogated to all (if any) rights of the Holders of
Preferred Securities against the Trust in respect of any amounts paid to such
Holders by the Guarantor under this Preferred Securities Guarantee; PROVIDED,
HOWEVER, that the Guarantor shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any right that
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Preferred Securities
Guarantee, if, at the time of any such payment, any amounts are due and unpaid
under this Preferred Securities Guarantee. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the Holders.

      5.7   INDEPENDENT OBLIGATIONS.

      The Guarantor acknowledges that its obligations hereunder are independent
of the obligations of the Trust with respect to the Preferred Securities, and
that the Guarantor shall be liable as principal and as debtor hereunder to make
Guarantee Payments pursuant to the terms of this Preferred Securities Guarantee
notwithstanding the occurrence of any event referred to in subsections (a)
through (h), inclusive, of Section 5.3 hereof.


                                   ARTICLE VI

                    LIMITATION OF TRANSACTIONS; SUBORDINATION

      6.1   LIMITATION OF TRANSACTIONS.

      So long as any Preferred Securities remain outstanding, if there shall
have occurred an Event of Default under this Preferred Securities Guarantee,
an event of default under the Trust Agreement or during an Extended Interest
Payment Period (as defined in the Indenture), then the Guarantor shall not
(i) declare or pay any dividend on, make any distributions with respect to,
or redeem, purchase, acquire or make a liquidation payment with respect to,
any of its capital stock (other than as a result of a reclassification of its
capital stock for another class of its capital stock), (ii) make any payment
of interest or principal on or repay, repurchase or redeem any debt
securities issued by the Guarantor which rank PARI PASSU with or junior to
the Debentures (iii) make any guarantee payments with respect to any of the
foregoing (other than (a) dividends or distributions in shares of, or
options, warrants, rights to subscribe for or purchase shares of, common
stock of the Guarantor, (b) any declaration of a non-cash dividend in
connection with the implementation of a stockholders' rights plan, or the
issuance of stock under any such plan in the future, or the redemption or
repurchase of any such rights pursuant thereto, (c) payments under this
Preferred Securities Guarantee, (d) the purchase of fractional shares
resulting from a reclassification of the Guarantor's capital stock, (e) the
purchase of fractional interests in shares of the Guarantor's capital stock
pursuant to the conversion or exchange provisions of such

                                      -15-

<Page>

capital stock or the security being converted or exchanged and (f) purchases of
common stock related to the issuance of common stock or rights under any of the
Guarantor's benefit plans for its directors, officers or employees or any of the
Guarantor's dividend reinvestment plans).

      6.2   RANKING.

      This Preferred Securities Guarantee will constitute an unsecured
obligation of the Guarantor and will rank subordinate and junior in right of
payment to all Senior Debt, Subordinated Debt and Additional Senior Obligations,
of the Guarantor (as defined in the Indenture), to the extent and in the manner
set forth in the Indenture, and the applicable provisions of the Indenture will
apply, in all relevant respects, to the obligations of the Guarantor hereunder.


                                   ARTICLE VII

                                   TERMINATION

      7.1   TERMINATION.

      This Preferred Securities Guarantee shall terminate upon (i) full payment
of the Redemption Price of all Preferred Securities, (ii) upon full payment of
the amounts payable in accordance with the Trust Agreement upon liquidation of
the Trust, or (iii) upon distribution of the Debentures to the Holders of the
Preferred Securities. Notwithstanding the foregoing, this Preferred Securities
Guarantee shall continue to be effective or shall be reinstated, as the case may
be, if at any time any Holder of Preferred Securities must restore payment of
any sums paid under the Preferred Securities or under this Preferred Securities
Guarantee.


                                  ARTICLE VIII

                                 INDEMNIFICATION

      8.1   EXCULPATION.

            (a)   No Indemnified Person shall be liable, responsible or
                  accountable in damages or otherwise to the Guarantor or any
                  Covered Person for any loss, damage or claim incurred by
                  reason of any act or omission performed or omitted by such
                  Indemnified Person in good faith in accordance with this
                  Preferred Securities Guarantee and in a manner that such
                  Indemnified Person reasonably believed to be within the scope
                  of the authority conferred on such Indemnified


                                      -16-

<Page>

                  Person by this Preferred Securities Guarantee or by law,
                  except that an Indemnified Person shall be liable for any such
                  loss, damage or claim incurred by reason of such Indemnified
                  Person's negligence or willful misconduct with respect to such
                  acts or omissions.

            (b)   An Indemnified Person shall be fully protected in relying in
                  good faith upon the records of the Guarantor and upon such
                  information, opinions, reports or statements presented to the
                  Guarantor by any Person as to matters the Indemnified Person
                  reasonably believes are within such other Person's
                  professional or expert competence and who has been selected
                  with reasonable care by or on behalf of the Guarantor,
                  including information, opinions, reports or statements as to
                  the value and amount of the assets, liabilities, profits,
                  losses, or any other facts pertinent to the existence and
                  amount of assets from which Distributions to Holders of
                  Preferred Securities might properly be paid.

      8.2   INDEMNIFICATION.

      The Guarantor agrees to indemnify each Indemnified Person for, and to hold
each Indemnified Person harmless against, any loss, liability or expense
incurred without negligence or bad faith on its part, arising out of or in
connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and expenses (including reasonable legal fees and
expenses) of defending itself against, or investigating, any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder. The obligation to indemnify as set forth in this Section 8.2 shall
survive the termination of this Preferred Securities Guarantee.


                                   ARTICLE IX

                                  MISCELLANEOUS

      9.1   SUCCESSORS AND ASSIGNS.

      All guarantees and agreements contained in this Preferred Securities
Guarantee shall bind the successors, assigns, receivers, trustees and
representatives of the Guarantor and shall inure to the benefit of the Holders
of the Preferred Securities then outstanding.

      9.2   AMENDMENTS.

      Except with respect to any changes that do not materially adversely affect
the rights of Holders (in which case no consent of Holders will be required),
this Preferred Securities Guarantee may only be amended with the prior approval
of the Holders of at least a Majority in Liquidation Amount of the Preferred
Securities. The provisions of Article VI of the Trust Agreement with respect to
meetings of Holders of the Preferred Securities apply to the giving of such
approval.


                                      -17-

<Page>

      9.3   NOTICES.

      All notices provided for in this Preferred Securities Guarantee shall be
in writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by registered or certified mail, as follows:

            (a)   If given to the Guarantee Trustee, at the Guarantee Trustee's
                  mailing address set forth below (or such other address as the
                  Guarantee Trustee may give notice of to the Holders of the
                  Preferred Securities):

                  The Bank of New York
                  101 Barclay Street
                  21st Floor West
                  New York, New York 10286

                  Attention:  Corporate Trust Trustee Administration

            (b)   If given to the Guarantor, at the Guarantor's mailing address
                  set forth below (or such other address as the Guarantor may
                  give notice of to the Holders of the Preferred Securities):

                  Local Financial Corporation
                  3601 NW 63rd Street
                  Oklahoma City, Oklahoma 73116
                  Attention:  Jan A. Norton, President

            (c)   If given to any Holder of Preferred Securities, at the address
                  set forth on the books and records of the Trust.

      All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.

      9.4   BENEFIT.

      This Preferred Securities Guarantee is solely for the benefit of the
Holders of the Preferred Securities and, subject to Section 3.1(a), is not
separately transferable from the Preferred Securities.


                                      -18-

<Page>

      9.5   GOVERNING LAW.

      THIS PREFERRED SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE.







                                      -19-

<Page>



      This Preferred Securities Guarantee is executed as of the day and year
first above written.

LOCAL FINANCIAL CORPORATION, as Guarantor

By:
   -----------------------
Its:


THE BANK OF NEW YORK,
     as Guarantee Trustee

By:
   -----------------------
Its:







                                      -20-