<PAGE>
                                                                    EXHIBIT 10.2





================================================================================


                          SALE AND SERVICING AGREEMENT


                                      among


                    HARLEY-DAVIDSON MOTORCYCLE TRUST 2000-3,
                                   as Issuer,


                     HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,
                               as Trust Depositor,


                          HARLEY-DAVIDSON CREDIT CORP.,
                                   as Servicer


                                       and


                         BANK ONE, NATIONAL ASSOCIATION,
                              as Indenture Trustee




                          Dated as of November 1, 2000



================================================================================

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                                                                                                               Page
                                                                                                               ----
<S>                     <C>                                                                                    <C>
                                                 Table of Contents
                                                 -----------------
ARTICLE ONE             DEFINITIONS...............................................................................1
      SECTION 1.01.     DEFINITIONS...............................................................................1
      SECTION 1.02.     USAGE OF TERMS...........................................................................20
      SECTION 1.03.     SECTION REFERENCES.......................................................................20
      SECTION 1.04.     CALCULATIONS.............................................................................20
      SECTION 1.05.     ACCOUNTING TERMS.........................................................................20
ARTICLE TWO             ESTABLISHMENT OF TRUST; TRANSFER OF CONTRACTS............................................20
      SECTION 2.01.     CLOSING..................................................................................20
      SECTION 2.02.     CONDITIONS TO THE CLOSING................................................................21
      SECTION 2.03.     CONVEYANCE OF SUBSEQUENT CONTRACTS.......................................................22
ARTICLE THREE           REPRESENTATIONS AND WARRANTIES...........................................................25
      SECTION 3.01.     REPRESENTATIONS AND WARRANTIES REGARDING THE TRUST DEPOSITOR.............................26
      SECTION 3.02.     REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICER....................................28
ARTICLE FOUR            PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS..............................29
      SECTION 4.01.     CUSTODY OF CONTRACTS.....................................................................29
      SECTION 4.02.     FILING...................................................................................31
      SECTION 4.03.     NAME CHANGE OR RELOCATION................................................................31
      SECTION 4.04.     CHIEF EXECUTIVE OFFICE...................................................................31
      SECTION 4.05.     COSTS AND EXPENSES.......................................................................31
ARTICLE FIVE            SERVICING OF CONTRACTS...................................................................31
      SECTION 5.01.     RESPONSIBILITY FOR CONTRACT ADMINISTRATION...............................................32
      SECTION 5.02.     STANDARD OF CARE.........................................................................32
      SECTION 5.03.     RECORDS..................................................................................32
      SECTION 5.04.     INSPECTION...............................................................................32
      SECTION 5.05.     TRUST ACCOUNTS...........................................................................32
      SECTION 5.06.     ENFORCEMENT..............................................................................34
      SECTION 5.07.     TRUSTEES TO COOPERATE....................................................................36
      SECTION 5.08.     COSTS AND EXPENSES.......................................................................36
      SECTION 5.09.     MAINTENANCE OF SECURITY INTERESTS IN MOTORCYCLES.........................................37
      SECTION 5.10.     SUCCESSOR SERVICER/LOCKBOX AGREEMENTS....................................................37
      SECTION 5.11.     SEPARATE ENTITY EXISTENCE................................................................37
ARTICLE SIX             THE TRUST DEPOSITOR......................................................................37
      SECTION 6.01.     COVENANTS OF THE TRUST DEPOSITOR.........................................................37
      SECTION 6.02.     LIABILITY OF TRUST DEPOSITOR; INDEMNITIES................................................40
      SECTION 6.03.     MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE OBLIGATIONS OF, TRUST DEPOSITOR;
                        CERTAIN LIMITATIONS......................................................................41
      SECTION 6.04.     LIMITATION ON LIABILITY OF TRUST DEPOSITOR AND OTHERS....................................42
      SECTION 6.05.     TRUST DEPOSITOR NOT TO RESIGN............................................................42
ARTICLE SEVEN           DISTRIBUTIONS; RESERVE FUND..............................................................43
      SECTION 7.01.     MONTHLY DISTRIBUTIONS....................................................................43
      SECTION 7.02.     FEES.....................................................................................43
      SECTION 7.03.     ADVANCES; REALIZATION OF CARRYING CHARGE.................................................43
      SECTION 7.04.     INTEREST RESERVE ACCOUNT.................................................................44
      SECTION 7.05.     DISTRIBUTIONS............................................................................44
      SECTION 7.06.     RESERVE FUND.............................................................................47
      SECTION 7.07.     ESTABLISHMENT OF PRE-FUNDING ACCOUNT.....................................................48
      SECTION 7.08.     REPURCHASES OF CONTRACTS FOR BREACH OF REPRESENTATIONS AND WARRANTIES....................49
      SECTION 7.09.     REASSIGNMENT OF REPURCHASED CONTRACTS....................................................50
      SECTION 7.10.     SELLER'S REPURCHASE OPTION...............................................................50
ARTICLE EIGHT           EVENTS OF TERMINATION; SERVICE TRANSFER..................................................50

                                                      i

<PAGE>

      SECTION 8.01.     EVENTS OF TERMINATION....................................................................50
      SECTION 8.02.     WAIVER OF SERVICER DEFAULT...............................................................51
      SECTION 8.03.     SERVICE TRANSFER.........................................................................51
      SECTION 8.04.     SUCCESSOR SERVICER TO ACT; APPOINTMENT OF SUCCESSOR SERVICER.............................52
      SECTION 8.05.     NOTIFICATION TO SECURITYHOLDERS..........................................................53
      SECTION 8.06.     EFFECT OF TRANSFER.......................................................................53
      SECTION 8.07.     DATABASE FILE............................................................................53
      SECTION 8.08.     SUCCESSOR SERVICER INDEMNIFICATION.......................................................53
      SECTION 8.09.     RESPONSIBILITIES OF THE SUCCESSOR SERVICER...............................................53
      SECTION 8.10.     LIMITATION OF LIABILITY OF SERVICER......................................................54
      SECTION 8.11.     MERGER OR CONSOLIDATION OF SERVICER......................................................54
      SECTION 8.12.     SERVICER NOT TO RESIGN...................................................................55
      SECTION 8.13.     APPOINTMENT OF SUBSERVICER...............................................................55
ARTICLE NINE            REPORTS..................................................................................55
      SECTION 9.01.     MONTHLY REPORTS..........................................................................55
      SECTION 9.02.     OFFICER'S CERTIFICATE....................................................................55
      SECTION 9.03.     OTHER DATA...............................................................................55
      SECTION 9.04.     ANNUAL REPORT OF ACCOUNTANTS.............................................................56
      SECTION 9.05.     ANNUAL STATEMENT OF COMPLIANCE FROM SERVICER.............................................56
      SECTION 9.06.     MONTHLY REPORTS TO NOTEHOLDERS...........................................................57
ARTICLE TEN             TERMINATION..............................................................................59
      SECTION 10.01.    SALE OF TRUST ASSETS.....................................................................59
ARTICLE ELEVEN          MISCELLANEOUS............................................................................59
      SECTION 11.01.    AMENDMENT................................................................................59
      SECTION 11.02.    PROTECTION OF TITLE TO TRUST.............................................................61
      SECTION 11.03.    GOVERNING LAW............................................................................62
      SECTION 11.04.    NOTICES..................................................................................62
      SECTION 11.05.    SEVERABILITY OF PROVISIONS...............................................................64
      SECTION 11.06.    ASSIGNMENT...............................................................................64
      SECTION 11.07.    THIRD PARTY BENEFICIARIES................................................................64
      SECTION 11.08.    COUNTERPARTS.............................................................................65
      SECTION 11.09.    HEADINGS.................................................................................65
      SECTION 11.10.    NO BANKRUPTCY PETITION; DISCLAIMER AND SUBORDINATION.....................................65
      SECTION 11.11.    LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE TRUSTEE...........................66

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                                                     ii

<PAGE>

                                                     EXHIBITS


<TABLE>
<CAPTION>

<S>               <C>                                                                   <C>
Exhibit A         Form of Assignment                                                    A-1
Exhibit B         Form of Closing Certificate of Trust Depositor                        B-1
Exhibit C         Form of Closing Certificate of Seller/Servicer                        C-1
Exhibit D         Form of Opinion of Counsel for Trust Depositor regarding
                  general corporate matters (including perfection opinion)              D-1
Exhibit E         Form of Opinion of Counsel for Trust Depositor regarding
                  the "TRUE SALE" nature of the transaction                             E-1
Exhibit F         Form of Opinion of Counsel for Trust Depositor regarding
                  non-consolidation                                                     F-1
Exhibit G         Form of Certificate Regarding Repurchased Contracts                   G-1
Exhibit H         List of Contracts                                                     H-1
Exhibit I         Form of Monthly Report to Noteholders and the Certificateholder       I-1
Exhibit J         Seller's Representations and Warranties                               J-1
Exhibit K         Lockbox Bank and Lockbox Account                                      K-1
Exhibit L         Form of Contract Stamp                                                L-1
Exhibit M         Form of Subsequent Transfer Agreement                                 M-1

</TABLE>























                                            iii

<PAGE>

         SALE AND SERVICING AGREEMENT, dated as of November 1, 2000, among
Harley-Davidson Motorcycle Trust 2000-3 (together with its successors and
assigns, the "ISSUER" or the "TRUST"), Harley-Davidson Customer Funding Corp.
(together with its successor and assigns, the "TRUST DEPOSITOR"), Bank One,
National Association (solely in its capacity as Indenture Trustee together
with its successors and assigns, the "INDENTURE TRUSTEE") and Harley-Davidson
Credit Corp. (solely in its capacity as Servicer together with its successor
and assigns, "HARLEY-DAVIDSON CREDIT" or the "SERVICER").

         WHEREAS the Issuer desires to purchase from the Trust Depositor an
initial and subsequent pool of fixed-rate, simple interest motorcycle
conditional sales contracts relating to Harley-Davidson motorcycles or,
motorcycles manufactured by an affiliate of Harley-Davidson, Buell Motorcycle
Company, (collectively, the "CONTRACTS") originated by Harley-Davidson Credit
and subsequently sold by Harley-Davidson Credit to the Trust Depositor;

         WHEREAS the Trust Depositor is willing to sell, transfer and assign
the Contracts to the Issuer pursuant to the terms hereof; and

         WHEREAS the Servicer is willing to service the Contracts pursuant to
the terms hereof;

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


                                  ARTICLE ONE

                                   DEFINITIONS

         SECTION 1.01.     DEFINITIONS. Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

         "ADDITION NOTICE" means, with respect to any transfer of Subsequent
Contracts to the Issuer pursuant to Section 2.04 and the Trust Depositor's
corresponding prior purchase of such Contracts from the Seller, a notice,
which shall be given at least 10 days prior to the related Subsequent Transfer
Date, identifying the aggregate Principal Balance of the Subsequent Contracts
to be transferred.

         "ADVANCE" means, with respect to any Distribution Date, the amounts,
if any, deposited by the Servicer in the Collection Account for such
Distribution Date pursuant to Section 7.03.

         "AFFILIATE" of any specified Person means any other Person
controlling or controlled by, or under common control with, such specified
Person. For the purposes of this definition, "CONTROL" when used with respect
to any specified Person means the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms "CONTROLLING" or
"CONTROLLED" have meanings correlative to the foregoing.

                                       1

<PAGE>

         "AGGREGATE PRINCIPAL BALANCE" will equal the sum of the Principal
Balances of each outstanding Contract and the Pre-Funded Amount, if any. At
the time of initial issuance of the Securities, the initial aggregate
principal amount of the Securities will equal the initial Pool Balance plus
the initial Pre-Funded Amount.

         "AGGREGATE PRINCIPAL BALANCE DECLINE" means, with respect to any
Distribution Date, the amount by which the Aggregate Principal Balance as of
the Distribution Date immediately preceding such Distribution Date (or as of
the Cutoff Date in the case of the first Distribution Date) exceeds the
Aggregate Principal Balance as of such Distribution Date.

         "AGREEMENT" means this Sale and Servicing Agreement, as amended,
supplemented or otherwise modified from time to time in accordance with the
terms hereof.

         "AVAILABLE MONIES" means, with respect to any Distribution Date, the
sum of the Available Interest and the Available Principal for such
Distribution Date.

         "AVAILABLE INTEREST" means, with respect to any Distribution Date,
the total (without duplication) of the following amounts received by the
Servicer on or in respect of the Contracts during the related Due Period: (i)
all amounts received in respect of interest on the Contracts, (ii) the
interest component of all Net Liquidation Proceeds, (iii) the interest
component of the aggregate of the Repurchase Prices for Contracts repurchased
by the Trust Depositor pursuant to Section 7.08, (iv) all Advances made by the
Servicer pursuant to Section 7.03, (v) the interest component of all amounts
paid by the Trust Depositor in connection with an optional repurchase of the
Contracts pursuant to Section 7.10, (vi) all amounts received in respect of
Carrying Charges transferred from the Interest Reserve Account pursuant to
Section 7.03, and (vii) all amounts received in respect of interest,
dividends, gains, income and earnings on investment of funds in the Trust
Accounts as contemplated in Section 5.05(d).

         "AVAILABLE PRINCIPAL" means, with respect to any Distribution Date,
the total (without duplication) of the following amounts received by the
Servicer on or in respect of the Contracts during the related Due Period: (i)
all amounts received in respect of principal on the Contracts, (ii) the
principal component of all Net Liquidation Proceeds, (iii) the principal
component of the aggregate of the Repurchase Prices for Contracts repurchased
by the Trust Depositor pursuant to Section 7.08, and (iv) the principal
component of all amounts paid by the Trust Depositor in connection with an
optional repurchase of the Contracts pursuant to Section 7.10.

         "AVERAGE DELINQUENCY RATIO" means, for any Distribution Date, the
arithmetic average of the Delinquency Ratios for such Distribution Date and
the two immediately preceding Distribution Dates.

         "AVERAGE LOSS RATIO" means, for any Distribution Date, the arithmetic
average of the Loss Ratios for such Distribution Date and the two immediately
preceding Distribution Dates.

         "BASE PROSPECTUS" means the Prospectus dated November 15, 2000
relating to the Harley-Davidson Motorcycle Trusts.

                                       2

<PAGE>

         "BUELL" means Buell Motorcycle Company.

         "BUSINESS DAY" means any day other than a Saturday or a Sunday, or
another day on which banking institutions in the city of Chicago, Illinois,
Wilmington, Delaware or New York, New York are authorized or obligated by law,
executive order, or governmental decree to be closed.

         "CALCULATION DAY" means the last day of each calendar month.

         "CARRYING CHARGES" means the sum of (i) the product of (x) the
weighted average of the Class A-1 Rate, the Class A-2 Rate and the Class B
Rate and (y) the undisbursed funds (excluding investment earnings) in the
Pre-Funding Account (as of the last day of the related Due Period) and (ii)
the Indenture Trustee Fee for the related Distribution Date, minus (iii) the
amount of any investment earnings on funds in the Pre-Funding Account which
was transferred to the Interest Reserve Account, as well as interest earnings
on amounts in the Interest Reserve Account.

         "CERTIFICATE" means the Trust Certificate (as such term is defined in
the Trust Agreement), representing 100% of the beneficial equity interest in
the Trust and issued pursuant to the Trust Agreement.

         "CERTIFICATE REGISTER" shall have the meaning specified in the Trust
Agreement.

         "CERTIFICATEHOLDER" shall have the meaning specified in the Trust
Agreement.

         "CLASS" means all Notes whose form is identical except for variation
in denomination, principal amount or owner.

         "CLASS A NOTE MONTHLY PRINCIPAL DISTRIBUTABLE AMOUNT" means, with
respect to any Distribution Date, the Class A Note Percentage of the Principal
Distributable Amount for such Distribution Date.

         "CLASS A NOTE PRINCIPAL CARRYOVER SHORTFALL" means, as of the close
of any Distribution Date, the excess of the Class A Note Principal
Distributable Amount with respect to the immediately preceding Distribution
Date over the amount in respect of principal for the Class A Notes that is
actually deposited in the Note Distribution Account on such preceding
Distribution Date.

         "CLASS A NOTE PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to
any Distribution Date, the sum of the Class A Note Monthly Principal
Distributable Amount with respect to such Distribution Date and the Class A
Note Principal Carryover Shortfall as of the close of the immediately
preceding Distribution Date; PROVIDED, HOWEVER, that the Class A Note
Principal Distributable Amount shall not exceed the outstanding principal
amount of the Class A Notes; and PROVIDED, FURTHER, that the Class A Note
Principal Distributable Amount (i) on the Class A-1 Final Distribution Date
shall not be less than the amount that is necessary (after giving effect to
other amounts to be deposited in the Note Distribution Account for payment on
the Class A-1

                                       3

<PAGE>

Notes on such Distribution Date and allocable to principal) to reduce the
outstanding principal amount of the Class A-1 Notes to zero, and (ii) on the
Class A-2 Final Distribution Date shall not be less than the amount that is
necessary (after giving effect to other amounts to be deposited in the Note
Distribution Account for payment on the Class A-2 Notes on such Distribution
Date and allocable to principal) to reduce the outstanding principal amount of
the Class A-2 Notes to zero.

         "CLASS A NOTES" means, collectively, the Class A-1 Notes and the
Class A-2 Notes.

         "CLASS A-1 FINAL DISTRIBUTION DATE" means the July 2005 Distribution
Date.

         "CLASS A-1 NOTEHOLDER" means the Person in whose name a Class A-1
Note is registered in the Note Register, as such term is defined in the
Indenture.

         "CLASS A-1 RATE" means 6.66% per annum (computed on the basis of a
360-day year of twelve 30-day months).

         "CLASS A NOTE PERCENTAGE" means, (i) for each Distribution Date to
but excluding the Distribution Date on which the principal amount of the Class
A-2 Notes is reduced to zero, 94.00%; (ii) for the Distribution Date on which
the principal amount of the Class A-2 Notes is reduced to zero, such
percentage which represents the fraction of the Principal Distributable Amount
necessary to reduce the principal amount of the Class A-2 Notes to zero; and
(iii) for each Distribution Date thereafter, 0%.

         "CLASS A-2 FINAL DISTRIBUTION DATE" means the September 2008
Distribution Date.

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

         "CLASS A-2 RATE" means 6.73% per annum (computed on the basis of a
360-day year of twelve 30-day months).

         "CLASS B FINAL DISTRIBUTION DATE" means the September 2008
Distribution Date.

         "CLASS B NOTEHOLDER" means the Person in whose name a Class B Note is
registered in the Note Register, as such term is defined in the Indenture.

         "CLASS B NOTE MONTHLY PRINCIPAL DISTRIBUTABLE AMOUNT" means, with
respect to any Distribution Date, the Class B Note Percentage of the Principal
Distributable Amount for such Distribution Date.

         "CLASS B NOTE PERCENTAGE" means, (i) for each Distribution Date to
but excluding the Distribution Date on which the principal amount of the Class
A-2 Notes is reduced to zero, 6.00%; and (ii) for the Distribution Date on
which the principal amount of the Class A-2 Notes is reduced to zero, that
percentage that equals 100% minus the Class A Note Percentage for such
Distribution Date; and (iii) 100% thereafter.

                                       4

<PAGE>

         "CLASS B NOTE PRINCIPAL CARRYOVER SHORTFALL" means, as of the close
of any Distribution Date, the excess of the Class B Note Principal
Distributable Amount with respect to the immediately preceding Distribution
Date over the amount in respect of principal for the Class B Notes that is
actually deposited in the Note Distribution Account on such preceding
Distribution Date.

         "CLASS B NOTE PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to
any Distribution Date, the sum of the Class B Note Monthly Principal
Distributable Amount with respect to such Distribution Date and the Class B
Note Principal Carryover Shortfall as of the close of the immediately
preceding Distribution Date; PROVIDED, HOWEVER, that the Class B Note
Principal Distributable Amount shall not exceed the outstanding principal
amount of the Class B Notes; and PROVIDED, FURTHER, that the Class B Note
Principal Distributable Amount on the Class B Final Distribution Date shall
not be less than the amount that is necessary (after giving effect to other
amounts to be deposited in the Note Distribution Account for payment on the
Class B Notes on such Distribution Date and allocable to principal) to reduce
the outstanding principal amount of the Class B Notes to zero.

         "CLASS B RATE" means 7.03% per annum (computed on the basis of a
360-day year of twelve 30-day months).

         "CLEARING AGENCY" shall have the meaning specified in the Indenture.

         "CLOSING DATE" means November 22, 2000.

         "CODE" means the Internal Revenue Code of 1986, as amended.

         "COLLATERAL" shall have the meaning specified in the "granting
clause" of the Indenture.

         "COLLECTION ACCOUNT" means a trust account as described in Section
5.05 maintained in the name of the Indenture Trustee and which shall be an
Eligible Account.

         "COMPUTER DISK" means the computer disk generated by the Servicer
which provides information relating to the Contracts and which was used by the
Seller in selecting the Contracts sold to the Trust Depositor pursuant to the
Transfer and Sale Agreement (and any Subsequent Purchase Agreement) by the
Trust Depositor in selecting the Contracts sold to the Trust pursuant to this
Agreement (and any Subsequent Transfer Agreement), and includes the master
file and the history file as well as servicing information with respect to the
Contracts.

         "CONTRACT ASSETS" has the meaning assigned in Section 2.01 (and 2.04,
as applicable in the case of Subsequent Contracts) of the Transfer and Sale
Agreement.

         "CONTRACT FILE" means, as to each Contract, (a) the original copy of
the Contract, including the executed conditional sales contract or other
evidence of the obligation of the Obligor, (b) the original title certificate
to the Motorcycle and, where applicable, the certificate of lien recordation,
or, if such title certificate has not yet been issued, an application for such
title certificate, or other appropriate evidence of a security interest in the
covered Motorcycle; (c) the

                                       5

<PAGE>

assignments of the Contract; (d) the original copy of any agreement(s)
modifying the Contract including, without limitation, any extension
agreement(s) and (e) documents evidencing the existence of physical damage
insurance covering such Motorcycle.

         "CONTRACT RATE" means, as to any Contract, the annual rate of
interest specified in the Contract.

         "CONTRACTS" means the motorcycle conditional sales contracts
described in the List of Contracts and constituting part of the Trust Corpus
(as such list may be supplemented from time to time to reflect transfers of
Subsequent Contracts), and includes, without limitation, all related security
interests and any and all rights to receive payments which are collected
pursuant thereto on or after the Initial Cutoff Date or, with respect to any
Subsequent Contracts, any related Subsequent Cutoff Date, but excluding any
rights to receive payments which are collected pursuant thereto prior to the
Initial Cutoff Date, or with respect to any Subsequent Contracts, any related
Subsequent Cutoff Date.

         "CORPORATE TRUST OFFICE" means the office of the Indenture Trustee at
which at any particular time its corporate trust business shall be principally
administered, which office at the date of the execution of this Agreement is
located at the address set forth in Section 11.04.

         "CRAM DOWN LOSS" means, with respect to a Contract, if a court of
appropriate jurisdiction in an insolvency proceeding shall have issued an
order reducing the Principal Balance of such Contract the amount of such
reduction (with a "CRAM DOWN LOSS" being deemed to have occurred on the date
of issuance of such order).

         "CUMULATIVE LOSS RATIO" means, as of any Distribution Date, the
fraction (expressed as a percentage) computed by the Servicer by dividing (i)
the aggregate Net Liquidation Losses for all Contracts since the related
Cutoff Date through the end of the related Due Period by (ii) the sum of (A)
the Principal Balance of the Contracts as of the Cutoff Date plus (B) the
Principal Balance of any Subsequent Contracts as of the related Subsequent
Cutoff Date.

         "CUTOFF DATE" means either or both (as the context may require) the
Initial Cutoff Date and any Subsequent Cutoff Date.

         "DEFAULTED CONTRACT" means a Contract with respect to which there has
occurred one or more of the following: (i) all or some portion of any payment
under the Contract is 120 days or more delinquent, (ii) repossession (and
expiration of any redemption period) of a Motorcycle securing a Contract or
(iii) the Servicer has determined in good faith that an Obligor is not likely
to resume payment under a Contract.

         "DELINQUENCY AMOUNT" means, as of any Distribution Date, the
Principal Balance of all Contracts that were delinquent 60 days or more as of
the end of the related Due Period (including Contracts in respect of which the
related Motorcycles have been repossessed and are still inventory).

                                       6



<PAGE>

         "DELINQUENT INTEREST" means, for each Contract and each Determination
Date as to which the full payment due in the related Due Period has not been
paid before the 30th day after the scheduled payment dated therefor (any such
payment being "DELINQUENT" for purposes of this definition), all interest
accrued on such Contract from the Due Date in the Due Period one month prior
to the Due Period in which the payment is delinquent.

         "DELINQUENCY RATIO" means, for any Distribution Date, the fraction
(expressed as a percentage) computed by dividing (a) the Delinquency Amount
during the immediately preceding Due Period by (b) the Principal Balance of
the Contracts as of the beginning of the related Due Period.

         "DELTA LOAN" means a loan made by the Seller pursuant to the program
designated as the Delta Program.

         "DETERMINATION DATE" means the fourth Business Day following the
conclusion of a Due Period during the term of this Agreement.

         "DISTRIBUTION DATE" means the fifteenth day of each calendar month
during the term of this Agreement, or if such day is not a Business Day, the
next succeeding Business Day, with the first such Distribution Date hereunder
being December 15, 2000.

         "DUE DATE" means, with respect to any Contract, the day of the month
on which each scheduled payment of principal and interest is due on such
Contract, exclusive of days of grace.

         "DUE PERIOD" means a calendar month during the term of this
Agreement, and the Due Period related to a Determination Date or Distribution
Date shall be the calendar month immediately preceding such date; PROVIDED,
HOWEVER, that with respect to the Initial Determination Date or Initial
Distribution Date, the Due Period shall be the period from the Initial Cutoff
Date to and including November 30, 2000.

         "ELIGIBLE ACCOUNT" means a segregated direct deposit account
maintained with the Indenture Trustee, acting in its fiduciary capacity, or a
depository institution or trust company organized under the laws of the United
States of America, or any of the States thereof, or the District of Columbia,
having a certificate of deposit, short-term deposit or commercial paper rating
of at least A-1+ by Standard & Poor's and P-1 by Moody's.

         "ELIGIBLE INVESTMENTS" mean book-entry securities, negotiable
instruments or securities represented by instruments in bearer or registered
form which evidence:

                  (a)   direct obligations of, and obligations fully guaranteed
         as to timely payment by, the United States of America;

                  (b)   demand deposits, time deposits or certificates of
         deposit of any depository institution or trust company incorporated
         under the laws of the United States of America or any State (or any
         domestic branch of a foreign bank) and subject to supervision and
         examination by Federal or State banking or depository institution
         authorities; PROVIDED,

                                       7

<PAGE>

         HOWEVER, that at the time of the investment or contractual commitment
         to invest therein, the commercial paper or other short-term senior
         unsecured debt obligations (other than such obligations the rating of
         which is based on the credit of a Person other than such depository
         institution or trust company) thereof shall have a credit rating from
         the Rating Agency in the highest investment category granted thereby;

                  (c)   commercial paper having, at the time of the investment
         or contractual commitment to invest therein, a rating from the Rating
         Agency in the highest investment category granted thereby;

                  (d)   investments in money market funds having a rating from
         the Rating Agency in the highest investment category granted thereby
         (including funds for which the Indenture Trustee or the Owner Trustee
         or any of their respective Affiliates is investment manager or
         advisor);

                  (e)   bankers' acceptances issued by any depository
         institution or trust company referred to in CLAUSE (b); and

                  (f)   repurchase obligations with respect to any security that
         is a direct obligation of, or fully guaranteed as to timely payment by,
         the United States of America or any agency or instrumentality thereof
         the obligations of which are backed by the full faith and credit of the
         United States of America, in either case entered into with a depository
         institution or trust company (acting as principal) described in CLAUSE
         (b).

         "EVENT OF TERMINATION" means an event specified in Section 8.01.

         "EXCESS AMOUNTS" shall mean Available Monies after distributions made
in accordance with Section 7.05.

         "FINAL DISTRIBUTION DATE" means the Class A-1 Final Distribution
Date, the Class A-2 Final Distribution Date or the Class B Final Distribution
Date, as the case may be.

         "FUNDING PERIOD" means the period beginning on the Closing Date and
ending on the first to occur of (a) the Distribution Date on which the amount
on deposit in the Pre-Funding Account (after giving effect to any transfers
therefrom in connection with the transfer of Subsequent Contracts to the Trust
on such Distribution Date) is less than $150,000, (b) the date on which an
Event of Termination occurs, (c) the date on which an Insolvency Event occurs
with respect to the Trust Depositor and (d) the close of business on the date
which is 90 days from and including the Closing Date.

         "HARLEY-DAVIDSON FINANCIAL" has the meaning assigned in Section 5.10
hereof.

         "HOLDER" means, with respect to a (i) Certificate, the Person in
whose name such Certificate is registered in the Certificate Register and (ii)
Note, the Person in whose name such Note is registered in the Note Register.

                                       8

<PAGE>

         "INDENTURE" means the Indenture, dated as of the date hereof, between
the Issuer and the Indenture Trustee.

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

         "INDENTURE TRUSTEE FEE" means, with respect to any Distribution Date,
one-twelfth of the product of .005% and the sum of (i) the Principal Balance
of the Contracts as of the beginning of the related Due Period and (ii) the
Pre-Funded Amount as of the beginning of such period; PROVIDED, HOWEVER, in no
event shall such fee be less than $200.00 per month.

         "INDEPENDENT" when used with respect to any specified Person, means
such a Person who (i) is in fact independent of the Issuer, the Trust
Depositor or the Servicer, (ii) is not a director, officer or employee of any
Affiliate of the Issuer, the Trust Depositor or the Servicer, (iii) is not a
person related to any officer or director of the Issuer, the Trust Depositor
or the Servicer or any of their respective Affiliates, (iv) is not a holder
(directly or indirectly) of more than 10% of any voting securities of Issuer,
the Trust Depositor or the Servicer or any of their respective Affiliates, and
(v) is not connected with the Issuer, the Trust Depositor or the Servicer as
an officer, employee, promoter, underwriter, trustee, partner, director or
person performing similar functions.

         "INITIAL CLASS A-1 NOTE BALANCE" means $131,700,000.

         "INITIAL CLASS A-2 NOTE BALANCE" means $66,640,000.

         "INITIAL CLASS B NOTE BALANCE" means $12,660,000.

         "INITIAL CONTRACTS" means those Contracts conveyed to the Trust on
the Closing Date.

         "INITIAL CUTOFF DATE" means November 8, 2000.

         "INSOLVENCY EVENT" means, with respect to a specified Person, (i) the
entry of a decree or order for relief by a court or regulatory authority
having jurisdiction in respect of such Person in an involuntary case under the
federal bankruptcy laws, as now or hereafter in effect, or any other present
or future, federal or state, bankruptcy, insolvency or similar law, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
or other similar official for such Person or for any substantial part of its
property, or ordering the winding-up or liquidation of such Person's affairs,
and the continuance of any such decree or order unstayed and in effect for a
period of 60 consecutive days; (ii) the commencement of an involuntary case
under the federal bankruptcy laws, as now or hereinafter in effect, or another
present or future federal or state bankruptcy, insolvency or similar law and
such case is not dismissed within 60 days; or (iii) the commencement by such
Person of a voluntary case under the federal bankruptcy laws, as now or
hereinafter in effect, or any other present or future federal or state,
bankruptcy, insolvency or similar law, or the consent by such Person to the
appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or other similar official for such

                                       9

<PAGE>

Person or for any substantial part of its property, or the making by such
Person of an assignment for the benefit of creditors or the failure by such
Person generally to pay its debts as such debts become due or the taking of
corporate action by such Person in furtherance of any the foregoing.

         "INTEREST PERIOD" means, with respect to any Distribution Date, the
period from and including the fifteenth day of the month of the Distribution
Date immediately preceding such Distribution Date (or, in the case of the
first Distribution Date, the Closing Date) to but excluding the fifteenth day
of the month of such Distribution Date.

         "INTEREST RATE" means the Class A-1 Rate, the Class A-2 Rate or the
Class B Rate, as applicable.

         "INTEREST RESERVE ACCOUNT" means the account designated as the
Interest Reserve Account in, and which is established and maintained pursuant
to, Section 7.04 hereof.

         "INTEREST RESERVE AMOUNT" means, as of any date of determination, the
amount on deposit in the Interest Reserve Account on such date, and as of the
Closing Date shall be $704,766.83.

         "INVESTMENT EARNINGS" means, with respect to any Distribution Date,
the investment earnings (net of losses and investment expenses) on amounts on
deposit in the Trust Accounts, other than the Pre-Funding Account, to be
deposited into the Collection Account on such Distribution Date pursuant to
Section 5.05(b).

         "ISSUER" means the Harley-Davidson Motorcycle Trust 2000-3.

         "LATE PAYMENT PENALTY FEES" means any late payment fees paid by
Obligors on Contracts after all sums received have been allocated first to
regular installments due or overdue and all such installments are then paid in
full.

         "LIEN" means a security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than tax liens, mechanics' liens and any liens
that attach to the respective Contract by operation of law.

         "LIQUIDATED CONTRACT" means a Contract with respect to which there
has occurred one or more of the following: (i) 90 days have elapsed following
the date of repossession (and expiration of any redemption period) with
respect to the Motorcycle securing such Contract, (ii) the receipt of proceeds
by the Servicer from the sale of a repossessed Motorcycle securing a Contract,
(iii) the Servicer has determined in good faith that all amounts expected to
be recovered have been received with respect to such Contract, or (iv) all or
any portion of any payment is delinquent 150 days or more.

         "LIST OF CONTRACTS" means the list identifying each Contract
constituting part of the Trust Corpus, which list shall consist of the initial
List of Contracts reflecting the Initial Contracts transferred to the Trust on
the Closing Date, together with any Subsequent List of Contracts reflecting
the Subsequent Contracts transferred to the Trust on the related Subsequent
Transfer

                                      10

<PAGE>

Date, and which list (a) identifies each Contract and (b) sets forth as to
each Contract (i) the Principal Balance as of the applicable Cutoff Date, (ii)
the amount of monthly payments due from the Obligor, (iii) the Contract Rate
and (iv) the maturity date, and which list (as in effect on the Closing Date)
is attached to this Agreement as EXHIBIT H.

         "LOCKBOX" means the Lockbox maintained by the Lockbox Bank identified
on EXHIBIT K hereto.

         "LOCKBOX ACCOUNT" means the account maintained with the Lockbox Bank
and identified on EXHIBIT K hereto.

         "LOCKBOX AGREEMENT" means the Fifth Amended and Restated Lockbox
Administration Agreement dated as of November 1, 2000 by and among the Lockbox
Bank, Servicer, the Trust Depositor, Harley-Davidson Customer Funding Corp.,
The Bank of New York (f/k/a Harris Trust and Savings Bank) and Bank One,
National Association, with respect to the Lockbox Account, unless such
agreement shall be terminated in accordance with its terms, in which event
"LOCKBOX AGREEMENT" shall mean such other agreement, in form and substance
acceptable to the above-described parties.

         "LOCKBOX BANK" means the financial institution maintaining the
Lockbox Account and identified on EXHIBIT K hereto or any successor thereto.

         "LOSS RATIO" means, for any Distribution Date, the fraction
(expressed as a percentage) derived by dividing (x) Net Liquidation Losses for
all Contracts that became Liquidated Contracts during the immediately
preceding Due Period multiplied by twelve by (y) the outstanding Principal
Balances of all Contracts as of the beginning of the Due Period.

         "MANDATORY REDEMPTION" means the prepayment, in part, made to the
Noteholders without premium made on the Distribution Date on or immediately
following the last day of the Funding Period in the event that any amount
remains on deposit in the Pre-Funding Account after giving effect to the
purchase of all Subsequent Contracts, including any such purchase on such date.

         "MANDATORY REDEMPTION SUBACCOUNT" means the subaccount of the Note
Distribution Account into which deposits from the Pre-Funding Account for any
Mandatory Redemption are made.

         "MODIFIED REQUIRED HOLDERS" means (i) prior to the payment in full of
the Class A Notes outstanding, Class A-1 Noteholders and/or Class A-2
Noteholders evidencing at least 66 2/3% of the aggregate outstanding principal
balance of the Class A Notes and (ii) from and after the payment in full of
the Class A Notes outstanding, Class B Noteholders evidencing at least 66 2/3%
of the aggregate outstanding principal balance of the Class B Notes.

         "MONTHLY REPORT" shall have the meaning specified in Section 9.06.

                                      11

<PAGE>

         "MONTHLY SERVICING FEE" means, as to any Distribution Date,
one-twelfth of the product of 1% and the Principal Balance of the Contracts as
of the beginning of the related Due Period.

         "MOODY'S" means Moody's Investors Service, Inc. or any successor
thereto.

         "MOTORCYCLE" means a motorcycle manufactured by Harley-Davidson, Inc.
(or in certain limited instances Buell) securing a Contract.

         "NET LIQUIDATION LOSSES" means, as of any Distribution Date, with
respect to a Liquidated Contract, the amount, if any, by which (a) the
outstanding Principal Balance of such Liquidated Contract plus accrued and
unpaid interest thereon at the Contract Rate to the date on which such
Liquidated Contract became a Liquidated Contract exceeds (b) the Net
Liquidation Proceeds for such Liquidated Contract.

         "NET LIQUIDATION PROCEEDS" means, as to any Liquidated Contract, the
proceeds realized on the sale or other disposition of the related Motorcycle,
including proceeds realized on the repurchase of such Motorcycle by the
originating dealer for breach of warranties, and the proceeds of any insurance
relating to such Motorcycle, after payment of all reasonable expenses incurred
thereby, together, in all instances, with the expected or actual proceeds of
any recourse rights relating to such Contract as well as any post-disposition
proceeds or other amounts in respect of a Liquidated Contract received by the
Servicer.

         "NOTE DEPOSITORY AGREEMENT" shall have the meaning specified in the
Indenture.

         "NOTE DISTRIBUTABLE AMOUNT" means, with respect to any Distribution
Date, the sum of the Note Principal Distributable Amount and the Note Interest
Distributable Amount for such Distribution Date.

         "NOTE DISTRIBUTION ACCOUNT" means the account established and
maintained as such pursuant to Section 5.05.

         "NOTE INTEREST CARRYOVER SHORTFALL" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the sum of the
Note Interest Distributable Amount for such Class for the immediately
preceding Distribution Date plus any outstanding Note Interest Carryover
Shortfall for such Class on such preceding Distribution Date, over the amount
in respect of interest that is actually deposited in the Note Distribution
Account with respect to such Class on such preceding Distribution Date, plus,
interest on such excess to the extent permitted by applicable law, at the
related Interest Rate for the related Interest Period.

         "NOTE INTEREST DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date and a Class of Notes, the sum of the Note Monthly Interest
Distributable Amount and the Note Interest Carryover Shortfall for such Class
of Notes with respect to such Distribution Date.

         "NOTE MONTHLY INTEREST DISTRIBUTABLE AMOUNT" means, with respect to
any Distribution Date for any Class of Notes, interest accrued from and
including the fifteenth day of the month of the preceding calendar month to,
but excluding, the fifteenth day of the calendar month in

                                      12

<PAGE>

which such Distribution Date occurs (or in the case of the first Distribution
Date, interest accrued from and including the Closing Date to but excluding
such Distribution Date) at the related Interest Rate for such Class of Notes
on the outstanding principal amount of the Notes of such Class on the
immediately preceding Distribution Date, after giving effect to all payments
of principal to Noteholders of such Class on or prior to such preceding
Distribution Date (or, in the case of the first Distribution Date, on the
original principal amount of such Class of Notes).

         "NOTE POOL FACTOR" means with the respect to any Class of Notes as of
the close of business on any Distribution Date, a seven-digit decimal figure
equal to the outstanding principal amount of such Class of Notes (after giving
effect to any reductions thereof to be made on such Distribution Date) divided
by the original outstanding principal amount of such Class of Notes.

         "NOTE PRINCIPAL CARRYOVER SHORTFALL" means the Class A Note Principal
Carryover Shortfall and the Class B Note Principal Carryover Shortfall.

         "NOTE PRINCIPAL DISTRIBUTABLE AMOUNT" means the Class A Note
Principal Distributable Amount and the Class B Note Principal Distributable
Amount.

         "NOTE REGISTER" shall have the meaning specified in the Indenture.

         "NOTES" means the Class A-1 Notes, the Class A-2 Notes and the Class
B Notes, in each case as executed and authenticated in accordance with the
Indenture.

         "OBLIGEE" means the Person to whom an Obligor is indebted under a
Contract.

         "OBLIGOR" means a Motorcycle buyer or other person who owes payments
under a Contract.

         "OFFICER'S CERTIFICATE" means a certificate signed by the Chairman,
the President, a Vice President, the Treasurer, an Assistant Treasurer, the
Controller, an Assistant Controller, the Secretary or an Assistant Secretary
of any Person delivering such certificate and delivered to the Person to whom
such certificate is required to be delivered, including any certificate
delivered under any of the Transaction Documents required to be executed by a
Servicing Officer. In the case of an Officer's Certificate of the Servicer, at
least one of the signing officers must be a Servicing Officer. Unless
otherwise specified, any reference herein to an Officer's Certificate shall be
to an Officers' Certificate of the Servicer.

         "OPINION OF COUNSEL" means a written opinion of counsel (who may be
counsel to the Trust Depositor or the Servicer) acceptable to the Indenture
Trustee or the Owner Trustee, as the case may be.

         "OWNER TRUSTEE" means the Person acting, not in its individual
capacity, but solely as Owner Trustee under the Trust Agreement, its
successors in interest and any successor owner trustee under the Trust
Agreement.

                                      13

<PAGE>

         "PAYING AGENT" means as described in Section 6.11 of the Indenture
and Section 3.10 of the Trust Agreement.

         "PERSON" means any individual, corporation, estate, limited liability
company, partnership, joint venture, association, joint stock company, trust
(including any beneficiary thereof), unincorporated organization or government
or any agency or political subdivision thereof.

         "POOL BALANCE" means as of any date, the Principal Balance of
Contracts as of the close of business on such date.

         "PRE-FUNDED AMOUNT" means as of any date, the amount on deposit in
the Pre-Funding Account at the close of business on such date.

         "PRE-FUNDING ACCOUNT" means the account designated as the Pre-Funding
Account in, and which is established and maintained pursuant to Section 7.07.

         "PRINCIPAL BALANCE" means (a) with respect to any Contract as of any
date, an amount equal to the unpaid principal balance of such Contract as of
the opening of business on the Initial Cutoff Date or related Subsequent
Cutoff Date, as applicable, reduced by the sum of (x) all payments received by
the Servicer as of such date allocable to principal and (y) any Cram Down Loss
in respect of such Contract; PROVIDED, HOWEVER, that (i) if (x) a Contract is
repurchased by the Seller pursuant to Section 5.01 of the Transfer and Sale
Agreement and Section 7.08 hereof because of a breach of representation or
warranty, or if (y) the Trust Depositor gives notice of its intent to purchase
the Contracts in connection with an optional termination of the Trust pursuant
to Section 5.02 of the Transfer and Sale Agreement and Section 7.10 hereof, in
each case the Principal Balance of such Contract or Contracts shall be deemed
as of the related Determination Date to be zero for the Due Period in which
such event occurs and for each Due Period thereafter, (ii) from and after the
third Due Period succeeding the final Due Period in which the Obligor is
required to make the final scheduled payment on a Contract, the Principal
Balance, if any, of such Contract shall be deemed to be zero, and (iii) from
and after the Due Period in which a Contract becomes a Liquidated Contract,
the Principal Balance of such Contract shall be deemed to be zero; and (b)
where the context requires, the aggregate of the Principal Balances described
in clause (a) for all such Contracts.

         "PRINCIPAL DISTRIBUTABLE AMOUNT" means, with respect to any
Distribution Date, the Aggregate Principal Balance Decline for such
Distribution Date.

         "PROSPECTUS" means the Base Prospectus together with the Supplement.

         "QUALIFIED ELIGIBLE INVESTMENTS" means Eligible Investments acquired
by the Indenture Trustee in its name and in its capacity as Indenture Trustee,
which are held by the Indenture Trustee in the Pre-Funding Account, the
Interest Reserve Account or the Reserve Fund and with respect to which (a) the
Indenture Trustee has noted its interest therein on its books and records, and
(b) the Indenture Trustee has purchased such investments for value without
notice of any

                                      14

<PAGE>

adverse claim thereto (and, if such investments are securities or other
financial assets or interests therein, within the meaning of Section 8-102 of
the UCC as enacted in Illinois, without acting in collusion with a securities
intermediary in violating such securities intermediary's obligations to
entitlement holders in such assets, under Section 8-504 of such UCC, to
maintain a sufficient quantity of such assets in favor of such entitlement
holders), and (c) either (i) such investments are in the possession, or are
under the control, of the Indenture Trustee, or (ii) such investments, (A) if
certificated securities and in bearer form, have been delivered to the
Indenture Trustee, or in registered form, have been delivered to the Indenture
Trustee and either registered by the issuer thereof in the name of the
Indenture Trustee or endorsed by effective endorsement to the Indenture
Trustee or in blank; (B) if uncertificated securities, the ownership of which
has been registered to the Indenture Trustee on the books of the issuer
thereof (or another person, other than a securities intermediary, either
becomes the registered owner of the uncertified security on behalf of the
Indenture Trustee or, having previously become the registered owner,
acknowledges that it holds for the Indenture Trustee); or (C) if securities
entitlements (within the meaning of Section 8-102 of the UCC as enacted in
Illinois) representing interests in securities or other financial assets (or
interests therein) held by a securities intermediary (within the meaning of
said Section 8-102), a securities intermediary indicates by book entry that a
security or other financial asset has been credited to the Indenture Trustee's
securities account with such securities intermediary. Any such Qualified
Eligible Investment may be purchased by or through the Indenture Trustee or
any of its affiliates.

         "RATING AGENCY" means each of Moody's and Standard & Poor's, so long
as such Persons maintain a rating on the Notes; and if either Moody's or
Standard & Poor's no longer maintains a rating on the Notes, such other
nationally recognized statistical rating organization selected by the Trust
Depositor.

         "RECORD DATE" means, with respect to any Distribution Date, the last
Business Day of the preceding calendar month.

         "REIMBURSEMENT AMOUNT" has the meaning assigned in Section 7.03
hereof.

         "REPURCHASE PRICE" means, with respect to a Contract to be
repurchased hereunder as of the last day of any Due Period an amount equal to
(a) the Principal Balance of such Contract as of such day, plus (b) accrued
and unpaid interest at the Contract Rate on such Contract through the end of
such Due Period.

         "REQUIRED HOLDERS" means (i) prior to the payment in full of the
Class A Notes outstanding, Class A-1 Noteholders and Class A-2 Noteholders
evidencing more than 50% of the aggregate outstanding principal balance of the
Class A Notes and (ii) from and after the payment in full of the Class A Notes
outstanding, Class B Noteholders evidencing more than 50% of the aggregate
outstanding principal balance of the Class B Notes.

         "RESERVE FUND" means the Reserve Fund established and maintained
pursuant to Section 7.06 hereof.

                                      15

<PAGE>

         "RESERVE FUND INITIAL DEPOSIT" means $1,383,795.14.

         "RESERVE FUND DEPOSITS" means all moneys deposited in the Reserve
Fund from time to time including, but not limited to, the Reserve Fund Initial
Deposit as well as any monies deposited therein pursuant to Section 7.05(b),
all investments and reinvestments thereof, earnings thereon, and proceeds of
the foregoing, whether now or hereafter existing.

         "RESERVE FUND TRIGGER EVENT" means the occurrence with respect to any
Distribution Date (i) the Average Delinquency Ratio for such Distribution Date
is equal to or greater than (a) 2.50% with respect to any Distribution Date
which occurs within the period from the Closing Date to, and inclusive of, the
first anniversary of the Closing Date, (b) 3.00% with respect to any
Distribution Date which occurs within the period from the day after the first
anniversary of the Closing Date to, and inclusive of, the second anniversary
of the Closing Date, or (c) 3.50% with respect to any Distribution Date which
occurs within the period from the day after the second anniversary of the
Closing Date to, and inclusive of, the third anniversary of the Closing Date
or (d) 4.00% with respect to any Distribution Date occurring after the third
anniversary of the Closing Date; (ii) the Average Loss Ratio for such
Distribution Date is equal to or greater than (a) 3.00% with respect to any
Distribution Date which occurs within the period from the Closing Date to, and
inclusive of, the second anniversary of the Closing Date or (b) 2.75% with
respect to any Distribution Date which occurs following the second anniversary
of the Closing Date; or (iii) the Cumulative Loss Ratio for such Distribution
Date is equal to or greater than (a) 1.25% with respect to any Distribution
Date which occurs within the period from the Closing Date to, and inclusive
of, the first anniversary of the Closing Date, (b) 1.75% with respect to any
Distribution Date which occurs within the period from the day after the first
anniversary of the Closing Date to, and inclusive of, the second anniversary
of the Closing Date, (c) 2.25% with respect to any Distribution Date which
occurs within the period from the day after the second anniversary of the
Closing Date to, and inclusive of, the third anniversary of the Closing Date,
or (d) 2.50% with respect to any Distribution Date occurring after the third
anniversary of the Closing Date.

         A Reserve Fund Trigger Event shall be deemed to have terminated with
respect to a Distribution Date if no Reserve Fund Trigger Event shall exist
with respect to three consecutive Distribution Dates (inclusive of the
respective Distribution Date).

         "RESPONSIBLE OFFICER" means, with respect to the Owner Trustee, any
officer in its Corporate Trust Administration Department (or any similar group
of a successor Owner Trustee) and with respect to the Indenture Trustee, the
chairman and any vice chairman of the board of directors, the president, the
chairman and vice chairman of any executive committee of the board of
directors, every vice president, assistant vice president, the secretary,
every assistant secretary, cashier or any assistant cashier, controller or
assistant controller, the treasurer, every assistant treasurer, every trust
officer, assistant trust officer and every other officer or assistant officer
of the Trustee customarily performing functions similar to those performed by
persons who at the time shall be such officers, respectively, or to whom a
corporate trust matter is referred because of knowledge of, familiarity with,
and authority to act with respect to a particular matter.

                                      16


<PAGE>

         "SECURITIES" means the Notes, or any of them.

         "SECURITYHOLDERS" means the Holders of the Notes.

         "SELLER" means Harley-Davidson Credit Corp., a Nevada corporation,
or its successor, in its capacity as Seller of Contract Assets under the
Transfer and Sale Agreement and any Subsequent Purchase Agreement.

         "SERVICER" means Harley-Davidson Credit Corp., a Nevada corporation,
or its successor, until any Service Transfer hereunder and thereafter means
the Successor Servicer appointed pursuant to Article VIII below with respect
to the duties and obligations required of the Servicer under this Agreement.

         "SERVICE TRANSFER" has the meaning assigned in Section 8.02(a).

         "SERVICING FEE" means, on any Determination Date, the sum of (a) the
Monthly Servicing Fee payable on the related Distribution Date, (b) Late
Payment Penalty Fees received by the Servicer during the related Due Period,
and (c) extension fees received by the Servicer during the related Due Period.

         "SERVICING OFFICER" means any officer of the Servicer involved in,
or responsible for, the administration and servicing of Contracts whose name
appears on a list of servicing officers appearing in an Officer's Certificate
furnished to the Indenture Trustee by the Servicer, as the same may be
amended from time to time.

         "SHORTFALL" means, with respect to a Distribution Date, the excess
(if any), of the sum of the amounts payable pursuant to clauses (v) through
(viii) of Section 7.05 over Available Monies for such Distribution Date minus
the amounts payable pursuant to clauses (i) through (iv) of Section 7.05 on
such Distribution Date.

         "SOLVENT" means, as to any Person at any time, that (a) the fair
value of the property of such Person is greater than the amount of such
Person's liabilities (including disputed, contingent and unliquidated
liabilities) as such value is established and liabilities evaluated for
purposes of Section 101(31) of the Bankruptcy Code; (b) the present fair
saleable value of the property of such Person in an orderly liquidation of
such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and
matured; (c) such Person is able to realize upon its property and pay its
debts and other liabilities (including disputed, contingent and unliquidated
liabilities) as they mature in the normal course of business; (d) such Person
does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person's ability to pay as such debts and liabilities
mature; and (e) such Person is not engaged in business or a transaction, and
is not about to engage in a business or a transaction, for which such
Person's property would constitute unreasonably small capital.

         "SPECIFIED RESERVE FUND BALANCE" means with respect to any
Distribution Date will be an amount equal to the greater of:

                                       17

<PAGE>

                  (a) 2.50% of the Principal Balance of the Contracts in the
         Trust as of the first day of the immediately preceding Due Period;
         PROVIDED, HOWEVER, in the event a Reserve Fund Trigger Event occurs and
         is continuing for three consecutive Distribution Dates (inclusive of
         the respective Distribution Date), the Specified Reserve Fund Balance
         shall be equal to 6.00% of the Principal Balance of the Contracts in
         the Trust as of the first day of the immediately preceding Due Period;
         and

                  (b) 1.00% of the aggregate of the Initial Class A-1 Note
         Balance, Initial Class A-2 Note Balance and Initial Class B Note
         Balance;

PROVIDED, HOWEVER, in no event shall the Specified Reserve Fund Balance be
greater than the aggregate outstanding principal balance of the Securities.
As of any Distribution Date, the amount of funds actually on deposit in the
Reserve Fund may, in certain circumstances, be less than the Specified
Reserve Fund Balance

         "STANDARD & POOR'S" means Standard & Poor's Ratings Services, a
division of The McGraw Hill Companies, or any successor thereto.

         "SUBSEQUENT CONTRACTS" means all Contracts sold and transferred to
the Trust pursuant to Section 2.04.

         "SUBSEQUENT CUTOFF DATE" means the date specified as such for
Subsequent Contracts in the related Subsequent Transfer Agreement.

         "SUBSEQUENT LIST OF CONTRACTS" means a list, in the form of the
initial List of Contracts delivered on the Closing Date, but listing each
Subsequent Contract transferred to the Trust pursuant to the related
Subsequent Transfer Agreement.

         "SUBSEQUENT PURCHASE AGREEMENT" means, with respect to any
Subsequent Contracts, the agreement between the Seller and the Trust
Depositor pursuant to which the Seller will transfer the Subsequent Contracts
to the Trust Depositor, the form of which is attached to the Transfer and
Sale Agreement as EXHIBIT C.

         "SUBSEQUENT RESERVE FUND AMOUNT" means the amount on each Subsequent
Transfer Date equal to 1.00% of the aggregate balance of the Subsequent
Contracts conveyed to the Trust.

         "SUBSEQUENT TRANSFER AGREEMENT" means the agreement described in
Section 2.04(b) hereof.

         "SUBSEQUENT TRANSFER DATE" means any date during the Funding Period
on which Subsequent Contracts are transferred to the Trust.

         "SUCCESSOR SERVICER" means a servicer described in Section 8.02(b).

         "SUPPLEMENT" means the Prospectus Supplement dated November 15, 2000.

                                       18

<PAGE>

         "TRANSACTION DOCUMENTS" means this Agreement, the Transfer and Sale
Agreement, the Lockbox Agreement, the Indenture, the Trust Agreement, the
Administration Agreement, the Note Depository Agreement, any Subsequent
Transfer Agreement and any Subsequent Purchase Agreement.

         "TRANSFER AND SALE AGREEMENT" means the Transfer and Sale Agreement
dated as of the date hereof by and between the Seller and the Trust
Depositor, as amended, supplemented or otherwise modified from time to time.

         "TRUST" means the trust created by the Trust Agreement, comprised of
the Trust Corpus.

         "TRUST ACCOUNTS" means, collectively, the Collection Account, the
Pre-Funding Account, the Note Distribution Account and the Reserve Fund, or
any of them.

         "TRUST ACCOUNT PROPERTY" means the Trust Accounts, all amounts and
investments held from time to time in any Trust Account (whether in the form
of deposit accounts, physical property, book-entry securities, uncertificated
securities or otherwise), including the Reserve Fund Initial Deposit, and all
proceeds of the foregoing.

         "TRUST AGREEMENT" means the Trust Agreement, dated as of the date
hereof, between the Trust Depositor and the Owner Trustee.

         "TRUST CORPUS" has the meaning given to such term in Section 2.01(a)
hereof (and in Section 2.04(a) hereof in respect of Subsequent Contracts and
related assets transferred to the Trust pursuant to Subsequent Transfer
Agreements).

         "TRUST DEPOSITOR" has the meaning assigned such term in the preamble
hereunder or any successor thereto.

         "TRUST ESTATE" shall have the meaning specified in the Trust
Agreement.

         "TRUSTEES" means the Owner Trustee and the Indenture Trustee.

         "UCC" means the Uniform Commercial Code as enacted in Illinois or
Nevada, as applicable.

         "UNCOLLECTIBLE ADVANCE" means with respect to any Determination Date
and any Contract, the amount, if any, advanced by the Servicer pursuant to
Section 7.03 which the Servicer has as of such Determination Date determined
in good faith will not be ultimately recoverable by the Servicer from
insurance policies on the related Motorcycle, the related Obligor or out of
Net Liquidation Proceeds with respect to such Contract. The determination by
the Servicer that it has made an Uncollectible Advance, or, that any Advance
proposed to be made would be an Uncollectible Advance, shall be evidenced by
an Officer's Certificate delivered to the Trustees.

         "UNDERWRITERS" means Chase Securities Inc. and Salomon Smith Barney
Inc.

                                       19

<PAGE>

         "UNITED STATES" means the United States of America.

         "VICE PRESIDENT" of any Person means any vice president of such
Person, whether or not designated by a number or words before or after the
title "VICE PRESIDENT" who is a duly elected officer of such Person.

         "WTC" means Wilmington Trust Company, in its individual capacity.

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

         SECTION 1.03. SECTION REFERENCES. All section references, unless
otherwise indicated, shall be to Sections in this Agreement.

         SECTION 1.04. CALCULATIONS. Except as otherwise provided herein, all
interest rate and basis point calculations hereunder will be made on the
basis of a 360-day year and twelve 30-day months and will be carried out to
at least three decimal places.

         SECTION 1.05. ACCOUNTING TERMS. All accounting terms used but not
specifically defined herein shall be construed in accordance with generally
accepted accounting principles in the United States.

                                  ARTICLE TWO

                  ESTABLISHMENT OF TRUST; TRANSFER OF CONTRACTS

         SECTION 2.01. CLOSING. (a) On the Closing Date, the Trust Depositor
shall sell, transfer, assign, set over and otherwise convey to the Trust by
execution of an assignment substantially in the form of EXHIBIT A hereto,
without recourse other than as expressly provided herein, (i) all the right,
title and interest of the Trust Depositor in and to the Initial Contracts
listed on the initial List of Contracts delivered on the Closing Date
(including, without limitation, all security interests and all rights to
receive payments which are collected pursuant thereto on or after the Initial
Cutoff Date, including any liquidation proceeds therefrom, but excluding any
rights to receive payments which were collected pursuant thereto prior to the
Initial Cutoff Date), (ii) all rights of the Trust Depositor under any
physical damage or other individual insurance policy (and rights under a
"FORCED PLACED" policy, if any) relating to any such Contract, an Obligor or
a Motorcycle securing such Contract, (iii) all security interests in each
such Motorcycle, (iv) all documents contained in the related Contract Files,
(v) all rights (but not the

                                       20

<PAGE>

obligations) of the Trust Depositor under any related motorcycle dealer
agreements between dealers (i.e., the originators of such Contracts) and the
Trust Depositor, (vi) all rights of the Trust Depositor in the Lockbox, the
Lockbox Account and related Lockbox Agreement to the extent they relate to
such Contracts, (vii) all rights (but not the obligations) of the Trust
Depositor under the Transfer and Sale Agreement, including but not limited to
the Trust Depositor's rights under Article V thereof, (viii) the remittances,
deposits and payments made into the Trust Accounts from time to time and
amounts in the Trust Accounts from time to time (and any investments of such
amounts), and (ix) all proceeds and products of the foregoing (the property
in clauses (i)-(ix) above, being the "TRUST CORPUS"). Although the Trust
Depositor and the Owner Trustee agree that such transfer is intended to be a
sale of ownership of the Trust Corpus, rather than the granting of a security
interest to secure a borrowing, and that the Trust Corpus shall not be
property of the Trust Depositor, in the event such transfer is deemed to be
of a mere security interest to secure a borrowing, the Trust Depositor shall
be deemed to have granted the Trust a perfected first priority security
interest in such Trust Corpus and this Agreement shall constitute a security
agreement under applicable law.

         SECTION 2.02. CONDITIONS TO THE CLOSING. On or before the Closing
Date, the Trust Depositor shall deliver or cause to be delivered the
following documents to the Owner Trustee and the Indenture Trustee:

                  (a) The initial List of Contracts, certified by the Chairman
         of the Board, President or any Vice President of the Trust Depositor,
         together with an assignment substantially in the form of EXHIBIT A
         hereto.

                  (b) A certificate of an officer of the Seller substantially in
         the form of EXHIBIT B to the Transfer and Sale Agreement and of an
         officer of the Trust Depositor substantially in the form of EXHIBIT B
         hereto.

                  (c) Opinions of counsel for the Seller and the Trust Depositor
         substantially in the form of EXHIBITS D, E and F hereto (and including
         as an addressee thereof each Rating Agency).

                  (d) A letter or letters from Arthur Andersen LLP, or another
         nationally recognized accounting firm, addressed to the Seller and the
         Underwriters and stating that such firm has reviewed a sample of the
         Initial Contracts and performed specific procedures for such sample
         with respect to certain contract terms and which identifies those
         Initial Contracts which do not conform.

                  (e) Copies of resolutions of the Board of Directors of each of
         the Seller/Servicer and the Trust Depositor or of the Executive
         Committee of the Board of Directors of each of the Seller/Servicer and
         the Trust Depositor approving the execution, delivery and performance
         of this Agreement and the other Transaction Documents to which any of
         them is a party, as applicable, and the transactions contemplated
         hereunder and thereunder, certified in each case by the Secretary or an
         Assistant Secretary of the Seller/Servicer and the Trust Depositor.

                                       21

<PAGE>

                  (f) Officially certified, recent evidence of due incorporation
         and good standing of each of the Seller and the Trust Depositor under
         the laws of Nevada.

                  (g) Evidence of proper filing with the appropriate offices in
         Nevada and Illinois of UCC financing statements executed by the Seller,
         as debtor, naming the Trust Depositor as secured party (and the Trust
         as assignee) and identifying the Contract Assets as collateral; and
         evidence of proper filing with the appropriate offices in Nevada and
         Illinois of UCC financing statements executed by the Trust Depositor,
         as debtor, naming the Trust as secured party and identifying the Trust
         Corpus as collateral; and evidence of proper filing with appropriate
         officers in Delaware of UCC financing statements executed by the Trust
         and naming the Indenture Trustee, as secured party and identifying the
         Collateral as collateral.

                  (h) An Officer's Certificate listing the Servicer's Servicing
         Officers.

                  (i) Evidence of deposit in the Collection Account of all funds
         received with respect to the Initial Contracts on or after the Initial
         Cutoff Date to the Closing Date, together with an Officer's Certificate
         from the Trust Depositor to the effect that such amount is correct.

                  (j) The Officer's Certificate of the Seller specified in
         Section 2.02(h) of the Transfer and Sale Agreement.

                  (k) Evidence of deposit in the Reserve Fund of the Reserve
         Fund Initial Deposit by the Owner Trustee.

                  (l) A fully executed Transfer and Sale Agreement.

                  (m) A fully executed Trust Agreement.

                  (n) A fully executed Administration Agreement.

                  (o) A fully executed Indenture.

         SECTION 2.03. CONVEYANCE OF SUBSEQUENT CONTRACTS. (a) Subject to the
conditions set forth in paragraph (b) below, the Trust Depositor, shall sell,
transfer, assign, set over and otherwise convey to the Trust, without
recourse other than as expressly provided herein and therein, (i) all the
right, title and interest of the Trust Depositor in and to the Subsequent
Contracts listed on the Subsequent List of Contracts (including, without
limitation, all security interests and all rights to receive payments which
are collected pursuant thereto on or after the related Subsequent Cutoff
Date, including any liquidation proceeds therefrom, but excluding any rights
to receive payments which were collected pursuant thereto prior to such
Subsequent Cutoff Date), (ii) all rights of the Trust Depositor under any
physical damage or other individual insurance policy (or a "FORCED PLACED"
policy, if any) relating to any such Contract, an Obligor or a Motorcycle
securing such Contract, (iii) all security interests in each such Motorcycle,
(iv) all documents contained in the related Contract Files, (v) all rights
(but not the obligations) of the

                                       22

<PAGE>

Trust Depositor under any related motorcycle dealer agreements between
dealers (i.e., the originators of such Contracts) and the Trust Depositor,
(vi) all rights of the Trust Depositor in the Lockbox, the Lockbox Account
and related Lockbox Agreement to the extent they relate to such Contracts,
(vii) all rights (but not the obligations) of the Trust Depositor under the
Transfer and Sale Agreement related to such Contracts (to the extent not
already conveyed under Section 2.01(a)), including but not limited to the
Trust Depositor's related rights under Article V thereof, as well as all
rights, but not the obligations, of the Trust Depositor under the Subsequent
Purchase Agreement related to such Contracts, (viii) the remittances,
deposits and payments made into the Trust Accounts from time to time and
amounts in the Trust Accounts from time to time related to such Contracts (to
the extent not already conveyed under Section 2.01(a)) (and any investments
of such amounts), and (ix) all proceeds and products of the foregoing (the
property in clauses (i)-(ix) above, upon such transfer, becoming part of the
"TRUST CORPUS"). Although the Trust Depositor and the Owner Trustee agree
that such transfer is intended to be a sale of ownership, rather than the
granting of a security interest to secure a borrowing, and that the Trust
Corpus following such transfer shall not be property of the Trust Depositor,
in the event such transfer is deemed to be of a mere security interest to
secure a borrowing, the Trust Depositor shall be deemed to have granted the
Owner Trustee for the benefit of the Trust a perfected first priority
security interest in such Trust Corpus and this Agreement shall constitute a
security agreement under applicable law.

         (b) The Trust Depositor shall transfer to the Trust the Subsequent
Contracts and the other property and rights related thereto described in
paragraph (a) above only upon the satisfaction of each of the following
conditions on or prior to the related Subsequent Transfer Date:

                  (i) The Trust Depositor shall have provided the Owner Trustee,
         the Indenture Trustee, the Underwriters and the Rating Agencies with a
         timely Addition Notice and shall have provided any information
         reasonably requested by any of the foregoing with respect to the
         Subsequent Contracts;

                  (ii) the Funding Period shall not have terminated;

                  (iii) the Trust Depositor shall have delivered to the Owner
         Trustee a duly executed written assignment (including an acceptance by
         the Owner Trustee) in substantially the form of EXHIBIT M hereto (the
         "SUBSEQUENT TRANSFER AGREEMENT"), which shall include a Subsequent List
         of Contracts listing the Subsequent Contracts;

                  (iv) the Trust Depositor shall have deposited or caused to be
         deposited in the Collection Account all collections received with
         respect to the Subsequent Contracts on or after the related Subsequent
         Cutoff Date;

                  (v) as of each Subsequent Transfer Date, neither the Seller
         nor the Trust Depositor was insolvent nor will either of them have been
         made insolvent by such transfer nor is either of them aware of any
         pending insolvency;

                                       23

<PAGE>

                  (vi) the applicable Subsequent Reserve Fund Amount for such
         Subsequent Transfer Date shall have been deposited by the Indenture
         Trustee from the Pre-Funding Account to the Reserve Fund;

                  (vii) each Rating Agency shall have notified the Trust
         Depositor, the Owner Trustee and the Indenture Trustee in writing that
         following such transfer the Class A-1 Notes and Class A-2 Notes will be
         rated in the highest rating category by such Rating Agency and the
         Class B Notes will be rated at least its rating as of the Closing Date
         by Standard & Poor's and Moody's;

                  (viii) such addition will not result in a material adverse tax
         consequence to the Trust or the Certificateholder as evidenced by an
         Opinion of Counsel to be delivered by the Trust Depositor to the Owner
         Trustee, Indenture Trustee, the Rating Agencies and the Underwriters;

                  (ix) the Trust Depositor shall have delivered to the Owner
         Trustee and the Indenture Trustee an Officers' Certificate confirming
         the satisfaction of each condition precedent specified in this
         paragraph (b);

                  (x) the Trust Depositor shall have delivered to the Rating
         Agencies and the Underwriters one or more opinions of counsel with
         respect to the transfer of the Subsequent Contracts substantially in
         the form of the opinions of counsel delivered to such Persons on the
         Closing Date;

                  (xi) no selection procedures believed by the Trust Depositor
         to be adverse to the interests of the Noteholders shall have been
         utilized in selecting the Subsequent Contracts;

                  (xii) the Trust Depositor shall have delivered to the Rating
         Agencies evidence that (A) the weighted average annual percentage rate
         of the Contracts collectively, following the transfer of the Subsequent
         Contracts, is not less than 13.25% and (B) that the weighted average
         calculated remaining term to maturity of the Contracts collectively,
         following the transfer of the Subsequent Contracts, does not exceed 75
         months;

                  (xiii) the Trust Depositor shall have delivered to the Rating
         Agencies, a report with respect to certain agreed-upon procedures
         relating to the Subsequent Contracts being transferred, confirming that
         procedures were performed substantially similar to such procedures as
         were performed in connection with the transfer of the Initial
         Contracts;

                  (xiv) each of the representations and warranties made by the
         Seller pursuant to Section 3.01 of the Transfer and Sale Agreement with
         respect to the Subsequent Receivables shall be true and correct as of
         the related Subsequent Transfer Date, and the Seller shall have
         performed all obligations to be performed by it hereunder on or prior
         to such Subsequent Transfer Date;

                                       24

<PAGE>

                  (xv) the Seller shall, at its own expense, on or prior to the
         Subsequent Transfer Date indicate in its Computer Disk that the
         Subsequent Receivables identified on the Subsequent List of Contracts
         in the Subsequent Transfer Agreement have been sold to the Issuer
         pursuant to this Agreement and the Transfer and Sale Agreement; and

                  (xvi) the Seller shall have taken any action required to
         maintain the first perfected ownership interest of the Issuer in the
         Trust Estate and the first perfected security interest of the Indenture
         Trustee in the Collateral.

         (c) The Trust Depositor covenants to transfer (at or prior to the
end of the Funding Period) to the Trust pursuant thereto Subsequent Contracts
with an aggregate Principal Balance equal to $72,620,486.09; PROVIDED,
HOWEVER, that in complying with such covenant, the Trust Depositor agrees to
make no more than one separate transfer of Subsequent Contracts per monthly
period (as measured by the corresponding Distribution Dates). In the event
that the Trust Depositor shall fail to deliver and sell to the Trust any or
all of such Subsequent Receivables by the date on which the Funding Period
ends and the Pre-Funded Amount is greater than $150,000 on such date, the
Trust Depositor shall cause to be deposited into the Collection Account the
amount then on deposit in the Pre-Funding Account; PROVIDED, HOWEVER, that
the foregoing shall be the sole remedy of the Trust, the Owner Trustee, the
Indenture Trustee or the Securityholders with respect to a failure of the
Trust Depositor to comply with such covenant.

                                 ARTICLE THREE

                         REPRESENTATIONS AND WARRANTIES

         The Seller under the Transfer and Sale Agreement has made, and upon
execution of each Subsequent Purchase Agreement is deemed to remake, each of
the representations and warranties set forth in EXHIBIT J hereto and has
consented to the assignment by the Trust Depositor to the Issuer of the Trust
Depositor's rights with respect thereto. Such representations speak as of the
execution and delivery of this Agreement and as of the Closing Date in the
case of the Initial Contracts, and as of the applicable Subsequent Transfer
Date in the case of the Subsequent Contracts, but shall survive the sale,
transfer and assignment of the Contracts to the Trust. Pursuant to Section
2.01 of this Agreement, the Trust Depositor has sold, assigned, transferred
and conveyed to the Issuer as part of the Trust Corpus its rights under the
Transfer and Sale Agreement, including without limitation, the
representations and warranties of the Seller therein as set forth in EXHIBIT
J attached hereto, together with all rights of the Trust Depositor with
respect to any breach thereof including any right to require the Seller to
repurchase any Contract in accordance with the Transfer and Sale Agreement.
It is understood and agreed that the representations and warranties set forth
or referred to in this Section shall survive delivery of the Contract Files
to the Owner Trustee or any custodian.

         The Trust Depositor hereby represents and warrants to the Trust and
the Indenture Trustee that it has entered into the Transfer and Sale
Agreement with the Seller, that the Seller has made the representations and
warranties in the Transfer and Sale Agreement as set forth in

                                       25

<PAGE>

EXHIBIT J hereto, that such representations and warranties run to and are for
the benefit of the Trust Depositor, and that pursuant to Section 2.01 of this
Agreement the Trust Depositor has transferred and assigned to the Trust all
rights of the Trust Depositor to cause the Seller under the Transfer and Sale
Agreement to repurchase Contracts in the event of a breach of such
representations and warranties.

         SECTION 3.01. REPRESENTATIONS AND WARRANTIES REGARDING THE TRUST
DEPOSITOR. By its execution of this Agreement and each Subsequent Transfer
Agreement, the Trust Depositor represents and warrants to the Trust, the
Indenture Trustee and the Noteholders that:

                  (a) ASSUMPTION OF SELLER'S REPRESENTATIONS AND WARRANTIES. The
         representations and warranties set forth in EXHIBIT J are true and
         correct.

                  (b) ORGANIZATION AND GOOD STANDING. The Trust Depositor is a
         corporation duly organized, validly existing and in good standing under
         the laws of the jurisdiction of its organization and has the corporate
         power to own its assets and to transact the business in which it is
         currently engaged. The Trust Depositor is duly qualified to do business
         as a foreign corporation and is in good standing in each jurisdiction
         in which the character of the business transacted by it or properties
         owned or leased by it requires such qualification and in which the
         failure so to qualify would have a material adverse effect on the
         business, properties, assets, or condition (financial or other) of the
         Trust Depositor or the Trust.

                  (c) AUTHORIZATION; VALID SALE; BINDING OBLIGATIONS. The Trust
         Depositor has the power and authority to make, execute, deliver and
         perform its obligations under this Agreement and the other Transaction
         Documents to which it is a party and all of the transactions
         contemplated under this Agreement and the other Transaction Documents
         to which it is a party, and to create the Trust and cause it to make,
         execute, deliver and perform its obligations under this Agreement and
         the other Transaction Documents to which it is a party and has taken
         all necessary corporate action to authorize the execution, delivery and
         performance of this Agreement and the other Transaction Documents to
         which it is a party and to cause the Trust to be created. This
         Agreement and the related Subsequent Transfer Agreement, if any, shall
         effect a valid sale, transfer and assignment of the Trust Corpus,
         enforceable against the Trust Depositor and creditors of and purchasers
         from the Trust Depositor. This Agreement and the other Transaction
         Documents to which the Trust Depositor is a party constitute the legal,
         valid and binding obligation of the Trust Depositor enforceable in
         accordance with their terms, except as enforcement of such terms may be
         limited by bankruptcy, insolvency or similar laws affecting the
         enforcement of creditors' rights generally and by the availability of
         equitable remedies.

                  (d) NO CONSENT REQUIRED. The Trust Depositor is not required
         to obtain the consent of any other party or any consent, license,
         approval or authorization from, or registration or declaration with,
         any governmental authority, bureau or agency in

                                       26

<PAGE>

         connection with the execution, delivery, performance, validity or
         enforceability of this Agreement or the other Transaction Documents to
         which it is a party.

                  (e) NO VIOLATIONS. The execution, delivery and performance of
         this Agreement and the other Transaction Documents to which it is a
         party by the Trust Depositor, and the consummation of the transactions
         contemplated hereby and thereby, will not violate any provision of any
         existing law or regulation or any order or decree of any court or of
         any Federal or state regulatory body or administrative agency having
         jurisdiction over the Trust Depositor or any of its properties or the
         Articles of Incorporation or Bylaws of the Trust Depositor, or
         constitute a material breach of any mortgage, indenture, contract or
         other agreement to which the Trust Depositor is a party or by which the
         Trust Depositor or any of the Trust Depositor's properties may be
         bound, or result in the creation or imposition of any security
         interest, lien, charge, pledge, preference, equity or encumbrance of
         any kind upon any of its properties pursuant to the terms of any such
         mortgage, indenture, contract or other agreement, other than as
         contemplated by the Transaction Documents.

                  (f) LITIGATION. No litigation or administrative proceeding of
         or before any court, tribunal or governmental body is currently
         pending, or to the knowledge of the Trust Depositor threatened, against
         the Trust Depositor or any of its properties or with respect to this
         Agreement, the other Transaction Documents to which it is a party or
         the Notes (1) which, if adversely determined, would in the opinion of
         the Trust Depositor have a material adverse effect on the business,
         properties, assets or condition (financial or otherwise) of the Trust
         Depositor or the Trust or the transactions contemplated by this
         Agreement or the other Transaction Documents to which the Trust
         Depositor is a party or (2) seeking to adversely affect the federal
         income tax or other federal, state or local tax attributes of the
         Certificate or Notes.

                  (g) PLACE OF BUSINESS; NO CHANGES. The Trust Depositor's sole
         place of business (within the meaning of Article 9 of the UCC) is as
         set forth in Section 11.04 below. The Trust Depositor has not changed
         its name, whether by amendment of its Articles of Incorporation, by
         reorganization or otherwise, and has not changed the location of its
         place of business, within the four months preceding the Closing Date.

                  (h) SOLVENCY. The Trust Depositor, after giving effect to the
         conveyances made by it hereunder, is Solvent.

Such representations speak as of the execution and delivery of this Agreement
and as of the Closing Date in the case of the Initial Contracts, and as of
the applicable Subsequent Transfer Date in the case of the Subsequent
Contracts, but shall survive the sale, transfer and assignment of the
Contracts to the Trust.

                                       27



<PAGE>

         SECTION 3.02. REPRESENTATIONS AND WARRANTIES REGARDING THE SERVICER.
The Servicer represents and warrants to the Trust, the Indenture Trustee and
the Noteholders that:

                  (a) ORGANIZATION AND GOOD STANDING. The Servicer is a
         corporation duly organized, validly existing and in good standing under
         the laws of the jurisdiction of its organization and has the corporate
         power to own its assets and to transact the business in which it is
         currently engaged. The Servicer is duly qualified to do business as a
         foreign corporation and is in good standing in each jurisdiction in
         which the character of the business transacted by it or properties
         owned or leased by it requires such qualification and in which the
         failure so to qualify would have a material adverse effect on the
         business, properties, assets, or condition (financial or otherwise) of
         the Servicer or the Trust. The Servicer is properly licensed in each
         jurisdiction to the extent required by the laws of such jurisdiction to
         service the Contracts in accordance with the terms hereof other than
         such licenses the failure to obtain would not have a material adverse
         effect on the business, properties, assets, or condition (financial or
         otherwise) of the Servicer or on the ability of the Servicer to perform
         its obligations hereunder..

                  (b) AUTHORIZATION; BINDING OBLIGATIONS. The Servicer has the
         power and authority to make, execute, deliver and perform this
         Agreement and the other Transaction Documents to which the Servicer is
         a party and all of the transactions contemplated under this Agreement
         and the other Transaction Documents to which the Servicer is a party,
         and has taken all necessary corporate action to authorize the
         execution, delivery and performance of this Agreement and the other
         Transaction Documents to which the Servicer is a party. This Agreement
         and the other Transaction Documents to which the Servicer is a party
         constitute the legal, valid and binding obligation of the Servicer
         enforceable in accordance with their terms, except as enforcement of
         such terms may be limited by bankruptcy, insolvency or similar laws
         affecting the enforcement of creditors' rights generally and by the
         availability of equitable remedies.

                  (c) NO CONSENT REQUIRED. The Servicer is not required to
         obtain the consent of any other party or any consent, license, approval
         or authorization from, or registration or declaration with, any
         governmental authority, bureau or agency in connection with the
         execution, delivery, performance, validity or enforceability of this
         Agreement and the other Transaction Documents to which the Servicer is
         a party.

                  (d) NO VIOLATIONS. The execution, delivery and performance of
         this Agreement and the other Transaction Documents to which the
         Servicer is a party by the Servicer will not violate any provisions of
         any existing law or regulation or any order or decree of any court or
         of any Federal or state regulatory body or administrative agency having
         jurisdiction over the Servicer or any of its properties or the Articles
         of Incorporation or Bylaws of the Servicer, or constitute a material
         breach of any mortgage, indenture, contract or other agreement to which
         the Servicer is a party or by which the Servicer or any of the
         Servicer's properties may be bound, or result in the creation of or
         imposition of any security interest, lien, pledge, preference, equity
         or encumbrance of any

                                       28

<PAGE>

         kind upon any of its properties pursuant to the terms of any such
         mortgage, indenture, contract or other agreement, other than this
         Agreement.

                  (e) LITIGATION. No litigation or administrative proceeding of
         or before any court, tribunal or governmental body is currently
         pending, or to the knowledge of the Servicer threatened, against the
         Servicer or any of its properties or with respect to this Agreement,
         any other Transaction Document to which the Servicer is a party which,
         if adversely determined, would in the opinion of the Servicer have a
         material adverse effect on the business, properties, assets or
         condition (financial or otherwise) of the Servicer or the Trust or the
         transactions contemplated by this Agreement or any other Transaction
         Document to which the Servicer is a party.

                                  ARTICLE FOUR

           PERFECTION OF TRANSFER AND PROTECTION OF SECURITY INTERESTS

         SECTION 4.01. CUSTODY OF CONTRACTS. (a) Subject to the terms and
conditions of this Section 4.01, the contents of each Contract File shall be
held in the custody of the Servicer for the benefit of, and as agent for, the
Trust as the owner thereof.

         (b) The Servicer agrees to maintain the related Contract Files at
its offices where they are currently maintained, or at such other offices of
the Servicer in the State of Nevada as shall from time to time be identified
to the Trustees by written notice. The Servicer may temporarily move
individual Contract Files or any portion thereof without notice as necessary
to conduct collection and other servicing activities in accordance with its
customary practices and procedures; PROVIDED, HOWEVER, that the Servicer will
take all action necessary to maintain the perfection of the Trust's interest
in the Contracts and the proceeds thereof. It is intended that by the
Servicer's agreement pursuant to Section 4.01(a) above and this Section
4.01(b) the Trustees shall be deemed to have possession of the Contract Files
for purposes of Section 9-305 of the Uniform Commercial Code of the State in
which the Contract Files are located.

         (c) As custodian, the Servicer shall have the following powers and
perform the following duties:

                  (i) hold the Contract Files on behalf of the Trust, maintain
         accurate records pertaining to each Contract to enable it to comply
         with the terms and conditions of this Agreement, maintain a current
         inventory thereof, conduct annual physical inspections of Contract
         Files held by it under this Agreement and certify to the Owner Trustee
         and the Indenture Trustee annually that it continues to maintain
         possession of such Contract Files;

                  (ii) implement policies and procedures in writing and signed
         by a Servicing Officer with respect to persons authorized to have
         access to the Contract Files on the

                                       29

<PAGE>

         Servicer's premises and the receipting for Contract Files taken from
         their storage area by an employee of the Servicer for purposes of
         servicing or any other purposes;

                  (iii) attend to all details in connection with maintaining
         custody of the Contract Files on behalf of the Trust;

                  (iv)  at all times maintain the original of the fully executed
         Contract and store such original Contract in a fireproof vault;

                  (v)   stamp each Contract on both the first and the signature
         page (if different) as of the Closing Date (or Subsequent Transfer
         Date, as the case may be) in the form attached hereto as EXHIBIT L;

                  (vi)  within 30 days of the Closing Date (or Subsequent
         Transfer Date, as the case may be) deliver an Officer's Certificate to
         the Owner Trustee and the Indenture Trustee certifying that as of a
         date no earlier than the Closing Date (or Subsequent Transfer Date, as
         the case may be) it has conducted an inventory of the Contract Files
         (which in the case of Subsequent Contracts, need be only of the
         Contract Files related to such Subsequent Contracts) and that there
         exists a Contract File for each Contract and stating all exceptions to
         such statement, if any; and

                  (vii) within 185 days of the Closing Date (or Subsequent
         Transfer Date, as the case may be) deliver an Officer's Certificate to
         the Owner Trustee listing each Contract with respect to which there did
         not exist as of 180 days of the Closing Date (or Subsequent Transfer
         Date, as the case may be) an original title certificate to the
         motorcycle and the certificate of lien recordation relating thereto.

         (d) In performing its duties under this Section 4.01, the Servicer
agrees to act with reasonable care, using that degree of skill and care that
it exercises with respect to similar contracts for the installment purchase
of consumer goods owned and/or serviced by it, and in any event with no less
degree of skill and care than would be exercised by a prudent servicer of
motorcycle conditional sales contracts. The Servicer shall promptly report to
the Owner Trustee and the Indenture Trustee any failure by it to hold the
Contract Files as herein provided and shall promptly take appropriate action
to remedy any such failure. In acting as custodian of the Contract Files, the
Servicer further agrees not to assert any legal or beneficial ownership
interest in the Contracts or the Contract Files, except as provided in
Section 5.06. The Servicer agrees to indemnify the Noteholders, the
Certificateholder, the Owner Trustee and the Indenture Trustee for any and
all liabilities, obligations, losses, damages, payments, costs, or expenses
of any kind whatsoever which may be imposed on, incurred by or asserted
against the Noteholders, the Certificateholder, the Owner Trustee and the
Indenture Trustee as the result of any act or omission by the Servicer
relating to the maintenance and custody of the Contract Files; PROVIDED,
HOWEVER, that the Servicer will not be liable for any portion of any such
amount resulting from the gross negligence or willful misconduct of any
Noteholder, Certificateholder, the Owner Trustee or the Indenture Trustee.
The Trustees shall have no duty to monitor or otherwise oversee the
Servicer's performance as custodian hereunder.

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<PAGE>

         SECTION 4.02. FILING. On or prior to the Closing Date, the Servicer
shall cause the UCC financing statement(s) referred to in Section 2.02(g)
hereof to be filed and from time to time the Servicer shall take and cause to
be taken such actions and execute such documents as are necessary or
desirable or as the Owner Trustee or Indenture Trustee may reasonably request
to perfect and protect the Trust's first priority perfected interest in the
Trust Corpus against all other persons, including, without limitation, the
filing of financing statements, amendments thereto and continuation
statements, the execution of transfer instruments and the making of notations
on or taking possession of all records or documents of title.

         SECTION 4.03. NAME CHANGE OR RELOCATION. (a) During the term of this
Agreement, neither the Seller nor the Trust Depositor shall change its name,
identity or structure or relocate its chief executive office without first
giving at least 30 days' prior written notice to the Owner Trustee and the
Indenture Trustee.

         (b) If any change in either the Seller's or the Trust Depositor's
name, identity or structure or other action would make any financing or
continuation statement or notice of lien filed under this Agreement seriously
misleading within the meaning of applicable provisions of the UCC or any
title statute, the Servicer, no later than five days after the effective date
of such change, shall file such amendments as may be required to preserve and
protect the Trust's interests in the Trust Corpus and the proceeds thereof.
In addition, neither the Seller nor the Trust Depositor shall change its
place of business (within the meaning of Article 9 of the UCC) from the
location specified in SECTION 11.04 unless it has first taken such action as
is advisable or necessary to preserve and protect the Trust's interest in the
Trust Corpus. Promptly after taking any of the foregoing actions, the
Servicer shall deliver to the Owner Trustee and the Indenture Trustee an
opinion of counsel reasonably acceptable to the Owner Trustee and the
Indenture Trustee stating that, in the opinion of such counsel, all financing
statements or amendments necessary to preserve and protect the interests of
the Trust in the Trust Corpus and the Indenture Trustee in the Collateral
have been filed, and reciting the details of such filing.

         SECTION 4.04. CHIEF EXECUTIVE OFFICE. During the term of this
Agreement, the Trust Depositor will maintain its chief executive office in
one of the States of the United States, except Louisiana, Tennessee,
Colorado, Kansas, New Mexico, Oklahoma, Utah or Wyoming.

         SECTION 4.05. COSTS AND EXPENSES. The Servicer agrees to pay all
reasonable costs and disbursements in connection with the perfection and the
maintenance of perfection, as against all third parties, of the Trust's
right, title and interest in and to the Contracts (including, without
limitation, the security interest in the Motorcycles granted thereby).

                                  ARTICLE FIVE

                             SERVICING OF CONTRACTS

         SECTION 5.01. RESPONSIBILITY FOR CONTRACT ADMINISTRATION. The Servicer
will have the sole obligation to manage, administer, service and make
collections on the Contracts and

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<PAGE>

perform or cause to be performed all contractual and customary undertakings
of the holder of the Contracts to the Obligor. The Owner Trustee, at the
written request of a Servicing Officer, shall furnish the Servicer with any
powers of attorney or other documents necessary or appropriate in the opinion
of the Owner Trustee to enable the Servicer to carry out its servicing and
administrative duties hereunder. The Servicer is hereby appointed the
servicer hereunder until such time as any Service Transfer may be effected
under Article VIII.

         SECTION 5.02. STANDARD OF CARE. In managing, administering,
servicing and making collections on the Contracts pursuant to this Agreement,
the Servicer will exercise that degree of skill and care consistent with the
skill and care that the Servicer exercises with respect to similar contracts
serviced by the Servicer, and, in any event no less degree of skill and care
than would be exercised by a prudent servicer of motorcycle conditional sales
contracts; PROVIDED, HOWEVER, that notwithstanding the foregoing, the
Servicer shall not release or waive the right to collect the unpaid balance
of any Contract except that with respect to a Contract that has become a
Defaulted Contract, the Servicer, consistent with its collection policies,
may release or waive the right to collect the unpaid balance of such
Defaulted Contract in an effort to maximize collections thereon.

         SECTION 5.03. RECORDS. The Servicer shall, during the period it is
servicer hereunder, maintain such books of account and other records as will
enable the Owner Trustee and the Indenture Trustee to determine the status of
each Contract.

         SECTION 5.04. INSPECTION. (a) At all times during the term hereof,
the Servicer shall afford the Owner Trustee and the Indenture Trustee and
their respective authorized agents reasonable access during normal business
hours to the Servicer's records relating to the Contracts and will cause its
personnel to assist in any examination of such records by the Owner Trustee
or the Indenture Trustee, or such authorized agents and allow copies of the
same to be made. The examination referred to in this Section will be
conducted in a manner which does not unreasonably interfere with the
Servicer's normal operations or customer or employee relations. Without
otherwise limiting the scope of the examination the Owner Trustee or the
Indenture Trustee may, using generally accepted audit procedures, verify the
status of each Contract and review the Computer Disk and records relating
thereto for conformity to Monthly Reports prepared pursuant to Article IX and
compliance with the standards represented to exist as to each Contract in
this Agreement.

         (b) At all times during the term hereof, the Servicer shall keep
available a copy of the List of Contracts at its principal executive office
for inspection by the Trustees.

         SECTION 5.05. TRUST ACCOUNTS. (a) On or before the Closing Date, the
Trust Depositor shall establish the Collection Account, Note Distribution
Account, Pre-Funding Account and Reserve Fund, each with and in the name of
the Indenture Trustee for the benefit of the Noteholders. The Indenture
Trustee is hereby required to ensure that each of the Trust Accounts is
established and maintained as an Eligible Account.

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<PAGE>

         (b) The Indenture Trustee shall deposit (or the Servicer shall
deposit, with respect to payments by or on behalf of the Obligors received
directly by the Servicer), without deposit into any intervening account, into
the Collection Account as promptly as practical (but in any case not later
than the second Business Day following the receipt thereof):

                  (i)   With respect to principal and interest on the Contracts
         received on or after the Initial Cutoff Date or Subsequent Cutoff Date,
         as applicable (which for the purpose of this paragraph (b)(i) shall
         include those monies in the Lockbox Account allocable to principal and
         interest on the Contracts), all such amounts received by the Owner
         Trustee or Servicer;

                  (ii)  All Net Liquidation Proceeds related to the Contracts;

                  (iii) The aggregate of the Repurchase Prices for Contracts
         repurchased by the Trust Depositor as described in Section 7.08;

                  (iv)  All Advances made by the Servicer pursuant to
         Section 7.03(a);

                  (v)   All amounts paid by the Trust Depositor in connection
         with an optional repurchase of the Contracts described in Section 7.10;

                  (vi)  All amounts realized in respect of Carrying Charges
         transferred from the Interest Reserve Account as contemplated in
         Section 7.03(b); and

                  (vii) All amounts received in respect of interest, dividends,
         gains, income and earnings on investments of funds in the Trust
         Accounts (except the Reserve Fund and the Pre-Funding Account) as
         contemplated herein.

         (c) The Indenture Trustee shall, if amounts remain on deposit in the
Pre-Funding Account at the expiration of the Funding Period, make a demand,
immediately upon expiration of the Funding Period, upon the Trust Depositor
to cause to be deposited into the Collection Account the amount then in
deposit in the Pre-Funding Account.

         (d) If the Servicer so directs, in writing, the Indenture Trustee
shall invest the amounts in the Trust Accounts in Qualified Eligible
Investments that are payable on demand or that mature not later than one
Business Day prior to the next succeeding Distribution Date. Once such funds
are invested, the Indenture Trustee shall not change the investment of such
funds. Any loss on such investments shall be deposited in the applicable
Trust Account by the Servicer out of its own funds immediately as realized.
Funds in the Trust Accounts not so invested must be insured to the extent
permitted by law by the Bank Insurance Fund or the Savings Association
Insurance Fund of the Federal Deposit Insurance Corporation. Subject to the
restrictions herein, the Indenture Trustee may purchase a Qualified Eligible
Investment from itself or an Affiliate. Subject to the other provisions
hereof, the Indenture Trustee shall have sole control over each such
investment and the income thereon, and any certificate or other instrument
evidencing any such investment, if any, shall be delivered directly to the
Indenture Trustee or its agent, together

                                       33

<PAGE>

with each document of transfer, if any, necessary to transfer title to such
investment to the Indenture Trustee in a manner which complies with this
Section 5.05(d). All interest, dividends, gains upon sale and other income
from, or earnings on, investments of funds in the Trust Accounts (other than
the Reserve Fund and the Pre-Funding Account) shall be deposited in the
Collection Account pursuant to Section 5.05(b) and distributed on the next
Distribution Date pursuant to Section 7.05. The Trust Depositor and the Trust
agree and acknowledge that the Indenture Trustee is to have "CONTROL" (within
the meaning of Section 8-102 of the UCC as enacted in Illinois) of collateral
comprised of "INVESTMENT PROPERTY" (within the meaning of Section 9-115 of
the UCC as enacted in Illinois) for all purposes of this Agreement.

         (e) Notwithstanding anything to the contrary herein, the Servicer
may remit payments on the Contracts and Net Liquidation Proceeds to the
Collection Account in next-day funds or immediately available funds no later
than 10:00 a.m., Central time, on the Business Day prior to the next
succeeding Distribution Date, but only for so long as (i) the short-term debt
security rating of the Servicer is at least "P-1" by Moody's and "A-1+" by
Standard & Poor's or (ii) the long-term debt security rating of the Servicer
is at least "A2" by Moody's and "A" by Standard & Poor's.

         (f) The Servicer shall apply collections received in respect of a
Contract as follows:

                  (i)   First, to accrued interest with respect to such
Contract;

                  (ii)  Second, to pay any expenses and unpaid late charges or
         extension fees (if any) due and owing under such Contract; and

                  (iii) Third, to principal to the extent due and owing under
         such Contract.

         (g) Any collections on a Contract remaining after application by the
Servicer in accordance with the provisions of SECTION 5.05(e) shall
constitute an excess payment (an "EXCESS PAYMENT"). Excess Payments
constituting prepayments of principal shall be applied as a prepayment of the
Principal Balance of such Contract. All other Excess Payments shall be
permitted to be retained by the Servicer.

         (h) The Servicer will, from time to time as provided herein, be
permitted to withdraw or request the withdrawal from the Collection Account
any amount deposited therein that, based on the Servicer's good-faith
determination, was deposited in error.

         SECTION 5.06. ENFORCEMENT. (a) The Servicer will, consistent with
SECTION 5.02, act with respect to the Contracts in such manner as will maximize
the receipt of all payments called for under the terms of the Contracts. The
Servicer shall use its best efforts to cause Obligors to make all payments on
the Contracts directly to the Lockbox Account. The Servicer will act in a
commercially reasonable manner with respect to the repossession and disposition
of a Motorcycle following a default under the related Contract with a view to
realizing proceeds at least equal to the Motorcycle's fair market value. If the
Servicer determines that eventual payment in full of a Contract is unlikely, the
Servicer will follow its normal practices and

                                       34

<PAGE>

procedures to recover all amounts due upon that Contract, including
repossessing and disposing of the related Motorcycle at a public or private
sale or taking other action permitted by applicable law. The Servicer will be
entitled to recover all reasonable out-of-pocket expenses incurred by it in
liquidating a Contract and disposing of the related Motorcycle.

         (b) The Servicer may sue to enforce or collect upon Contracts, in
its own name, if possible, or as agent for the Trustees. If the Servicer
elects to commence a legal proceeding to enforce a Contract, the act of
commencement shall be deemed to be an automatic assignment of the Contract to
the Servicer for purposes of collection only. If, however, in any enforcement
suit or legal proceeding it is held that the Servicer may not enforce a
Contract on the ground that it is not a real party in interest or a holder
entitled to enforce the Contract, the Owner Trustee (or the Indenture
Trustee) on behalf of the Trust shall, at the Servicer's expense, take such
steps as the Servicer deems reasonably necessary to enforce the Contract,
including bringing suit in its name or the names of the Noteholders under the
Indenture and the Certificateholder as owner of the Trust.

         (c) The Servicer shall exercise any rights of recourse against third
persons that exist with respect to any Contract in accordance with the
Servicer's usual practice. In exercising recourse rights, the Servicer is
authorized on the Trust's behalf to reassign the Defaulted Contract or the
related Motorcycle to the Person against whom recourse exists at the price
set forth in the document creating the recourse; PROVIDED, HOWEVER, the
Servicer in exercising recourse against any third persons as described in the
immediately preceding sentence shall do so in such manner as to maximize the
aggregate recovery with respect to the Contract; and PROVIDED FURTHER,
HOWEVER, that notwithstanding the foregoing the Servicer in its capacity as
such may exercise such recourse only if such Contract (i) was not required to
be repurchased by the Seller pursuant to the Transfer and Sale Agreement or
(ii) was required to be repurchased by the Seller and the Seller has
defaulted on such repurchase obligation.

         (d) The Servicer will not permit any rescission or cancellation of
any Contract due to the acts or omissions of the Trust Depositor.

         (e) The Servicer may grant to the Obligor on any Contract an
extension of payments due under such Contract; PROVIDED that (i) the
extension period is limited to 45 days, (ii) the Obligor has not received an
extension during the previous twelve-month period, (iii) the evidence
supports the Obligor's willingness and capability to resume monthly payments,
(iv) such extension is consistent with the Servicer's customary servicing
procedures and is consistent with Section 5.02, (v) such extension does not
extend the maturity date of the Contract beyond the latest maturity date of
any of the Contracts as of the Initial Cutoff Date (or, if a transfer of
Subsequent Contracts to the Trust occurs, beyond the latest maturity date of
such Subsequent Contracts) and (vi) the aggregate Principal Balances of
Contracts which have had extensions granted does not exceed more than 3.00%
of the aggregate of the Initial Class A-1 Note Balance, the Initial Class A-2
Note Balance and the Initial Class B Note Balance.

         (f) The Servicer will not add to the outstanding Principal Balance
of any Contract the premium of any physical damage or other individual
insurance on a Motorcycle securing such

                                       35

<PAGE>

Contract it obtains on behalf of the Obligor under the terms of such
Contract, but may create a separate Obligor obligation with respect to such
premium if and as provided by the Contract.

         (g) If the Servicer shall have repossessed a Motorcycle on behalf of
the Trust, the Servicer shall either (i) maintain at its expense physical
damage insurance with respect to such Motorcycle, or (ii) indemnify the Trust
against any damage to such Motorcycle prior to resale or other disposition.
The Servicer shall not allow such repossessed Motorcycles to be used in an
active trade or business, but rather shall dispose of the Motorcycle in a
reasonable time in accordance with the Servicer's normal business practices.

         SECTION 5.07. TRUSTEES TO COOPERATE. Upon payment in full on any
Contract, the Servicer will notify the Trustees and the Trust Depositor on
the next succeeding Distribution Date by certification of a Servicing Officer
(which certification shall include a statement to the effect that all amounts
received in connection with such payments which are required to be deposited
in the Collection Account pursuant to Section 5.05 have been so deposited)
and shall (if the Servicer is not then in possession of the Contracts and
Contract Files) request delivery of the Contract and Contract File to the
Servicer. Upon receipt of such delivery and request, the Trustees shall
promptly release or cause to be released such Contract and Contract File to
the Servicer. Upon receipt of such Contract and Contract File, each of the
Trust Depositor and the Servicer is authorized to execute an instrument in
satisfaction of such Contract and to do such other acts and execute such
other documents as the Servicer deems necessary to discharge the Obligor
thereunder and eliminate the security interest in the Motorcycle related
thereto. The Servicer shall determine when a Contract has been paid in full;
to the extent that insufficient payments are received on a Contract credited
by the Servicer as prepaid or paid in full and satisfied, the shortfall shall
be paid by the Servicer out of its own funds. From time to time as
appropriate for servicing and repossession in connection with any Contract,
if the Servicer is not then in possession of the Contracts and Contract
Files, the Indenture Trustee shall, upon written request of a Servicing
Officer and delivery to the Indenture Trustee of a receipt signed by such
Servicing Officer, cause the original Contract and the related Contract File
to be released to the Servicer and shall execute such documents as the
Servicer shall deem reasonably necessary to the prosecution of any such
proceedings. Such receipt shall obligate the Servicer to return the original
Contract and the related Contract File to the Indenture Trustee when the need
by the Servicer has ceased unless the Contract shall be repurchased as
described in Section 7.10. Upon request of a Servicing Officer, the Indenture
Trustee shall perform such other acts as reasonably requested by the Servicer
and otherwise cooperate with the Servicer in the enforcement of the
Certificateholder's rights and remedies with respect to Contracts.

         SECTION 5.08. COSTS AND EXPENSES. All costs and expenses incurred by
the Servicer in carrying out its duties hereunder, fees and expenses of
accountants and payments of all fees and expenses incurred in connection with
the enforcement of Contracts (including enforcement of defaulted Contracts
and repossessions of Motorcycles securing such Contracts when such Contracts
are not repurchased pursuant to Section 7.08) and all other fees and expenses
not expressly stated hereunder to be for the account of the Trust shall be
paid by the Servicer and the Servicer shall not be entitled to reimbursement
hereunder.

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<PAGE>

         SECTION 5.09. MAINTENANCE OF SECURITY INTERESTS IN MOTORCYCLES. The
Servicer shall take such steps as are necessary to maintain continuous
perfection and the first priority of the security interest created by each
Contract in the related Motorcycle. The Owner Trustee and the Indenture
Trustee hereby authorize the Servicer to take such steps as are necessary to
perfect such security interest and to maintain the first priority thereof in
the event of a relocation of a Motorcycle or for any other reason.

         SECTION 5.10. SUCCESSOR SERVICER/LOCKBOX AGREEMENTS. The Servicer
shall use its best efforts to cause Obligors to make all payments on the
Contracts directly to one or more Lockbox Banks, acting as agent for the
Trust pursuant to a Lockbox Agreement. In the event the Servicer shall for
any reason no longer be acting as such, the Successor Servicer shall
thereupon assume all of the rights and obligations of the outgoing servicer
under the Lockbox Agreement; PROVIDED, HOWEVER, that the Successor Servicer
shall not be liable for any acts or obligations of the Servicer prior to such
succession. In such event, the Successor Servicer shall be deemed to have
assumed all of the outgoing Servicer's interest therein and to have replaced
the outgoing Servicer as a party to each such Lockbox Agreement to the same
extent as if such Lockbox Agreement had been assigned to the Successor
Servicer, except that the outgoing Servicer shall not thereby be relieved of
any liability or obligations on the part of the outgoing Servicer to the
Lockbox Bank under such Lockbox Agreement. The outgoing Servicer shall, upon
the request of the Owner Trustee, but at the expense of the outgoing
Servicer, deliver to the Successor Servicer all documents and records
relating to each such Lockbox Agreement and an accounting of amounts
collected and held by the Lockbox Bank and otherwise use its best efforts to
effect the orderly and efficient transfer of any Lockbox Agreement to the
Successor Servicer.

         SECTION 5.11. SEPARATE ENTITY EXISTENCE. The Servicer agrees to take
or refrain from taking or engaging in with respect to the Trust Depositor, as
applicable, each of the actions or activities specified in the "substantive
consolidation" opinion of Winston & Strawn (or in any related Certificate of
the Servicer) delivered on the Closing Date, upon which the conclusions
expressed therein are based.

                                  ARTICLE SIX

                               THE TRUST DEPOSITOR

         SECTION 6.01. COVENANTS OF THE TRUST DEPOSITOR.

                  (a) During the term of this Agreement, the Trust Depositor
will keep in full force and effect its existence, rights and franchises as a
corporation under the laws of the jurisdiction of its incorporation and will
obtain and preserve its qualification to do business in each jurisdiction in
which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the other Transaction Documents and each
other instrument or agreement necessary or appropriate to the proper
administration of this Agreement and the transactions contemplated hereby.

                                       37



<PAGE>

                  (b) ARM'S LENGTH TRANSACTIONS. During the term of this
Agreement, all transactions and dealings between the Trust Depositor and its
Affiliates will be conducted on an arm's-length basis.

                  (c) NO OTHER BUSINESS. The Trust Depositor shall not engage
in any business other than financing, purchasing, owning, selling and managing
the Contracts in the manner contemplated by this Agreement and the other
Transaction Documents and activities incidental thereto; PROVIDED, HOWEVER,
that the Trust Depositor may purchase and sell (or grant Liens in respect of)
contracts and/or other related assets similar to the Contracts to other Persons
in securitization or other non-recourse financing transactions involving the
Seller or any of its Affiliates (or with respect to the Contract Assets
themselves, following a release and reconveyance thereof from the Trust), on
terms and conditions (with respect to the liabilities imposed upon the Trust
Depositor by virtue of such transactions, as well as in respect of agreements
or restrictions concerning activities of the Trust Depositor and its relations
or interactions with the Seller or the Servicer or other applicable Affiliate
relevant to "bankruptcy remoteness" or "substantive consolidation" analysis),
in each case substantially similar to such terms and conditions applicable to
the Trust Depositor hereunder and under the other Transaction Documents.

                  (d) NO BORROWING. The Trust Depositor shall not issue, incur,
assume, guarantee or otherwise become liable, directly or indirectly, for (i)
any Indebtedness except for any Indebtedness permitted by or arising under the
Transaction Documents or (ii) obligations in connection with transactions
described in the proviso of SECTION 6.01(c), as limited thereby. The proceeds
of the Notes shall be used exclusively to fund the Trust Depositor's purchase
of the Contracts and the other assets specified in this Agreement and to pay
the transactional expenses of the Trust Depositor.

                  (e) GUARANTEES, LOANS ADVANCES AND OTHER LIABILITIES. Except
as otherwise contemplated by the Transaction Documents or in connection with
transactions described in SECTION 6.01(c), as limited thereby, the Trust
Depositor shall not make any loan or advance or credit to, or guarantee
(directly or indirectly or by an instrument having the effect of assuming
another's payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or
indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock,
obligations, assets or securities of, any other interest in, or make any
capital contribution to, any other Person.

                  (f) CAPITAL EXPENDITURES. The Trust Depositor shall not make
any expenditure (by long-term or operating lease or otherwise) for capital
assets (either realty or personalty).

                  (g) RESTRICTED PAYMENTS. Except as permitted or contemplated
by the Transaction Documents, the Trust Depositor shall not, directly or
indirectly, (i) pay any dividend or make any distribution (by reduction of
capital or otherwise), whether in cash, property, securities or a combination
thereof, to any owner of an equity interest in the Trust Depositor, (ii)

                                      38

<PAGE>

redeem, purchase, retire or otherwise acquire for value any such equity
interest or (iii) set aside or otherwise segregate any amounts for any such
purpose; it being understood that the Trust Depositor shall at all times have
the right to distribute funds received pursuant to the Transaction Documents to
its equity owner.

                  (h) SEPARATE ENTITY EXISTENCE.   The Trust Depositor shall:

                      (i)   Maintain its own deposit account or accounts,
         separate from those of any Affiliate, with commercial banking
         institutions. The funds of the Trust Depositor will not be diverted to
         any other Person or for other than authorized uses of the Trust
         Depositor.

                      (ii)  Ensure that, to the extent that it shares the
         same officers or other employees as any of its members or Affiliates,
         the salaries of and the expenses related to providing benefits to such
         officers and other employees shall be fairly allocated among such
         entities, and each such entity shall bear its fair share of the salary
         and benefit costs associated with all such common officers and
         employees.

                      (iii) Ensure that, to the extent that it jointly
         contracts with any of its members or Affiliates to do business with
         vendors or service providers or to share overhead expenses, the costs
         incurred in so doing shall be allocated fairly among such entities,
         and each such entity shall bear its fair share of such costs. To the
         extent that the Trust Depositor contracts or does business with
         vendors or service providers when the goods and services provided are
         partially for the benefit of any other Person, the costs incurred in
         so doing shall be fairly allocated to or among such entities for whose
         benefit the goods and services are provided, and each such entity
         shall bear its fair share of such costs. All material transactions
         between Trust Depositor and any of its Affiliates shall be only on an
         arm's length basis.

                      (iv)  To the extent that the Trust Depositor and any
         of its members or Affiliates have offices in the same location, there
         shall be a fair and appropriate allocation of overhead costs among
         them, and each such entity shall bear its fair share of such expenses.

                      (v)   Conduct its affairs strictly in accordance with
         its By-laws and Articles of Incorporation, and observe all necessary,
         appropriate and customary limited liability company formalities,
         including, but not limited to, holding all regular and special members'
         and directors' meetings appropriate to authorize all entity action,
         keeping separate and accurate records of such meetings and its actions,
         passing all resolutions or consents necessary to authorize actions
         taken or to be taken, and maintaining accurate and separate books,
         records and accounts, including, but not limited to, payroll and
         intercompany transaction accounts.

                      (vi)  Take or refrain from taking or engaging in, as
         applicable, each of the actions or activities specified in the "true
         sale" and "substantive consolidation"


                                      39
<PAGE>

         opinions of Winston & Strawn delivered on the Closing Date (or in any
         related certificate delivered in connection therewith), upon which the
         conclusions expressed therein are based.

         SECTION 6.02. LIABILITY OF TRUST DEPOSITOR; INDEMNITIES. The Trust
Depositor shall be liable in accordance herewith only to the extent of the
obligations specifically undertaken by the Trust Depositor under this Agreement.

         The Trust Depositor shall indemnify, defend and hold harmless the
Issuer, the Owner Trustee, WTC, the Indenture Trustee and the Servicer from and
against any taxes that may at any time be asserted against any such Person with
respect to the transactions contemplated herein and in the other Transaction
Documents, including any sales, gross receipts, general corporation, tangible
personal property, Illinois personal property replacement privilege or license
taxes (but, in the case of the Issuer, not including any taxes asserted with
respect to, and as of the date of, the sale of the Contracts to the Issuer or
the issuance and original sale of the Securities, or asserted with respect to
ownership of the Contracts, or federal or other income taxes arising out of
distributions on the Certificate or the Notes) and costs and expenses in
defending against the same.

         The Trust Depositor shall indemnify, defend and hold harmless the
Issuer, the Owner Trustee, WTC, the Indenture Trustee and the Securityholders
from and against any loss, liability or expense incurred by reason of the Trust
Depositor's willful misfeasance, bad faith or negligence (other than errors in
judgment) in the performance of its duties under this Agreement, or by reason
of reckless disregard of its obligations and duties under this Agreement.

         The Trust Depositor shall indemnify, defend and hold harmless the
Issuer, the Owner Trustee, WTC and the Indenture Trustee from and against all
costs, expenses, losses, claims, damages and liabilities arising out of or
incurred in connection with the acceptance or performance of the trusts and
duties herein and, in the case of the Owner Trustee, in the Trust Agreement
and, in the case of the Indenture Trustee, in the Indenture, except to the
extent that such cost, expense, loss, claim, damage or liability in the case of
(i) the Owner Trustee or WTC, as the case may be, shall be due to the willful
misfeasance, bad faith or negligence of the Owner Trustee or WTC, as the case
may be, or shall arise from the breach by the Owner Trustee or WTC, as the case
may be, of any of its representations or warranties set forth in Section 7.03
of the Trust Agreement, or (ii) the Indenture Trustee, shall be due to the
willful misfeasance, bad faith or negligence of the Indenture Trustee.

         The Trust Depositor shall be liable directly to and will indemnify any
injured party or any other creditor of the Trust for all losses, claims,
damages, liabilities and expenses of the Trust to the extent that Trust
Depositor would be liable if the Trust were a partnership under the Delaware
Revised Uniform Limited Partnership Act in which Trust Depositor were a general
partner; PROVIDED, HOWEVER, that Trust Depositor shall not be liable for any
losses incurred by a Certificateholder in the capacity of an investor in the
Trust Certificate or a Noteholder in the capacity of an investor in the Notes.
In addition, any third party creditors of the Trust (other than in connection
with the obligations described in the immediately preceding sentence for which


                                      40
<PAGE>

Trust Depositor shall not be liable) shall be deemed third party beneficiaries
of this paragraph. The obligations of Trust Depositor under this paragraph
shall be evidenced by the Trust Certificate described in the Trust Agreement.

         Indemnification under this Section shall include, without limitation,
reasonable fees and expenses of counsel and expenses of litigation and shall
survive the termination of the Trust and the resignation or removal of the
Trustees. If the Trust Depositor shall have made any indemnity payments
pursuant to this Section and the Person to or on behalf of whom such payments
are made thereafter shall collect any of such amounts from others, such Person
shall promptly repay such amounts to the Trust Depositor, without interest.

         Notwithstanding anything to the contrary herein, the obligations of
the Trust Depositor under this Section are solely the corporate obligations of
the Trust Depositor and shall be payable by it solely as provided in this
Section. The Trust Depositor shall only be required to make such contributions
required under this Section, (y) from funds available to it pursuant to, and in
accordance with the payment priorities set forth in SECTION 7.05 and (z) only
to the extent that it receives additional funds designated for such purposes or
to the extent that it has additional funds available (other than funds
described in the preceding clause (y)) that would be in excess of amounts that
would be necessary to pay the debt and other obligations of such entity
incurred in accordance with its certificate of incorporation and all financing
documents to which it is a party as they come due. In addition , no amount
owing by the Trust Depositor hereunder in excess of the liabilities that it is
required to pay in accordance with the preceding sentence shall constitute a
"claim" (as defined in Section 101(5) of the Bankruptcy Code) against it. No
recourse shall be had for the payment of any amount owing hereunder or any
other obligation of, or claim against the Trust Depositor arising out of or
based up on this Section against any stockholder, employee, officer, agent,
director or authorized person of the Trust Depositor or Affiliate thereof;
provided, however, that the foregoing shall not relieve any such person or
entity of any liability they might otherwise have as a result of fraudulent
actions or omissions taken by them.

         SECTION 6.03. MERGER OR CONSOLIDATION OF, OR ASSUMPTION OF THE
OBLIGATIONS OF, TRUST DEPOSITOR; CERTAIN LIMITATIONS. Notwithstanding any other
provision in this Section and any provision of law, the Trust Depositor shall
not do any of the following:

                  (a) engage in any business or activity other than as set forth
         in its  Articles of Incorporation;

                  (b) without the affirmative vote of a majority of the members
         of the Board of Directors of the Trust Depositor (which must include
         the affirmative vote of at least two duly appointed Independent
         directors) (i) dissolve or liquidate, in whole or in part, or institute
         proceedings to be adjudicated bankrupt or insolvent, (ii) consent to
         the institution of bankruptcy or insolvency proceedings against it,
         (iii) file a petition seeking or consent to reorganization or relief
         under any applicable federal or state law relating to bankruptcy, (iv)
         consent to the appointment of a receiver, liquidator, assignee,
         trustee, sequestrator (or other similar official) of the corporation or
         a substantial part of its


                                      41
<PAGE>

         property, (v) make a general assignment for the benefit of creditors,
         (vi) admit in writing its inability to pay its debts generally as they
         become due, or (vii) take any corporate action in furtherance of the
         actions set forth in clauses (i) through (vi) above; PROVIDED, HOWEVER,
         that no director may be required by any shareholder of the Trust
         Depositor to consent to the institution of bankruptcy or insolvency
         proceedings against the Trust Depositor so long as it is solvent; or

                  (c) merge or consolidate with any other corporation, company
         or entity or sell all or substantially all of its assets or acquire all
         or substantially all of the assets or capital stock or other ownership
         interest of any other corporation, company or entity unless the Person
         formed by such consolidation or into which the Trust Depositor has
         merged or the Person which acquires by conveyance, transfer or lease
         substantially all the assets of the Trust Depositor as an entirety, can
         lawfully perform the obligations of the Trust Depositor hereunder and
         executes and delivers to the Owner Trustee and the Indenture Trustee an
         agreement in form and substance reasonably satisfactory to the Owner
         Trustee and the Indenture Trustee which contains an assumption by such
         successor entity of the due and punctual performance and observance of
         each covenant and condition to be performed or observed by the Trust
         Depositor under this Agreement; PROVIDED that the Trust Depositor shall
         provide notice of any merger, consolidation or succession pursuant to
         this Section to each Rating Agency and shall receive from each Rating
         Agency a letter to the effect that such merger, consolidation or
         succession will not result in a qualification, downgrading or
         withdrawal of the then-current ratings of each Class of Notes.

         SECTION 6.04. LIMITATION ON LIABILITY OF TRUST DEPOSITOR AND OTHERS.
The Trust Depositor and any director or officer or employee or agent of the
Trust Depositor may rely in good faith on any document of any kind, prima facie
properly executed and submitted by any Person respecting any matters arising
hereunder. The Trust Depositor and any director or officer or employee or agent
of the Trust Depositor shall be reimbursed by the Owner Trustee or the
Indenture Trustee, as the case may be, for any contractual damages, liability
or expense incurred by reason of the Owner Trustee's or the Indenture Trustee's
willful misfeasance, bad faith or negligence (except errors in judgment) in the
performance of their respective duties hereunder, or by reason of reckless
disregard of their respective obligations and duties hereunder. The Trust
Depositor shall not be under any obligation to appear in, prosecute or defend
any legal action that shall not be incidental to its obligations under this
Agreement, and that in its opinion may involve it in any expense or liability.

         SECTION 6.05. TRUST DEPOSITOR NOT TO RESIGN. Subject to the provisions
of Section 6.03, the Trust Depositor shall not resign from the obligations and
duties hereby imposed on it as Trust Depositor hereunder.



                                      42
<PAGE>

                                 ARTICLE SEVEN

                           DISTRIBUTIONS; RESERVE FUND

         SECTION 7.01. MONTHLY DISTRIBUTIONS. (a) Each Noteholder and
Certificateholder as of the related Record Date shall be paid on the next
succeeding Distribution Date by check mailed to such Noteholder or
Certificateholder at the address for such Noteholder or Certificateholder
appearing on the Note Register or Certificate Register or by wire transfer if
such Noteholder or Certificateholder provides written instructions to the
Indenture Trustee or the Owner Trustee, respectively, at least ten days prior
to such Distribution Date.

         (b) The Indenture Trustee shall serve as the paying agent hereunder
(the "PAYING AGENT") and shall make the payments to or on behalf of the
Noteholders and the Certificateholder required hereunder. The Indenture Trustee
hereby agrees that all amounts held by it for payment hereunder will be held in
trust for the benefit of the Noteholders and the Certificateholder.

         SECTION 7.02. FEES. The Indenture Trustee shall be paid the Indenture
Trustee Fee and the Servicer shall be paid the Monthly Servicing Fee, each of
which shall be paid solely from the monies and in accordance with the
priorities described in Section 7.05(a). No recourse may be had to the Seller,
Trust Depositor, Trustees, Servicer, or any of their respective Affiliates in
the event that amounts available under Section 7.05(a) are insufficient for
payment of the Indenture Trustee's Fee and the Monthly Servicing Fee.

         SECTION 7.03. ADVANCES; REALIZATION OF CARRYING CHARGE. (a) On each
Determination Date, the Servicer shall compute the amount of Delinquent
Interest, if any, on the Contracts for the immediately preceding Due Period.
Not later than each Determination Date, the Servicer shall advance (each, an
"ADVANCE") an amount equal to the Delinquent Interest for such Determination
Date by depositing such amount in the Collection Account; PROVIDED, HOWEVER,
that the Servicer shall be obligated to advance Delinquent Interest only to the
extent that the Servicer, in its sole discretion, expects that such advance
will not become an Uncollectible Advance. The Servicer shall indicate on each
Monthly Report (i) the amount of Delinquent Interest, if any, on the Contracts
for the related Due Period and (ii) the amount of the Advance, if any, made by
the Servicer in respect of the Delinquent Interest pursuant to this Section
7.03. If the amount of such Advance is less than the amount of the Delinquent
Interest, the relevant Monthly Report shall be accompanied by a certificate of
a Servicing Officer setting forth in reasonable detail the basis for the
determination by the Servicer that the portion of the Delinquent Interest not
advanced would become an Uncollectible Advance. By each Determination Date, the
Servicer shall determine the amount of prior unreimbursed Advances for which it
shall be entitled to be reimbursed pursuant to the provisions of this Section
(such amount, the "REIMBURSEMENT AMOUNT"). The Servicer shall be entitled to be
reimbursed for any outstanding Advance with respect to a Contract by means of a
first priority withdrawal from the Collection Account of such Reimbursement
Amount as provided in Section 7.05(a)(ii).


                                      43
<PAGE>

         (b) The Servicer shall determine no later than 12:00 noon, New York
City time, on the second Business Day prior to a Distribution Date the Carrying
Charges in respect of the upcoming Distribution Date. To the extent of such
amount, the Indenture Trustee shall transfer an amount equal to the Carrying
Charges from the Interest Reserve Account (solely to the extent of the amount
then on deposit) into the Collection Account as contemplated in Section
5.05(b)(vi) hereof.

         SECTION 7.04. INTEREST RESERVE ACCOUNT.

         (a) On or prior to the Closing Date, the Trust Depositor shall
establish with and in the name of the Indenture Trustee on behalf of the
Securityholders, an Eligible Account designated "HARLEY-DAVIDSON CUSTOMER
FUNDING CORP. INTEREST RESERVE ACCOUNT - HARLEY DAVIDSON MOTORCYCLE TRUST
2000-3 - BANK ONE, NATIONAL ASSOCIATION, AS INDENTURE TRUSTEE" (such account
being the "Interest Reserve Account").

         (b) No withdrawals may be made of funds in the Interest Reserve
Account except as provided in (c) below. Except as specifically provided, funds
in the Interest Reserve Account shall not be commingled with funds in any other
account established with respect to the Notes, the Certificate or with any
other monies.

         (c) All investment earnings realized in respect of amounts in the
Pre-Funding Account shall be deposited when and as received in the Interest
Reserve Account, such that the Pre-Funded Amount shall never exceed the amount
initially deposited into the Pre-Funding Account on the Closing Date. With
respect to amounts on deposit in the Interest Reserve Account, the Indenture
Trustee shall disburse from such funds the amount specified in respect of
Carrying Charges in accordance with Section 7.03 herein. In the event that (i)
the Funding Period has terminated, (ii) all amounts on deposit in the
Pre-Funding Account have been disbursed, (iii) a Distribution Date has elapsed
following the occurrence of both (i) and (ii), and (iv) all amounts referred to
in clause (ii) have been applied, then any amounts remaining in the Interest
Reserve Account shall be allocated and distributed to the Trust Depositor.

         SECTION 7.05. DISTRIBUTIONS; PRIORITIES.

         (a) Except as provided in SECTION 7.05(b) OR (c), on each Distribution
Date, the Indenture Trustee, at the Servicer's direction, will make the
following allocations and distributions of Available Monies in the following
order of priority:

             (i)   to the Mandatory Redemption Subaccount in the Note
         Distribution Account to the Noteholders, the amount of any Mandatory
         Redemption, PRO RATA (based on the outstanding principal amount of each
         Class of Notes), calculated on the then current principal balance of
         the Notes with the amounts derived from draws on the Pre-Funding
         Account (which amounts are available for payment of such Mandatory
         Redemptions and not for any other purpose); PROVIDED, HOWEVER, in the
         event the amount in the Mandatory Redemption subaccount is less than
         $150,000 such amount shall be distributed solely to the Class A-1
         Noteholders;


                                      44
<PAGE>

             (ii)  to the Servicer, the Reimbursement Amount to the Servicer
        for Advances previously made;

             (iii) to the Servicer, the Servicing Fee, including any unpaid
         Servicing Fee with respect to one or more prior Due Periods;

             (iv)  to the Indenture Trustee, any accrued and unpaid Indenture
         Trustee Fee with respect to one or more prior Due Periods;

             (v)   to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Note Interest
         Distributable Amount with respect to such Distribution Date for each
         Class of Notes allocated in the following order of priority:

                   (1) to the Class A-1 Noteholders and to the Class A-2
             Noteholders, the Note Interest Distributable Amount for each
             such Class of Notes; PROVIDED, HOWEVER, that if there are
             insufficient funds on deposit in the Note Distribution Account
             to pay the entire amount of the Note Interest Distributable
             Amount for each such Class of Notes, then the amount in the
             Note Distribution Account shall be applied to the Class A-1
             Notes and the Class A-2 Notes PRO RATA on the basis of the
             Note Interest Distributable Amount for each such Class of
             Notes; and

                   (2) to the Class B Noteholders, the Note Interest
             Distributable Amount for such Class of Notes;

             (vi)   to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Class A Note Principal
         Distributable Amount with respect to such Distribution Date, first, to
         the Class A-1 Notes until the Class A-1 Notes have been paid in full,
         and second, to the Class A-2 Notes until the Class A-2 Notes have been
         paid in full;

             (vii)  to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Class B Note Principal
         Distributable Amount to the Class B Notes until the Class B Notes have
         been paid in full;

             (viii) any Excess Amounts to the Reserve Fund up to the Specified
         Reserve Fund Balance; and

             (ix)   to the Holder of the Certificate.

         (b) If the Notes have been declared immediately due and payable as
provided in Section 5.02 of the Indenture following the occurrence of an Event
of Default under Section 5.01(iii) of the Indenture, then, until such time as
the Notes have been paid in full, Available Monies shall be allocated and
distributed in the following order of priority after payment of the amounts set
forth in Section 7.05(a)(i), (ii), (iii) and (iv):


                                      45
<PAGE>

             (i)   to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Note Interest
         Distributable Amount with respect to such Distribution Date for each
         Class of Notes allocated in the following order of priority:

                   (1) to the Class A-1 Noteholders and to the Class A-2
             Noteholders, the Note Interest Distributable Amount for each
             such Class of Notes; PROVIDED, HOWEVER, that if there are
             insufficient funds on deposit in the Note Distribution Account
             to pay the entire amount of the Note Interest Distributable
             Amount for each such Class of Notes, then the amount in the
             Note Distribution Account shall be applied to the Class A-1
             Notes and the Class A-2 Notes PRO RATA on the basis of the
             Note Interest Distributable Amount for each such Class; and

                   (2) to the Class B Noteholders, the Note Interest
             Distributable Amount for such Class of Notes;

             (ii)  to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, all amounts remaining
         after distribution of interest to each Class of Notes shall be
         allocated in the following order of priority:

                   (1) to the Class A Notes, PRO RATA (based on
             outstanding principal amount), until the outstanding principal
             balance of each Class of the Class A Notes has been reduced to
             zero; and

                   (2) to the Class B Notes, until the outstanding
             principal balance of the Class B Notes has been reduced to
             zero; and

             (iii) to the Holder of the Certificate.

         (c) If the Notes have been declared immediately due and payable as
provided in Section 5.02 of the Indenture following the occurrence of an Event
of Default under Section 5.01(i), (ii), (iv) or (v) of the Indenture, then,
until such time as the Notes have been paid in full, Available Monies shall be
allocated and distributed in the following order of priority after payment of
amounts set forth in Section 7.05(a)(i), (ii), (iii) and (iv):

             (i)   to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Note Interest
         Distributable Amount with respect to such Distribution Date for
         distribution to the Class A-1 Noteholders and to the Class A-2
         Noteholders, as applicable; PROVIDED, HOWEVER, that if there are
         insufficient funds on deposit in the Note Distribution Account to pay
         the entire amount of the Note Interest Distributable Amount for each
         such Class of Notes, then the amount in the Note Distribution Account
         shall be applied to the Class A-1 Notes and the Class A-2 Notes PRO
         RATA (on the basis of the Note Interest Distributable Amount for each
         such Class);


                                      46
<PAGE>

             (ii)  to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Class A Note Principal
         Distributable Amount for distribution to the Class A-1 Noteholders and
         the Class A-2 Noteholders in reduction of the outstanding principal
         amount of the Class A-1 Notes and Class A-2 Notes, as applicable,
         until the outstanding principal balance of the Class A-1 Notes and the
         Class A-2 Notes has been reduced to zero; provided, however, that if
         there are insufficient funds on deposit in the Note Distribution
         Account to reduce the outstanding principal balance of the Class A-1
         Notes and the Class A-2 Notes to zero, the amount in the Note
         Distribution Account shall be applied to the payment of principal on
         the Class A-1 Notes and the Class A-2 Notes PRO RATA (based on
         outstanding principal amount);

             (iii) to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Note Interest
         Distributable Amount with respect to such Distribution Date for
         distribution to the Class B Noteholders;

             (iv)  to the Note Distribution Account, together with any amounts
         deposited therein pursuant to Section 7.06, the Class B Note Principal
         Distributable Amount with respect to such Distribution Date for
         distribution to the Class B Noteholders in reduction of the
         outstanding principal amount of the Class B Notes until the
         outstanding principal balance of the Class B Notes has been reduced to
         zero; and

             (v)   to the Holder of the Certificate.

         SECTION 7.06. RESERVE FUND.

         (a) On or prior to the Closing Date, the Indenture Trustee, on behalf
of the Trust Depositor shall deposit the Reserve Fund Initial Deposit into the
Reserve Fund from the net proceeds of the Securities.

         (b) The Indenture Trustee shall determine no later than 10:00 a.m.,
Chicago, Illinois time, on the Distribution Date (but after making, and taking
into account, the determination, demand and transfer of funds contemplated in
Section 7.05 above) whether there exists a Shortfall with respect to the
upcoming Distribution Date. In the event that the Indenture Trustee determines
that there exists a Shortfall, the Indenture Trustee shall no later than 12:00
noon, Chicago, Illinois time, on such Distribution Date remit monies from the
Reserve Fund in the following order of priority: first, to the Note
Distribution Account; the amount of such Shortfall relating to the Note
Interest Distributable Amount and second, to the Note Distribution Account, the
amount of such Shortfall relating to the Note Principal Distributable Amount.

         (c) The Indenture Trustee shall at the written direction of the
Servicer invest the funds in the Reserve Fund in Qualified Eligible
Investments. Funds in the Reserve Fund shall be invested in investments that
are payable on demand or mature on or before the Business Day prior to each
Distribution Date. Once such funds are invested, the Indenture Trustee shall
not change the investment of such funds prior to maturity. Upon any such
investment, the Indenture Trustee shall, consistent with the definition of
Qualified Eligible Investment herein, make an


                                      47
<PAGE>

appropriate notation of the security interest in such Qualified Eligible
Investment on the Indenture Trustee's records, by book entry or otherwise. All
income and gain realized from any such investments as well as any interest
earned on Reserve Fund Deposits shall be deposited and retained in the Reserve
Fund (subject to Section 7.06(e)). Losses, if any, realized on amounts in the
Reserve Fund invested pursuant to this paragraph shall first be credited
against undistributed investment earnings on amounts in the Reserve Fund
invested pursuant to this paragraph, and shall thereafter be deemed to reduce
the amount on deposit in the Reserve Fund. Neither the Trust Depositor nor the
Indenture Trustee shall be liable for the amount of any loss incurred in
respect of any investment, or lack of investment, of funds held in the Reserve
Fund. All income or loss on funds held in the Reserve Fund shall be taxable to
the Trust Depositor.

         (d) Any Excess Amounts will be applied to the Specified Reserve Fund
Balance.

         (e) On each Distribution Date on which the amount on deposit in the
Reserve Fund (after giving effect to all deposits thereto and withdrawals
therefrom on such Distribution Date) is greater than the Specified Reserve Fund
Balance, the Indenture Trustee shall release its lien on any remaining amounts
to the Trust Depositor.

         SECTION 7.07. ESTABLISHMENT OF PRE-FUNDING ACCOUNT.

         (a) On or prior to the Closing Date, the Trust Depositor shall
establish with and in the name of the Indenture Trustee on behalf of the
Securityholders, an Eligible Account designated "HARLEY-DAVIDSON CUSTOMER
FUNDING CORP. PRE-FUNDING ACCOUNT - HARLEY DAVIDSON MOTORCYCLE TRUST 2000-3
-BANK ONE, NATIONAL ASSOCIATION, AS INDENTURE TRUSTEE" (such account being the
"Pre-Funding Account").

         (b) During the Funding Period, following receipt from the Trust
Depositor of an Addition Notice, and upon further receipt of a written demand
from the Trust Depositor for a disbursement of funds from the Pre-Funding
Account to be made on or before the date on which the Funding Period terminates
(which written demand must be delivered not later than one Business Day prior
to the requested date of funding and must be accompanied by the written consent
of the Indenture Trustee), the Indenture Trustee will disburse the amount
demanded from the Pre-Funding Account to Harley-Davidson Credit upon the order
of the Trust Depositor for the purpose of purchasing Subsequent Contracts from
Harley-Davidson Credit pursuant to a Subsequent Purchase Agreement. With
respect to amounts still remaining on deposit in the Pre-Funding Account on the
date upon which the Funding Period ends (and provided a timely written demand
for funding as described above has not been received requesting funding on such
date) the Indenture Trustee shall immediately transfer all funds remaining in
the Pre-Funding Account to the Note Distribution Account.

         (c) If (x) the Pre-Funded Amount has not been reduced to zero on the
Distribution Date on which the Funding Period ends (or, if the Funding Period
does not end on a Distribution Date, on the first Distribution Date following
the end of the Funding Period) or (y) the Pre-Funded Amount has been reduced to
$150,000 or less on any Determination Date, in either case after giving effect
to any reductions in the Pre-Funded Amount on such Distribution Date or


                                      48
<PAGE>

Determination Date pursuant to paragraph (a) above, the Trust Depositor shall
instruct the Indenture Trustee to withdraw from the Pre-Funding Account the
Pre-Funded Amount and, in the case of (x), on such Distribution Date or, in the
Determination Date (i) if the Pre-Funded Amount is less than $150,000, deposit
the Pre-Funded Amount in the Note Distribution Account for payment as principal
of the Class A-1 Notes up to the Outstanding Amount thereof and then for
payment of principal of the Class A-2 Notes and Class B Notes and (ii) if the
Pre-Funded Amount is equal to or greater than $150,000, deposit the Pre-Funded
Amount in the Note Distribution Account for payment as principal of the Notes,
pro rata, calculated on the then current principal balance of each Class of
Notes.

         SECTION 7.08. REPURCHASES OF CONTRACTS FOR BREACH OF REPRESENTATIONS
AND WARRANTIES.

         Upon a discovery by the Servicer, the Trust Depositor or the Trustees
of a breach of a representation or warranty of the Seller as set forth in
EXHIBIT J hereto or as made in any Subsequent Purchase Agreement relating to
Subsequent Contracts that materially adversely affects the Trust's interest in
such Contract (without regard to the benefits of the Reserve Fund), the party
discovering the breach shall give prompt written notice to the other parties;
PROVIDED, that the Trustees shall have no duty or obligation to inquire or to
investigate the breach by the Seller of any of such representations or
warranties. The Seller, as provided in the Transfer and Sale Agreement and in
accordance with this Section 7.08, shall repurchase a Contract at its
Repurchase Price, two Business Days prior to the first Determination Date after
the Seller becomes aware, or should have become aware, or receives written
notice from the Trustee, the Servicer or the Trust Depositor of any breach of a
representation or warranty of the Seller set forth in Article III of the
Transfer and Sale Agreement that materially and adversely affects such Contract
or the Trust's interest in such Contract and which breach has not been cured;
PROVIDED, HOWEVER, that with respect to any Contract incorrectly described on
the List of Contracts with respect to unpaid Principal Balance which the Seller
would otherwise be required to repurchase under the Transfer and Sale
Agreement, the Seller may, in lieu of repurchasing such Contract, deposit in
the Collection Account not later than one Business Day after such Determination
Date cash in an amount sufficient to cure such deficiency or discrepancy; and
PROVIDED FURTHER that with respect to a breach of representation or warranty
relating to the Contracts in the aggregate and not to any particular Contract
the Seller may select Contracts (without adverse selection) to repurchase such
that had such Contracts not been included as part of the Trust Corpus there
would have been no breach of such representation or warranty; PROVIDED FURTHER
that (a) the failure of a Contract File to be complete or of the original
certificate of title and evidence of recordation of such certificate to be
included in the Contract File as of 180 days after the Closing Date (or
Subsequent Transfer Date, in the case of Subsequent Contracts) or (b) the
failure to maintain perfection of the security interest in the Motorcycle
securing a Contract in accordance with Section 5.09, shall be deemed to be a
breach materially and adversely affecting the Trust's interest in the Contract
or in the related Contracts. Notwithstanding any other provision of this
Agreement, the obligation of the Seller under the Transfer and Sale Agreement
and described in this Section 7.08 shall not terminate or be deemed released by
any party hereto upon a Service Transfer pursuant to Article VIII. The
repurchase obligation described in this Section 7.08 is in no way to be
satisfied with monies in the Reserve Fund.


                                      49
<PAGE>

         SECTION 7.09. REASSIGNMENT OF REPURCHASED CONTRACTS. Upon receipt by
the Indenture Trustee for deposit in the Collection Account of the Repurchase
Price as described in Section 7.08 or Section 7.10, and upon receipt of a
certificate of a Servicing Officer in the form attached hereto as EXHIBIT G,
the Indenture Trustee shall release its lien on and the Trust shall assign to
the Seller all of the Trust's right, title and interest in the repurchased
Contract without recourse, representation or warranty, except as to the absence
of liens, charges or encumbrances created by or arising as a result of actions
of the Trustees.

         SECTION 7.10. SELLER'S REPURCHASE OPTION. As provided in the Transfer
and Sale Agreement, on written notice to the Indenture Trustee at least 20 days
prior to a Distribution Date, and provided that the Pool Balance is then less
than 10% of the Aggregate Principal Balance as of the Closing Date, and
provided a valuation letter is delivered as required in Section 5.02 of the
Transfer and Sale Agreement, the Seller, through the Trust Depositor, may (but
is not required to) repurchase on that Distribution Date all outstanding
Contracts at a price equal to the aggregate unpaid principal balance of the
Notes on the previous Distribution Date plus the aggregate of the Note Interest
Distributable Amount for the current Distribution Date, the Reimbursement
Amount (if any) as well as accrued and unpaid Monthly Servicing Fees and the
Indenture Trustee Fee to the date of such repurchase. Such price shall be
deposited in the Collection Account not later than one (1) Business Day before
such Distribution Date, against the Owner Trustee's and Indenture Trustee's
release of the Contracts and the Contract Files to the Seller.

                                 ARTICLE EIGHT

                     EVENTS OF TERMINATION; SERVICE TRANSFER

         SECTION 8.01. EVENTS OF TERMINATION. "Event of Termination" means the
occurrence of any of the following:

         (a) Any failure by the Servicer or the Seller to make any payment or
deposit required to be made hereunder or in the Transfer and Sale Agreement (or
in any Subsequent Purchase Agreement or Subsequent Transfer Agreement) and the
continuance of such failure for a period of four Business Days after the date
on which such payment or deposit was due;

         (b) Failure on the Servicer's or the Seller's part to observe or
perform in any material respect any covenant or agreement in this Agreement or
in the Transfer and Sale Agreement (or in any Subsequent Purchase Agreement or
Subsequent Transfer Agreement) (other than a covenant or agreement, the breach
of which is specifically addressed elsewhere in this Section) which continues
unremedied for 30 days after the date on which such failure commences;

         (c) Any assignment by the Servicer or the Seller of its duties or
rights hereunder or under the Transfer and Sale Agreement (or under any
Subsequent Purchase Agreement or Subsequent Transfer Agreement), except as
specifically permitted hereunder or thereunder, or any attempt to make such an
assignment;


                                      50
<PAGE>

         (d) An involuntary case under any applicable bankruptcy, insolvency or
other similar law shall have been commenced in respect of the Servicer or Trust
Depositor and shall not have been dismissed within 90 days, or a court having
jurisdiction in the premises shall have entered a decree or order for relief in
respect of either the Servicer or Trust Depositor in an involuntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of either the Servicer or Trust Depositor,
or for any substantial liquidation or winding up of their respective affairs;

         (e) The Servicer or Trust Depositor shall have commenced a voluntary
case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or shall have consented to the entry of an order for
relief in an involuntary case under any such law, or shall have consented to
the appointment of or taking possession by a receiver, liquidator, assignee,
trustee, custodian or sequestrator (or other similar official) of the Servicer
or Trust Depositor, as the case may be, or for any substantial part of their
respective property, or shall have made any general assignment for the benefit
of their respective creditors, or shall have failed to, or admitted in writing
its inability to, pay its debts as they become due, or shall have taken any
corporate action in furtherance of the foregoing;

         (f) Any failure by the Servicer to deliver to the Trustees the Monthly
Report pursuant to the terms of this Agreement which remains uncured for five
Business Days after the date which such failure commences;

         (g) Any representation, warranty or statement of the Servicer made in
this Agreement, in any Subsequent Transfer Agreement or any certificate, report
or other writing delivered pursuant hereto shall prove to be incorrect in any
material respect as of the time when the same shall have been made and the
incorrectness of such representation, warranty or statement has a material
adverse effect on the Trust and, within 30 days after written notice thereof
shall have been given to the Servicer or the Trust Depositor by the Indenture
Trustee, the circumstances or condition in respect of which such
representation, warranty or statement was incorrect shall not have been
eliminated or otherwise cured.

         SECTION 8.02. WAIVER OF SERVICER DEFAULT. The Required Noteholders
may, by written notice delivered to the parties hereto, waive any Servicer
Default other than a Servicer Default described in SECTION 8.01(a).

         SECTION 8.03. SERVICE TRANSFER. (a) If an Event of Termination has
occurred and is continuing and has not been waived pursuant to SECTION 8.02,
(x) the Required Holders or (y) the Indenture Trustee may, by written notice
delivered to the parties hereto, terminate all (but not less than all) of the
Servicer's management, administrative, servicing, custodial and collection
functions (such termination being herein called a "SERVICE TRANSFER").

         (b) Upon receipt of the notice required by Section 8.03(a) (or, if
later, on a date designated therein), all rights, benefits, fees, indemnities,
authority and power of the Servicer under this Agreement, whether with respect
to the Contracts, the Contract Files or otherwise,


                                      51
<PAGE>

shall pass to and be vested in the Indenture Trustee (the "SUCCESSOR SERVICER")
pursuant to and under this Section 8.03; and, without limitation, the Successor
Servicer is authorized and empowered to execute and deliver on behalf of the
Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do any and all acts or things necessary or appropriate to
effect the purposes of such notice of termination. The Servicer agrees to
cooperate with the Successor Servicer in effecting the termination of the
responsibilities and rights of the Servicer hereunder, including, without
limitation, the transfer to the Successor Servicer for administration by it of
all cash amounts which shall at the time be held by the Servicer for deposit,
or have been deposited by the Servicer, in the Collection Account, or for its
own account in connection with its services hereafter or thereafter received
with respect to the Contracts. The Servicer shall transfer to the Successor
Servicer all records held by the Servicer relating to the Contracts in such
electronic form as the Successor Servicer may reasonably request and (ii) any
Contract Files in the Servicer's possession. In addition, the Servicer shall
permit access to its premises (including all computer records and programs) to
the Successor Servicer or its designee, and shall pay the reasonable transition
expenses of the Successor Servicer. Upon a Service Transfer, the Successor
Servicer shall also be entitled to receive the Monthly Servicing Fee for
performing the obligations of the Servicer.

         SECTION 8.04. SUCCESSOR SERVICER TO ACT; APPOINTMENT OF SUCCESSOR
SERVICER. On or after a Service Transfer pursuant to Section 8.03, the
Successor Servicer shall be the successor in all respects to the Servicer in
its capacity as servicer under this Agreement and the transactions set forth or
provided for herein and shall be subject to all the responsibilities, duties
and liabilities relating thereto placed on the Servicer by the terms and
provisions hereof, and the terminated Servicer shall be relieved of such
responsibilities, duties and liabilities arising after such Service Transfer;
PROVIDED, HOWEVER, that (i) the Successor Servicer will not assume any
obligations of the Servicer described in SECTION 8.08 and (ii) the Successor
Servicer shall not be liable for any acts or omissions of the Servicer
occurring prior to such Service Transfer or for any breach by the Servicer of
any of its representations and warranties contained herein or in any related
document or agreement. Notwithstanding the above, if the Successor Servicer is
legally unable or unwilling to act as Servicer, the Required Holders may
appoint a successor servicer (other than the original Servicer or an Affiliate
of the original Servicer) to act as Servicer. As compensation therefor, the
successor servicer shall be entitled to receive reasonable compensation equal
to the Monthly Servicing Fee. The Owner Trustee, Noteholders and the Indenture
Trustee and such successor shall take such action, consistent with this
Agreement, as shall be necessary to effectuate any such succession. To the
extent the terminated Servicer has made Advances, it shall be entitled to
reimbursement of the same notwithstanding its termination hereunder, to the
same extent as if it had continued to service the Contracts hereunder.

         SECTION 8.05. NOTIFICATION TO SECURITYHOLDERS. (a) Promptly following
the occurrence of any Event of Termination, the Servicer shall give written
notice thereof to the Trustees, the Trust Depositor and each Rating Agency at
the addresses described in Section 11.04 hereof and to the Noteholders at their
respective addresses appearing on the Note Register.

         (b) Within 10 days following any termination or appointment of a
Successor Servicer pursuant to this Article VIII, the Indenture Trustee shall
give written notice thereof to each


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<PAGE>

Rating Agency and the Trust Depositor at the addresses described in Section
11.04 hereof, and to the Noteholders at their addresses appearing on the Note
Register.

         SECTION 8.06. EFFECT OF TRANSFER. (a) After a Service Transfer, the
terminated Servicer shall have no further obligations with respect to the
management, administration, servicing, custody or collection of the Contracts
and the Successor Servicer appointed pursuant to Section 8.03 shall have all of
such obligations, except that the terminated Servicer will transmit or cause to
be transmitted directly to the Successor Servicer for its own account, promptly
on receipt and in the same form in which received, any amounts (properly
endorsed where required for the Successor Servicer to collect them) received as
payments upon or otherwise in connection with the Contracts.

         (b) A Service Transfer shall not affect the rights and duties of the
parties hereunder (including but not limited to the indemnities of the
Servicer) other than those relating to the management, administration,
servicing, custody or collection of the Contracts.

         SECTION 8.07. DATABASE FILE. The Servicer will provide the Successor
Servicer with a magnetic tape containing the database file for each Contract
(i) as of the Cutoff Date, (ii) the Subsequent Cutoff Date, (iii) thereafter,
as of the last day of the preceding Due Period on each Determination Date prior
to a Servicer Termination Event and (iv) on and as of the Business Day before
the actual commencement of servicing functions by the Successor Servicer
following the occurrence of a Servicer Termination Event.

         SECTION 8.08. SUCCESSOR SERVICER INDEMNIFICATION. The Servicer shall
defend, indemnify and hold the Successor Servicer and any officers, directors,
employees or agents of the Successor Servicer harmless against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs,
judgments and any other costs, fees, and expenses that the Successor Servicer
may sustain in connection with the claims asserted at any time by third parties
against the Successor Servicer which result from (i) any willful or grossly
negligent act taken or omission by the Servicer or (ii) a breach of any
representations of the Servicer in Section 3.02 hereof. The indemnification
provided by this Section 8.07 shall survive the termination of this Agreement.

         SECTION 8.09. RESPONSIBILITIES OF THE SUCCESSOR SERVICER. The
Successor Servicer will not be responsible for delays attributable to the
Servicer's failure to deliver information, defects in the information supplied
by the Servicer or other circumstances beyond the control of the Successor
Servicer.

         The Successor Servicer will make arrangements with the Servicer for
the prompt and safe transfer of, and the Servicer shall provide to the
Successor Servicer, all necessary servicing files and records, including (as
deemed necessary by the Successor Servicer at such time): (i) microfiche loan
documentation, (ii) servicing system tapes, (iii) Contract payment history,
(iv) collections history and (v) the trial balances, as of the close of
business on the day immediately preceding conversion to the Successor Servicer,
reflecting all applicable loan information.


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<PAGE>

         The Successor Servicer shall have no responsibility and shall not be
in default hereunder nor incur any liability for any failure, error,
malfunction or any delay in carrying out any of its duties under this Agreement
if any such failure or delay results from the Successor Servicer acting in
accordance with information prepared or supplied by a Person other than the
Successor Servicer or the failure of any such Person to prepare or provide such
information. The Successor Servicer shall have no responsibility, shall not be
in default and shall incur no liability (i) for any act or failure to act by
any third party, including the Servicer, the Trust Depositor or the Trustees or
for any inaccuracy or omission in a notice or communication received by the
Successor Servicer from any third party or (ii) which is due to or results from
the invalidity, unenforceability of any Contract with applicable law or the
breach or the inaccuracy of any representation or warranty made with respect to
any Contract.

         SECTION 8.10. LIMITATION OF LIABILITY OF SERVICER. (a) Neither the
Servicer nor any of the directors, officers, employees or agents of the
Servicer shall be under any liability to the Trust, the Owner Trustee, the
Indenture Trustee or the Noteholders, except as provided under this Agreement,
for any action taken or for refraining from the taking of any action pursuant
to this Agreement or for errors in judgment; PROVIDED, HOWEVER, that this
provision shall not protect the Servicer or any such person against any
liability that would otherwise be imposed by reason of willful misfeasance, bad
faith or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties under this Agreement. The Servicer and any
director, officer, employee or agent of the Servicer may rely in good faith on
the advice of counsel or on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising under this
Agreement.

         (b) Except as provided in this Agreement, the Servicer shall not be
under any obligation to appear in, prosecute or defend any legal action that
shall not be incidental to its duties to service the Contracts in accordance
with this Agreement, and that in its opinion may cause it to incur any expense
or liability; PROVIDED, HOWEVER, that the Servicer may undertake any reasonable
action that it may deem necessary or desirable in respect of the Transaction
Documents and the rights and duties of the parties to the Transaction Documents
and the interests of the Noteholders under the Indenture. In such event, the
legal expenses and costs of such action and any liability resulting therefrom
shall be expenses, costs and liabilities of the Servicer and the Servicer will
not be entitled to be reimbursed therefor.

         SECTION 8.11. MERGER OR CONSOLIDATION OF SERVICER. Any Person into
which the Servicer may be merged or consolidated, or any corporation, or other
entity resulting from any merger conversion or consolidation to which the
Servicer shall be a party, or any Person succeeding to all or substantially all
of the business of the Servicer (which Person assumes the obligations of the
Servicer), shall be the successor of the Servicer hereunder, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto, anything herein to the contrary notwithstanding. The Servicer
shall give prior written notice of any such merger or consolidation to which it
is a party to the Issuer, the Owner Trustee, the Indenture Trustee and the
Rating Agencies.


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<PAGE>

         SECTION 8.12. SERVICER NOT TO RESIGN. Subject to the provisions of
SECTION 8.03, Servicer shall not resign from the obligations and duties hereby
imposed on it as Servicer under this Agreement except upon determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of Servicer shall be communicated to the Owner Trustee and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable
time) and any such determination shall be evidenced by an Opinion of Counsel to
such effect delivered to the Owner Trustee and the Indenture Trustee
concurrently with or promptly after such notice. No such resignation shall
become effective until the Indenture Trustee shall have assumed the
responsibilities and rights of the predecessor Servicer in accordance with
SECTION 8.04.

         SECTION 8.13. APPOINTMENT OF SUBSERVICER. So long as Harley-Davidson
Credit Corp. acts as the Servicer, the Servicer may at any time without notice
or consent perform specific duties as servicer under this Agreement through
other subcontractors; PROVIDED, HOWEVER, that, in each case, no such delegation
or subcontracting shall relieve the Servicer of its responsibilities with
respect to such duties as to which the Servicer shall remain primarily
responsible with respect thereto.

                                  ARTICLE NINE

                                     REPORTS

         SECTION 9.01. MONTHLY REPORTS. No later than 10:00 a.m. Chicago,
Illinois time two Business Days prior to each Distribution Date, the Servicer
shall cause the Trustees and each Rating Agency to receive a Monthly Report.

         SECTION 9.02. OFFICER'S CERTIFICATE. Each Monthly Report delivered
pursuant to Section 9.01 shall be accompanied by a certificate of a Servicing
Officer substantially in the form of EXHIBIT C, certifying the accuracy of the
Monthly Report and that no Event of Termination or event that with notice or
lapse of time or both would become an Event of Termination has occurred, or if
such event has occurred and is continuing, specifying the event and its status.

         SECTION 9.03. OTHER DATA. In addition, the Trust Depositor and the
Servicer shall, upon the request of the Trustees, Moody's or Standard & Poor's,
furnish the Trustees, Moody's or Standard & Poor's, as the case may be, such
underlying data as may be reasonably requested.

         SECTION 9.04. ANNUAL REPORT OF ACCOUNTANTS.

         (a) The Servicer shall cause a firm of nationally recognized
independent certified public accountants (the "INDEPENDENT ACCOUNTANTS"), who
may also render other services to the Servicer, Harley-Davidson Financial or to
the Trust Depositor, to deliver to the Trustees, the Underwriters and each
Rating Agency, on or before March 31 (or 90 days after the end of the


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<PAGE>

Servicer's fiscal year, if other than December 31) of each year, beginning on
March 31, 2001, with respect to the twelve months ended the immediately
preceding December 31 (or other applicable date), a statement (the
"ACCOUNTANT'S REPORT") addressed to the Board of Directors of the Servicer and
to the Trustees to the effect that such firm has audited the financial
statements of Harley-Davidson Financial and issued its report thereon and that
such audit:

                  (1) was made in accordance with generally accepted auditing
         standards, and accordingly included such tests of the accounting
         records and such other auditing procedures as such firm considered
         necessary in the circumstances;

                  (2) included an examination of documents and records relating
         to the servicing of motorcycle conditional sales contracts under
         pooling and servicing agreements substantially similar to one another
         (such statement to have attached thereto a schedule setting forth the
         pooling and servicing agreements covered thereby, including this
         Agreement);

                  (3) included an examination of the delinquency and loss
         statistics relating to Harley-Davidson Financial's portfolio of
         motorcycle conditional sales contracts; and

                  (4) except as described in the statement, disclosed no
         exceptions or errors in the records relating to motorcycle loans
         serviced for others that, in the firm's opinion, generally accepted
         auditing standards requires such firm to report.

The Accountant's Report shall further state that:

                  (1) a review in accordance with agreed upon procedures was
         made of one randomly  selected Monthly Report; and

                  (2) except as disclosed in the Report, no exceptions or errors
         in the Monthly Report so examined were found.

         (b) The Accountant's Report shall also indicate that the firm is
independent of Harley-Davidson Financial within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants.

         SECTION 9.05. ANNUAL STATEMENT OF COMPLIANCE FROM SERVICER. The
Servicer will deliver to the Trustees, the Underwriters and each of the Rating
Agencies, on or before January 31 of each year commencing January 31, 2001, an
Officer's Certificate stating that (a) a review of the activities of the
Servicer during the prior calendar year and of its performance under this
Agreement was made under the supervision of the officer signing such
certificate and (b) to such officer's knowledge, based on such review, the
Servicer has fully performed all its obligations under this Agreement, or, if
there has been a default in the performance of any such obligation, specifying
each such default known to such officer and the nature and status thereof. A
copy of such certificate may be obtained (i) by any Noteholder by a request in
writing to the Indenture Trustee and (ii) by any Certificateholder by a request
in writing to the Owner Trustee.


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<PAGE>

         SECTION 9.06. MONTHLY REPORTS TO NOTEHOLDERS. (a) On or before two
Business Days prior to each Distribution Date, the Servicer shall prepare and,
concurrently with each distribution to Noteholders pursuant to Article VII,
deliver to the Indenture Trustee, in its capacity as Note Registrar and Paying
Agent, shall cause to be delivered and mailed to each Noteholder at the
addresses appearing on the Note Register a statement as of the related
Distribution Date substantially in the form of EXHIBIT I hereto (the "MONTHLY
REPORT") setting forth:

                  (i)    the amount of Noteholder's principal distribution;

                  (ii)   the amount of Noteholder's interest distribution;

                  (iii)  the amount of fees payable out of the Trust,
         separately identifying the Monthly Servicing Fee and the Indenture
         Trustee Fee;

                  (iv)   the amount of any Note Interest Carryover Shortfall and
         Note Principal Carryover Shortfall on such Distribution Date and the
         change in such amounts from those with respect to the immediately
         preceding Distribution Date;

                  (v)    the Note Pool Factor for each Class of Notes, in each
         case of such Distribution Date;

                  (vi)   the amount of the distributions described in (i) or
         (ii) above payable pursuant to a claim on the Reserve Fund or from any
         other source not constituting Available Monies and the amount
         remaining in the Reserve Fund after giving effect to all deposits and
         withdrawals from the Reserve Fund on such date;

                  (vii)  the amount of any Mandatory Redemption to be made on
         such Distribution Date;

                  (viii) for each Distribution Date during the Funding Period,
         the remaining Pre-Funded Amount;

                  (ix)   for each Distribution Date during the Funding Period to
         and including the Distribution Date immediately following the end of
         the Funding Period, the Principal Balance and number of Subsequent
         Contracts conveyed to the Trust during the related Due Period;

                  (x)    the remaining Principal Balance after giving effect to
         the distribution of principal (and Mandatory Redemption, if any) to
         each class of Notes to be made on such Distribution Date;

                  (xi)   the number and aggregate principal balance of Contracts
         delinquent 31-59 days, 60-89 days and 90 or more days, computed as of
         the end of the related Due Period;


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<PAGE>

                  (xii)   the number and aggregate principal balance of
         Contracts that became Liquidated Contracts during the immediately
         preceding Due Period, the amount of liquidation proceeds for such Due
         Period, the amount of liquidation expenses being deducted from
         liquidation proceeds for such Due Period, the Net Liquidation Proceeds
         and the Net Liquidation Losses for such Due Period;

                  (xiii)  the Loss Ratio,  Average Loss Ratio, Cumulative Loss
         Ratio,  the Delinquency  Ratio and the Average Delinquency Ratio as of
         such Distribution Date;

                  (xiv)   the number of Contracts and the aggregate Principal
         Balance of such Contracts, as of the first day of the Due Period
         relating to such Distribution Date (after giving effect to payments
         received during such Due Period and to any transfers of Subsequent
         Contracts to the Trust occurring on or prior to such Distribution
         Date);

                  (xv)    the aggregate Principal Balance and number of
         Contracts that were repurchased by the Seller pursuant to the Agreement
         with respect to the related Due Period, identifying such Contracts and
         the Repurchase Price for such Contracts;

                  (xvi)   the amount otherwise distributable on the Class B
         Notes that has instead been distributed to one or more senior Classes
         of Notes on such Distribution Date;

                  (xvii)  the amount of Advances made by the Servicer in respect
         of the related Contracts and the related Due Period and the amount of
         unreimbursed Advances in respect of the related Contracts determined by
         the Servicer to be Defaulted Contracts; and

                  (xviii) such other customary factual information as is
         available to the Servicer as the Servicer deems necessary and can
         reasonably obtain from its existing data base to enable the Noteholders
         and the Certificateholder to prepare their tax returns.

         (b) Within the prescribed period of time for tax reporting purposes
after the end of each calendar year, the Servicer shall prepare and the Note
Registrar shall mail to each Noteholder of record at any time during such year
a report as to the aggregate amounts reported pursuant to subsections (i),
(ii), (iii) and (iv) of this Section, attributable to such Noteholder.

         (c) The Indenture Trustee shall send via first class mail a paper copy
of the Monthly Report to (i) the initial Clearing Agency under the Note
Depository Agreement or any qualified successor appointed pursuant to Section
2.11 of the Indenture and (ii) each Securityholder or party to this Agreement.

                                  ARTICLE TEN

                                   TERMINATION

         SECTION 10.01. SALE OF TRUST ASSETS.


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<PAGE>

         (a) Upon any sale of the assets of the Trust pursuant to Section 9.02
of the Trust Agreement, the Servicer shall instruct the Indenture Trustee to
deposit the proceeds from such sale after all payments and reserves therefrom
have been made (the "INSOLVENCY PROCEEDS") in the Collection Account. On the
Distribution Date on which the Insolvency Proceeds are deposited in the
Collection Account (or, if such proceeds are not so deposited on a Distribution
Date, on the Distribution Date immediately following such deposit), the
Servicer shall instruct the Indenture Trustee to make the following deposits
(after the application on such Distribution Date of Available Monies and funds
on deposit in the Reserve Fund pursuant to Section 7.06) from the Insolvency
Proceeds as if (and in the same order of priority as) the Insolvency Proceeds
were Available Monies being allocated and distributed on such date pursuant to
Section 7.06(b).

         (b) As described in Article Nine of the Trust Agreement, notice of any
termination of the Trust shall be given by the Servicer to the Owner Trustee
and the Indenture Trustee as soon as practicable after the Servicer has
received notice thereof.

         (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholder will succeed to the rights of the Noteholders hereunder and
the Owner Trustee will succeed to the rights of, and assume the obligations of,
the Indenture Trustee pursuant to this Agreement.

                                 ARTICLE ELEVEN

                                  MISCELLANEOUS

         SECTION 11.01. AMENDMENT.

         (a) This Agreement may be amended by the Trust Depositor, the
Servicer, the Indenture Trustee and the Owner Trustee on behalf of the Issuer,
collectively, without the consent of any Securityholders, (i) to cure any
ambiguity, to correct or supplement any provisions in this Agreement which are
inconsistent with the provisions herein, or to add any other provisions with
respect to matters or questions arising under this Agreement that shall not be
inconsistent with the provisions of this Agreement, (ii) to add or provide any
credit enhancement for any Class of Notes and (iii) to change any provision
applicable for determining the Specified Reserve Fund Balance or the manner in
which the Reserve Fund is funded; PROVIDED, HOWEVER that any such action shall
not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect the interests of any Securityholder and provided, further, that in
connection with any amendment pursuant to clause (iii) above, the Servicer
shall deliver to the Owner Trustee and the Indenture Trustee a letter from
Standard & Poor's (so long as Standard & Poor's is a Rating Agency) and Moody's
(so long as Moody's is a Rating Agency) to the effect that such amendment will
not cause its then-current rating on any Class of Notes to be qualified,
reduced or withdrawn.

         (b) This Agreement may also be amended from time to time by the Trust
Depositor, the Servicer, the Indenture Trustee and the Owner Trustee on behalf
of the Issuer, with the


                                      59
<PAGE>

consent of the Required Holders, for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement
or of modifying in any manner the rights of the Noteholders or the
Certificateholder; PROVIDED, HOWEVER, that no such amendment shall increase or
reduce in any manner the amount of, or accelerate or delay the timing of (i)(a)
collections of payments on the Contracts or distributions that shall be
required to be made on any Note or any Interest Rate, (b) except as otherwise
provided in Section 10.01(a), the Specified Reserve Fund Balance or the manner
in which the Reserve Fund is funded or (ii) reduce the aforesaid percentage of
the Outstanding Amount of the Notes, the Holders of which are required to
consent to any such amendment, without the consent of the Holders of all Notes
of the relevant Class then outstanding and the Certificate.

         (c) Prior to the execution of any such amendment or consent, the
Indenture Trustee shall furnish written notification of the substance of such
amendment or consent, together with a copy thereof, to each Rating Agency.

         (d) Promptly after the execution of any such amendment or consent, the
Owner Trustee and the Indenture Trustee, as the case may be, shall furnish
written notification of the substance of such amendment or consent to each
Noteholder. It shall not be necessary for the consent of Noteholders pursuant
to Section 11.01(b) to approve the particular form of any proposed amendment or
consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the
authorization by Noteholders of the execution thereof shall be subject to such
reasonable requirements as the Owner Trustee or the Indenture Trustee may
prescribe.

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

         (f) Notwithstanding anything to the contrary in this Section 11.01,
the Trust Depositor or the Servicer, acting on behalf of the Trust Depositor,
may request each Rating Agency to approve a formula for determining the
Specified Reserve Fund Balance that is different from the formula or result
determined from the current definition thereof contained herein so as to result
in a decrease in the amount of the Specified Reserve Fund Balance or the manner
by which such Reserve Fund is funded. If each Rating Agency delivers to the
Indenture Trustee and Owner Trustee a written notice or letter stating that
such action will not result in a reduction or withdrawal of the rating of any
outstanding Class with respect to which a Rating Agency has previously issued a
rating as a result or such action, then the Specified Reserve Fund Balance will
be theretofore determined in accordance with such changed formula or manner of
funding, and an amendment to this Agreement effecting such change may be
executed without the consent of any Securityholder.

         SECTION 11.02. PROTECTION OF TITLE TO TRUST.


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<PAGE>

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

         (b) Neither the Seller, the Trust Depositor nor the Servicer shall
change its name, identity or corporate structure in any manner that would, could
or might make any financing statement or continuation statement filed in
accordance with Section 4.02(a) seriously misleading within the meaning of
Section 9-402(7) of the UCC, unless it shall have given the Issuer, the Owner
Trustee and the Indenture Trustee at least 30 days' prior written notice thereof
and shall have promptly filed appropriate amendments to all previously filed
financing statements or continuation statements.

         (c) The Seller, the Trust Depositor and the Servicer shall give the
Issuer, the Owner Trustee and the Indenture Trustee at least 30 days' prior
written notice of any relocation of the principal executive office of
Harley-Davidson Credit or the Trust Depositor and the Servicer (in the case of
notice provided by the Servicer) if, as a result of such relocation, the
applicable provisions of the UCC would require filing of any amendment of any
previously filed financing or continuation statement or of any new financing
statement and shall promptly file any such amendment or new financing statement.
The Servicer shall at all times maintain each office from which it shall service
Contracts, and its principal executive office, within the United States.

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

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

         (f) If at any time the Trust Depositor or the Servicer shall propose to
sell, grant a security interest in, or otherwise transfer any interest in
automotive retail installment sales contracts to any prospective purchaser,
lender or other transferee, the Servicer shall give or cause to be given to such
prospective purchaser, lender or other transferee computer tapes, records or


                                      61
<PAGE>


print-outs (including any restored from back-up archives) that, if they shall
refer in any manner whatsoever to any Contract, shall indicate clearly that such
Contract has been sold and is owned by the Issuer and has been pledged to the
Indenture Trustee.

         (g) The Servicer shall permit the Owner Trustee and its agents, at any
time during normal business hours, to inspect, audit and make copies of and
abstracts from the Servicer's records regarding any Contract.

         (h) Upon request, the Servicer shall furnish to the Owner Trustee and
the Indenture Trustee, within five Business Days, a list of all Contracts then
held as part of the Trust Estate, together with a reconciliation of such list to
the List of Contracts and to each of the Monthly Reports furnished before such
request indicating removal of Contracts from the Trust.

         (i) The Servicer shall deliver to the Owner Trustee, the Indenture
Trustee and each Rating Agency promptly after the execution and delivery of this
Agreement and of each amendment hereto, an Opinion of Counsel either (A) stating
that, in the opinion of such counsel, all financing statements and continuation
statements have been executed and filed that are necessary fully to preserve and
protect the interest of the Owner Trustee and the Indenture Trustee and reciting
the details of each filings or referring to prior Opinions of Counsel in which
such details are given, or (B) stating that, in the opinion of such counsel, no
such action shall be necessary to preserve and protect such interest.

         SECTION 11.03. GOVERNING LAW. This Agreement shall be construed in
accordance with the laws of the State of Illinois and the obligations, rights,
and remedies of the parties under the Agreement shall be determined in
accordance with such laws, except that the duties of the Owner Trustee shall be
governed by the laws of the State of Delaware.

         SECTION 11.04. NOTICES. All notices, demands, certificates, requests
and communications hereunder ("notices") shall be in writing and shall be
effective (a) upon receipt when sent through the U.S. mails, registered or
certified mail, return receipt requested, postage prepaid, with such receipt to
be effective the date of delivery indicated on the return receipt, or (b) one
Business Day after delivery to an overnight courier, or (c) on the date
personally delivered to an Authorized Officer of the party to which sent, or (d)
on the date transmitted by legible telecopier transmission with a confirmation
of receipt, in all cases addressed to the recipient as follows:

                        (i)    If to the Servicer or Seller:

                               Harley-Davidson Credit Corp.
                               150 South Wacker Drive, Suite 3100
                               Chicago, Illinois 60606
                               Attention: Perry A. Glassgow

                               Telecopier No.: (312) 368-4372


                                      62
<PAGE>

                        (ii)   If to the Trust Depositor:

                               Harley-Davidson Customer Funding Corp.
                               4150 Technology Way
                               Carson City, Nevada 89706

                               Telecopier No.: (702) 884-4469

                        (iii)  If to the Indenture Trustee:

                               Bank One, National Association
                               1 Bank One Plaza
                               IL1-0126
                               Chicago, Illinois 60670-0126
                               Attention: Global Corporate Trust Services

                               Telecopier No.: (312) 407-1708

                        (iv)   If to the Owner Trustee:

                               Wilmington Trust Company
                               Rodney Square North
                               1100 North Market Street
                               Wilmington, Delaware 19890-0001
                               Attention: Corporate Trust Administration

                               Telecopier No.: (302) 651-8882


                        (v)    If to Moody's:

                               Moody's Investors Service, Inc.
                               99 Church Street
                               New York, New York 10007
                               Attention: ABS Monitoring Department

                               Telecopier No.: (212) 553-1350

                        (vi)   If to Standard & Poor's:

                               Standard & Poor's Ratings Services, a
                               division of The McGraw Hill Companies
                               55 Water Street
                               New York, New York 10004

                               Telecopier No.: (212) 438-2657


                                      63
<PAGE>


                        (vii)  If to the Underwriters:

                               Salomon Smith Barney Inc.
                               388 Greenwich Street
                               New York, New York 10013
                               Attention: General Counsel

                               Telecopier No.: (212) 816-8591

                               Chase Securities Inc.
                               270 Park Avenue
                               7th Floor
                               New York, NY 10017
                               Attention: Global Securitized Finance

                               Telecopier No.: (212) 834-6562

Each party hereto may, by notice given in accordance herewith to each of the
other parties hereto, designate any further or different address to which
subsequent notices shall be sent.

         SECTION 11.05. SEVERABILITY OF PROVISIONS. If one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any
reason whatsoever held invalid, then such covenants, agreements, provisions or
terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement or of the Notes or the
Certificate or the rights of the Holders thereof.

         SECTION 11.06. ASSIGNMENT. Notwithstanding anything to the contrary
contained herein, as provided in Sections 6.03 and 8.02, this Agreement may not
be assigned by the Trust Depositor or the Servicer without the prior written
consent of Holders of Notes aggregating not less than 66-2/3% of each Class.

         SECTION 11.07. THIRD PARTY BENEFICIARIES. Except as otherwise
specifically provided herein, the parties hereto hereby manifest their intent
that no third party shall be deemed a third party beneficiary of this Agreement,
and specifically that the Obligors are not third party beneficiaries of this
Agreement.

         SECTION 11.08. COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall together
constitute but one and the same instrument.

         SECTION 11.09. HEADINGS. The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.


                                      64
<PAGE>


         SECTION 11.10. NO BANKRUPTCY PETITION; DISCLAIMER AND SUBORDINATION.
(a) Each of the Seller, the Indenture Trustee, the Servicer, the Owner Trustee
and each Holder (by acceptance of the applicable Securities) covenants and
agrees that, prior to the date that is one year and one day after the payment in
full of all amounts owing in respect of all outstanding Securities, it will not
institute against the Trust Depositor, or the Trust, or join any other Person in
instituting against the Trust Depositor or the Trust, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other
similar proceedings under the laws of the United States or any state of the
United States. This Section 11.10 will survive the termination of this
Agreement.

         (b) The Trust acknowledges and agrees that the Certificate represents a
beneficial interest in the Trust and Trust Corpus only and the Securities do not
represent an interest in any assets (other than the Trust Corpus) of the Trust
Depositor (including by virtue of any deficiency claim in respect of obligations
not paid or otherwise satisfied from the Trust Assets and proceeds thereof). In
furtherance of and not in derogation of the foregoing, to the extent that the
Trust Depositor enters into other securitization transactions, the Trust
acknowledges and agrees that it shall have no right, title or interest in or to
any assets (or interests therein) other than the Trust Assets conveyed or
purported to be conveyed (whether by way of a sale, capital contribution or by
the granting of a Lien) by the Trust Depositor to any Person other than the
Trust (the "OTHER ASSETS").

         To the extent that notwithstanding the agreements contained in this
Section, the Trust or any Securityholder, either (i) asserts an interest in or
claim to, or benefit from any Other Assets, whether asserted against or through
the Trust Depositor or any other Person owned by the Trust Depositor, or (ii) is
deemed to have any interest, claim or benefit in or from any Other Assets,
whether by operation of law, legal process, pursuant to applicable provisions of
Insolvency Laws or otherwise (including without limitation pursuant to Section
1111(b) of the federal Bankruptcy Code, as amended) and whether deemed asserted
against or through the Trust Depositor or any other Person owned by the Trust
Depositor, then the Trust and each Securityholder by accepting a Note or
Certificate further acknowledges and agrees that any such interest, claim or
benefit in or from the Other Assets is and shall be expressly subordinated to
the indefeasible payment in full of all obligations and liabilities of the Trust
Depositor which, under the terms of the documents relating to the securitization
of the Other Assets, are entitled to be paid from, entitled to the benefits of,
or otherwise secured by such Other Assets (whether or not any such entitlement
or security interest is legally perfected or otherwise entitled to a priority of
distribution under applicable law, including Insolvency Laws, and whether
asserted against the Trust Depositor or any other Person owned by the Trust
Depositor) including, without limitation, the payment of post-petition interest
on such other obligations and liabilities. This subordination agreement shall be
deemed a subordination agreement within the meaning of Section 510(a) of the
Bankruptcy Code. Each Securityholder is deemed to have acknowledged and agreed
that no adequate remedy at law exists for a breach of this Section 11.10 and
that the terms and provisions of this Section 11.10 may be enforced by an action
for specific performance.

         (c) The provisions of this Section 11.10 shall be for the third party
benefit of those entitled to rely thereon and shall survive the termination of
this Agreement.


                                      65
<PAGE>


         SECTION 11.11. LIMITATION OF LIABILITY OF OWNER TRUSTEE AND INDENTURE
TRUSTEE.

         (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed by Wilmington Trust Company, not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuer, and in no
event shall Wilmington Trust Company in its individual capacity or any
beneficial owner of the Issuer have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder,
as to all of which recourse shall be had solely to the assets of the Issuer. For
all purposes of this Agreement, in the performance of any duties or obligations
of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to
the benefits of, the terms and provisions of Articles Six, Seven and Eight of
the Trust Agreement.

         (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been executed by Bank One, National Association, not in its
individual capacity but solely as Indenture Trustee, and in no event shall Bank
One, National Association have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered pursuant hereto,
as to all of which recourse shall be had solely to the assets of the Issuer.




                                      66
<PAGE>


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

                               HARLEY-DAVIDSON MOTORCYCLE TRUST 2000-3

                                   By:  Wilmington Trust Company, not in its
                                        individual capacity but solely as Owner
                                        Trustee on behalf of the Trust


                                   By:  /s/ Patricia A. Evans
                                        ----------------------------------------
                                        Printed Name: Patricia A. Evans
                                        Title: Senior Financial Services Officer



                               HARLEY-DAVIDSON CUSTOMER FUNDING CORP.,
                               as Trust Depositor

                                   By:  /s/ Perry A. Glassgow
                                        ----------------------------------------
                                        Printed Name: Perry A. Glassgow
                                        Title: Treasurer


                               HARLEY-DAVIDSON CREDIT CORP., as Servicer


                                   By:  /s/ Perry A. Glassgow
                                        ----------------------------------------
                                        Printed Name: Perry A. Glassgow
                                        Title: Treasurer



                               BANK ONE, NATIONAL ASSOCIATION, not in its
                               individual capacity but solely as Indenture
                               Trustee

                                   By:  /s/ Keith R. Richardson
                                        ----------------------------------------
                                        Printed Name: Keith R. Richardson
                                        Title: Vice President



                 Signature Page to Sale and Servicing Agreement

<PAGE>


                                    EXHIBIT A

                              [Form of Assignment]

         In accordance with the Sale and Servicing Agreement (the "SALE AND
SERVICING AGREEMENT") dated as of November 1, 2000 made by and between the
undersigned, as Trust Depositor ("TRUST DEPOSITOR"), Harley-Davidson Credit
Corp., as Servicer, Bank One, National Association, as Indenture Trustee and
Harley-Davidson Motorcycle Trust 2000-3 (the "TRUST"), as assignee thereunder,
the undersigned does hereby sell, transfer, convey and assign, set over and
otherwise convey to the Trust (i) all the right, title and interest of the Trust
Depositor in and to the Initial Contracts listed on the initial List of
Contracts delivered on the Closing Date (including, without limitation, all
security interests and all rights to receive payments which are collected
pursuant thereto on or after the Initial Cutoff Date, including any liquidation
proceeds therefrom, but excluding any rights to receive payments which were
collected pursuant thereto prior to the Initial Cutoff Date), (ii) all rights of
the Trust Depositor under any physical damage or other individual insurance
policy (and rights under a "FORCED PLACED" policy, if any) relating to any such
Contract, an Obligor or a Motorcycle securing such Contract, (iii) all security
interests in each such Motorcycle, (iv) all documents contained in the related
Contract Files, (v) all rights (but not the obligations) of the Trust Depositor
under any related motorcycle dealer agreements between dealers (i.e., the
originators of such Contracts) and the Trust Depositor, (vi) all rights of the
Trust Depositor in the Lockbox, the Lockbox Account and related Lockbox
Agreement to the extent they relate to such Contracts, (vii) all rights (but not
the obligations) of the Trust Depositor under the Transfer and Sale Agreement,
including but not limited to the Trust Depositor's rights under Article V
thereof, (viii) the remittances, deposits and payments made into the Trust
Accounts from time to time and amounts in the Trust Accounts (other than the
Reserve Fund) from time to time (and any investments of such amounts), and (ix)
all proceeds and products of the foregoing

         This Assignment is made pursuant to and in reliance upon the
representation and warranties on the part of the undersigned contained in
Article III of the Agreement and no others.

         Capitalized terms used herein but not otherwise defined shall have the
meanings assigned to such terms in the Agreement.

         IN WITNESS WHEREOF, the undersigned has caused this Assignment to be
duly executed this _____ day of November, 2000.

                                       HARLEY-DAVIDSON CUSTOMER FUNDING CORP.

                                       By:
                                          --------------------------------------
                                       Printed Name: Perry A. Glassgow
                                       Title:        Treasurer



                                       A-1
<PAGE>

                                    EXHIBIT B

                [Form of Closing Certificate of Trust Depositor]


                     HARLEY-DAVIDSON CUSTOMER FUNDING CORP.


                             PRESIDENT'S CERTIFICATE

         The undersigned certifies that she is President of Harley-Davidson
Customer Funding Corp., a Nevada corporation (the "TRUST DEPOSITOR"), and that
as such is duly authorized to execute and deliver this certificate on behalf of
the Trust Depositor in connection with the Sale and Servicing Agreement (the
"AGREEMENT") dated as of November 1, 2000 (the "EFFECTIVE DATE") by and among
the Trust Depositor, Bank One, National Association (the "INDENTURE TRUSTEE"),
as Indenture Trustee, Harley-Davidson Credit Corp. ("HARLEY-DAVIDSON CREDIT"),
as Servicer, and Harley-Davidson Motorcycle Trust 2000-3 ("ISSUER") (all
capitalized terms used herein without definition have the respective meanings
set forth in the Agreement), and further certifies as follows:

                  (1) Attached hereto as EXHIBIT I is a true and correct copy of
         the Articles of Incorporation of the Trust Depositor, together with all
         amendments thereto as in effect on the date hereof.

                  (2) There has been no other amendment or other document filed
         affecting the Articles of Incorporation of the Trust Depositor since
         May 12, 2000, and no such amendment has been authorized by the Board of
         Directors or shareholders of the Trust Depositor.

                  (3) Attached hereto as EXHIBIT II is a Certificate of the
         Secretary of State of the State of Nevada dated November ____, 2000
         stating that the Trust Depositor is duly incorporated under the laws of
         the State of Nevada and is in good standing.

                  (4) Attached hereto as EXHIBIT III is a true and correct copy
         of the By-laws of the Trust Depositor, which are in full force and
         effect on the date hereof.

                  (5) Attached hereto as EXHIBIT IV is a true and correct copy
         of resolutions adopted pursuant to the unanimous written consent of the
         Board of Directors of the Trust Depositor relating to the execution,
         delivery and performance of the Agreement; the Transfer and Sale
         Agreement dated as of the Effective Date between the Trust Depositor
         and Harley-Davidson Credit; the Trust Agreement dated as of the
         Effective Date between the Trust Depositor and the Wilmington Trust
         Company (the "Owner Trustee"), as Owner Trustee; the Administrative
         Agreement dated as of the Effective Date between the Trust Depositor,
         the Issuer, the Indenture Trustee, Harley-Davidson Credit, as
         Administrator; the Underwriting Agreement dated November ___, 2000
         among the Trust Depositor, Harley-Davidson Credit and the Underwriters
         (collectively, the "PROGRAM


                                     B-1
<PAGE>


         AGREEMENTS"). Said resolutions have not been amended, modified,
         annulled or revoked, and are on the date hereof in full force and
         effect and are the only resolutions relating to these matters which
         have been adopted by the Board of Directors.

                  (6) No event with respect to the Trust Depositor has occurred
         and is continuing which would constitute an Event of Termination or an
         event that, with notice or the passage of time or both, would become an
         Event of Termination under the Agreement. To the best of my knowledge
         after reasonable investigation, there has been no material adverse
         change in the condition, financial or otherwise, or the earnings,
         business affairs or business prospects of the Trust Depositor, whether
         or not arising in the ordinary course of business since the respective
         dates as of which information is given in the Prospectus and except as
         set forth therein.

                  (7) All federal, state and local taxes of the Trust Depositor
         due and owing as of the date hereof have been paid.

                  (8) All representations and warranties of the Trust Depositor
         contained in the Program Agreements or any other related documents, or
         in any document, certificate or financial or other statement delivered
         in connection therewith are true and correct as of the date hereof.

                  (9) There is no action, investigation or proceeding pending
         or, to our knowledge, threatened against the Trust Depositor before any
         court, administrative agency or other tribunal (a) asserting the
         invalidity of the Program Agreements; (b) seeking to prevent the
         consummation of any of the transactions contemplated by the Program
         Agreements; or (c) which is likely materially and adversely to affect
         the Trust Depositor's performance of its obligations under, or the
         validity or enforceability of, the Program Agreements.

                  (10) No consent, approval, authorization or order of, and no
         notice to or filing with, any governmental agency or body or state or
         federal court is required to be obtained by the Trust Depositor for the
         Trust Depositor's consummation of the transactions contemplated by the
         Program Agreements, except such as have been obtained or made and such
         as may be required under the blue sky laws of any jurisdiction in
         connection with the issuance and sale of the Certificate.

                  (11) The Trust Depositor is not a party to any agreements or
         instruments evidencing or governing indebtedness for money borrowed or
         by which the Trust Depositor or its property is bound (other than the
         Program Agreements). Neither Harley-Davidson Credit's transfer and
         assignment of the Contract Assets to the Trust Depositor, the Trust
         Depositor's concurrent transfer and assignment of the Trust Corpus to
         the Trust, nor the concurrent pledge of the Collateral by the Trust to
         the Indenture Trustee nor the issuance and sale of the Certificate and
         the Notes, nor the execution and delivery of the Program Agreements,
         nor the consummation of any other of the transactions


                                     B-2
<PAGE>


         contemplated therein, will violate or conflict with any agreement or
         instrument to which the Trust Depositor is a party or by which it is
         otherwise bound.

                  (12) In connection with the transfer of Contracts and related
         collateral contemplated in the Agreement, (a) the Trust Depositor has
         not made such transfer with actual intent to hinder, delay or defraud
         any creditor of the Trust Depositor, and (b) the Trust Depositor has
         not received less than a reasonably equivalent value in exchange for
         such transfer, is not on the date thereof insolvent (nor will become
         insolvent as a result thereof), is not engaged (or about to engage) in
         a business or transaction for which it has unreasonably small capital,
         and does not intend to incur or believe it will incur debts beyond its
         ability to pay when matured.

                  (13) Each of the agreements and conditions of the Trust
         Depositor to be performed on or before the Closing Date pursuant to the
         Program Agreements have been performed in all material respects.


                                     * * * *



                                     B-3

<PAGE>


         IN WITNESS WHEREOF, I have affixed my signature hereto this ___ day of
November, 2000.


                                            By:
                                               -----------------------------
                                            Printed Name:  Donna F. Zarcone
                                            Title:         President


<PAGE>

                                    EXHIBIT C

                [Form of Closing Certificate of Servicer/Seller]


                          HARLEY-DAVIDSON CREDIT CORP.


                             PRESIDENT'S CERTIFICATE

         The undersigned certifies that she is President of Harley-Davidson
Credit Corp. ("HARLEY-DAVIDSON CREDIT"), and that as such is duly authorized to
execute and deliver this certificate on behalf of Harley-Davidson Credit, as
Servicer, in connection with the Sale and Servicing Agreement (the "SALE AND
SERVICING AGREEMENT") dated as of November 1, 2000 (the "EFFECTIVE DATE") by and
among Harley-Davidson Credit, as Servicer, Harley-Davidson Customer Funding
Corp. ("CFC"), Bank One, National Association, as Indenture Trustee and
Harley-Davidson Motorcycle Trust 2000-3 ("ISSUER"), in connection with the
Transfer and Sale Agreement dated as of the Effective Date (the "TRANSFER AND
SALE AGREEMENT") by and between Harley-Davidson Credit and CFC (all capitalized
terms used herein without definition having the respective meanings set forth in
the Sale and Servicing Agreement), and further certifies as follows:

                  (1) Attached hereto as EXHIBIT I is a true and correct copy of
         the Articles of Incorporation of Harley-Davidson Credit, together with
         all amendments thereto as in effect on the date hereof.

                  (2) There has been no other amendment or other document filed
         affecting the Articles of Incorporation of Harley-Davidson Credit since
         July 6, 1995, and no such amendment has been authorized by the Board of
         Directors or shareholders of Harley-Davidson Credit.

                  (3) Attached hereto as EXHIBIT II is a Certificate of the
         Secretary of State of the State of Nevada dated November __, 2000
         stating that Harley-Davidson Credit is duly incorporated under the laws
         of the State of Nevada and is in good standing.

                  (4) Attached hereto as EXHIBIT III is a true and correct copy
         of the By-laws of Harley-Davidson Credit which were in full force and
         effect on November 5, 1992 and at all times subsequent thereto.

                  (5) Attached hereto as EXHIBIT IV is a true and correct copy
         of resolutions adopted pursuant to a unanimous written consent of the
         Board of Directors of Harley-Davidson Credit and relating to the
         authorization, execution, delivery and performance of the Transfer and
         Sale Agreement; the Sale and Servicing Agreement; the Underwriting
         Agreement dated November ___, 2000 among Harley-Davidson Credit, CFC
         and the Underwriters (the "UNDERWRITING AGREEMENT"); and the
         Administration Agreement dated November 1, 2000 among Harley-Davidson
         Credit, CFC, the Issuer and Bank One, National Association, as
         Indenture Trustee (the "INDENTURE TRUSTEE") (the


                                     C-1
<PAGE>


         "ADMINISTRATION AGREEMENT"). Said resolutions have not been amended,
         modified, annulled or revoked, and are on the date hereof in full
         force and effect and are the only resolutions relating to these matters
         which have been adopted by the Board of Directors.

                  (6)  No event with respect to Harley-Davidson Credit has
         occurred and is continuing which would constitute an Event of
         Termination or an event that, with notice or the passage of time, would
         constitute an Event of Termination under the Sale and Servicing
         Agreement. To the best of my knowledge after reasonable investigation,
         there has been no material adverse change in the condition, financial
         or otherwise, or the earnings, business affairs or business prospects
         of Harley-Davidson Credit, whether or not arising in the ordinary
         course of business, since the respective dates as of which information
         is given in the Prospectus and except as set forth therein.

                  (7)  All federal, state and local taxes of Harley-Davidson
         Credit due and owing as of the date hereof have been paid.

                  (8)  All representations and warranties of Harley-Davidson
         Credit contained in the Transfer and Sale Agreement, the Sale and
         Servicing Agreement, the Underwriting Agreement and the Administration
         Agreement (collectively, the "PROGRAM AGREEMENTS") or in any document,
         certificate or financial or other statement delivered in connection
         therewith are true and correct as of the date hereof.

                  (9)  There is no action, investigation or proceeding pending
         or, to my knowledge, threatened against Harley-Davidson Credit before
         any court, administrative agency or other tribunal (a) asserting the
         invalidity of any Program Agreement to which Harley-Davidson Credit is
         a party; or (b) which is likely materially and adversely to affect
         Harley-Davidson Credit's performance of its obligations under, or the
         validity or enforceability of, the Program Agreements.

                  (10) No consent, approval, authorization or order of, and no
         notice to or filing with, any governmental agency or body or state or
         federal court is required to be obtained by Harley-Davidson Credit for
         Harley-Davidson Credit's consummation of the transactions contemplated
         by the Program Agreements, except such as have been obtained or made
         and such as may be required under the blue sky laws of any jurisdiction
         in connection with the issuance and sale of the Notes or the
         Certificate.

                  (11) SCHEDULE A hereto contains a complete list of all
         material agreements (other than the Transfer and Sale Agreement) or
         instruments evidencing or governing indebtedness for money borrowed to
         which Harley-Davidson Credit is a party or by which Harley-Davidson
         Credit or its property is bound. Neither Harley-Davidson Credit's
         transfer and assignment of the Contract Assets to CFC, CFC's concurrent
         transfer and assignment of the Trust Corpus to the Trust, nor the
         concurrent pledge by the Trust of the Collateral to the Indenture
         Trustee, nor the issuance and sale of the Notes or the Certificate or
         the entering into of the Program Agreements, nor the consummation of
         any other of the transactions contemplated therein, will violate or
         conflict with any


                                     C-2
<PAGE>


         agreement or instrument to which Harley-Davidson Credit is a party or
         by which it is otherwise bound.

                  (12) In connection with the transfers of Contracts and related
         assets contemplated in the Transfer and Sale Agreement, (a)
         Harley-Davidson Credit has not made such transfer with actual intent to
         hinder, delay or defraud any creditor of Harley-Davidson Credit, and
         (b) Harley-Davidson Credit has not received less than a reasonably
         equivalent value in exchange for such transfer, is not on the date
         hereof insolvent (nor will Harley-Davidson Credit become insolvent as a
         result thereof), is not engaged (or about to engage) in a business or
         transaction for which it has unreasonably small capital, and does not
         intend to incur or believe it will incur debts beyond its ability to
         pay when matured.

                  (13) The sole shareholder of Harley-Davidson Credit is
         Harley-Davidson Financial Services, Inc., a Delaware corporation, which
         has its chief executive office and only office in Chicago, Illinois,
         and has no other offices in any other state.

                  (14) Each of the agreements and conditions of Harley-Davidson
         Credit to be performed or satisfied on or before the Closing Date under
         the Program Agreements has been performed or satisfied in all material
         respects.

                  (15) Each Contract being transferred pursuant to the Transfer
         and Sale Agreement is evidenced by a written agreement providing for a
         repayment obligation as well as a security interest in the related
         Motorcycle securing such obligation, and conforms as to these matters
         in all material respects with the form of written Contract provided as
         EXHIBIT A hereto (with such minor variations as to specific terms as
         may be required or deemed desirable in respect of the laws or
         requirements of particular states).

                  (16) Harley-Davidson Credit has not executed for filing any
         UCC financing statements listing the Contract Assets as collateral
         other than financing statements relating to the transactions
         contemplated in the Transfer and Sale Agreement and in the agreements
         listed on SCHEDULE A hereto.

                                   * * * * * *



                                     C-3
<PAGE>


                  IN WITNESS WHEREOF, I have affixed my signature hereto this
___ day of November, 2000.


                                            By:
                                               -------------------------------
                                            Printed Name:  Donna F. Zarcone
                                            Title:         President



<PAGE>


                                    EXHIBIT D


                 [Form of Opinion of Counsel for Trust Depositor
                       Regarding General Corporate Matters
                         (Including Perfection Opinion)]

















                                     D-1
<PAGE>


                                    EXHIBIT E


                      [Form of Opinion of Counsel for Trust
                   Depositor Regarding the "TRUE SALE" Nature
                               of the Transaction]
















                                     E-1
<PAGE>


                                    EXHIBIT F


                      [Form of Opinion of Counsel for Trust
                     Depositor Regarding Non-consolidation]
















                                     F-1
<PAGE>


                                    EXHIBIT G

              [Form of Certificate Regarding Repurchased Contracts]

                          Harley-Davidson Credit Corp.

                   Certificate Regarding Repurchased Contracts

         The undersigned certifies that he is the Treasurer of Harley-Davidson
Credit Corp., a Nevada corporation (the "SERVICER"), and that as such is duly
authorized to execute and deliver this certificate on behalf of the Servicer
pursuant to Section 7.08 of the Sale and Servicing Agreement (the "AGREEMENT")
dated as of November 1, 2000 by and among Harley-Davidson Customer Funding
Corp., as Trust Depositor, the Servicer, Bank One, National Association, as
Indenture Trustee, and Harley-Davidson Motorcycle Trust 2000-3 (all capitalized
terms used herein without definition having the respective meanings specified in
the Agreement), and further certifies that:

         1.       The Contracts on the attached schedule are to be repurchased
                  by the Seller on the date hereof pursuant to Section 7.08 of
                  the Agreement and Section 5.01 of the Transfer and Sale
                  Agreement.

         2.       Upon deposit of the Repurchase Price for such Contracts, such
                  Contracts may, pursuant to Section 7.08 of the Agreement, be
                  assigned by the Trustee to the Seller.

         IN WITNESS WHEREOF, I have affixed hereunto my signature this ______
day of _____________.

                                       Harley-Davidson Credit Corp.


                                       By:
                                          ------------------------------------
                                             Printed Name: Perry A. Glassgow
                                             Title: Treasurer



                                     G-1
<PAGE>


                                    EXHIBIT H

                               [List of Contracts]





















                                     H-1

<PAGE>

                                    EXHIBIT I

        [Form of Monthly Report to Noteholders and the Certificateholder]

                    Harley-Davidson Motorcycle Trust 2000-3
$___________ _____% Harley-Davidson Motorcycle Contract Backed Notes, Class A-1
$___________ _____% Harley-Davidson Motorcycle Contract Backed Notes, Class A-2
$___________ _____% Harley-Davidson Motorcycle Contract Backed Notes, Class B

                                  Monthly Report
                        For the [       ] Distribution Date

<TABLE>
<CAPTION>

A.        Calculation of Available Monies
<S>       <C>      <C>                                                              <C>
          1.       Available Principal (as defined in Article I of the Sale and
                   Servicing Agreement)                                             $____________

          2.       Available Interest (as defined in Article I of the Sale and
                   Servicing Agreement)                                             $____________

          3.       Available Monies (1. plus 2.)                                    $____________

B.        Calculation of Principal Distributable Amount (as defined in Article I
          of the Sale and Servicing Agreement)                                      $____________

C.        Calculation of Available Interest (as defined in Article I of  the Sale
          and Servicing Agreement).                                                 $____________

D.        Calculation of Note Monthly Principal Distributable Amount                $____________

          1A.      Class A Note Percentage for such Distribution Date

                            (a) for each Distribution Date to but excluding the
                            Distribution Date on which the principal amount of
                            the Class A-1 Notes is reduced to zero                  94.0%

                            (b) on the Distribution Date on which the principal
                            amount of the Class A-1 Notes is reduced to zero,
                            94.0% until the principal amount of the Class A-2
                            Notes has been reduced to zero                          94.0%


                                      I-1

<PAGE>

                            (c) on the Distribution Date on which the principal
                            amount of the Class A-2 Notes is reduced to
                            zero, ____%                                             _______%

                            (d) after the principal amount of the Class A-2
                            Notes have been reduced to zero                         0.00%

          1B.      Class B Note Percentage for such Distribution Date

                            (a) for each Distribution Date to but excluding the
                            Distribution Date on which the principal amount of
                            the Class A-2 Notes is reduced to zero                  6.0%

                            (b)      on the Distribution Date on which the
                            principal amount of the Class A-2 Notes is reduced
                            to zero, ___%                                           _____%

                            (c)      after the principal amount of the Class A-2
                            Notes have been reduced to zero                         100.00%

          2.       Principal Distributable Amount (from B)                          $____________












                                      I-2

<PAGE>

          3.                Note Monthly Principal Distributable Amount for

                            (a) Class A-1 Notes (D.1(a) multiplied by D.2 until
                            Principal Balance of Class A-1 Notes Principal
                            $____________ Balance is zero)                          $____________

                            (b) Class A-2 Notes (D.1(b) multiplied by D.2
                            until Class A-2 Notes Principal Balance is zero)        $____________

                            (c) Class B Notes (D.1(c) multiplied by D.2 until
                            Class B Notes Principal Balance is zero)                $____________

                            (d) Note Principal Carryover Shortfall                  $____________

                            (e) Mandatory Redemption Amounts (from Pre-Funding
                            Account as defined in Article I of the Sale and
                            Servicing Agreement)                                    $____________

                            (f) Class A Note Monthly Principal Distributable
                            Amount (the sum of items 3(a), 3(b), 3(d) and 3(e))     $____________

                            (g) Class B Note Monthly Principal Distributable
                            Amount (the sum of items 3(c), 3(d) and 3(e))           $____________





                                      I-3

<PAGE>

E.        Calculation of Note Monthly Interest Distributable Amount.
                                                                                    ____%
          1.       Class A-1 Interest Rate
                                                                                    ____%
          2.       Class A-2 Interest Rate

          3.       Class B Interest Rate                                            ____%

          4.       One-twelfth of the Class A-1 Interest Rate times the Class
                   A-1 Note Balance from and including the fifteenth day of the
                   month based on a 360-day year of 12 months of 30 days each
                   (or from and including the Closing Date with respect to the
                   first Distribution Date) to but excluding the fifteenth day
                   of the month of the current Distribution Date                    $____________

          5.       One-twelfth of the Class A-2 Note Interest Rate times the
                   Class A-2 Note Balance from and including the fifteenth day
                   of the month based on a 360-day year of 12 months of 30 days
                   each (or from and including the Closing Date with respect to
                   the first Distribution Date) to but excluding the fifteenth
                   day of the month of the current Distribution Date                $____________

          6.       One-twelfth of the Class B Note Interest Rate times the Class
                   B Note Balance from and including the fifteenth day of the
                   month based on a 360-day year of 12 months of 30 days each
                   (or from and including the Closing Date with respect to the
                   first Distribution Date) to but excluding the fifteenth day
                   of the month of the current Distribution Date                    $____________

          7.       Interest Carryover Shortfall for such Distribution Date          $____________

          8.       Note Monthly Interest Distributable Amount (the sum of items
                   3,  4 and 5)                                                     $_____________


F.        Calculation of Note Distributable Amount (sum of D.3(e) plus E.6.)        $____________


J.        Fees


                                      I-4

<PAGE>

          1.        The Monthly Servicing Fee for such Distribution Date (1/12
                    of the product of 1% and the Principal Balance of the
                    Contracts $____________ as of the beginning of the related
                    Due Period)                                                     $____________

          2.        Late Payment Penalty Fees for such Distribution Date            $____________

          3.        Extension Fees for such Distribution Date                       $____________

          4.        Indenture Trustee Fee for such Distribution Date excluding
                    expense component (1/12 of the product of .005% and the sum
                    of (i) the Principal Balance of the Contracts as of the
                    beginning of the related Due Period and (ii) the Pre-Funded
                    Amount as of the beginning of such Period; provided,
                    however, in no event $____________ shall such fee be less
                    than $200.00 per month)                                         $____________

K.        CALCULATION OF THE AVAILABLE MONIES FOR SUCH DISTRIBUTION DATE

          1.          The amount of funds deposited into the Collection Account
                      pursuant to Section 5.05(b) of the Sale and Servicing
                      Agreement with respect  to the related Due Period             $____________

                            a. All amounts received by the Indenture Trustee or
                            the Servicer with respect to principal and interest
                            on the Contracts, as well as Late Payment Penalty
                            Fees and Extensions Fees for the related Due Period     $____________


                            b. All Net Liquidation Proceeds                         $____________

                            c. The aggregate of the Repurchase Prices for
                            Contracts required to be repurchased by the Seller as
                            described in Section 7.08 of the Sale and Servicing
                            Agreement                                               $____________

                            d. All Advances made by Servicer pursuant to
                            Section 7.03(a) of the Sale and Servicing Agreement     $____________


                                      I-5

<PAGE>

                            e. All amounts paid by the Seller in connection with
                            an optional repurchase of the Contracts described
                            in Section 7.10 of the Sale and Servicing Agreement     $____________

                            f. All amounts obtained from the Indenture Trustee
                            in respect of Carrying Charges to be deposited into
                            the Collection Account for the upcoming Distribution
                            Date as contemplated in Section 7.03(b) of the Sale
                            and Servicing Agreement                                 $____________

                            g. All amounts received in respect of interest,
                            dividends, gains, income and earnings on investments
                            of funds in the Trust Accounts as contemplated in
                            Section 5.05(b)(viii) of the Sale and Servicing
                            Agreement                                               $____________

                            h. Total amount of funds deposited into the
                            Collection Account pursuant to Section 5.05(b) (the
                            sum of a. through g.)                                   $____________

          2.          The amount of funds permitted to be withdrawn from the
                      Collection Account pursuant to clauses (ii) through (iv)
                      of Section 7.05(a) of the Sale and Servicing Agreement
                      with respect to the related Due Period                        $____________

                            a. Amounts to be paid to the Servicer as the
                            Reimbursement Amount in accordance with Section         $____________
                            7.03(a) of the Sale and Servicing Agreement

                            b. Amounts to be paid to the Servicer in respect to
                            to the Servicing Fee for the related Due Period         $____________

                            c. Amounts to be paid to the Indenture Trustee
                            in respect of the Indenture Trustee's  Fee for the      $____________
                            related Due Period


                                      I-6

<PAGE>

                            d. Total amount of funds permitted to be withdrawn
                            from the Collection Account pursuant to clauses (ii)
                            through (iv) Section 7.05(a) of the Sale and
                            Servicing Agreement with respect to the related
                            Due Period (sum of a. through d.)                       $____________

          3.          The Available Monies (not including amounts from Reserve
                      Fund Account) for such Distribution Date available to pay
                      Note Distributable Amounts  and Certificate Distributable
                      Amounts (1(h) minus 2(e))                                                       $____________

          4.          The Available Monies otherwise distributable to the
                      Certificateholders that will be distributed to the
                      Noteholders on such Distribution Date                                           $____________

L.        The shortfall of Available Monies for such Distribution Date to pay
          either the Note Distributable Amount or the Certificate Distributable
          Amount (the Available Monies for such Distribution Date minus the sum
          of the Note Distributable Amount as set forth in F. and the Certificate
          Distributable Amount as set forth in I.)                                                    $____________

M.        The amount to be withdrawn from the Reserve Fund on such Distribution
          Date to cover the Note Interest Distributable Amount                                        $____________


N.        The amount to be withdrawn from the Reserve Fund on such Distribution
          Date to cover the Certificate Interest Distributable Amount                                 $____________

O.        The amount to be withdrawn from the Reserve Fund on such Distribution
          Date to cover the Note Principal Distributable Amount                                       $____________

P.        The amount to be withdrawn from the Reserve Fund on such Distribution
          Date to cover the Certificate Principal Distributable Amount                                $____________

Q.        Interest Earnings on the Reserve Fund.                                                      $____________


                                      I-7

<PAGE>

R.        The amount on deposit in the Reserve Fund after giving
          effect to deposits and withdrawals therefrom on such Distribution Date                      $____________

S.        The Specified Reserve Fund Amount for such Distribution Date will be an
          amount equal to the greater of (a) 2.50% of the Principal Balance of the
          Contracts in the Trust as of the first day of the immediately preceding
          Due Period; provided, however, in the event a Reserve Fund Trigger Event
          occurs with respect to a Distribution Date and has not terminated for
          three (3) consecutive Distribution Dates (inclusive) such amount shall
          be equal to 6.00% of the Principal Balance of the Contracts in the Trust
          as of the first day of the immediately preceding Due Period) and (b)
          1.00% of the aggregate of the Initial Class A-1 Note Balance, Initial
          Class A-2 Note Balance and Initial Class B Note Balance; provided,
          however, in no event shall the Specified Reserve Fund Balance be greater
          than the aggregate outstanding principal balance of the Securities.                         $____________


T.        The Pool Factor

          1.        The Class A-1 Note Pool Factor immediately before such
                    Distribution Date                                               ____________

          2.        The Class A-2 Note Pool Factor immediately after such
                    Distribution Date                                               ____________

          3.        The Class B Note Pool Factor immediately after such
                    Distribution Date                                               ____________

          4.        The Class A-1 Note Pool Factor immediately before such
                    Distribution Date                                               ____________

          5.        The Class A-2 Note Pool Factor immediately after such
                    Distribution Date                                               ____________

          6.        The Class B Note Pool Factor immediately after such
                    Distribution Date                                               ____________


U.        Delinquent Contracts

                                      I-8

<PAGE>

          1.        31-59 Days                                       #______        $____________

          2.        60-89 Days                                       #______        $____________

          3.        90 or More Days                                  #______        $____________

V.        Liquidated Contracts

          1.        Total Liquidated Contracts #______                              $____________

          2.        Identity (attach)

          3.        Liquidation proceeds for the Due Period                         $____________

          4.        Liquidation expenses for the Due Period                         $____________

          5.        Net Liquidation Proceeds for the Due Period                     $____________

          6.        Net Liquidation Losses for the Due Period                       $____________


W.        Advances

          1.        Unreimbursed Advances prior to such Distribution Date           $____________

          2.        Amount paid to Servicer on such Distribution Date to
                    reimburse Servicer for such unreimbursed Advances               $____________

          3.        Amount of Delinquent Interest for such Distribution Date        $____________

          4.        Amount of new Advances on such Distribution Date (if such
                    amount is less than the amount of Delinquent Interest,
                    attach the certificate required by Section 7.03 of the Sale
                    and Servicing Agreement)                                        $____________

          5.        Total of unreimbursed Advances after new Advances on such
                    Distribution Date                                               $____________

X.        Repurchased Contracts

          1.        Number of Contracts to be repurchased by the Seller pursuant
                    to Section 7.08 of the Sale and Servicing Agreement             $____________

                                      I-9

<PAGE>

          2.        Principal Amount of such Contracts                              $____________

          3.        Related Repurchase Price of such Contracts                      $____________

Y.        Contracts

          1.        Number of Contracts as of beginning of Due Period               $____________

          2.        Principal Balance of Contracts as of beginning of Due Period    $____________

          3.        The weighted average Contract Rate of the Contracts as of the
                    beginning of the Due Period                                     $____________

          4.        The weighted average remaining term to maturity of the
                    Contracts as of the beginning of the Due Period                 $____________

          5.        Number of Contracts as of end of Due Period                     $____________

          6.        Principal Balance of Contracts as of end of Due Period          $____________

          7.        The weighted average Contract Rate of the Contracts as of the
                    end of the Due Period                                           $____________

          8.        The weighted average remaining term to maturity of the
                    Contracts as of the end of the Due Period                       $____________

          9.        Pre-Funded Amount as of beginning of Due Period                 $____________

          10.       Pre-Funded Amount as of end of Due Period                       $____________

Z.        Interest Reserve Account

          1.        Interest Reserve Amount as of previous Distribution Date        $____________

          2.        Carrying Charges (if any) to be paid on upcoming Distribution
                    Date                                                            $____________

          3.        Interest Reserve Amount as of upcoming Distribution Date        $____________
</TABLE>

                                      I-10

<PAGE>


<TABLE>

<S>       <C>       <C>                                                             <C>
AA.       Ratios

          1.        Cumulative Loss Ratio

                    a.       The aggregate Net Liquidation Losses for all
                             Contracts since the Cutoff Date through the end of
                             the related Due Period                                 $_____________

                    b.       The sum of the Principal Balance of the Contracts as
                             of the Cutoff Date plus the Principal Balance of any
                             Subsequent Contracts as of the related Subsequent
                             Cutoff Date                                            $_____________

                    c.       The Cumulative Loss Ratio for such Distribution Date
                             (the quotient of a. divided by b., expressed as a
                             percentage)                                            $_____________

          2.        Average Delinquency Ratio for such Distribution Date

                    (a)      The Delinquency Amount (the Principal Balance of
                             all Contracts that were delinquent 60 days or more
                             as of the end of the Due Period)                       $_____________

                    (b)      The Delinquency Ratio (the fraction (expressed as a
                             percentage) computed by dividing (a) the
                             Delinquency Amount during the immediately preceding
                             Due Period by (b) the Principal Balance of the
                             Contracts as of the beginning of the related Due
                             Period) for such Distribution Date                     _____%

                    (c)      The Delinquency Ratio for the prior Distribution Date  _____%

                    (d)      The Delinquency Ratio for the second prior
                             Distribution Date                                      _____%

                    (e)      The Average Delinquency Ratio (the arithmetic average
                             of a. through c.)                                      _____%

                                              I-11

<PAGE>

          3.        Average Loss Ratio for such Distribution Date

                    (a)      Net Liquidation Losses                                 $_____________

                    (b)      The Loss Ratio for (the fraction (expressed as a
                             percentage) derived by dividing (x) Net Liquidation
                             Losses for all Contracts that became Liquidated
                             Contracts during the immediately preceding Due
                             Period multiplied by twelve by (y) the outstanding
                             Principal Balances of all Contracts as of the
                             beginning of the _____% Due Period) such
                             Distribution Date                                      _____%

                    (c)      The Loss Ratio for the prior Distribution Date         _____%

                    (d)      The Loss Ratio for the second prior Distribution Date  _____%

                    (e)      The Average Loss Ratio (the arithmetic average of a.
                             through c.)                                            _____%

          4.        Computation of Specified Reserve Fund Balance

                    Reserve Fund Trigger Events















                                              I-12

<PAGE>

                    (1)      Average Delinquency Ratio (if (a) (i) Average
                             Delinquency Ratio 2.50% with respect to any
                             Distribution Date which occurs within the period
                             from the Closing Date to, and inclusive of, the
                             first anniversary of the Closing Date, (ii) 3.00%
                             with respect to any Distribution Date which occurs
                             within the period from the day after the first
                             anniversary of the Closing Date to, and inclusive
                             of, the second anniversary of the Closing Date or
                             (iii) 3.50% for any Distribution Date which occurs
                             within the period from the day after the second
                             anniversary of the Closing Date to, and inclusive
                             of, the third anniversary of the Closing Date or
                             (iv) 4.00% for any Distribution Date following the
                             third anniversary of the Closing Date, then a
                             Reserve Fund Trigger Event has occurred)               _____%

                    (2)      Average Loss Ratio (if Average Loss Ratio is equal
                             to or greater than (i) 3.00% with respect to any
                             Distribution Date which occurs within the period
                             from the Closing Date to, and inclusive of, the
                             second anniversary of the Closing Date or (ii)
                             2.75% with respect to any Distribution Date which
                             occurs following the second anniversary of the
                             Closing Date, then a Reserve Fund Trigger Event has
                             occurred)                                              _____%










                                              I-13

<PAGE>

                    (3)      Cumulative Loss Ratio (if Cumulative Loss Ratio is
                             equal to or greater than (i) 1.25% with respect to
                             any Distribution Date which occurs within the
                             period from the Closing Date to, and inclusive of,
                             the first anniversary of the Closing Date, (ii)
                             1.75% with respect to any Distribution Date which
                             occurs within the period from the day after the
                             first anniversary of the Closing Date to, and
                             inclusive of, the second anniversary of the Closing
                             Date, (iii) 2.25% for any Distribution Date while
                             occurs within the period from the day after the
                             second anniversary of the Closing Date to, and
                             inclusive of the third anniversary of the Closing
                             Date, or (iv) 2.50% following the third anniversary
                             of the Closing Date, then a Reserve Fund Trigger
                             Event has occurred)                                    _____%


</TABLE>











                                              I-14

<PAGE>

                                    EXHIBIT J

                    [Seller's Representations and Warranties]

         (1)      REPRESENTATIONS AND WARRANTIES REGARDING SELLER. Seller
represents and warrants, as of the execution and delivery of this Agreement
and as of the Closing Date, in the case of the Initial Contracts, and as of
the applicable Subsequent Transfer Date, in the case of Subsequent Contracts,
that:

                  (a)   ORGANIZATION AND GOOD STANDING. Seller is a corporation
         duly organized, validly existing and in good standing under the laws of
         the jurisdiction of its organization and has the corporate power to own
         its assets and to transact the business in which it is currently
         engaged. Seller is duly qualified to do business as a foreign
         corporation and is in good standing in each jurisdiction in which the
         character of the business transacted by it or properties owned or
         leased by it requires such qualification and in which the failure so to
         qualify would have a material adverse effect on the business,
         properties, assets, or condition (financial or otherwise) of Seller or
         Trust Depositor. Seller is properly licensed in each jurisdiction to
         the extent required by the laws of such jurisdiction to service the
         Contracts in accordance with the terms of the Sale and Servicing
         Agreement.

                  (b)   AUTHORIZATION; BINDING OBLIGATION. Seller has the power
         and authority to make, execute, deliver and perform this Agreement and
         the other Transaction Documents to which the Seller is a party and all
         of the transactions contemplated under this Agreement and the other
         Transaction Documents to which the Seller is a party, and has taken all
         necessary corporate action to authorize the execution, delivery and
         performance of this Agreement and the other Transaction Documents to
         which the Seller is a party. This Agreement and the other Transaction
         Documents to which the Seller is a party constitute the legal, valid
         and binding obligation of Seller enforceable in accordance with their
         terms, except as enforcement of such terms may be limited by
         bankruptcy, insolvency or similar laws affecting the enforcement of
         creditors' rights generally and by the availability of equitable
         remedies.

                  (c)   NO CONSENT REQUIRED. Seller is not required to obtain
         the consent of any other party or any consent, license, approval or
         authorization from, or registration or declaration with, any
         governmental authority, bureau or agency in connection with the
         execution, delivery, performance, validity or enforceability of this
         Agreement and the other Transaction Documents to which the Seller is a
         party.

                  (d)   NO VIOLATIONS. Seller's execution, delivery and
         performance of this Agreement and the other Transaction Documents to
         which the Seller is a party will not violate any provision of any
         existing law or regulation or any order or decree of any court or the
         Articles of Incorporation or Bylaws of Seller, or constitute a material
         breach of any mortgage, indenture, contract or other agreement to which
         Seller is a party or by which Seller or any of Seller's properties may
         be bound.

                                     J-1

<PAGE>

                  (e)   LITIGATION. No litigation or administrative proceeding
         of or before any court, tribunal or governmental body is currently
         pending, or to the knowledge of Seller threatened, against Seller or
         any of its properties or with respect to this Agreement or any other
         Transaction Document to which the Seller is a party which, if adversely
         determined, would in the opinion of Seller have a material adverse
         effect on the business, properties, assets or condition (financial or
         other) of Seller or the transactions contemplated by this Agreement or
         any other Transaction Document to which the Seller is a party.

                  (f)   PLACE OF BUSINESS; NO CHANGES. Seller's sole place of
         business (within the meaning of Article 9 of the UCC) is as follows:

                          Harley-Davidson Credit Corp.
                          4150 Technology Way
                          Carson City, Nevada 89706

         Seller has not changed its name whether by amendment of its Articles of
         Incorporation, by reorganization or otherwise, and has not changed the
         location of its place of business (except within Carson City, Nevada),
         within the four months preceding the Closing Date.

                  (g)   Approximately 5.0% of the aggregate principal balance of
         contracts financed from time to time by the Seller are secured by
         motorcycles manufactured by Buell.

                  (h)   SOLVENCY. The Seller, after giving effect to the
         conveyances made by it hereunder, is Solvent.

         (2)      REPRESENTATIONS AND WARRANTIES REGARDING EACH CONTRACT.
Seller represents and warrants as to each Contract as of the execution and
delivery of this Agreement and as of the Closing Date, in the case of the
Initial Contracts, and as of the applicable Subsequent Transfer Date, in the
case of Subsequent Contracts, that:

                  (a)   LIST OF CONTRACTS. The information set forth in the List
         of Contracts (or Subsequent List of Contracts, in the case of
         Subsequent Contracts) is true, complete and correct in all material
         respects as of the Initial Cutoff Date or applicable Subsequent Cutoff
         Date, as the case may be.

                  (b)   PAYMENTS. As of the Initial Cutoff Date or applicable
         Subsequent Cutoff Date, as the case may be, the most recent scheduled
         payment with respect to any Contract either had been made or was not
         delinquent for more than 30 days. To the best of Seller's knowledge,
         all payments made on each Contract were made by the respective Obligor.

                  (c)   NO WAIVERS. As of the Closing Date (or the applicable
         Subsequent Transfer Date, in the case of Subsequent Contracts), the
         terms of the Contracts have not

                                     J-2

<PAGE>

         been waived, altered or modified in any respect, except by instruments
         or documents included in the related Contract File.

                  (d)   BINDING OBLIGATION. Each Contract is a legal, valid and
         binding payment obligation of the Obligor thereunder and is enforceable
         in accordance with its terms, except as such enforceability may be
         limited by insolvency, bankruptcy, moratorium, reorganization, or other
         similar laws affecting the enforcement of creditors' rights generally.

                  (e)   NO DEFENSES. No Contract is subject to any right of
         rescission, setoff, counterclaim or defense, including the defense of
         usury, and the operation of any of the terms of such Contract or the
         exercise of any right thereunder will not render the Contract
         unenforceable in whole or in part or subject to any right of
         rescission, setoff, counterclaim or defense, including the defense of
         usury, and no such right of rescission, setoff, counterclaim or defense
         has been asserted with respect thereto.

                  (f)   INSURANCE. As of the Closing Date (or the applicable
         Subsequent Transfer Date in the case of Subsequent Contracts), the
         related Motorcycle securing each Contract is covered by physical damage
         insurance (i) in an amount not less than the value of the Motorcycle at
         the time of origination of the Contract, (ii) naming Seller as a loss
         payee and (iii) insuring against loss and damage due to fire, theft,
         transportation, collision and other risks covered by comprehensive
         coverage, and all premiums due on such insurance have been paid in full
         from the date of the Contract's origination.

                  (g)   ORIGINATION. Each Contract was originated by a
         Harley-Davidson motorcycle dealer in the regular course of its business
         which dealer had all necessary licenses and permits to originate the
         Contracts in the state where such dealer was located, was fully and
         properly executed by the parties thereto, and has been purchased by
         Seller in the regular course of its business. Each Contract was sold by
         such motorcycle dealer to the Seller without any fraud or
         misrepresentation on the part of such motorcycle dealer.

                  (h)   LAWFUL ASSIGNMENT. No Contract was originated in or is
         subject to the laws of any jurisdiction whose laws would make the sale,
         transfer and assignment of the Contract under this Agreement or under
         the Sale and Servicing Agreement or the pledge of the Contract under
         the Indenture unlawful, void or voidable.

                  (i)   COMPLIANCE WITH LAW. None of the Contracts, the
         origination of the Contracts by the dealers, the purchase of the
         Contracts by the Seller, the sale of the Contracts by the Seller to the
         Trust Depositor or by the Trust Depositor to the Trust, or any
         combination of the foregoing, violated as of the Closing Date or as of
         any Subsequent Transfer Date, as applicable, any requirement of any
         federal, state or local law and regulations thereunder, including,
         without limitation, usury, truth in lending, motor vehicle installment
         loan and equal credit opportunity laws, applicable to the Contracts and
         the sale of Motorcycles. Seller shall, for at least the period of this

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<PAGE>

         Agreement, maintain in its possession, available for the Trust
         Depositor's, and the Trustee's inspection, and shall deliver to Trust
         Depositor or the Trustee upon demand, evidence of compliance with all
         such requirements.

                  (j)   CONTRACT IN FORCE. As of the Closing Date (or the
         applicable Subsequent Transfer Date in the case of Subsequent
         Contracts), no Contract has been satisfied or subordinated in whole or
         in part or rescinded, and the related Motorcycle securing any Contract
         has not been released from the lien of the Contract in whole or in
         part.

                  (k)   VALID SECURITY INTEREST. Each Contract creates a valid,
         subsisting and enforceable first priority perfected security interest
         in favor of Seller in the Motorcycle covered thereby, and such security
         interest has been assigned by Seller to the Trust Depositor. The
         original certificate of title, certificate of lien or other
         notification (the "LIEN CERTIFICATE") issued by the body responsible
         for the registration of, and the issuance of certificates of title
         relating to, motor vehicles and liens thereon (the "REGISTRAR OF
         TITLES") of the applicable state to a secured party which indicates the
         lien of the secured party on the Motorcycle is recorded on the original
         certificate of title, and original certificate of title for each
         Motorcycle, show, or if a new or replacement Lien Certificate is being
         applied for with respect to such Motorcycle the Lien Certificate will
         be received within 180 days of the Closing Date (or the applicable
         Subsequent Transfer Date in the case of Subsequent Contracts) and will
         show, the Seller as original secured party under each Contract as the
         holder of a first priority security interest in such Motorcycle. With
         respect to each Contract for which the Lien Certificate has not yet
         been returned from the Registrar of Titles, the Seller has received
         written evidence from the related dealer that such Lien Certificate
         showing the Seller as lienholder has been applied for, the Seller's
         security interest has been validly assigned by the Seller to the Trust
         Depositor and by the Trust Depositor to the Issuer pursuant to this
         Agreement. Immediately after the sale, each Contract will be secured by
         an enforceable and perfected first priority security interest in the
         Motorcycle in favor of the Trust as secured party, which security
         interest is prior to all other liens upon and security interests in
         such Motorcycle which now exist or may hereafter arise or be created
         (except, as to priority, for any lien for taxes, labor, materials or of
         any state law enforcement agency affecting a Motorcycle).

                  (l)   CAPACITY OF PARTIES. All parties to any Contract had
         capacity to execute such Contract and all other documents related
         thereto and to grant the security interest purported to be granted
         thereby.

                  (m)   GOOD TITLE. Each Contract was purchased by Seller for
         value and taken into possession prior to the Cutoff Date (or the
         applicable Subsequent Cutoff Date in the case of Subsequent Contracts)
         in the ordinary course of its business, without knowledge that the
         Contract was subject to a security interest. No Contract has been sold,
         assigned or pledged to any person other than Trust Depositor and the
         Trustee as the transferee of Trust Depositor, and prior to the transfer
         of the Contract to Trust Depositor, Seller had good and marketable
         title to each Contract free and clear of any encumbrance, equity,

                                     J-4

<PAGE>

         loan, pledge, charge, claim or security interest and was the sole owner
         thereof and had full right to transfer the Contract to Trust Depositor
         and to permit Trust Depositor to transfer the same to the Issuer, and,
         as of the Closing Date (or the applicable Subsequent Transfer Date in
         the case of Subsequent Contracts), the Issuer will have a first
         priority perfected security interest therein.

                  (n)   NO DEFAULTS. As of the Initial Cutoff Date (or the
         applicable Subsequent Cutoff Date in the case of Subsequent Contracts),
         no default, breach, violation or event permitting acceleration existed
         with respect to any Contract and no event had occurred which, with
         notice and the expiration of any grace or cure period, would constitute
         such a default, breach, violation or event permitting acceleration
         under such Contract. Seller has not waived any such default, breach,
         violation or event permitting acceleration, and Seller has not granted
         any extension of payment terms on any Contract. As of the Initial
         Cutoff Date (or the applicable Subsequent Cutoff Date in the case of
         Subsequent Contracts), no Motorcycle had been repossessed.

                  (o)   NO LIENS. As of the Closing Date (or the applicable
         Subsequent Transfer Date in the case of Subsequent Contracts) there
         are, to the best of Seller's knowledge, no liens or claims which have
         been filed for work, labor or materials affecting the Motorcycle
         securing any Contract which are or may be liens prior to, or equal
         with, the lien of such Contract.

                  (p)   INSTALLMENTS. Each Contract has a fixed Contract Rate
         and provides for monthly payments of principal and interest which, if
         timely made, would fully amortize the loan on a simple-interest basis
         over its term.

                  (q)   ENFORCEABILITY. Each Contract contains customary and
         enforceable provisions such as to render the rights and remedies of the
         holder thereof adequate for the realization against the collateral of
         the benefits of the security.

                  (r)   ONE ORIGINAL. Each Contract is evidenced by only one
         original executed Contract, which original is being held by the
         Servicer as custodian.

                  (s)   NO GOVERNMENT CONTRACTS. No Obligor is the United States
         government or an agency, authority, instrumentality or other political
         subdivision of the United States government.

                  (t)   LOCKBOX BANK. The Lockbox Bank is the only institution
         holding any Lockbox Account for receipt of payments from Obligors, and
         all Obligors, and only such Obligors, have been instructed to make
         payments to the Lockbox Account, and no person claiming through or
         under Seller has any claim or interest in the Lockbox Account other
         than the Lockbox Bank; provided, however, that other "Trusts" (as
         defined in the Lockbox Agreement) shall have an interest in certain
         other collections therein not related to the Contracts.

                                     J-5

<PAGE>

                  (u)   OBLIGOR BANKRUPTCY. At the Cutoff Date (or the
         applicable Subsequent Cutoff Date in the case of Subsequent Contracts),
         no Obligor was subject to a bankruptcy proceeding within the one year
         preceding such Cutoff Date.

                  (v)   CHATTEL PAPER. The Contracts constitute chattel paper
         within the meaning of the UCC as in effect in the States of Nevada and
         Illinois.

                  (w)   NO IMPAIRMENT. Neither the Seller nor the Trust
         Depositor has done anything to convey any right to any Person that
         would result in such Person having a right to payments due under the
         Contract or otherwise to impair the rights of the Trust in any
         Contract or the proceeds thereof.

                  (x)   CONTRACT NOT ASSUMABLE. No Contract is assumable by
         another Person in a manner which would release the Obligor thereof from
         such Obligor's obligations to the Trust Depositor with respect to such
         Contract.

         (3)      REPRESENTATIONS AND WARRANTIES REGARDING THE CONTRACTS IN
THE AGGREGATE. Seller represents and warrants, as of the execution and
delivery of this Agreement and as of the Closing Date, in the case of the
Initial Contracts, and as of the applicable Subsequent Transfer Date, in the
case of Subsequent Contracts, that:

                  (a)   AMOUNTS. The sum of the aggregate Principal Balances
         payable by Obligors under the Contracts as of the Initial Cutoff Date
         (or the applicable Subsequent Cutoff Date in the case of Subsequent
         Contracts), plus the Pre-Funded Amount as of such date, equals the sum
         of the principal balance of the Class A-1 Notes, the Class A-2 Notes
         and the Class B Notes on the Closing Date or the related Subsequent
         Transfer Date, as applicable.

                  (b)   CHARACTERISTICS. The Initial Contracts have the
         following characteristics: (i) all the Contracts are secured by
         Motorcycles; (ii) no Initial Contract has a remaining maturity of
         more than 84 months; and (iii) the final scheduled payment on the
         Initial Contract with the latest maturity is due not later than
         November 2007. Approximately 64.62% of the Principal Balance of the
         Initial Contracts as of the Initial Cutoff Date is attributable to
         loans for purchases of new Motorcycles and approximately 35.38% is
         attributable to loans for purchases of used Motorcycles. No Initial
         Contract was originated after the Initial Cutoff Date. No Initial
         Contract has a Contract Rate less than 8.50%. The first scheduled
         payment date of the Contracts (including any Subsequent Contracts) is
         due no later than February 2001.

                  (c)   MARKING RECORDS. As of the Closing Date (or the
         applicable Subsequent Transfer Date in the case of Subsequent
         Contracts), Seller has caused the Computer Disk relating to the
         Contracts sold hereunder and concurrently reconveyed by Trust
         Depositor to the Trust and pledged by the Trust to the Indenture
         Trustee to be clearly and unambiguously marked to indicate that such
         Contracts constitute part of the Trust Corpus, are owned by the Trust
         and constitute security for the Notes.

                                     J-6

<PAGE>

                  (d)   NO ADVERSE SELECTION. No selection procedures adverse to
         Noteholders have been employed in selecting the Contracts.

                  (e)   TRUE SALE. The transaction contemplated by this
         Agreement constitutes a valid sale, transfer and assignment from
         Seller to Trust Depositor and from Trust Depositor to the Trust of
         all of Seller's right, title and interest in the Contract Assets as
         of the Closing Date and any Subsequent Transfer Date, as applicable.

                  (f)   ALL FILINGS MADE. All filings (including, without
         limitation, UCC filings) required to be made by any Person and actions
         required to be taken or performed by any Person in any jurisdiction to
         give the Trustee a first priority perfected lien on, or ownership
         interest in, the Contracts and the proceeds thereof and the rest of the
         Trust Corpus have been made, taken or performed.

                  (g)   DELTA LOANS. No more than 11.00% of the Principal
         Balance of the Contracts as of the end of the Funding Period is
         attributable to Delta Loans.

         (4)      REPRESENTATIONS AND WARRANTIES REGARDING THE CONTRACT FILES.
Seller represents and warrants as of the execution and delivery of this
Agreement and as of the Closing Date, in the case of the Initial Contracts,
and as of the applicable Subsequent Transfer Date, in the case of Subsequent
Contracts, that:

                  (a)   POSSESSION. Immediately prior to the Closing Date or any
         Subsequent Transfer Date, the Servicer will have possession of each
         original Contract and the related complete Contract File, and there are
         and there will be no custodial agreements relating to the same in
         effect. Each of such documents which is required to be signed by the
         Obligor has been signed by the Obligor in the appropriate spaces. All
         blanks on any form have been properly filled in and each form has
         otherwise been correctly prepared. The complete Contract File for each
         Contract currently is in the possession of the Servicer.

                  (b)   BULK TRANSFER LAWS. The transfer, assignment and
         conveyance of the Contracts and the Contract Files by Seller pursuant
         to the Transfer and Sale Agreement or any Subsequent Purchase Agreement
         and by Trust Depositor pursuant to the Sale and Servicing Agreement is
         not subject to the bulk transfer or any similar statutory provisions in
         effect in any applicable jurisdiction.








                                     J-7

<PAGE>

                                    EXHIBIT K

                       [Lockbox Bank and Lockbox Account]



                                     Lockbox
                                     -------

                          Harley-Davidson Credit Corp.
                          135 South LaSalle Street
                          Chicago, Illinois 60674



                                  Lockbox Bank
                                  ------------

                          LaSalle Bank National Association
                          135 South LaSalle Street
                          Chicago, Illinois 60674















                                     K-1

<PAGE>

                                    EXHIBIT L

                            [Form of Contract Stamp]

         This Contract/Note is subject to a security interest granted to
Harley-Davidson Motorcycle Trust 2000-3. UCC-1 Financing Statements covering
this Contract/Note have been filed with the Secretary of State of the State of
Nevada and the Secretary of State of the State of Illinois. Such lien will be
released only in connection with appropriate filings in such offices.
Consequently, potential purchasers of this Contract/Note must refer to such
filings to determine whether such lien has been released.

























                                     L-1

<PAGE>

                                    EXHIBIT M

                     [Form of Subsequent Transfer Agreement]

               [see EXHIBIT C of the Transfer and Sale Agreement]


























                                     M-1