AEGIS AUTO FUNDING CORP. IV,
       a Delaware Corporation, Seller 


                     and

      NORWEST BANK MINNESOTA, NATIONAL
ASSOCIATION,
         Trustee and Backup Servicer



       POOLING AND SERVICING AGREEMENT


          Dated as of June 1, 1997 


                                    

                 $74,721,000


     AEGIS AUTO RECEIVABLES TRUST 1997-4
                      
         AUTOMOBILE RECEIVABLE PASS-
THROUGH CERTIFICATES 

                                                               
                                                  
<PAGE>
              TABLE OF CONTENTS




                                         Page

ARTICLE I.    CREATION OF TRUST           1

ARTICLE II.   CONVEYANCE OF
              RECEIVABLES                 1


ARTICLE III.  ACCEPTANCE BY
              TRUSTEE                     3

ARTICLE IV.   INCORPORATION OF             
              STANDARD TERMS AND              
              CONDITIONS                  3

ARTICLE V.    SPECIAL DEFINITIONS AND  
              TERMS                       4

ARTICLE VI.   ADDITIONAL SELLER           
              REPRESENTATIONS             5

ARTICLE VII.  CERTIFICATE DELIVERY AND 
              REGISTRATION                5

ARTICLE VIII. APPLICATION OF 
              PROCEEDS                    6  

TESTIMONIUM

SIGNATURES

APPENDIX A  Schedule of Receivables

APPENDIX B  Amended and Restated Standard
Terms and Conditions

APPENDIX C  Risk Default Insurance Policy
Endorsement

APPENDIX D  VSI Insurance Policy Endorsement 

APPENDIX E  Direction as to Registration of
Certificates

APPENDIX F  General Certificate of Aegis Auto
Funding Corp. IV

APPENDIX G  Form of Term Note
<PAGE>
       POOLING AND SERVICING AGREEMENT

     This POOLING AND SERVICING
AGREEMENT is dated as of June 1, 1997 (this
"Agreement") among Aegis Auto Funding Corp.
IV, a Delaware corporation, as Seller (the "Seller")
and Norwest Bank Minnesota, National Association,
a national banking association, as trustee for the
Trust (the "Trustee") and as Backup Servicer (the
"Backup Servicer") and is made with respect to the
formation of the Aegis Auto Receivables Trust
1997-4 (the "Trust").

     WHEREAS, the Seller and the Trustee
desire to form a trust pursuant to the Amended and
Restated Master Trust Agreement dated as of May
1, 1997 (the "Amended and Restated Master Trust
Agreement") by and between the Seller and the
Trustee, and provide for the issuance of a series of
Automobile Pass-Through Certificates by such trust; 

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

                  ARTICLE I

              CREATION OF TRUST

     Upon the execution of this Agreement by the
parties hereto, there is hereby created the Aegis
Auto Receivables Trust 1997-4.  The situs and
administration of the Trust shall be in Minneapolis,
Minnesota or in such other city in which the
Corporate Trust Office is located from time to time.

                 ARTICLE II

          CONVEYANCE OF RECEIVABLES


     Section 2.01.  Conveyance by Seller.

          (a)  In consideration of the
     Trustee's delivery of the Certificates to or
     upon the order of the Seller in an aggregate
     principal amount equal to the aggregate
     Principal Balance of the Initial Receivables,
     the Seller does hereby irrevocably sell,
     assign, and otherwise convey to the Trustee,
     in trust for the benefit of the
     Certificateholders, without recourse (subject
     to the obligations herein):

                
         (i)    all right, title and interest of the Seller in
         and to the Initial Receivables identified on
         Appendices A-1 and A-2 hereto, all Excess Interest
         Collections thereon and all other moneys received
         thereon on and after the applicable Cutoff Dates;  

            (ii)    the interest of the
         Seller in the security interests in the
         Financed Vehicles granted by the
         Obligors pursuant to the Initial
         Receivables;

           (iii)    the interest of the
         Seller in any Risk Default Insurance
         Proceeds and any proceeds from
         claims on any Insurance Policies
         (including the VSI Insurance Policy)
         covering the Initial Receivables, the
         Financed Vehicles or the Obligors
         from the Cutoff Date;


            (iv)    the right of the Seller
         to realize upon any property
         (including the right to receive future
         Liquidation Proceeds) that shall have
         secured an Initial Receivable and
         have been repossessed by or on
         behalf of the Trust;

             (v)    the interest of the
         Seller in any Dealer Recourse
         relating to the Initial Receivables;

            (vi)    all right, title and
         interest of the Seller in and to the
         Purchase Agreement; and

           (vii)    the proceeds of any
         and all of the foregoing.

         (b)  [Reserved]

     Section 2.02.  Nature of Conveyance.  It is
the intention of the Seller and the Trustee that the
transfer and assignment of the Seller's right, title
and interest in and to the assets identified in clauses
(i) through (vii) of Section 2.01(a) (collectively, the
"Trust Property") shall constitute an absolute sale
by the Seller to the Trustee in trust for the benefit
of the Certificateholders.  In the event a court of
competent jurisdiction were to recharacterize the
transfer of the Trust Property as a secured
borrowing rather than a sale, contrary to the intent
of the Seller and the Trustee, the Seller does hereby
grant, assign and convey to the Trustee and the
Trust, as security for all amounts payable to the
Certificateholders, a security interest in and lien
upon all of its right, title and interest in and to the
Trust Property, including all amounts deposited to
the Lock-Box Account, the Collection Account and
the Certificate Account, said security interest to be
effective from the date of execution of this
Agreement.

     The Trustee and the Certificateholders
acknowledge and agree that the Seller is the holder
of the Residual Interest.

                 ARTICLE III

            ACCEPTANCE BY TRUSTEE

     The Trustee, on behalf of the Trust, hereby
accepts all consideration conveyed by the Seller
pursuant to Article II, and declares that the Trustee
shall hold such consideration upon the trusts herein
set forth for the benefit of all present and future
Certificateholders, subject to the terms and
provisions of this Agreement and the Amended and
Restated Master Trust Agreement.

                 ARTICLE IV

       INCORPORATION OF STANDARD TERMS
AND CONDITIONS 

     This Agreement hereby incorporates by
reference the Amended and Restated Standard
Terms provided for by the Amended and Restated
Master Trust Agreement in the form attached hereto
as Appendix C, except to the extent expressly
modified hereby.  

                  ARTICLE V

        SPECIAL DEFINITIONS AND TERMS

     Section 5.01.  Special Definitions. 
Capitalized terms not otherwise defined herein shall
have the meanings ascribed to them in the Amended
and Restated Standard Terms.  Whenever used in
this Agreement, the following words and phrases
shall have the following meanings:

     "Backup Servicer Fee" means, with respect
to any Distribution Date, one-twelfth of the product
of (i) 0.02% per annum and (ii) the outstanding
Pool Balance as of the first day of the preceding
Collection Period or, in the case of the first
Distribution Date, as of the Closing Date.

     "Class A Percentage" means 64.99913%.

     "Class A Rate" means 7.10% of interest per
annum.

     "Class B Percentage" means 35.00087%.

     "Class B Rate" means 13.614% of interest
per annum provided, however that if a Credit
Enhancement Event shall have occurred, "Class B
Rate" shall mean 12.686%.  A "Credit
Enhancement Event" shall have occurred if, within
90 days of the Closing Date, the Seller notifies the
Trustee and the Certificateholders that a Credit
Enhancement Fee shall be payable to the Credit
Enhancer in connection with the credit enhancement
of the Class A Certificates or any commercial paper
issued to fund the purchase of the Class A
Certificates.

     "Closing Date" means June 27, 1997.

     "Contingent Servicer Fee" means the amount
described as such in the instrument appointing the
Contingent Servicer in accordance with Section 4.07
of the Amended and Restated Standard Terms. 
 
     "Credit Enhancement Event" shall have the
meaning set forth in the definition of "Class B
Rate".

     "Credit Enhancement Fee" means, with
respect to any Distribution Date, one-twelfth of the
product of 0.50% per annum times the Class A
Percentage of the Pool Balance as of the end of the
preceding Distribution Date, payable to the Credit
Enhancer after a Credit Enhancement Event shall
have occurred.
 
     "Custodian Fee" means $1.75 per file
boarded.

     "Cutoff Date" means (i) May 31, 1997, with
respect to the Receivables listed on Annex A-1
hereto, all of which were acquired by Aegis
Finance on or prior to such date, and (ii) the date
when purchased by Aegis Finance, but not later
than June 20, 1997, with respect to the  Receivables
listed on Annex A-2 hereto, all of which were
acquired by Aegis Finance on or after June 2, 1997
and not later then June 20, 1997.

     "Discount Rate" means 14% per annum.

     "Final Scheduled Distribution Date" means
December 20, 2002.
     
     "Initial Distribution Date" means July 20,
1997.

     "Original Class Certificate Balance" means,
as to the Class A Certificates, $48,568,000, and as
to the Class B Certificates, $26,153,000.

     "Reserve Fund Initial Deposit" means Term
Notes with an aggregate purchase price of
$1,423,717.14.

     "Trustee Fee" means, with respect to any
Distribution Date, one-twelfth of the product of (i)
0.02% per annum and (ii) the aggregate Class
Certificate Balance as of the close of business on
the preceding Distribution Date (or, in the case of
the Initial Distribution Date, the original aggregate
Class Certificate Balance).

     Section 5.02.  Special Terms.  (a) Term
Note.  On the Closing Date, the Reserve Fund
Initial Deposit shall be invested in a Term Note of
The Aegis Consumer Funding Group, Inc.,
substantially in the form of Appendix G hereto.  

<PAGE>
                 ARTICLE VI

      ADDITIONAL SELLER REPRESENTATIONS

     The Seller hereby makes the following
additional representations with respect to the
Receivables:

     (i)        Schedule of Receivables.  The
information set forth in Appendices A1 and A2
hereto is true, complete and correct in all material
respects as of the opening of business on the
applicable Cutoff Dates, as the case may be, and no
selection procedures adverse to the
Certificateholders have been utilized in selecting the
Receivables.

     (ii)       Scheduled Payments.  No Receivables
had a payment that was more than 59 days overdue
as of the applicable Cutoff Date; and each
Receivable has a final scheduled payment due no
later than the Final Scheduled Distribution Date.

     (iii)      Insurance Policy Endorsements. 
Attached hereto as Appendices E and F,
respectively, are true and correct copies of the
endorsements to the Risk Default Insurance Policy
and VSI Insurance Policy required by the Amended
and Restated Standard Terms.


                 ARTICLE VII

          CERTIFICATE DELIVERY AND
REGISTRATION


     The Certificates shall be designated as the
"Aegis Auto Receivables Trust 19974, Automobile
Receivable Pass-Through Certificates, Series 1997-
4" (the "Certificates"), and issued with an initial
aggregate Certificate Balance of $74,721,000 in two
Classes as follows:  Class A Certificates with an
initial Certificate Balance of $48,568,000 and Class
B Certificates with an initial Certificate Balance of
$26,153,000.

     The Seller hereby directs the Trustee to
register the Certificates in the names and
denominations specified in the direction attached
hereto as Appendix E, and to execute, authenticate
and deliver the Certificates to the initial purchasers
specified in such direction upon receipt by the
Trustee of the following:

     (i) $75,166,303.22 in immediately
available funds from the purchasers for the account
of the Seller;

     (ii)       Investor letters executed by each of
the initial purchasers;

(iii)    An executed copy of the Supplemental
Conveyance from Aegis Finance in the form
attached as Appendix A to the Purchase Agreement
with respect to the Receivables conveyed to the
Trust on the Closing Date;

     (iv)       An executed copy of the certificate of
the Seller required by Section 7 of the Master
Certificate Purchase Agreement substantially in the
form attached hereto as Appendix F; 

     (v) Executed opinions of counsel to the
Seller required by Section 7 of the Master
Certificate Purchase Agreement; and

     (vi)       $0.00 in immediately available funds
from the Seller for deposit to the Collection
Account of Excess Interest Collections.

                ARTICLE VIII

           APPLICATION OF PROCEEDS

     The proceeds of the Certificates and the
Term Notes, receipt of which the Trustee hereby
acknowledges, shall be applied as follows:

     (i)  $0.00 shall be deposited into the
Collection Account as the Excess Interest
Collections;

     (ii) The remainder of $75,166,303.32 shall
be paid to the Seller or upon the Seller's order;

     (iii) Term Notes with an aggregate purchase
price of $1,423,717.47 shall be deposited into the
Reserve Fund as the Reserve Fund Initial Deposit.

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



                                   AEGIS AUTO FUNDING CORP. IV,
                                   as Seller


                                   
                                   By:
                                                                                
                                      Name:  Angelo R. Appierto
                                      Title: President             






                                   NORWEST BANK MINNESOTA,
                                   NATIONAL ASSOCIATION, 
                                   as Trustee and as Backup Servicer



                                   By:
                                                                                
                                      Name:   Michael DeBois
                                      Title:    Corporate Trust Officer
                                      











[Signature Page to Pooling and Servicing
Agreement]<PAGE>
               APPENDIX A - 1

           SCHEDULE OF RECEIVABLES
        (Cutoff Date of May 31, 1997)
                      

<PAGE>
               APPENDIX A - 2

          SCHEDULE OF RECEIVABLES 
(Cutoff Dates from June 2, 1997 to June 20, 1997)
<PAGE>
                 APPENDIX B

        AMENDED AND RESTATED STANDARD
TERMS AND CONDITIONS<PAGE>
                 APPENDIX C

        RISK DEFAULT INSURANCE POLICY
ENDORSEMENT<PAGE>
                 APPENDIX D

      VSI INSURANCE POLICY ENDORSEMENT<PAGE>
                 APPENDIX E

                 $74,721,000
Aegis Auto Receivables Trust 1997-4
Automobile Receivable Pass-Through
Certificates,
                Series 1997-4
               DIRECTION AS TO
        REGISTRATION OF CERTIFICATES

     The undersigned purchasers of the above-
referenced Certificates hereby direct the Trustee to
register such Certificates in the names and
denominations specified below:

             CLASS A CERTIFICATES

Certificate
Number        Name  
                 Amount Purchased

R-1        III Limited Partnerhsip                    
                $48,568,000



         CLASS B CERTIFICATES

Certificate
Number     Name Amount 
Purchased

R-1       III Limited Partnership        
$26,153,000
                              
                      
Total               $74,721,000

<PAGE>
     IN WITNESS WHEREOF, the undersigned
have duly executed this Direction as to  
Registration of Certificates as of the date set forth
below.

Dated:   June 27, 1997

                              

III LIMITED PARTNERSHIP

By III Associates
                                
General Partner

By Cheyene, Inc.
                                  
General Partner


By                               
Name:   Robert Fasulo
                                   
Title:  Secretary/Treasurer   


<PAGE>
Appendix F
$74,721,000
Aegis Auto Receivables Trust 1997-4
Automobile Receivable Pass-Through Certificates,
Series 1997-4

GENERAL CERTIFICATE
      OF
AEGIS AUTO FUNDING CORP. IV

The undersigned, on behalf of Aegis Auto Funding
Corp. IV, a Delaware corporation ("Seller"),
hereby certifies this June 27, 1997, as follows in
connection with the issuance of the above-
referenced Certificates (the "Certificates") pursuant
to the terms of the Pooling and Servicing
Agreement dated as of June 27, 1997 (the
"Agreement") among the Seller, Norwest Bank
Minnesota, National Association, as backup servicer
and Norwest Bank Minnesota, National Association,
as Trustee, and the Amended and Restated Master
Trust Agreement dated as of May 1, 1997 (the
"Amended and Restated Master Trust Agreement")
between the Seller and the Trustee (capitalized
terms used but not otherwise defined herein shall
have the meanings ascribed to them in the Amended
and Restated Standard Terms and Conditions
attached as Appendix A to the Amended and
Restated Master Trust Agreement):

     1.   The undersigned has carefully
examined the Agreement, the Amended and
Restated Master Trust Agreement, the Purchase
Agreement and the Master Certificate Purchase
Agreement.

     2.   The representations and warranties of
the Seller contained in the Agreement, the Amended
and Restated Master Trust Agreement, the Purchase
Agreement and the Master Certificate Purchase
Agreement are true and correct in all material
respects as if made on and as of the date hereof
(except for such representations and warranties
specifically made as of another specified date).

     3.   Neither the Seller nor any of its
Affiliates is in default in the performance of any of
their respective obligations under the documents
mentioned in paragraph 2 above or any other
Pooling and Servicing Agreement executed pursuant
to the terms of the Amended and Restated Master
Trust Agreement.

     4.   The Seller has complied with all
agreements and satisfied all conditions on its part to
be performed or satisfied under the documents
specified in paragraph 2 above at or prior to the
date hereof.

     5.   The Seller did not, either
independently or through any other party, solicit
any offer to buy or offer to sell the Certificates or
any similar security by means of any form of
general solicitation or general advertising,
including, but not limited to, (i) any advertisement,
article, notice or other communication published in
any newspaper, magazine or similar medium or
broadcast over television or radio, and (ii) any
seminar or meeting whose attendees have been
invited by any general solicitation or general
advertising.

     6.   The Certificates were sold by the
Seller to III Limited Partnership in a private
placement in transactions exempt from the
registration requirements of the Act.  

     7.   The undersigned is duly authorized
by the Seller to make the foregoing representations
on behalf of the Seller and has conducted such
investigation and made such inquiries as he has
deemed necessary and appropriate in order to make
such representations on behalf of the Seller.
<PAGE>
     IN WITNESS WHEREOF the undersigned
has signed this General Certificate of Aegis Auto
Funding Corp. IV as of the date first written above.

AEGIS AUTO FUNDING CORP. IV


By: __________________________
                                 
Name:    Angelo R. Appierto
Title:      President

<PAGE>
APPENDIX G
                      
PROMISSORY NOTE



$2,988,840.00    Dated Date:  June 27, 1997
              Maturity Date:  December 20, 2002


     FOR VALUE RECEIVED, The Aegis
Consumer Funding Group, Inc., a Delaware
Corporation (the "Company"), does hereby promise
to pay to the order of Aegis Auto Funding Corp.
IV, a Delaware corporation (the "Payee") in lawful
money of the United States of America, the
principal amount of Two Million Nine Hundred
Eighty-eight Thousand Eight Hundred Forty Dollars
($2,988,840) (the "Principal Amount") on the
Maturity Date stated above subject to the conditions
described herein.

Notwithstanding the foregoing, this Note shall,
without demand, notice or legal process of any
kind, be declared and shall become immediately due
and payable upon the occurrence of any of the
following events (each a "Bankruptcy Event"):  (i)
the entry of a decree or order by a court or agency
or supervisory authority having jurisdiction in the
premises for the appointment of a conservator,
receiver, trustee, or liquidator for the Company in
any bankruptcy, insolvency, readjustment of debt,
marshalling of assets and liabilities, or similar
proceedings, or for the winding-up or liquidation of
its affairs, and the continuance of any such decree
or order unstayed and in effect for a period of thirty
(30) consecutive days; (ii)  the consent by the
Company to the appointment of a trustee,
conservator, receiver, or liquidator in any
bankruptcy, insolvency, readjustment of debt,
marshalling of assets and liabilities, or similar
proceedings of or relating to the Company and
involving substantially all of its property; or (iii) the
Company shall admit in writing its inability to pay
its debts generally as they become due, file a
petition of any applicable bankruptcy, insolvency,
or reorganization statute, make an assignment for
the benefit of its creditors, or voluntarily suspend
payment of its obligations.

If a Bankruptcy Event occurs, the amount
immediately due and payable on this Note shall
equal the original purchase price hereof
($1,423,717.47) plus interest accrued on such
amount from the Dated Date hereof until such
amount is paid in full at the rate of 14% per
annum, calculated on the basis of a 360-day year
for the actual number of days elapsed and
compounded semiannually.  The Company hereby
promises to pay all costs and expenses incurred in
the collection and enforcement of this Note and any
appeal of a judgement rendered hereon.  

This Note represents a general unsecured obligation
of the Company.


<PAGE>
THIS PROMISSORY NOTE SHALL BE
GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK.

                                   THE AEGIS CONSUMER FUNDING GROUP,
                                   INC., a Delaware corporation 


                                   By:   
                                   Name:   Joseph F. Battiato
Title:    President


     PAY TO THE ORDER of Norwest Bank
Minnesota, National Association, as Trustee under
that certain Amended and Restated Master Trust
Agreement between the Trustee and Aegis Auto
Funding Corp. IV dated as of May 1, 1997, as
amended and restated from time to time, without
recourse or warranty.

                                   AEGIS AUTO FUNDING CORP. IV


                                   By: 
                                       Name:  Angelo R. Appierto          
                                       Title:   President                       














              [PROMISSORY NOTE]