Document:

EXHIBIT 4.1
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                                                                EXECUTION COPY

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                                   INDENTURE

                                    between

                         USAA AUTO OWNER TRUST 2006-1
                                   as Issuer

                                      and

                   JPMORGAN CHASE BANK, NATIONAL ASSOCIATION
                             as Indenture Trustee

                         Dated as of February 22, 2006

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                               Table of Contents

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                                   ARTICLE I
               DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE

<S>               <C>
SECTION 1.1.      Definitions and Usage......................................................2
SECTION 1.2.      Incorporation by Reference of Trust Indenture Act..........................2

                                  ARTICLE II
                                   THE NOTES

SECTION 2.1.      Form.......................................................................2
SECTION 2.2.      Execution, Authentication and Delivery.....................................3
SECTION 2.3.      Temporary Notes............................................................4
SECTION 2.4.      Tax Treatment..............................................................4
SECTION 2.5.      Registration; Registration of Transfer and Exchange........................4
SECTION 2.6.      Mutilated, Destroyed, Lost or Stolen Notes.................................7
SECTION 2.7.      Persons Deemed Owners......................................................8
SECTION 2.8.      Payment of Principal and Interest; Defaulted Interest......................8
SECTION 2.9.      Cancellation...............................................................9
SECTION 2.10.     Release of Collateral......................................................9
SECTION 2.11.     Book-Entry Notes...........................................................9
SECTION 2.12.     Notices to Clearing Agency................................................10
SECTION 2.13.     Definitive Notes..........................................................10
SECTION 2.14.     Authenticating Agents.....................................................11

                                  ARTICLE III
                                   COVENANTS

SECTION 3.1.      Payment of Principal and Interest.........................................11
SECTION 3.2.      Maintenance of Office or Agency...........................................11
SECTION 3.3.      Money for Payments To Be Held in Trust....................................12
SECTION 3.4.      Existence.................................................................13
SECTION 3.5.      Protection of Indenture Trust Estate......................................14
SECTION 3.6.      Opinions as to Indenture Trust Estate.....................................15
SECTION 3.7.      Performance of Obligations; Servicing of Receivables......................15
SECTION 3.8.      Negative Covenants........................................................17
SECTION 3.9.      Annual Statement as to Compliance.........................................18
SECTION 3.10.     Issuer May Consolidate, etc., Only on Certain Terms.......................18
SECTION 3.11.     Successor or Transferee...................................................20
SECTION 3.12.     No Other Business.........................................................20
SECTION 3.13.     No Borrowing..............................................................20
SECTION 3.14.     Servicer's Obligations....................................................20
SECTION 3.15.     Guarantees, Loans, Advances and Other Liabilities.........................20
SECTION 3.16.     Capital Expenditures......................................................21

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SECTION 3.17.     Further Instruments and Acts..............................................21
SECTION 3.18.     Restricted Payments.......................................................21
SECTION 3.19.     Notice of Events of Default...............................................21
SECTION 3.20.     Removal of Administrator..................................................21

                                  ARTICLE IV
                          SATISFACTION AND DISCHARGE

SECTION 4.1.      Satisfaction and Discharge of Indenture...................................21
SECTION 4.2.      Application of Trust Money................................................23
SECTION 4.3.      Repayment of Monies Held by Note Paying Agent.............................23

                                   ARTICLE V
                                   REMEDIES

SECTION 5.1.      Events of Default.........................................................23
SECTION 5.2.      Acceleration of Maturity; Rescission and Annulment........................24
SECTION 5.3.      Collection of Indebtedness and Suits for Enforcement by Indenture
                  Trustee...................................................................25
SECTION 5.4.      Remedies; Priorities......................................................27
SECTION 5.5.      Optional Preservation of the Receivables..................................29
SECTION 5.6.      Limitation of Suits.......................................................30
SECTION 5.7.      Unconditional Rights of Noteholders To Receive Principal and Interest.....31
SECTION 5.8.      Restoration of Rights and Remedies........................................31
SECTION 5.9.      Rights and Remedies Cumulative............................................31
SECTION 5.10.     Delay or Omission Not a Waiver............................................31
SECTION 5.11.     Control by Controlling Class..............................................31
SECTION 5.12.     Waiver of Past Defaults...................................................32
SECTION 5.13.     Undertaking for Costs.....................................................32
SECTION 5.14.     Waiver of Stay or Extension Laws..........................................33
SECTION 5.15.     Action on Notes...........................................................33
SECTION 5.16.     Performance and Enforcement of Certain Obligations........................33

                                  ARTICLE VI
                             THE INDENTURE TRUSTEE

SECTION 6.1.      Duties of Indenture Trustee...............................................34
SECTION 6.2.      Rights of Indenture Trustee...............................................35
SECTION 6.3.      Individual Rights of Indenture Trustee....................................36
SECTION 6.4.      Indenture Trustee's Disclaimer............................................36
SECTION 6.5.      Notice of Defaults; Insolvency or Dissolution of Depositor or the
                  Seller....................................................................37
SECTION 6.6.      Reports by Indenture Trustee to Noteholders...............................37
SECTION 6.7.      Compensation and Indemnity................................................37
SECTION 6.8.      Replacement of Indenture Trustee..........................................37
SECTION 6.9.      Successor Indenture Trustee by Merger.....................................39
SECTION 6.10.     Appointment of Co-Indenture Trustee or Separate Indenture Trustee.........39

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SECTION 6.11.     Eligibility; Disqualification.............................................40

                                  ARTICLE VII
                        NOTEHOLDERS' LISTS AND REPORTS

SECTION 7.1.      Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders....41
SECTION 7.2.      Preservation of Information; Communications to Noteholders................41
SECTION 7.3.      Reports by Issuer.........................................................41
SECTION 7.4.      Reports by Indenture Trustee..............................................42

                                 ARTICLE VIII
                          ACCOUNTS, DISBURSEMENTS AND RELEASES

SECTION 8.1.      Collection of Money.......................................................42
SECTION 8.2.      Trust Accounts............................................................42
SECTION 8.3.      General Provisions Regarding Accounts.....................................46
SECTION 8.4.      Release of Indenture Trust Estate.........................................46
SECTION 8.5.      Opinion of Counsel........................................................47

                                  ARTICLE IX
                            SUPPLEMENTAL INDENTURES

SECTION 9.1.      Supplemental Indentures Without Consent of Noteholders....................47
SECTION 9.2.      Supplemental Indentures with Consent of Noteholders.......................49
SECTION 9.3.      Execution of Supplemental Indentures......................................50
SECTION 9.4.      Effect of Supplemental Indenture..........................................51
SECTION 9.5.      Conformity with Trust Indenture Act.......................................51
SECTION 9.6.      Reference in Notes to Supplemental Indentures.............................51

                                   ARTICLE X
                                  PREPAYMENT

SECTION 10.1.     Prepayment................................................................51
SECTION 10.2.     Form of Prepayment Notice.................................................51
SECTION 10.3.     Notes Payable on Prepayment Date..........................................52

                                  ARTICLE XI
                                 MISCELLANEOUS

SECTION 11.1.     Compliance Certificates and Opinions, etc.................................52
SECTION 11.2.     Form of Documents Delivered to Indenture Trustee..........................54
SECTION 11.3.     Acts of Noteholders.......................................................55
SECTION 11.4.     Notices, etc., to Indenture Trustee, Issuer and Rating Agencies...........55
SECTION 11.5.     Notices to Noteholders; Waiver............................................56
SECTION 11.6.     Alternate Payment and Notice Provisions...................................56
SECTION 11.7.     Conflict with Trust Indenture Act.........................................56
SECTION 11.8.     Effect of Headings and Table of Contents..................................57

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SECTION 11.9.     Successors and Assigns....................................................57
SECTION 11.10.    Separability..............................................................57
SECTION 11.11.    Benefits of Indenture.....................................................57
SECTION 11.12.    Legal Holidays............................................................57
SECTION 11.13.    GOVERNING LAW.............................................................57
SECTION 11.14.    Counterparts..............................................................57
SECTION 11.15.    Recording of Indenture....................................................57
SECTION 11.16.    Trust Obligation..........................................................57
SECTION 11.17.    No Petition...............................................................58
SECTION 11.18.    Subordination Agreement...................................................58
SECTION 11.19.    No Recourse...............................................................58
SECTION 11.20.    Inspection................................................................59
EXHIBIT A-1       FORM OF CLASS A-1 NOTE.................................................A-1-1
EXHIBIT A-2       FORM OF CLASS A-2 NOTE.................................................A-2-1
EXHIBIT A-3       FORM OF CLASS A-3 NOTE.................................................A-3-1
EXHIBIT A-4       FORM OF CLASS A-4 NOTE.................................................A-4-1
EXHIBIT B         FORM OF CLASS B NOTE.....................................................B-1
SCHEDULE A        Schedule of Receivables.................................................SA-1
APPENDIX A        Definitions and Usage...........................................Appendix-A-1

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        INDENTURE, dated as of February 22, 2006 (as from time to time
amended, supplemented or otherwise modified and in effect, this "Indenture"),
between USAA AUTO OWNER TRUST 2006-1, a Delaware statutory trust, as Issuer,
and JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, a banking association organized
under the laws of the United States, as trustee and not in its individual
capacity (in such capacity, the "Indenture Trustee").

        Each party agrees as follows for the benefit of the other party and
for the equal and ratable benefit of the holders of the Issuer's Class A-1
4.7552% Asset Backed Notes (the "Class A-1 Notes"), Class A-2 5.03% Asset
Backed Notes (the "Class A-2 Notes"), Class A-3 5.01% Asset Backed Notes (the
"Class A-3 Notes"), Class A-4 5.04% Asset Backed Notes (the "Class A-4 Notes"
and, together with the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, the "Class A Notes") and Class B 5.53% Asset Backed Notes (the "Class B
Notes" and, together with the Class A Notes, the "Notes"):

                                GRANTING CLAUSE

        The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as Indenture Trustee for the benefit of the Noteholders, all of the Issuer's
right, title and interest in, to and under, whether now owned or existing or
hereafter acquired or arising, (a) the Receivables; (b) monies received
thereunder on or after the Cut-off Date; (c) the security interests in the
Financed Vehicles granted by Obligors pursuant to the Receivables and any
other interest of the Issuer in the Financed Vehicles; (d) rights to receive
proceeds with respect to the Receivables from claims on any theft, physical
damage, credit life, credit disability, or other insurance policies covering
Financed Vehicles or Obligors; (e) all of the rights to the Receivable Files;
(f) the Trust Accounts, and all amounts, securities, investments and other
property deposited in or credited to any of the foregoing, all securities
entitlements related to the foregoing and all proceeds thereof; (g) the
Receivables Purchase Agreement and the Sale and Servicing Agreement; (h)
payments and proceeds with respect to the Receivables held by the Servicer;
(i) all property (including the right to receive Liquidation Proceeds)
securing a Receivable (other than a Receivable purchased by the Servicer or
repurchased by the Depositor); (j) rebates of premiums and other amounts
relating to insurance policies and other items financed under the Receivables
in effect as of the Cut-off Date; and (k) all present and future claims,
demands, causes of action and choses in action in respect of any or all of the
foregoing and all payments on or under and all proceeds of every kind and
nature whatsoever in respect of any or all of the foregoing, including all
proceeds of the conversion thereof, voluntary or involuntary, into cash or
other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance
proceeds, condemnation awards, rights to payment of any and every kind and
other forms of obligations and receivables, instruments and other property
which at any time constitute all or part of or are included in the proceeds of
any of the foregoing (collectively, the "Collateral").

        The foregoing Grant is made in trust to secure the payment of
principal of and interest on, and any other amounts owing in respect of, the
Notes, equally and ratably without prejudice, priority or distinction, except
as provided in the Indenture, and to secure compliance with the provisions of
this Indenture, all as provided in this Indenture.

<PAGE>

        JPMorgan Chase Bank, National Association, as Indenture Trustee on
behalf of the Noteholders, acknowledges such Grant, accepts the trusts under
this Indenture in accordance with the provisions of this Indenture and agrees
to perform its duties required in this Indenture to the best of its ability to
the end that the interests of the Noteholders may be adequately and
effectively protected.

                                   ARTICLE I

               DEFINITIONS, USAGE AND INCORPORATION BY REFERENCE

        SECTION 1.1. Definitions and Usage. Except as otherwise specified
herein or as the context may otherwise require, capitalized terms used but not
otherwise defined herein are defined in Appendix A hereto, which also contains
rules as to usage that shall be applicable herein.

        SECTION 1.2. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

        "indenture securities" shall mean the Notes.

        "indenture security holder" shall mean a Noteholder.

        "indenture to be qualified" shall mean this Indenture.

        "indenture trustee" or "institutional trustee" shall mean the
Indenture Trustee.

        "obligor" on the indenture securities shall mean the Issuer and any
other obligor on the indenture securities.

        All other TIA terms used in this Indenture that are defined in the
TIA, defined by TIA reference to another statute or defined by Commission rule
have the meaning assigned to them by such definitions.

                                  ARTICLE II

                                   THE NOTES

        SECTION 2.1. Form. (a) The Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes, the Class A-4 Notes and the Class B Notes, together with the
Indenture Trustee's certificates of authentication, shall be in substantially
the forms set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4 and
Exhibit B, respectively, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Notes, as evidenced by their
execution thereof. Any portion of the text of any

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Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note.

        (b)  The Definitive Notes shall be typewritten, printed,
lithographed or engraved or produced by any combination of these methods (with
or without steel engraved borders), all as determined by the officers
executing such Notes, as evidenced by their execution of such Notes.

        (c)  Each Note shall be dated the date of its authentication. The
terms of the Notes set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit
A-4 and Exhibit B are part of the terms of this Indenture and are incorporated
herein by reference.

        SECTION 2.2. Execution, Authentication and Delivery. (a) The Notes
shall be executed on behalf of the Issuer by any of its Authorized Officers.
The signature of any such Authorized Officer on the Notes may be manual or
facsimile.

        (b)  Notes bearing the manual or facsimile signature of individuals
who were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes.

        (c)  The Indenture Trustee shall, upon Issuer Order, authenticate
and deliver the Notes for original issue in the Classes and initial aggregate
principal amounts as set in the table below.

                                                  Initial Aggregate
Class                                             Principal Amount
-----                                             ----------------
Class A-1 Notes                                   $217,000,000
Class A-2 Notes                                   $320,000,000
Class A-3 Notes                                   $433,000,000
Class A-4 Notes                                   $206,400,000
Class B Notes                                     $ 39,517,324

        The aggregate principal amount of Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes and Class B Notes Outstanding at any time may
not exceed those respective amounts except as provided in Section 2.6.

        (d)  The Class A-1, Class A-2, Class A-3, Class A-4 and Class B
Notes shall be issuable as Book-Entry Notes in minimum denominations of $1,000
and in integral multiples of $1,000 in excess thereof (except for one Note of
each class which may be issued in a denomination other than an integral of
$1,000).

        (e)  No Note shall be entitled to any benefit under this Indenture
or be valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided for herein
executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated
and delivered hereunder.

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        SECTION 2.3. Temporary Notes. (a) Pending the preparation of
Definitive Notes, the Issuer may execute, and upon receipt of an Issuer Order
the Indenture Trustee shall authenticate and deliver, temporary Notes that are
printed, lithographed, typewritten, mimeographed or otherwise produced,
substantially of the tenor of the Definitive Notes in lieu of which they are
issued and with such variations not inconsistent with the terms of this
Indenture as the officers executing the temporary Notes may determine, as
evidenced by their execution of such temporary Notes.

        If temporary Notes are issued, the Issuer shall cause Definitive Notes
to be prepared without unreasonable delay. After the preparation of Definitive
Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Issuer to be
maintained as provided in Section 3.2, without charge to the Noteholder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer
shall execute, and the Indenture Trustee shall authenticate and deliver in
exchange therefor, a like principal amount of Definitive Notes of authorized
denominations. Until so exchanged, the temporary Notes shall in all respects
be entitled to the same benefits under this Indenture as Notes.

        SECTION 2.4. Tax Treatment. The Issuer has entered into this
Indenture, and the Notes shall be issued, with the intention that, for
federal, State and local income and franchise tax purposes, the Notes shall
qualify as indebtedness of the Issuer secured by the Indenture Trust Estate.
The Issuer, by entering into this Indenture, and each Noteholder, by its
acceptance of a Note (and each Note Owner by its acceptance of an interest in
the applicable Book-Entry Note), agree to treat the Notes for federal, State
and local income and franchise tax purposes as indebtedness of the Issuer.

        SECTION 2.5. Registration; Registration of Transfer and Exchange. (a)
The Issuer shall cause to be kept a register (the "Note Register") in which,
subject to such reasonable regulations as it may prescribe, the Issuer shall
provide for the registration of Notes and the registration of transfers of
Notes. The Indenture Trustee initially shall be the "Note Registrar" for the
purpose of registering Notes and transfers of Notes as herein provided. Upon
any resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties
of Note Registrar. If a Person other than the Indenture Trustee is appointed
by the Issuer as Note Registrar, (i) the Issuer shall give the Indenture
Trustee prompt written notice of the appointment of such Note Registrar and of
the location, and any change in the location, of the Note Register, (ii) the
Indenture Trustee shall have the right to inspect the Note Register at all
reasonable times and to obtain copies thereof, and (iii) the Indenture Trustee
shall have the right to rely upon a certificate executed on behalf of the Note
Registrar by an Executive Officer thereof as to the names and addresses of the
Noteholders and the principal amounts and number of such Notes.

        (b)  Upon surrender for registration of transfer of any Note at the
office or agency of the Issuer to be maintained as provided in Section 3.2, if
the requirements of Section 8-401(a) of the UCC are met, an Authorized Officer
of the Issuer shall execute, and the Indenture Trustee shall authenticate and
the Noteholder shall obtain from the Indenture Trustee, in the name of the
designated transferee or transferees, one or more new Notes of the same Class
in any authorized denomination, of a like aggregate principal amount.

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        (c)  At the option of the Noteholder, Notes may be exchanged for
other Notes of the same Class in any authorized denominations, of a like
aggregate principal amount, upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Notes are so surrendered for exchange, if
the requirements of Section 8-401(a) of the UCC are met, the Issuer shall
execute, the Indenture Trustee shall authenticate, and the Noteholder shall
obtain from the Indenture Trustee, the Notes which the Noteholder making such
exchange is entitled to receive.

        (d)  All Notes issued upon any registration of transfer or exchange
of Notes shall be the valid obligations of the Issuer, evidencing the same
debt, and entitled to the same benefits under this Indenture as the Notes
surrendered upon such registration of transfer or exchange.

        (e)  Every Note presented or surrendered for registration of
transfer or exchange shall be (i) duly endorsed by, or be accompanied by a
written instrument of transfer in form satisfactory to the Indenture Trustee
duly executed by, the Noteholder thereof or such Noteholder's attorney duly
authorized in writing, with such signature guaranteed by an "eligible
guarantor institution" meeting the requirements of the Note Registrar and (ii)
accompanied by such other documents or evidence as the Indenture Trustee may
require.

        (f)  No service charge shall be made to a Noteholder for any
registration of transfer or exchange of Notes, but the Note Registrar may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 2.3 or 9.6 not
involving any transfer.

        (g)  The preceding provisions of this Section 2.5 notwithstanding,
the Issuer shall not be required to make and the Note Registrar need not
register transfers or exchanges of Notes selected for redemption or of any
Note for a period of fifteen (15) days preceding the Payment Date for any
payment with respect to such Note.

        (h)  Each Class A Noteholder, by its acceptance of a Class A Note
(and each Note Owner, by its acceptance of a beneficial interest in a Class A
Note) will be deemed to have represented that (x) it is not, and is not
acquiring the Class A Note on behalf of, or with "plan assets" (as determined
under Department of Labor Regulation ss.2510.3-101 or otherwise) of, a Plan,
or any employee benefit plan subject to Similar Law, or (y) its acquisition
and holding of the Class A Note satisfy the requirements for relief under
Prohibited Transaction Class Exemption ("PTCE") 84-14, PTCE 90-1, PTCE 91-38,
PTCE 95-60, PTCE 96-23 or a similar exemption, or, in the case of an employee
benefit plan subject to Similar Law, do not result in a nonexempt violation of
Similar Law.

        (i)  Each Class B Noteholder, by its acceptance of a Class B Note
(and each Note Owner by its acceptance of a beneficial interest in a Class B
Note) will be deemed to have represented the following:

               (i)    Either:

                      (A) for the entire period during which such purchaser or
               transferee holds its interest in the Class B Notes, no portion
               of such purchaser's or transferee's assets constitutes assets
               of any Benefit Plan Investor; or

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                      (B) (1) the assets used by such purchaser or transferee
               to acquire the Class B Notes (or any interest therein)
               constitute assets of an insurance company general account, (2)
               for the entire period during which such purchaser or transferee
               holds its interest in the Class B Notes, less than 25% of the
               assets of such insurance company general account will
               constitute "plan assets" of any Benefit Plan Investor, (3)
               neither such purchaser or transferee nor any affiliate is a
               Controlling Person of the Issuer and (4) the acquisition and
               holding of the Class B Notes by such purchaser or transferee
               will satisfy the requirements of Section I of PTCE 95-60 and
               will not constitute a non-exempt prohibited transaction under
               Section 406 of ERISA or Section 4975 of the Code or a violation
               of any applicable Similar Law.

               (ii) It is, and each account (if any) for which it is
        purchasing Class B Notes is, a Person who is (A) a citizen or resident
        of the United States, (B) a corporation or partnership organized in or
        under the laws of the United States, any state thereof or the District
        of Columbia, (C) an estate the income of which is includible gross
        income for United States tax purposes, regardless of its source, (D) a
        trust with respect to which a U.S. court is able to exercise primary
        supervision over the administration of such trust and one or more
        Persons meeting the conditions of clause (A), (B), (C) or (D) of this
        paragraph (ii) has the authority to control all substantial decisions
        of the trust or (E) a Person not described in clauses (A) through (D)
        above whose ownership of Class B Notes is effectively connected with
        such Person's conduct of a trade or business within the United States
        (within the meaning of the Code) and who provides the Indenture
        Trustee and the Depositor with an IRS Form W-8 ECI (and such other
        certifications, representations, or opinions of counsel as may be
        requested by the Indenture Trustee or the Depositor).

               (iii) It understands that any purported transfer of any Class B
        Note (or any interest therein) to any Person who does not meet the
        conditions of paragraphs (i) and (ii) above shall be, to the fullest
        extent permitted by law, void ab initio, and the purported transferee
        in such a transfer shall not be recognized by the Issuer or any other
        Person as a Class B Noteholder for any purpose.

        (j)  Plans and persons investing on behalf of or with "plan assets"
of Plans may not acquire the Class B Notes. However, an insurance company
using the assets of its general account that include "plan assets" may
purchase the Class B Notes if:

               (i) such insurance company is able to represent that, as of the
        date it acquires an interest in the Class B Notes, less than 25% of
        the assets of such general account constitute "plan assets" of a
        Benefit Plan Investor within the meaning of 29 C.F.R.
        ss.2510.3-101(f);

               (ii) such insurance company agrees that if at any time during
        any calendar quarter while it is holding an interest in the Class B
        Notes, 25% or more of the assets of such general account constitute
        "plan assets" of a Benefit Plan Investor within the meaning of 29
        C.F.R. ss.2510.3-101(f), and if, at that time, no appropriate
        exemption or

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        exception applies to the operation of the Issuer and its assets under
        ERISA, such insurance company will dispose of the Class B Notes then
        held in its general account;

               (iii) neither such insurance company nor any affiliate is a
        Controlling Person of the Issuer; and

               (iv) the purchase satisfies the conditions for relief under
        Section I of PTCE 95-60.

        SECTION 2.6. Mutilated, Destroyed, Lost or Stolen Notes. (a) If (i)
any mutilated Note is surrendered to the Indenture Trustee or the Note
Registrar, or the Indenture Trustee receives evidence to its satisfaction of
the destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by it to hold
the Issuer and the Indenture Trustee harmless, then, in the absence of notice
to the Issuer, the Note Registrar or the Indenture Trustee that such Note has
been acquired by a protected purchaser, as defined in Section 8-303 of the
UCC, and provided that the requirements of Section 8-405 of the UCC are met,
the Issuer shall execute, and upon Issuer Request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same Class;
provided, however, that if any such destroyed, lost or stolen Note, but not a
mutilated Note, shall have become or within seven (7) days shall be due and
payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when
so due or payable or upon the Prepayment Date without surrender thereof. If,
after the delivery of such replacement Note or payment of a destroyed, lost or
stolen Note pursuant to the proviso to the preceding sentence, a protected
purchaser of the original Note in lieu of which such replacement Note was
issued presents for payment such original Note, the Issuer and the Indenture
Trustee shall be entitled to recover such replacement Note (or such payment)
from the Person to whom it was delivered or any Person taking such replacement
Note from such Person to whom such replacement Note was delivered or any
assignee of such Person, except a protected purchaser, and shall be entitled
to recover upon the security or indemnity provided therefor to the extent of
any loss, damage, cost or expense incurred by the Issuer or the Indenture
Trustee in connection therewith.

        (b)  Upon the issuance of any replacement Note under this Section
2.6, the Issuer may require the payment by the Noteholder of such Note of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other reasonable expenses (including the
fees and expenses of the Indenture Trustee) connected therewith.

        (c)  Every replacement Note issued pursuant to this Section 2.6 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute
an original additional contractual obligation of the Issuer, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time enforceable
by anyone, and shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.

        (d)  The provisions of this Section 2.6 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Notes.

                                      7
<PAGE>

        SECTION 2.7. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and
any agent of the Issuer or the Indenture Trustee may treat the Person in whose
name any Note is registered (as of the day of determination) as the owner of
such Note for the purpose of receiving payments of principal of and interest,
if any, on such Note and for all other purposes whatsoever, whether or not
such Note be overdue, and none of the Issuer, the Indenture Trustee or any
agent of the Issuer or the Indenture Trustee shall be affected by notice to
the contrary.

        SECTION 2.8. Payment of Principal and Interest; Defaulted Interest.
(a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class
A-4 Notes and the Class B Notes shall accrue interest at the Class A-1 Rate,
the Class A-2 Rate, the Class A-3 Rate, the Class A-4 Rate and the Class B
Rate, respectively, as set forth in Exhibit A-1, Exhibit A-2, Exhibit A-3,
Exhibit A-4 and Exhibit B, respectively, and such interest shall be due and
payable on each Payment Date as specified therein, subject to Section 3.1. Any
installment of interest or principal, if any, payable on any Note that is
punctually paid or duly provided for by the Issuer on the applicable Payment
Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five (5) Business Days prior to such Payment Date and such Noteholder's Notes
in the aggregate evidence a denomination of not less than $1,000,000, or, if
not, by check mailed first-class postage prepaid to such Person's address as
it appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners pursuant to Section 2.13,
with respect to Notes registered on the Record Date in the name of the nominee
of the Clearing Agency (initially, such nominee to be Cede & Co.), payment
shall be made by wire transfer in immediately available funds to the account
designated by such nominee, and except for the final installment of principal
payable with respect to such Note on a Payment Date, Prepayment Date or the
applicable Final Scheduled Payment Date, which shall be payable as provided
below. The funds represented by any such checks returned undelivered shall be
held in accordance with Section 3.3.

        (b)  The principal of each Note shall be payable in installments on
each Payment Date as provided in this Indenture and in the forms of Notes set
forth in Exhibit A-1, Exhibit A-2, Exhibit A-3, Exhibit A-4 and Exhibit B
hereto. Notwithstanding the foregoing, the entire unpaid principal amount of
each Class of Notes shall be due and payable, if not previously paid, on the
date on which an Event of Default shall have occurred and be continuing, if
the Indenture Trustee or the Noteholders of Notes evidencing not less than a
majority of the principal amount of the Controlling Class have declared the
Notes to be immediately due and payable in the manner provided in Section 5.2.
All principal payments on each Class of Notes shall be made pro rata to the
Noteholders of such Class entitled thereto. The Indenture Trustee shall notify
the Person in whose name a Note is registered at the close of business on the
Record Date preceding the Payment Date on which the Issuer expects that the
final installment of principal of and interest on such Note shall be paid.
Such notice shall be mailed or transmitted by facsimile prior to such final
Payment Date and shall specify that such final installment shall be payable
only upon presentation and surrender of such Note and shall specify the place
where such Note may be presented and surrendered for payment of such
installment. Notices in connection with redemption of Notes shall be mailed to
Noteholders as provided in Section 10.2.

                                      8
<PAGE>

        (c)  If the Issuer defaults in a payment of interest on the Notes,
the Issuer shall pay defaulted interest (plus interest on such defaulted
interest to the extent lawful) at the applicable Note Interest Rate on the
Payment Date following such default. The Issuer shall pay such defaulted
interest to the Persons who are Noteholders on the Record Date for such
following Payment Date.

        SECTION 2.9. Cancellation. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly cancelled by the Indenture Trustee. The Issuer may at any time
deliver to the Indenture Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Issuer may have acquired in
any manner whatsoever, and all Notes so delivered shall be promptly cancelled
by the Indenture Trustee. No Notes shall be authenticated in lieu of or in
exchange for any Notes cancelled as provided in this Section 2.9, except as
expressly permitted by this Indenture. All cancelled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention
or disposal policy as in effect at the time unless the Issuer shall direct by
an Issuer Order that they be destroyed or returned to it and so long as such
Issuer Order is timely and the Notes have not been previously disposed of by
the Indenture Trustee.

        SECTION 2.10. Release of Collateral. Subject to Section 11.1 and the
terms of the Basic Documents, the Indenture Trustee shall release property
from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(1) or an
Opinion of Counsel in lieu of such Independent Certificates to the effect that
the TIA does not require any such Independent Certificates. If the Commission
shall issue an exemptive order under TIA Section 304(d) modifying the Issuer's
obligations under TIA Sections 314(c) and 314(d)(1), subject to Section 11.1
and the terms of the Basic Documents, the Indenture Trustee shall release
property from the lien of this Indenture in accordance with the conditions and
procedures set forth in such exemptive order.

        SECTION 2.11. Book-Entry Notes. The Notes, upon original issuance,
shall be issued in the form of typewritten Notes representing the Book-Entry
Notes, to be delivered to The Depository Trust Company, the initial Clearing
Agency, by, or on behalf of, the Issuer. The Book-Entry Notes shall be
registered initially on the Note Register in the name of Cede & Co., the
nominee of the initial Clearing Agency, and no Note Owner thereof shall
receive a Definitive Note (as defined below) representing such Note Owner's
interest in such Note, except as provided in Section 2.13. Unless and until
definitive, fully registered Notes (the "Definitive Notes") have been issued
to such Note Owners pursuant to Section 2.13:

               (i) the provisions of this Section 2.11 shall be in full force
        and effect;

               (ii) the Note Registrar and the Indenture Trustee shall be
        entitled to deal with the Clearing Agency for all purposes of this
        Indenture (including the payment of principal of and interest on the
        Book-Entry Notes and the giving of instructions or directions
        hereunder) as the sole Noteholder, and shall have no obligation to the
        Note Owners;

                                      9
<PAGE>

               (iii) to the extent that the provisions of this Section 2.11
        conflict with any other provisions of this Indenture, the provisions
        of this Section 2.11 shall control;

               (iv) the rights of Note Owners shall be exercised only through
        the Clearing Agency and shall be limited to those established by law
        and agreements between such Note Owners and the Clearing Agency and/or
        the Clearing Agency Participants pursuant to the Security Depository
        Agreement. Unless and until Definitive Notes are issued to Note Owners
        pursuant to Section 2.13, the initial Clearing Agency shall make
        book-entry transfers among the Clearing Agency Participants and
        receive and transmit payments of principal of and interest on the
        Book-Entry Notes to such Clearing Agency Participants (and neither the
        Indenture Trustee nor the Note Registrar shall have any liability or
        responsibility therefor); and

               (v) whenever this Indenture requires or permits actions to be
        taken based upon instructions or directions of Noteholders of Notes
        evidencing a specified percentage of the principal amount of the Notes
        Outstanding (or any Class thereof), the Clearing Agency shall be
        deemed to represent such percentage only to the extent that it has
        received instructions to such effect from Note Owners and/or Clearing
        Agency Participants owning or representing, respectively, such
        required percentage of the beneficial interest of the Notes
        Outstanding (or Class thereof) and has delivered such instructions to
        the Indenture Trustee.

        SECTION 2.12. Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders of Book-Entry Notes is required under this
Indenture, unless and until Definitive Notes shall have been issued to the
Note Owners pursuant to Section 2.13, the Indenture Trustee shall give all
such notices and communications specified herein to be given to Noteholders of
Book-Entry Notes to the Clearing Agency, and shall have no obligation to such
Note Owners.

        SECTION 2.13. Definitive Notes. With respect to any Class or Classes
of Book-Entry Notes, if (i) the Administrator advises the Indenture Trustee in
writing that the Clearing Agency is no longer willing or able to properly
discharge its responsibilities with respect to such Class of Book-Entry Notes
and the Administrator is unable to locate a qualified successor or (ii) after
the occurrence of an Event of Default or an Event of Servicing Termination,
Note Owners of such Class of Book- Entry Notes evidencing beneficial interests
aggregating not less than a majority of the principal amount of such Class
advise the Indenture Trustee and the Clearing Agency in writing that the
continuation of a book-entry system through the Clearing Agency is no longer
in the best interests of such Class of Note Owners, then the Clearing Agency
shall notify all Note Owners of such Class and the Indenture Trustee of the
occurrence of such event and of the availability of Definitive Notes to the
Note Owners of the applicable Class requesting the same. Upon surrender to the
Indenture Trustee of the typewritten Notes representing the Book-Entry Notes
by the Clearing Agency, accompanied by registration instructions, the Issuer
shall execute and the Indenture Trustee shall authenticate the Definitive
Notes in accordance with the instructions of the Clearing Agency. None of the
Issuer, the Note Registrar or the Indenture Trustee shall be liable for any
delay in delivery of such instructions and may conclusively rely on, and shall
be protected in relying on, such instructions. Upon the issuance of Definitive
Notes

                                      10
<PAGE>

to Note Owners, the Indenture Trustee shall recognize the holders of such
Definitive Notes as Noteholders.

        SECTION 2.14. Authenticating Agents. (a) The Indenture Trustee may
appoint one or more Persons (each, an "Authenticating Agent") with power to
act on its behalf and subject to its direction in the authentication of Notes
in connection with issuance, transfers and exchanges under Sections 2.2, 2.3,
2.5, 2.6 and 9.6, as fully to all intents and purposes as though each such
Authenticating Agent had been expressly authorized by those Sections to
authenticate such Notes. For all purposes of this Indenture, the
authentication of Notes by an Authenticating Agent pursuant to this Section
2.14 shall be deemed to be the authentication of Notes "by the Indenture
Trustee."

        (b)  Any corporation into which any Authenticating Agent may be
merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, consolidation or conversion to which any
Authenticating Agent shall be a party, or any corporation succeeding to all or
substantially all of the corporate trust business of any Authenticating Agent,
shall be the successor of such Authenticating Agent hereunder, without the
execution or filing of any further act on the part of the parties hereto or
such Authenticating Agent or such successor corporation.

        (c)  Any Authenticating Agent may at any time resign by giving
written notice of resignation to the Indenture Trustee and the Owner Trustee.
The Indenture Trustee may at any time terminate the agency of any
Authenticating Agent by giving written notice of termination to such
Authenticating Agent and the Owner Trustee. Upon receiving such notice of
resignation or upon such a termination, the Indenture Trustee may appoint a
successor Authenticating Agent and shall give written notice of any such
appointment to the Owner Trustee.

        (d)  The Administrator agrees to pay to each Authenticating Agent
from time to time reasonable compensation for its services. The provisions of
Sections 2.9 and 6.4 shall be applicable to any Authenticating Agent.

                                  ARTICLE III

                                   COVENANTS

        SECTION 3.1. Payment of Principal and Interest. The Issuer shall duly
and punctually pay the principal of and interest, if any, on the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting
the foregoing, on each Payment Date the Issuer shall cause to be paid pursuant
to Section 8.2 all amounts on deposit in the Collection Account and the
Principal Distribution Account with respect to the Collection Period preceding
such Payment Date and deposited therein pursuant to the Sale and Servicing
Agreement. Amounts properly withheld under the Code by any Person from a
payment to any Noteholder of interest and/or principal shall be considered as
having been paid by the Issuer to such Noteholder for all purposes of this
Indenture.

        SECTION 3.2. Maintenance of Office or Agency. The Issuer shall
maintain in the Borough of Manhattan, The City of New York, an office or
agency where Notes may be

                                      11
<PAGE>

surrendered for registration of transfer or exchange, and where notices and
demands to or upon the Issuer in respect of the Notes and this Indenture may
be served. The Issuer hereby initially appoints the Indenture Trustee to serve
as its agent, and its Corporate Trust Office as its office, for the foregoing
purposes. The Issuer shall give prompt written notice to the Indenture Trustee
of the location, and of any change in the location, of any such office or
agency. If, at any time, the Issuer shall fail to maintain any such office or
agency or shall fail to furnish the Indenture Trustee with the address
thereof, such surrenders, notices and demands may be made or served at the
Corporate Trust Office, and the Issuer hereby appoints the Indenture Trustee
as its agent to receive all such surrenders, notices and demands.

        SECTION 3.3. Money for Payments To Be Held in Trust. (a) As provided
in Sections 8.2 and 5.4(b), all payments of amounts due and payable with
respect to any Notes that are to be made from amounts withdrawn from the Trust
Accounts shall be made on behalf of the Issuer by the Indenture Trustee or by
another Note Paying Agent, and no amounts so withdrawn from the Trust Accounts
for payments of Notes shall be paid over to the Issuer, except as provided in
this Section 3.3.

        (b)  On or before the Business Day preceding each Payment Date and
Prepayment Date, the Issuer shall deposit or cause to be deposited (including
the provision of written instructions to the Indenture Trustee to make any
required withdrawals from the Reserve Account and to deposit such amounts in
the Collection Account) in the Collection Account an aggregate sum sufficient
to pay the amounts then becoming due under the Notes, such sum to be held in
trust for the benefit of the Persons entitled thereto, and (unless the Note
Paying Agent is the Indenture Trustee) shall promptly notify the Indenture
Trustee of its action or failure so to act.

        (c)  The Issuer shall cause each Note Paying Agent other than the
Indenture Trustee to execute and deliver to the Indenture Trustee an
instrument in which such Note Paying Agent shall agree with the Indenture
Trustee (and if the Indenture Trustee acts as Note Paying Agent, it hereby so
agrees), subject to the provisions of this Section 3.3, that such Note Paying
Agent shall:

               (i) hold all sums held by it for the payment of amounts due
        with respect to the Notes in trust for the benefit of the Persons
        entitled thereto until such sums shall be paid to such Persons or
        otherwise disposed of as herein provided and pay such sums to such
        Persons as herein provided;

               (ii) give the Indenture Trustee notice of any default by the
        Issuer (or any other obligor upon the Notes) of which it has actual
        knowledge in the making of any payment required to be made with
        respect to the Notes;

               (iii) at any time during the continuance of any such default,
        upon the written request of the Indenture Trustee, forthwith pay to
        the Indenture Trustee all sums so held in trust by such Note Paying
        Agent;

               (iv) immediately resign as a Note Paying Agent and forthwith
        pay to the Indenture Trustee all sums held by it in trust for the
        payment of Notes if at any time it

                                      12
<PAGE>

        ceases to meet the standards required to be met by a Note Paying Agent
        at the time of its appointment; and

               (v) comply with all requirements of the Code and any State or
        local tax law with respect to the withholding from any payments made
        by it on any Notes of any applicable withholding taxes imposed thereon
        and with respect to any applicable reporting requirements in
        connection therewith.

        (d)  The Issuer may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, by
Issuer Order direct any Note Paying Agent to pay to the Indenture Trustee all
sums held in trust by such Note Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held
by such Note Paying Agent; and upon such payment by any Note Paying Agent to
the Indenture Trustee, such Note Paying Agent shall be released from all
further liability with respect to such money.

        (e)  Subject to applicable laws with respect to escheat of funds,
any money held by the Indenture Trustee or any Note Paying Agent in trust for
the payment of any amount due with respect to any Note and remaining unclaimed
for two (2) years after such amount has become due and payable shall be
discharged from such trust and be paid to the Issuer on Issuer Request; and
the Noteholder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof (but only to the extent
of the amounts so paid to the Issuer), and all liability of the Indenture
Trustee or such Note Paying Agent with respect to such trust money shall
thereupon cease; provided, however, that the Indenture Trustee or such Note
Paying Agent, before being required to make any such repayment, shall at the
expense and direction of the Issuer cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day
and of general circulation in The City of New York, notice that such money
remains unclaimed and that, after a date specified therein, which shall not be
less than thirty (30) days from the date of such publication, any unclaimed
balance of such money then remaining shall be repaid to the Issuer. The
Indenture Trustee shall also adopt and employ, at the expense and direction of
the Issuer, any other reasonable means of notification of such repayment
(including, but not limited to, mailing notice of such repayment to
Noteholders whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in monies due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Note Paying Agent, at the last address of record for each such Noteholder).

        SECTION 3.4. Existence. The Issuer shall keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States
of America, in which case the Issuer shall keep in full effect its existence,
rights and franchises under the laws of such other jurisdiction) and shall
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 Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Indenture Trust Estate.

                                      13
<PAGE>

        SECTION 3.5. Protection of Indenture Trust Estate. (a) The Issuer
shall from time to time execute, deliver and file, as applicable, all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other
instruments, and shall take such other action necessary or advisable to:

               (i) maintain or preserve the lien and security interest (and
        the priority thereof) of this Indenture or carry out more effectively
        the purposes hereof;

               (ii) perfect, publish notice of or protect the validity of any
        Grant made or to be made by this Indenture;

               (iii) enforce any of the Collateral; or

               (iv) preserve and defend title to the Indenture Trust Estate
        and the rights of the Indenture Trustee and the Noteholders in such
        Indenture Trust Estate against the claims of all Persons.

        The Issuer hereby authorizes the Indenture Trustee to file any
financing statement, continuation statement or other instrument required to be
executed pursuant to this Section 3.5; provided, however, that the Indenture
Trustee shall be under no obligation to file any such financing statement,
continuation statement or other instrument required pursuant to this Section
3.5.

        (b)  The Issuer hereby represents and warrants that, as to the
Collateral pledged to the Indenture Trustee for the benefit of the
Noteholders, on the Closing Date, which representations and warranties shall
survive such pledge:

               (i) the Indenture creates a valid and continuing security
        interest (as defined in the applicable UCC) in the Collateral that is
        in existence in favor of the Indenture Trustee, which security
        interest is prior to all other liens, and is enforceable as such as
        against creditors of and purchasers from the Issuer;

               (ii) the Receivables constitute "tangible chattel paper" under
        the applicable UCC;

               (iii) the Issuer owns and has good and marketable title to such
        Collateral free and clear of any liens, claims or encumbrances of any
        Person, other than the interest Granted under this Indenture;

               (iv) the Issuer has acquired its ownership in such Collateral
        in good faith without notice of any adverse claim;

               (v) the Trust Accounts are not in the name of any person other
        than the Indenture Trustee and the Issuer has not consented to the
        bank maintaining the Trust Accounts to comply with the instructions of
        any person other than the Indenture Trustee;

               (vi) the Issuer has not assigned, pledged, sold, granted a
        security interest in or otherwise conveyed any interest in such
        Collateral (or, if any such interest has been

                                      14
<PAGE>

        assigned, pledged or otherwise encumbered, it has been released) other
        than interests Granted pursuant to this Indenture;

               (vii) the Issuer has caused or will have caused, within ten
        days after the Closing Date, the filing of all appropriate financing
        statements in the proper filing office in the appropriate jurisdiction
        under the applicable law in order to perfect the security interest
        Granted hereunder in the Receivables, which financing statements will
        contain a statement to the following effect "A purchase of or security
        interest in any collateral described in this financing statement will
        violate the rights of the Secured Party";

               (viii) other than its Granting hereunder, the Issuer has not
        Granted such Collateral, the Issuer has not authorized the filing of
        and is not aware of any financing statements against the Issuer that
        include a description of such Collateral other than the financing
        statement in favor of the Indenture Trustee, and the Issuer is not
        aware of any judgment or tax lien filing against it; and

               (ix) the information relating to such Collateral set forth in
        the Schedule of Receivables (attached hereto as Schedule A) is
        correct.

        SECTION 3.6. Opinions as to Indenture Trust Estate. (a) On the Closing
Date, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel
either stating that, in the opinion of such counsel, such action has been
taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with
respect to the authorization and filing of any financing statements and
continuation statements, as are necessary to perfect and make effective the
lien and security interest of this Indenture and reciting the details of such
action, or stating that, in the opinion of such counsel, no such action is
necessary to make such lien and security interest effective.

        (b)  On or before April 30 in each calendar year, beginning on April
30, 2007, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the recording, filing, re-recording and refiling of
this Indenture, any indentures supplemental hereto and any other requisite
documents and with respect to the filing of any financing statements and
continuation statements and any other action that may be required by law as is
necessary to maintain the lien and security interest created by this Indenture
and reciting the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security
interest. Such Opinion of Counsel shall also describe the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental
hereto and any other requisite documents and the filing of any financing
statements and continuation statements that shall, in the opinion of such
counsel, be required to maintain the lien and security interest of this
Indenture until April 30 in the following calendar year.

        SECTION 3.7. Performance of Obligations; Servicing of Receivables. (a)
The Issuer shall not take any action and shall use its best efforts not to
permit any action to be taken by others that would release any Person from any
of such Person's material covenants or obligations under any instrument or
agreement included in the Indenture Trust Estate or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or
impair the validity

                                      15
<PAGE>

or effectiveness of, any such instrument or agreement, except as expressly
provided in this Indenture and the other Basic Documents.

        (b)  The Issuer may contract with other Persons to assist it in
performing its duties under this Indenture, and any performance of such duties
by a Person identified to the Indenture Trustee in an Officer's Certificate of
the Issuer shall be deemed to be action taken by the Issuer. Initially, the
Issuer has contracted with the Servicer and the Administrator to assist the
Issuer in performing its duties under this Indenture.

        (c)  The Issuer shall punctually perform and observe all of its
obligations and agreements contained in this Indenture, the other Basic
Documents and in the instruments and agreements included in the Indenture
Trust Estate, including, but not limited to, filing or causing to be filed all
financing statements and continuation statements required to be filed under
the UCC by the terms of this Indenture and the Sale and Servicing Agreement in
accordance with and within the time periods provided for herein and therein.
Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision
thereof without the consent of the Indenture Trustee and the Noteholders of
Notes evidencing not less than a majority of the principal amount of each
Class of Notes then Outstanding, voting separately.

        (d)  If the Issuer shall have knowledge of the occurrence of an
Event of Servicing Termination under the Sale and Servicing Agreement, the
Issuer shall promptly notify the Indenture Trustee and the Rating Agencies
thereof and shall specify in such notice the action, if any, the Issuer is
taking in respect of such default. If an Event of Servicing Termination shall
arise from the failure of the Servicer to perform any of its duties or
obligations under the Sale and Servicing Agreement with respect to the
Receivables, the Issuer shall take all reasonable steps available to it to
remedy such failure.

        (e)  As promptly as possible after the giving of notice of
termination to the Servicer of the Servicer's rights and powers pursuant to
Section 7.1 of the Sale and Servicing Agreement or the Servicer's resignation
in accordance with the terms of the Sale and Servicing Agreement, the Issuer
shall appoint a Successor Servicer meeting the requirements of the Sale and
Servicing Agreement, and such Successor Servicer shall accept its appointment
by a written assumption in a form acceptable to the Indenture Trustee. In the
event that a Successor Servicer has not been appointed at the time when the
Servicer ceases to act as Servicer, the Indenture Trustee without further
action shall automatically be appointed the Successor Servicer. If the
Indenture Trustee shall be legally unable to act as Successor Servicer, it may
appoint, or petition a court of competent jurisdiction to appoint, a Successor
Servicer. The Indenture Trustee may resign as the Servicer by giving written
notice of such resignation to the Issuer and the Depositor and in such event
shall be released from such duties and obligations, such release not to be
effective until the date a new servicer enters into a servicing agreement with
the Issuer as provided below. In each case of either the appointment of the
Indenture Trustee (or any Affiliate as provided below) as Successor Servicer,
or resignation of the Indenture Trustee as Servicer, the Indenture Trustee
shall provide to the Depositor, in writing, such information as reasonably
requested by the Depositor to comply with its reporting obligation under the
Exchange Act with respect to a successor Servicer or the resignation of the
Servicer. Upon delivery of any such notice to the Issuer, the Issuer shall
obtain a new servicer as the Successor Servicer under the Sale and

                                      16
<PAGE>

Servicing Agreement. Any Successor Servicer (other than the Indenture Trustee
or any Affiliate thereof) shall (i) be an established institution having a net
worth of not less than $100,000,000 and whose regular business shall include
the servicing of automotive receivables and whose appointment as Successor
Servicer satisfies the Rating Agency Condition, (ii) enter into a servicing
agreement with the Issuer having substantially the same provisions as the
provisions of the Sale and Servicing Agreement applicable to the Servicer and
(iii) shall provide to the Depositor, in writing, such information as
reasonably requested by the Depositor to comply with its reporting obligation
under the Exchange Act with respect to a successor Servicer. If, within thirty
(30) days after the delivery of the notice referred to above, the Issuer shall
not have obtained such a new servicer, the Indenture Trustee may appoint, or
may petition a court of competent jurisdiction to appoint, a Successor
Servicer. In connection with any such appointment, the Indenture Trustee may
make such arrangements for the compensation of such successor as it and such
successor shall agree, subject to the limitations set forth below and in the
Sale and Servicing Agreement, and, in accordance with Section 7.2 of the Sale
and Servicing Agreement, the Issuer shall enter into an agreement with such
successor for the servicing of the Receivables (such agreement to be in form
and substance satisfactory to the Indenture Trustee). Notwithstanding anything
herein or in the Sale and Servicing Agreement to the contrary, in no event
shall the Indenture Trustee be liable for any Servicing Fee or for any
differential in the amount of the Servicing Fee paid hereunder and the amount
necessary to induce any Successor Servicer to act as Successor Servicer under
the Basic Documents and the transactions set forth or provided for therein. If
the Indenture Trustee shall succeed to the Servicer's duties as servicer of
the Receivables as provided herein, it shall do so in its individual capacity
and not in its capacity as Indenture Trustee and, accordingly, the provisions
of Article VI hereof shall be inapplicable to the Indenture Trustee in its
duties as the successor to the Servicer and the servicing of the Receivables.
In case the Indenture Trustee shall become successor to the Servicer under the
Sale and Servicing Agreement, the Indenture Trustee shall be entitled to
appoint as Servicer any one of its Affiliates; provided that the Indenture
Trustee, in its capacity as the Servicer, shall be fully liable for the
actions and omissions of such Affiliate in such capacity as Successor
Servicer.

        (f)  Upon any termination of the Servicer's rights and powers
pursuant to the Sale and Servicing Agreement, the Issuer shall promptly notify
the Indenture Trustee. As soon as a Successor Servicer is appointed by the
Issuer, the Issuer shall notify the Indenture Trustee of such appointment,
specifying in such notice the name and address of such Successor Servicer.

        (g)  Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer hereby agrees that it shall not,
without the prior written consent of the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority in principal amount of the Notes
Outstanding, amend, modify, waive, supplement, terminate or surrender, or
agree to any amendment, modification, supplement, termination, waiver or
surrender of, the terms of any Collateral (except to the extent otherwise
provided in the Sale and Servicing Agreement or the other Basic Documents).

        SECTION 3.8. Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

                                      17
<PAGE>

               (i) except as expressly permitted by this Indenture, the Trust
        Agreement or the Sale and Servicing Agreement, sell, transfer,
        exchange or otherwise dispose of any of the properties or assets of
        the Issuer, including those included in the Indenture Trust Estate,
        unless directed to do so by the Indenture Trustee;

               (ii) claim any credit on, or make any deduction from the
        principal or interest payable in respect of, the Notes (other than
        amounts properly withheld from such payments under the Code) or assert
        any claim against any present or former Noteholder by reason of the
        payment of the taxes levied or assessed upon the Trust or the
        Indenture Trust Estate;

               (iii) dissolve or liquidate in whole or in part; or

               (iv) (A) permit the validity or effectiveness of this Indenture
        to be impaired, or permit the lien of this Indenture to be amended,
        hypothecated, subordinated, terminated or discharged, or permit any
        Person to be released from any covenants or obligations with respect
        to the Notes under this Indenture except as may be expressly permitted
        hereby, (B) permit any lien, charge, excise, claim, security interest,
        mortgage or other encumbrance (other than the lien of this Indenture)
        to be created on or extend to or otherwise arise upon or burden the
        assets of the Issuer, including those included in the Indenture Trust
        Estate, or any part thereof or any interest therein or the proceeds
        thereof (other than tax liens, mechanics' liens and other liens that
        arise by operation of law, in each case on any of the Financed
        Vehicles and arising solely as a result of an action or omission of
        the related Obligor) or (C) permit the lien of this Indenture not to
        constitute a valid first priority (other than with respect to any such
        tax, mechanics' or other lien) security interest in the Indenture
        Trust Estate.

        SECTION 3.9. Annual Statement as to Compliance. The Issuer shall
deliver to the Indenture Trustee, within 120 days after the end of each
calendar year, an Officer's Certificate stating, as to the Authorized Officer
signing such Officer's Certificate, that:

               (i) a review of the activities of the Issuer during such year
        and of its performance under this Indenture has been made under such
        Authorized Officer's supervision; and

               (ii) to the best of such Authorized Officer's knowledge, based
        on such review, the Issuer has complied in all material respects with
        all conditions and covenants under this Indenture throughout such year
        (or since the Closing Date, in the case of the first such Officer's
        Certificate), or, if there has been a default in any material respect
        in its compliance with any such condition or covenant, specifying each
        such default known to such Authorized Officer and the nature and
        status thereof.

        SECTION 3.10. Issuer May Consolidate, etc., Only on Certain Terms. (a)
The Issuer shall not consolidate or merge with or into any other Person,
unless:

               (i) the Person (if other than the Issuer) formed by or
        surviving such consolidation or merger shall be a Person organized and
        existing under the laws of the United States of America or any State
        and shall expressly assume, by an indenture

                                      18
<PAGE>

        supplemental hereto, executed and delivered to the Indenture Trustee,
        in form satisfactory to the Indenture Trustee, the due and punctual
        payment of the principal of and interest on all Notes and the
        performance or observance of every agreement and covenant of this
        Indenture on the part of the Issuer to be performed or observed, all
        as provided herein;

               (ii) immediately after giving effect to such transaction, no
        Default or Event of Default shall have occurred and be continuing;

               (iii) the Rating Agency Condition shall have been satisfied
        with respect to such transaction;

               (iv) the Issuer shall have received an Opinion of Counsel (and
        shall have delivered copies thereof to the Indenture Trustee) to the
        effect that such transaction will not have any material adverse
        federal income tax consequence to the Issuer, any Noteholder or any
        Certificateholder;

               (v) any action that is necessary to maintain the lien and
        security interest created by this Indenture shall have been taken; and

               (vi) the Issuer shall have delivered to the Indenture Trustee
        an Officer's Certificate and an Opinion of Counsel each stating that
        such consolidation or merger and such supplemental indenture comply
        with this Article III and that all conditions precedent herein
        provided for relating to such transaction have been complied with
        (including any filing required by the Exchange Act).

        (b)  Other than as specifically contemplated by the Basic Documents,
the Issuer shall not convey or transfer any of its properties or assets,
including those included in the Indenture Trust Estate, to any Person, unless:

               (i) the Person that acquires by conveyance or transfer the
        properties and assets of the Issuer the conveyance or transfer of
        which is hereby restricted shall (A) be a United States citizen or a
        Person organized and existing under the laws of the United States of
        America or any State, (B) expressly assumes, by an indenture
        supplemental hereto, executed and delivered to the Indenture Trustee,
        in form satisfactory to the Indenture Trustee, the due and punctual
        payment of the principal of and interest on all Notes and the
        performance or observance of every agreement and covenant of this
        Indenture on the part of the Issuer to be performed or observed, all
        as provided herein, (C) expressly agrees by means of such supplemental
        indenture that all right, title and interest so conveyed or
        transferred shall be subject and subordinate to the rights of
        Noteholders, (D) unless otherwise provided in such supplemental
        indenture, expressly agrees to indemnify, defend and hold harmless the
        Issuer against and from any loss, liability or expense arising under
        or related to this Indenture and the Notes, and (E) expressly agrees
        by means of such supplemental indenture that such Person (or if a
        group of Persons, then one specified Person) shall make all filings,
        if any, with the Commission (and any other appropriate Person)
        required by the Exchange Act in connection with the Notes;

                                      19
<PAGE>

               (ii) immediately after giving effect to such transaction, no
        Default or Event of Default shall have occurred and be continuing;

               (iii) the Rating Agency Condition shall have been satisfied
        with respect to such transaction;

               (iv) the Issuer shall have received an Opinion of Counsel (and
        shall have delivered copies thereof to the Indenture Trustee) to the
        effect that such transaction will not have any material adverse
        federal income tax consequence to the Issuer, any Noteholder or any
        Certificateholder;

               (v) any action that is necessary to maintain the lien and
        security interest created by this Indenture shall have been taken; and

               (vi) the Issuer shall have delivered to the Indenture Trustee
        an Officer's Certificate and an Opinion of Counsel each stating that
        such conveyance or transfer and such supplemental indenture comply
        with this Article III and that all conditions precedent herein
        provided for relating to such transaction have been complied with
        (including any filing required by the Exchange Act).

        SECTION 3.11. Successor or Transferee. (a) Upon any consolidation or
merger of the Issuer in accordance with Section 3.10(a), the Person formed by
or surviving such consolidation or merger (if other than the Issuer) shall
succeed to, and be substituted for, and may exercise every right and power of,
the Issuer under this Indenture with the same effect as if such Person had
been named as the Issuer herein.

        (b)  Upon a conveyance or transfer of all the assets and properties
of the Issuer pursuant to Section 3.10(b), the Issuer shall be released from
every covenant and agreement of this Indenture to be observed or performed on
the part of the Issuer with respect to the Notes immediately upon the delivery
of written notice to the Indenture Trustee stating that the Issuer is to be so
released.

        SECTION 3.12. No Other Business. The Issuer shall not engage in any
business other than financing, acquiring, owning and pledging the Receivables
in the manner contemplated by this Indenture and the Basic Documents and
activities incidental thereto.

        SECTION 3.13. No Borrowing. The Issuer shall not issue, incur, assume,
guarantee or otherwise become liable, directly or indirectly, for any
indebtedness except for the Notes and the Certificates.

        SECTION 3.14. Servicer's Obligations. The Issuer shall cause the
Servicer to comply with the Sale and Servicing Agreement, including Sections
3.9, 3.10, 3.11, 3.12, 3.13 and 4.9 and Article VI thereof.

        SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities.
Except as contemplated by this Indenture and the other Basic Documents, the
Issuer shall not make any loan or advance or credit to, or guarantee (directly
or indirectly or by an instrument having the effect of assuring another's
payment or performance on any obligation or capability of so doing

                                      20
<PAGE>

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, or any other interest in, or make
any capital contribution to, any other Person.

        SECTION 3.16. Capital Expenditures. The Issuer shall not make any
expenditure (by long-term or operating lease or otherwise) for capital assets
(either realty or personalty).

        SECTION 3.17. Further Instruments and Acts. Upon request of the
Indenture Trustee, the Issuer shall execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper
to carry out more effectively the purpose of this Indenture.

        SECTION 3.18. Restricted Payments. The Issuer shall not, directly or
indirectly, (i) make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the Owner
Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer or
to the Servicer or the Administrator, (ii) redeem, purchase, retire or
otherwise acquire for value any such ownership or equity interest or security
or (iii) set aside or otherwise segregate any amounts for any such purpose;
provided, however, that the Issuer may make, or cause to be made, (x) payments
to the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee,
the Noteholders and the Certificateholders as contemplated by, and to the
extent funds are available for such purpose under, this Indenture and the
other Basic Documents and (y) payments to the Indenture Trustee pursuant to
Section 2(a)(ii) of the Administration Agreement. The Issuer shall not,
directly or indirectly, make payments to or distributions from the Collection
Account or the Principal Distribution Account except in accordance with this
Indenture and the other Basic Documents.

        SECTION 3.19. Notice of Events of Default. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event
of Default hereunder and of each default on the part of any party to the Sale
and Servicing Agreement with respect to any of the provisions thereof.

        SECTION 3.20. Removal of Administrator. For so long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause
unless the Rating Agency Condition shall have been satisfied in connection
therewith.

                                  ARTICLE IV

                          SATISFACTION AND DISCHARGE

        SECTION 4.1. Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of
mutilated, destroyed, lost or stolen Notes, (iii) rights of Noteholders to
receive payments of principal thereof and interest thereon, (iv) Sections 3.3,
3.4, 3.5, 3.8, 3.10, 3.12 and 3.13, (v) the rights and immunities of the
Indenture Trustee hereunder (including the rights of the Indenture Trustee
under Section 6.7) and the obligations of the Indenture Trustee under Section
4.3, and (vi) the rights of Noteholders as beneficiaries hereof with respect
to the

                                      21
<PAGE>

property so deposited with the Indenture Trustee payable to all or any
of them, and the Indenture Trustee, on demand of and at the expense of the
Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, when:

                      (A) either:

                             (1) all Notes theretofore authenticated and
                      delivered (other than (i) Notes that have been
                      destroyed, lost or stolen and that have been replaced or
                      paid as provided in Section 2.6 and (ii) Notes for whose
                      payment money has theretofore been deposited in trust or
                      segregated and held in trust by the Issuer and
                      thereafter repaid to the Issuer or discharged from such
                      trust, as provided in Section 3.3) have been delivered
                      to the Indenture Trustee for cancellation; or

                             (2) all Notes not theretofore delivered to the
                      Indenture Trustee for cancellation have become due and
                      payable and the Issuer has irrevocably deposited or
                      caused to be irrevocably deposited with the Indenture
                      Trustee cash or direct obligations of or obligations
                      guaranteed by the United States of America (which will
                      mature prior to the date such amounts are payable), in
                      trust for such purpose, in an amount sufficient without
                      reinvestment to pay and discharge the entire
                      indebtedness on such Notes not theretofore delivered to
                      the Indenture Trustee for cancellation when due to the
                      applicable Final Scheduled Payment Date or Prepayment
                      Date (if Notes shall have been called for prepayment
                      pursuant to Section 10.1), as the case may be, and all
                      fees and other amounts due and payable to the Indenture
                      Trustee;

                      (B) the Issuer has paid or caused to be paid all other
               sums payable hereunder and under any of the other Basic
               Documents by the Issuer;

                      (C) the Issuer has delivered to the Indenture Trustee an
               Officer's Certificate, an Opinion of Counsel and (if required
               by the TIA or the Indenture Trustee) an Independent Certificate
               from a firm of certified public accountants, each meeting the
               applicable requirements of Section 11.1(a) and, subject to
               Section 11.2, each stating that all conditions precedent herein
               provided for relating to the satisfaction and discharge of this
               Indenture have been complied with; and

                      (D) the Issuer has delivered to the Indenture Trustee an
               Opinion of Counsel to the effect that the satisfaction and
               discharge of the Notes pursuant to this Section 4.1 will not
               cause any Noteholder to be treated as having sold or exchanged
               any of its Notes for purposes of Section 1001 of the Code.

        Upon the satisfaction and discharge of the Indenture pursuant to this
Section 4.1, at the request of the Owner Trustee, the Indenture Trustee shall
deliver to the Owner Trustee a certificate of a Trustee Officer stating that
all Noteholders have been paid in full and stating

                                      22
<PAGE>

whether, to the best knowledge of such Trustee Officer, any claims remain
against the Issuer in respect of the Indenture and the Notes.

        SECTION 4.2. Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.1 shall be held in trust and applied
by it, in accordance with the provisions of the Notes and this Indenture, to
the payment, either directly or through any Note Paying Agent, as the
Indenture Trustee may determine, to the Noteholders of the particular Notes
for the payment or redemption of which such monies have been deposited with
the Indenture Trustee, of all sums due and to become due thereon for principal
and interest, but such monies need not be segregated from other funds except
to the extent required herein or in the Sale and Servicing Agreement or
required by law.

        SECTION 4.3. Repayment of Monies Held by Note Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect
to the Notes, all monies then held by any Note Paying Agent other than the
Indenture Trustee under the provisions of this Indenture with respect to such
Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be
held and applied according to Section 3.3 and thereupon such Note Paying Agent
shall be released from all further liability with respect to such monies.

                                   ARTICLE V

                                   REMEDIES

        SECTION 5.1. Events of Default. "Event of Default," wherever used
herein, means the occurrence of any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body):

               (i) default in the payment of any interest on any Class A Note
        or, if the Class A Notes are no longer Outstanding, any Class B Note
        when the same becomes due and payable on a Payment Date, and such
        default shall continue for a period of five (5) days or more; or

               (ii) default in the payment of the principal of or any
        installment of the principal of any Note when the same becomes due and
        payable; or

               (iii) default in the observance or performance of any covenant
        or agreement of the Issuer made in this Indenture (other than a
        covenant or agreement, a default in the observance or performance of
        which is elsewhere in this Section 5.1 specifically dealt with) that
        materially and adversely affects the Noteholders and such default
        shall continue for a period of sixty (60) days, after there shall have
        been given, by registered or certified mail, to the Issuer by the
        Indenture Trustee or to the Issuer and the Indenture Trustee by the
        holders of Notes evidencing not less than 25% of the principal amount
        of the Controlling Class, a written notice specifying such default and
        requiring it to be remedied and stating that such notice is a "Notice
        of Default" hereunder; or

                                      23
<PAGE>

               (iv) the filing of a decree or order for relief by a court
        having jurisdiction in the premises in respect of the Issuer or any
        substantial part of the Indenture Trust Estate in an involuntary case
        under any applicable federal or State bankruptcy, insolvency or other
        similar law now or hereafter in effect, or appointing a receiver,
        liquidator, assignee, custodian, trustee, sequestrator or similar
        official of the Issuer or for any substantial part of the Indenture
        Trust Estate, or ordering the winding-up or liquidation of the
        Issuer's affairs, and such decree or order shall remain unstayed and
        in effect for a period of sixty (60) consecutive days; or

               (v) the commencement by the Issuer of a voluntary case under
        any applicable federal or State bankruptcy, insolvency or other
        similar law now or hereafter in effect, or the consent by the Issuer
        to the entry of an order for relief in an involuntary case under any
        such law, or the consent by the Issuer to the appointment or taking
        possession by a receiver, liquidator, assignee, custodian, trustee,
        sequestrator or similar official of the Issuer or for any substantial
        part of the Indenture Trust Estate, or the making by the Issuer of any
        general assignment for the benefit of creditors, or the failure by the
        Issuer generally to pay its debts as such debts become due, or the
        taking of any action by the Issuer in furtherance of any of the
        foregoing.

The Issuer shall deliver to the Indenture Trustee, within five (5) days after
the occurrence thereof, written notice in the form of an Officer's Certificate
of any event which with the giving of notice and the lapse of time would
become an Event of Default under clause (iii) above, its status and what
action the Issuer is taking or proposes to take with respect thereto.

        SECTION 5.2. Acceleration of Maturity; Rescission and Annulment. (a)
If an Event of Default should occur and be continuing, then and in every such
case the Indenture Trustee or the holders of Notes evidencing not less than a
majority of the principal amount of the Controlling Class may declare all the
Notes to be immediately due and payable, by a notice in writing to the Issuer
(and to the Indenture Trustee if given by Noteholders), and upon any such
declaration the unpaid principal amount of such Notes, together with accrued
and unpaid interest thereon through the date of acceleration, shall become
immediately due and payable.

        (b)  At any time after a declaration of acceleration of maturity has
been made and before a judgment or decree for payment of the amount due has
been obtained by the Indenture Trustee as hereinafter provided in this Article
V, the holders of Notes evidencing not less than a majority of the principal
amount of the Controlling Class, by written notice to the Issuer and the
Indenture Trustee, may rescind and annul such declaration and its consequences
if:

               (i) the Issuer has paid or deposited with the Indenture Trustee
        a sum sufficient to pay:

                      (A) all payments of principal of and interest on all
               Notes and all other amounts that would then be due hereunder or
               upon such Notes if the Event of Default giving rise to such
               acceleration had not occurred; and

                                      24
<PAGE>

                      (B) all sums paid or advanced by the Indenture Trustee
               hereunder and the reasonable compensation, expenses,
               disbursements, indemnities and advances of the Indenture
               Trustee and its agents and counsel; and

               (ii) all Events of Default, other than the nonpayment of the
        principal of the Notes that has become due solely by such
        acceleration, have been cured or waived as provided in Section 5.12.
        No such rescission shall affect any subsequent default or impair any
        right consequent thereto.

        SECTION 5.3. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee. (a) The Issuer covenants that if (i) there is an Event of
Default relating to the nonpayment of any interest on any Note when the same
becomes due and payable, and such Event of Default continues for a period of
five (5) days, or (ii) there is an Event of Default relating to the nonpayment
in the payment of the principal of or any installment of the principal of any
Note when the same becomes due and payable, the Issuer shall, upon demand of
the Indenture Trustee, pay to the Indenture Trustee, for the benefit of the
Noteholders, the whole amount then due and payable on such Notes for principal
and interest, with interest upon the overdue principal and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest at the applicable Note Interest Rate borne by the
Notes and in addition thereto such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee
and its agents, attorneys and counsel.

        (b)  In case the Issuer shall fail forthwith to pay such amounts
upon such demand, the Indenture Trustee, in its own name and as trustee of an
express trust, may institute a Proceeding for the collection of the sums so
due and unpaid, and may prosecute such Proceeding to judgment or final decree,
and may enforce the same against the Issuer or other obligor upon such Notes
and collect in the manner provided by law out of the property of the Issuer or
other obligor upon such Notes, wherever situated, the monies adjudged or
decreed to be payable.

        (c)  If an Event of Default occurs and is continuing, the Indenture
Trustee, as more particularly provided in Section 5.4, in its discretion, may
proceed to protect and enforce its rights and the rights of the Noteholders,
by such appropriate Proceedings as the Indenture Trustee shall deem most
effective to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy or
legal or equitable right vested in the Indenture Trustee by this Indenture or
by law.

        (d)  In case there shall be pending, relative to the Issuer or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Indenture Trust Estate, Proceedings under Title 11 of the
United States Code or any other applicable federal or State bankruptcy,
insolvency or other similar law, or in case a receiver, assignee or trustee in
bankruptcy or reorganization, liquidator, sequestrator or similar official
shall have been appointed for or taken possession of the Issuer or its
property or such other obligor or Person, or in case of any other comparable
judicial Proceedings relative to the Issuer or other obligor upon the Notes,
or to the creditors or property of the Issuer or such other obligor, the
Indenture Trustee, irrespective of whether the principal of any Notes shall
then be due and payable as

                                      25
<PAGE>

therein expressed or by declaration or otherwise and irrespective of whether
the Indenture Trustee shall have made any demand pursuant to the provisions of
this Section 5.3, shall be entitled and empowered, by intervention in such
Proceedings or otherwise:

               (i) to file and prove a claim or claims for the whole amount of
        principal and interest owing and unpaid in respect of the Notes and to
        file such other papers or documents as may be necessary or advisable
        in order to have the claims of the Indenture Trustee (including any
        claim for reasonable compensation to the Indenture Trustee and each
        predecessor Indenture Trustee, and their respective agents, attorneys
        and counsel, and for reimbursement of all expenses and liabilities
        incurred, and all advances and disbursements made, by the Indenture
        Trustee and each predecessor Indenture Trustee, except as a result of
        negligence or bad faith) and of the Noteholders allowed in such
        Proceedings;

               (ii) unless prohibited by applicable law and regulations, to
        vote on behalf of the Noteholders in any election of a trustee, a
        standby trustee or Person performing similar functions in any such
        Proceedings;

               (iii) to collect and receive any monies or other property
        payable or deliverable on any such claims and to pay all amounts
        received with respect to the claims of the Noteholders and of the
        Indenture Trustee on their behalf; and

               (iv) to file such proofs of claim and other papers or documents
        as may be necessary or advisable in order to have the claims of the
        Indenture Trustee or the Noteholders allowed in any judicial
        proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in
any such Proceeding is hereby authorized by each of such Noteholders to make
payments to the Indenture Trustee and, in the event that the Indenture Trustee
shall consent to the making of payments directly to such Noteholders, to pay
to the Indenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Indenture Trustee, each predecessor Indenture
Trustee and their respective agents, attorneys and counsel, and all other
expenses and liabilities incurred, and all advances and disbursements made, by
the Indenture Trustee and each predecessor Indenture Trustee, except as a
result of negligence or bad faith, and any other amounts due the Indenture
Trustee pursuant to Section 6.7.

        (e)  Nothing herein contained shall be deemed to authorize the
Indenture Trustee to authorize or consent to or vote for or accept or adopt on
behalf of any Noteholder any plan of reorganization, arrangement, adjustment
or composition affecting the Notes or the rights of any Noteholder or to
authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar Person.

        (f)  All rights of action and of asserting claims under this
Indenture, or under any of the Notes, may be enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any
trial or other Proceedings relative thereto, and any such action or

                                      26
<PAGE>

Proceedings instituted by the Indenture Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment, subject to
the payment of the expenses, disbursements and compensation of the Indenture
Trustee, each predecessor Indenture Trustee and their respective agents,
attorneys and counsel, shall be for the ratable benefit of the Noteholders in
respect of which such judgment has been recovered.

        (g)  In any Proceedings brought by the Indenture Trustee (and also
any Proceedings involving the interpretation of any provision of this
Indenture to which the Indenture Trustee shall be a party), the Indenture
Trustee shall be held to represent all the Noteholders, and it shall not be
necessary to make any Noteholder a party to any such Proceedings.

        SECTION 5.4. Remedies; Priorities. (a) If an Event of Default shall
have occurred and be continuing, the Indenture Trustee may, or at the
direction of Noteholders of Notes evidencing not less than a majority of the
principal amount of the Controlling Class shall, do one or more of the
following (subject to Section 5.5):

               (i) institute Proceedings in its own name and as trustee of an
        express trust for the collection of all amounts then payable on the
        Notes or under this Indenture with respect thereto, whether by
        declaration or otherwise, enforce any judgment obtained, and collect
        from the Issuer and any other obligor upon such Notes monies adjudged
        due;

               (ii) institute Proceedings from time to time for the complete
        or partial foreclosure of this Indenture with respect to the Indenture
        Trust Estate;

               (iii) exercise any remedies of a secured party under the UCC
        and take any other appropriate action to protect and enforce the
        rights and remedies of the Indenture Trustee and the Noteholders; and

               (iv) sell the Indenture Trust Estate or any portion thereof or
        rights or interest therein, at one or more public or private sales
        called and conducted in any manner permitted by law;

provided, however, the Indenture Trustee may not sell or otherwise liquidate
the Indenture Trust Estate unless:

                      (A) the holders of Notes evidencing 100% of the
               principal amount of the Notes (excluding Notes held by the
               Seller, the Servicer or any of their Affiliates) consent
               thereto; or

                      (B) the proceeds of such sale or liquidation are
               sufficient to pay in full the principal of and the accrued
               interest on the Outstanding Notes; or

                      (C) if the Event of Default is of the type described in
               Section 5.1(i) or (ii), the Indenture Trustee-

                             (1) determines (but shall have no obligation to
                      make such determination) that the Indenture Trust Estate
                      will not continue to provide sufficient funds for the
                      payment of principal of and interest on the Notes

                                      27
<PAGE>

                      as they would have become due if the Notes had not
                      been declared due and payable; and

                             (2) the Indenture Trustee obtains the consent of
                      holders of Notes evidencing not less than 66 2/3% of the
                      principal amount of the Controlling Class; or

                      (D) with respect to an Event of Default described in
               Section 5.1(iii):

                             (1) the holders of all Outstanding Notes consent
                      thereto; or

                             (2) the proceeds of such sale or liquidation are
                      sufficient to pay in full the principal of and accrued
                      interest on the Outstanding Notes.

        In determining such sufficiency or insufficiency with respect to
clauses (C)(1) and (D)(2) above, the Indenture Trustee may (at other than its
own expense), but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Indenture
Trust Estate for such purpose.

        (b)  Notwithstanding the provisions of Section 8.2 of this Indenture
or Section 4.6 of the Sale and Servicing Agreement, if the Indenture Trustee
collects any money or property (and other amounts including amounts held on
deposit in the Reserve Account) pursuant to this Article V, it shall pay out
the money or property in the following order of priority:

               (i) first, to the Indenture Trustee and the Owner Trustee for
        all amounts due for fees, expenses and indemnification under Section
        6.7 of this Indenture, Article VII of the Trust Agreement and Section
        6.2 of the Sale and Servicing Agreement, respectively, and not
        previously paid;

               (ii) second, to the Servicer for due and unpaid Servicing Fees;

               (iii) third, if an Event of Default specified in Section
        5.1(i), (ii), (iv) or (v) has occurred, in the following order of
        priority:

                      (A) first, to the Class A Noteholders, interest due and
               payable on the Class A Notes (including interest at the
               applicable Note Interest Rate on any overdue interest, to the
               extent lawful), provided that if there are not sufficient funds
               available to pay the entire amount of interest due and payable
               on the Class A Notes, the amounts available shall be applied to
               the payment of such interest on the Class A Notes on a pro rata
               basis;

                      (B) second, to the holders of the Class A-1 Notes in
               reduction of principal until the principal amount of the Class
               A-1 Notes has been paid in full and then to the holders of the
               Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes on
               a pro rata basis in reduction of principal until the principal
               amount of such Class A Notes has been paid in full;

                                      28
<PAGE>

                      (C) third, to the holders of the Class B Notes, first,
               interest due and payable on the Class B Notes (including
               interest at the Class B Rate on any overdue interest, to the
               extent lawful) and second, in reduction of principal until the
               principal amount of the Class B Notes is paid in full; and

               (iv) fourth, if the only Event of Default that has occurred is
        the Event of Default specified in Section 5.1(iii), in the following
        order of priority:

                      (A) to the Class A Noteholders, accrued and unpaid
               interest on the Class A Notes (together with interest on
               overdue interest at the applicable Note Interest Rate, to the
               extent lawful) provided that if there are not sufficient funds
               available to pay the entire amount of such interest, the
               amounts available shall be applied to the payment of such
               interest on the Class A Notes on a pro rata basis;

                      (B) to the Class A Noteholders, the First Priority
               Principal Payment, if any, to be distributed in the same manner
               as described under Section 8.2(d) of this Indenture;

                      (C) to the holders of the Class B Notes, accrued and
               unpaid interest on the Class B Notes (together with interest on
               overdue interest at the Class B Rate, to the extent lawful);

                      (D) to the holders of the Class A-1 Notes in reduction
               of principal until the principal amount of the Class A-1 Notes
               has been paid in full and then to the holders of the Class A-2
               Notes, the Class A-3 Notes and the Class A-4 Notes on a pro
               rata basis in reduction of principal until the principal amount
               of such Class A Notes has been paid in full; and

                      (E) to the holders of the Class B Notes in reduction of
               principal until the principal amount of the Class B Notes has
               been paid in full; and

               (v) fifth, to the Certificate Distribution Account, any money
        or property remaining after payment in full of the amounts described
        in clauses (i)-(iv) of this Section 5.4(b).

The Indenture Trustee may fix a record date and payment date for any payment
to Noteholders pursuant to this Section 5.4. At least fifteen (15) days before
such record date, the Indenture Trustee shall mail to each Noteholder a notice
that states the record date, the payment date and the amount to be paid.

        (c)  Upon a sale or other liquidation of the Receivables in the
manner set forth in Section 5.4(a), the Indenture Trustee shall provide
reasonable prior notice of such sale or liquidation to each Noteholder and
Certificateholder. A Noteholder or Certificateholder may submit a bid with
respect to such sale.

        SECTION 5.5. Optional Preservation of the Receivables. If the Notes
have been declared to be due and payable under Section 5.2 following an Event
of Default, and such declaration and its consequences have not been rescinded
and annulled, the Indenture Trustee

                                      29
<PAGE>

may, but need not, elect to maintain possession of the Indenture Trust Estate
and apply proceeds as if there had been no declaration of acceleration;
provided, however, that funds on deposit in the Collection Account at the time
the Indenture Trustee makes such election or deposited therein during the
Collection Period in which such election is made (including funds, if any,
deposited therein from the Reserve Account) shall be applied in accordance
with such declaration of acceleration in the manner specified in Section
4.6(c) of the Sale and Servicing Agreement. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the
payment of principal of and interest on the Notes, and the Indenture Trustee
shall take such desire into account when determining whether or not to
maintain possession of the Indenture Trust Estate. In determining whether to
maintain possession of the Indenture Trust Estate, the Indenture Trustee may
(at other than its own expense), but need not, obtain and rely upon an opinion
of an Independent investment banking or accounting firm of national reputation
as to the feasibility of such proposed action and as to the sufficiency of the
Indenture Trust Estate for such purpose.

        SECTION 5.6. Limitation of Suits. No Noteholder shall have any right
to institute any Proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

        (a)  such Noteholder has previously given written notice to the
Indenture Trustee of a continuing Event of Default;

        (b)  the holders of Notes evidencing not less than 25% of the
principal amount of the Controlling Class have made written request to the
Indenture Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Indenture Trustee hereunder;

        (c)  such Noteholder or Noteholders have offered to the Indenture
Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in complying with such request;

        (d)  the Indenture Trustee for sixty (60) days after its receipt of
such notice, request and offer of indemnity has failed to institute such
Proceedings; and

        (e)  no direction inconsistent with such written request has been
given to the Indenture Trustee during such sixty-day period by the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Controlling Class.

        It is understood and intended that no one or more Noteholders shall
have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any
other Noteholders or to obtain or to seek to obtain priority or preference
over any other Noteholders or to enforce any right under this Indenture,
except in the manner herein provided.

        In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Noteholders,
each evidencing less than a majority of the principal amount of the
Controlling Class, the Indenture Trustee shall act at the direction of the
group of Noteholders representing the greater principal amount of the
Controlling Class. If the Indenture Trustee receives conflicting or
inconsistent requests and indemnity from two or more

                                      30
<PAGE>

groups of Noteholders representing an equal principal amount of the Notes, the
Indenture Trustee in its sole discretion may determine what action, if any,
shall be taken, notwithstanding any other provisions of this Indenture.

        SECTION 5.7. Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, any
Noteholder shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on its Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of prepayment pursuant to Article X, on or after
the Prepayment Date) and to institute suit for the enforcement of any such
payment, and such right shall not be impaired without the consent of such
Noteholder.

        SECTION 5.8. Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right
or remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had
been instituted.

        SECTION 5.9. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

        SECTION 5.10. Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee or any Noteholder to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or
remedy or constitute a waiver of any such Default or Event of Default or any
acquiescence therein. Every right and remedy given by this Article V or by law
to the Indenture Trustee or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

        SECTION 5.11. Control by Controlling Class. The Noteholders of Notes
evidencing not less than a majority of the principal amount of the Controlling
Class Outstanding shall have the right, subject to Section 6.2(f), to direct
the time, method and place of conducting any Proceeding for any remedy
available to the Indenture Trustee with respect to the Notes or exercising any
trust or power conferred on the Indenture Trustee; provided that:

        (a) such direction shall not be in conflict with any rule of law or
with this Indenture;

                                      31
<PAGE>

        (b)  subject to the express terms of Section 5.4, any direction to
the Indenture Trustee to sell or liquidate the Indenture Trust Estate shall be
by holders of Notes evidencing not less than 100% of the principal amount of
the Notes Outstanding;

        (c)  if the conditions set forth in Section 5.5 have been satisfied
and the Indenture Trustee elects to retain the Indenture Trust Estate pursuant
to such Section 5.5, then any direction to the Indenture Trustee by
Noteholders of Notes evidencing less than 100% of the principal amount of the
Notes Outstanding to sell or liquidate the Indenture Trust Estate shall be of
no force and effect; and

        (d)  the Indenture Trustee may take any other action deemed proper
by the Indenture Trustee that is not inconsistent with such direction.

Notwithstanding the rights of Noteholders set forth in this Section 5.11,
subject to Section 6.1, the Indenture Trustee need not take any action that it
determines might involve it in costs or expenses for which it would not be
adequately indemnified or expose it to personal liability or might materially
adversely affect or unduly prejudice the rights of any Noteholders not
consenting to such action.

        SECTION 5.12. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2, the
holders of Notes evidencing not less than a majority of the principal amount
of the Controlling Class Outstanding may waive any past Default or Event of
Default and its consequences except a Default (a) in the payment of principal
of or interest on any of the Notes or (b) in respect of a covenant or
provision hereof that cannot be amended, supplemented or modified without the
consent of each Noteholder. In the case of any such waiver, the Issuer, the
Indenture Trustee and the Noteholders shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereto.

        Upon any such waiver, such Default shall cease to exist and be deemed
to have been cured and not to have occurred, and any Event of Default arising
therefrom shall be deemed to have been cured and not to have occurred, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto.

        SECTION 5.13. Undertaking for Costs. All parties to this Indenture
agree, and each Noteholder by such Noteholder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any
suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Indenture Trustee for any action taken, suffered or
omitted by it as Indenture Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may
in its discretion assess reasonable costs, including reasonable attorneys'
fees, against any party litigant in such suit, having due regard to the merits
and good faith of the claims or defenses made by such party litigant; but the
provisions of this Section 5.13 shall not apply to (a) any suit instituted by
the Indenture Trustee, (b) any suit instituted by any Noteholder or group of
Noteholders, in each case holding in the aggregate more than 10% of the
principal amount of the Notes Outstanding, or in the case of a right or remedy
under this Indenture which is instituted by the Controlling Class, more than
10%

                                      32
<PAGE>

of the Controlling Class Outstanding or (c) any suit instituted by any
Noteholder for the enforcement of the payment of principal of or interest on
any Note on or after the respective due dates expressed in such Note and in
this Indenture.

        SECTION 5.14. Waiver of Stay or Extension Laws. The Issuer covenants
(to the extent that it may lawfully do so) that it shall not at any time
insist upon, or plead or in any manner whatsoever, claim or take the benefit
or advantage of, any stay or extension law wherever enacted, now or at any
time hereafter in force, that may affect the covenants or the performance of
this Indenture, and the Issuer (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law, and
covenants that it shall not hinder, delay or impede the execution of any power
herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

        SECTION 5.15. Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be
affected by the seeking, obtaining or application of any other relief under or
with respect to this Indenture. Neither the lien of this Indenture nor any
rights or remedies of the Indenture Trustee or the Noteholders shall be
impaired by the recovery of any judgment by the Indenture Trustee against the
Issuer or by the levy of any execution under such judgment upon any portion of
the Indenture Trust Estate or upon any of the assets of the Issuer. Any money
or property collected by the Indenture Trustee shall be applied in accordance
with Section 5.4(b).

        SECTION 5.16. Performance and Enforcement of Certain Obligations. (a)
Promptly following a request from the Indenture Trustee to do so, and at the
Administrator's expense, the Issuer shall take all such lawful action as the
Indenture Trustee may request to compel or secure the performance and
observance by the Seller, the Depositor and the Servicer, as applicable, of
each of their obligations to the Issuer under or in connection with the Sale
and Servicing Agreement, or the performance and observance by the Seller of
each of its obligations to the Depositor under or in connection with the
Receivables Purchase Agreement, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement or the Receivables Purchase Agreement to
the extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Seller, the Depositor or
the Servicer thereunder and the institution of legal or administrative actions
or proceedings to compel or secure performance by the Seller, the Depositor or
the Servicer of each of their obligations under the Receivables Purchase
Agreement and the Sale and Servicing Agreement.

        (b)  If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and at the direction (which direction shall be in
writing or by telephone, confirmed in writing promptly thereafter) of the
Noteholders of Notes evidencing not less than a majority of the principal
amount of the Controlling Class shall, exercise all rights, remedies, powers,
privileges and claims of the Issuer against the Seller, the Depositor or the
Servicer under or in connection with the Receivables Purchase Agreement and
the Sale and Servicing Agreement, including the right or power to take any
action to compel or secure performance or observance by the Seller, the
Depositor, the Servicer or the Bank, as the case may be, of each of their
obligations to the Issuer thereunder and to give any consent, request, notice,
direction, approval, extension, or

                                      33
<PAGE>

waiver under the Receivables Purchase Agreement and the Sale and Servicing
Agreement and any right of the Issuer to take such action shall be suspended.

                                  ARTICLE VI

                             THE INDENTURE TRUSTEE

        SECTION 6.1. Duties of Indenture Trustee. (a) If an Event of Default
has occurred and is continuing, the Indenture Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of
care and skill in their exercise as a prudent Person would exercise or use
under the circumstances in the conduct of such Person's own affairs.

        (b)  Except during the continuance of an Event of Default:

               (i) the Indenture Trustee undertakes to perform such duties and
        only such duties as are specifically set forth in this Indenture and
        no implied covenants or obligations shall be read into this Indenture
        or the other Basic Documents against the Indenture Trustee; and

               (ii) in the absence of bad faith on its part, the Indenture
        Trustee may conclusively rely, as to the truth of the statements and
        the correctness of the opinions expressed therein, upon certificates
        or opinions furnished to the Indenture Trustee and, if required by the
        terms of this Indenture or the other Basic Documents, conforming to
        the requirements of this Indenture; provided, however, that the
        Indenture Trustee shall examine the certificates and opinions to
        determine whether or not they conform to the requirements of this
        Indenture.

        (c)  The Indenture Trustee may not be relieved from liability for
its own negligent action, its own negligent failure to act or its own willful
misconduct, except that:

               (i) this paragraph does not limit the effect of paragraph (b)
        of this Section 6.1;

               (ii) the Indenture Trustee shall not be liable for any error of
        judgment made in good faith by a Trustee Officer unless it is proved
        that the Indenture Trustee was negligent in ascertaining the pertinent
        facts;

               (iii) the Indenture Trustee shall not be liable with respect to
        any action it takes or omits to take in good faith at the direction of
        the Noteholders in accordance with the terms of this Indenture; and

               (iv) the Indenture Trustee shall have no duty (A) to see to any
        recording, filing, or depositing of this Indenture or any agreement
        referred to herein or any financing statement or continuation
        statement evidencing a security interest, or to see to the maintenance
        of any such recording or filing or depositing or to any re-recording,
        refiling or redepositing of any thereof, (B) to see to any insurance,
        (C) to see to the payment or discharge of any tax, assessment, or
        other governmental charge or any lien or encumbrance of any kind owing
        with respect to, assessed or levied against, any part of the Trust
        Estate other than as directed by the Servicer or the Administrator, in
        either case,

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<PAGE>

        from funds available in the Collection Account, (D) except as
        otherwise set forth in Section 6.1(b)(ii), to confirm or verify the
        contents of any reports or certificates of the Servicer delivered to
        the Indenture Trustee pursuant to this Indenture believed by the
        Indenture Trustee to be genuine and to have been signed or presented
        by the proper party or parties, or (E) to execute any certificates or
        other documents required pursuant to the Sarbanes-Oxley Act of 2002 or
        the rules and regulations promulgated thereunder, except with respect
        to the back-up certification provided pursuant to Article X of the
        Sale and Servicing Agreement.

        (d)  The Indenture Trustee shall not be liable for interest on any
money received by it except as the Indenture Trustee may agree in writing with
the Issuer.

        (e)  Money held in trust by the Indenture Trustee need not be
segregated from other funds except to the extent required by law or the terms
of this Indenture or the Sale and Servicing Agreement.

        (f)  No provision of this Indenture shall require the Indenture
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers, if it shall have reasonable grounds to believe that
repayment of such funds or adequate indemnity against such risk or liability
is not reasonably assured to it, and none of the provisions contained in this
Indenture shall in any event require the Indenture Trustee to perform, or be
responsible for the manner of performance of, any of the obligations of the
Servicer under this Indenture except during such time, if any, as the
Indenture Trustee shall be the successor to, and be vested with the rights,
duties, powers and privileges of the Servicer in accordance with the terms of
this Indenture.

        (g)  Every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Indenture Trustee
shall be subject to the provisions of this Section 6.1 and to the provisions
of the TIA.

        (h)  The Indenture Trustee shall not be charged with knowledge of
any Event of Default unless either (i) a Trustee Officer shall have actual
knowledge of such Event of Default or (ii) written notice of such Event of
Default shall have been given to the Indenture Trustee in accordance with the
provisions of this Indenture.

        SECTION 6.2. Rights of Indenture Trustee. (a) The Indenture Trustee
may rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice,
request, direction, consent, order, bond, debenture or other paper or document
believed by it to be genuine and to have been signed or presented by the
proper Person. The Indenture Trustee need not investigate any facts or matters
stated in any such document.

        (b)  Before the Indenture Trustee acts or refrains from acting, it
may require an Officer's Certificate or an Opinion of Counsel. The Indenture
Trustee shall not be liable for any action it takes or omits to take in good
faith in reliance on an Officer's Certificate or Opinion of Counsel.

                                      35
<PAGE>

        (c)  The Indenture Trustee may execute any of the trusts or powers
hereunder or under the Basic Documents or perform any duties hereunder or
thereunder either directly or by or through agents or attorneys or a custodian
or nominee, and the Indenture Trustee shall not be responsible for any
misconduct or negligence on the part of, or for the supervision of, any such
agent, attorney, custodian or nominee appointed with due care by it hereunder.

        (d)  The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers; provided, however, that such action or omission
by the Indenture Trustee does not constitute willful misconduct, negligence or
bad faith.

        (e)  The Indenture Trustee may consult with counsel, and the advice
or opinion of counsel with respect to legal matters relating to this Indenture
and the Notes shall be full and complete authorization and protection from
liability in respect to any action taken, omitted or suffered by it hereunder
in good faith and in accordance with the advice or opinion of such counsel.

        (f)  The Indenture Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture or to institute,
conduct or defend any litigation hereunder or in relation hereto or to honor
the request or direction of any of the Noteholders pursuant to this Indenture
unless such Noteholders shall have offered to the Indenture Trustee reasonable
security or indemnity against the reasonable costs, expenses, disbursements,
advances and liabilities which might be incurred by it, its agents and its
counsel in compliance with such request or direction.

        (g)  Any request or direction of the Issuer mentioned herein shall
be sufficiently evidenced by an Issuer Request.

        (h)  The right of the Indenture Trustee to perform any discretionary
act enumerated in this Indenture shall not be construed as a duty, and the
Indenture Trustee shall not be answerable for other than its negligence or
willful misconduct in the performance of such act.

        (i)  The Indenture Trustee shall not be required to give any bond or
surety in respect of the execution of the Trust Estate created hereby or the
powers granted hereunder.

        SECTION 6.3. Individual Rights of Indenture Trustee. The Indenture
Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with
the same rights it would have if it were not Indenture Trustee. Any Note
Paying Agent, Note Registrar, co-registrar or co-paying agent hereunder may do
the same with like rights.

        SECTION 6.4. Indenture Trustee's Disclaimer. The Indenture Trustee (i)
shall not be responsible for, and makes no representation as to, the validity
or adequacy of this Indenture, the Notes or any other Basic Document and (ii)
shall not be accountable for the Issuer's use of the proceeds from the Notes,
or responsible for any statement or omission of the Issuer in this Indenture
or any other Basic Document or in any document issued in connection with the
sale of the Notes or in the Notes (all of which shall be taken as statements
of the Issuer) other than the Indenture Trustee's certificate of
authentication.

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<PAGE>

        SECTION 6.5. Notice of Defaults; Insolvency or Dissolution of
Depositor or the Seller. If a Default occurs and is continuing and if it is
actually known to a Trustee Officer of the Indenture Trustee, the Indenture
Trustee shall mail to each Noteholder notice of such Default within ninety
(90) days after it occurs. Except in the case of a Default in payment of
principal of or interest on any Note (including payments pursuant to the
redemption provisions of such Note), the Indenture Trustee may withhold the
notice if and so long as a committee of its Trustee Officers in good faith
determines that withholding the notice is in the interests of Noteholders.

        SECTION 6.6. Reports by Indenture Trustee to Noteholders. Upon
delivery to the Indenture Trustee by the Servicer of such information prepared
by the Servicer pursuant to Section 3.9 of the Sale and Servicing Agreement as
may be required to enable each Noteholder to prepare its federal and State
income tax returns, the Indenture Trustee shall deliver such information to
the Noteholders by mail, e-mail, courier, fax, or the Indenture Trustee's
website at www.jpmorgan.com/sfr.

        SECTION 6.7. Compensation and Indemnity. (a) The Issuer shall cause
the Administrator to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not
be limited by any law on compensation of a trustee of an express trust. The
Issuer shall cause the Administrator to reimburse the Indenture Trustee for
all reasonable out-of-pocket expenses incurred or made by it, including costs
of collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and
advances of the Indenture Trustee's agents, counsel, accountants and experts.
The Issuer shall cause the Administrator to indemnify the Indenture Trustee,
its directors, officers and agents for, and to hold it harmless against, any
and all loss, liability or expense (including attorneys' fees and
disbursements) incurred by it in connection with the administration of this
trust and the performance of its duties hereunder, including the costs and
expenses of defending itself against any claim or liability in connection with
the exercise or performance of any of its powers or duties hereunder. The
Indenture Trustee shall notify the Issuer and the Administrator promptly of
any claim for which it may seek indemnity. Failure by the Indenture Trustee to
so notify the Issuer and the Administrator shall not relieve the Issuer or the
Administrator of its obligations hereunder. The Issuer shall cause the
Administrator to defend any such claim, and the Indenture Trustee may have
separate counsel and the Issuer shall cause the Administrator to pay the fees
and expenses of such counsel. Neither the Issuer nor the Administrator need
reimburse any expense or indemnity against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

        (b)  The Issuer's payment obligations to the Indenture Trustee
pursuant to this Section 6.7 shall survive the resignation or removal of the
Indenture Trustee and the discharge of this Indenture. When the Indenture
Trustee incurs expenses after the occurrence of a Default specified in Section
5.1(iv) or (v) with respect to the Issuer, the expenses are intended to
constitute expenses of administration under Title 11 of the United States Code
or any other applicable federal or State bankruptcy, insolvency or similar
law.

        SECTION 6.8. Replacement of Indenture Trustee. (a) No resignation or
removal of the Indenture Trustee, and no appointment of a successor Indenture
Trustee, shall become effective until the acceptance of appointment by the
successor Indenture Trustee pursuant to this

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Section 6.8 and payment in full of all sums due to the Indenture Trustee
pursuant to Section 6.7. The Indenture Trustee may resign at any time by so
notifying the Issuer and the Depositor, and will provide all information
reasonably requested by the Depositor in order to comply with its reporting
obligation under Item 6.02 of Form 8-K with respect to the resignation of the
Indenture Trustee. The holders of Notes evidencing not less than a majority in
principal amount of the Controlling Class may remove the Indenture Trustee
without cause by so notifying the Indenture Trustee, the Issuer and the
Depositor and may appoint a successor Indenture Trustee. The Administrator
shall remove the Indenture Trustee if:

               (i) the Indenture Trustee fails to comply with Section 6.11;

               (ii) an Insolvency Event occurs with respect to the Indenture
        Trustee;

               (iii) a receiver or other public officer takes charge of the
        Indenture Trustee or its property; or

               (iv) the Indenture Trustee otherwise becomes incapable of
        acting.

The Depositor may remove the Indenture Trustee if the Indenture Trustee fails
to comply with Section 3.7(e), Section 6.8 or Section 6.9 of the Indenture
with respect to notice to or providing information to the Depositor, or with
Article X of the Sale and Servicing Agreement, in each case if such failure
continues for the lesser or 10 days or such period in which the applicable
Exchange Act Report can be filed timely (without taking into account any
extensions). If the Indenture Trustee resigns or is removed or if a vacancy
exists in the office of Indenture Trustee for any reason (the Indenture
Trustee in such event being referred to herein as the retiring Indenture
Trustee), the Administrator shall promptly appoint a successor Indenture
Trustee and notify the Depositor such appointment.

        (b)  Any successor Indenture Trustee shall deliver a written
acceptance of its appointment to the retiring Indenture Trustee and to the
Issuer and shall also provide all information reasonably requested by the
Depositor in order to comply with its reporting obligation under the Exchange
Act with respect to the replacement Indenture Trustee. Thereupon, if all sums
due the retiring Indenture Trustee pursuant to Section 6.7 have been paid in
full, the resignation or removal of the retiring Indenture Trustee shall
become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the Indenture Trustee under this Indenture. The
successor Indenture Trustee shall mail a notice of its succession to
Noteholders. If all sums due the retiring Indenture Trustee pursuant to
Section 6.7 have been paid in full, the retiring Indenture Trustee shall
promptly transfer all property held by it as Indenture Trustee to the
successor Indenture Trustee.

        (c)  If a successor Indenture Trustee does not take office within
sixty (60) days after the retiring Indenture Trustee resigns or is removed,
the retiring Indenture Trustee, the Issuer or the holders of Notes evidencing
not less than a majority in principal amount of the Controlling Class may
petition any court of competent jurisdiction for the appointment of a
successor Indenture Trustee. If the Indenture Trustee fails to comply with
Section 6.11, any Noteholder who has been a bona fide Noteholder for at least
six (6) months may petition any court of

                                      38
<PAGE>

competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.

        (d)  Notwithstanding the replacement of the Indenture Trustee
pursuant to this Section 6.8, the obligations of the Issuer and the
Administrator under Section 6.7 shall continue for the benefit of the retiring
Indenture Trustee.

        SECTION 6.9. Successor Indenture Trustee by Merger. (a) If the
Indenture Trustee consolidates with, merges or converts into, or transfers all
or substantially all its corporate trust business or assets to, another
corporation or banking association, the resulting, surviving or transferee
corporation or banking association without any further act shall be the
successor Indenture Trustee; provided that such corporation or banking
association shall be otherwise qualified and eligible under Section 6.11. The
Indenture Trustee shall provide the Rating Agencies and the Depositor with
written notice of any such transaction and shall provide the Depositor with
written notice of such event no later than one (1) Business Day after the
effective date of such merger, together with the information reasonably
requested by the Depositor in order to comply with its reporting obligation
under the Exchange Act with respect to a successor Indenture Trustee.

        (b)  In case at the time such successor or successors by merger,
conversion or consolidation to the Indenture Trustee shall succeed to the
trusts created by this Indenture any of the Notes shall have been
authenticated but not delivered, any such successor to the Indenture Trustee
may adopt the certificate of authentication of any predecessor trustee, and
deliver such Notes so authenticated; and in case at that time any of the Notes
shall not have been authenticated, any successor to the Indenture Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in
the name of the successor to the Indenture Trustee. In all such cases such
certificates shall have the full force which it is provided anywhere in the
Notes or in this Indenture that the certificate of the Indenture Trustee shall
have.

        SECTION 6.10. Appointment of Co-Indenture Trustee or Separate
Indenture Trustee. (a) Notwithstanding any other provisions of this Indenture,
at any time, for the purpose of meeting any legal requirement of any
jurisdiction in which any part of the Indenture Trust Estate may at the time
be located, the Indenture Trustee shall have the power and may execute and
deliver an instrument to appoint one or more Persons to act as a co-trustee or
co-trustees, or separate trustee or separate trustees, of all or any part of
the Trust, and to vest in such Person or Persons, in such capacity and for the
benefit of the Noteholders, such title to the Indenture Trust Estate, or any
part hereof, and, subject to the other provisions of this Section 6.10, such
powers, duties, obligations, rights and trusts as the Indenture Trustee may
consider necessary or desirable. No co-trustee or separate trustee hereunder
shall be required to meet the terms of eligibility as a successor trustee
under Section 6.11 and no notice to Noteholders of the appointment of any
co-trustee or separate trustee shall be required under Section 6.8.

        (b)  Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and
conditions:

                (i) all rights, powers, duties and obligations conferred or
        imposed upon the Indenture Trustee shall be conferred or imposed upon
        and exercised or performed by the

                                      39
<PAGE>

        Indenture Trustee and such separate trustee or co-trustee jointly (it
        being understood that such separate trustee or co-trustee shall not be
        authorized to act separately without the Indenture Trustee joining in
        such act), except to the extent that under any law of any jurisdiction
        in which any particular act or acts are to be performed the Indenture
        Trustee shall be incompetent or unqualified to perform such act or
        acts, in which event such rights, powers, duties and obligations
        (including the holding of title to the Indenture Trust Estate or any
        portion thereof in any such jurisdiction) shall be exercised and
        performed singly by such separate trustee or co-trustee, but solely at
        the direction of the Indenture Trustee;

               (ii) no trustee hereunder shall be personally liable by reason
        of any act or omission of any other trustee hereunder; and

               (iii) the Indenture Trustee may at any time accept the
        resignation of or remove any separate trustee or co-trustee.

        (c)  Any notice, request or other writing given to the Indenture
Trustee shall be deemed to have been given to each of the then separate
trustees and co-trustees, as effectively as if given to each of them. Every
instrument appointing any separate trustee or co-trustee shall refer to this
Indenture and the conditions of this Article VI. Each separate trustee and
co-trustee, upon its acceptance of the trusts conferred, shall be vested with
the estates or property specified in its instrument of appointment, either
jointly with the Indenture Trustee or separately, as may be provided therein,
subject to all the provisions of this Indenture, specifically including every
provision of this Indenture relating to the conduct of, affecting the
liability of, or affording protection to, the Indenture Trustee. Every such
instrument shall be filed with the Indenture Trustee.

        (d)  Any separate trustee or co-trustee may at any time constitute
the Indenture Trustee its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by law, to do any lawful act under or
in respect of this Indenture on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall
vest in and be exercised by the Indenture Trustee, to the extent permitted by
law, without the appointment of a new or successor trustee.

        SECTION 6.11. Eligibility; Disqualification. (a) The Indenture Trustee
shall at all times satisfy the requirements of TIA Section 310(a). The
Indenture Trustee or its parent shall have a combined capital and surplus of
at least $50,000,000 as set forth in its most recent published annual report
of condition and shall have a long-term debt rating of investment grade by
each of the Rating Agencies or shall otherwise be acceptable to each of the
Rating Agencies. The Indenture Trustee shall comply with TIA Section 310(b).

        (b)  Preferential Collection of Claims Against Issuer. The Indenture
Trustee shall comply with TIA Section 311(a), excluding any creditor
relationship listed in TIA Section 311(b). An Indenture Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.

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<PAGE>

                                  ARTICLE VII

                        NOTEHOLDERS' LISTS AND REPORTS

        SECTION 7.1. Issuer To Furnish Indenture Trustee Names and Addresses
of Noteholders. The Issuer shall furnish or cause to be furnished to the
Indenture Trustee (a) not more than five (5) days after each Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the
names and addresses of the Noteholders as of such Record Date and (b) at such
other times as the Indenture Trustee may request in writing, within thirty
(30) days after receipt by the Issuer of any such request, a list of similar
form and content as of a date not more than ten (10) days prior to the time
such list is furnished; provided, however, that (i) so long as the Indenture
Trustee is the Note Registrar, no such list shall be required to be furnished
and (ii) no such list shall be required to be furnished with respect to
Noteholders of Book-Entry Notes.

        SECTION 7.2. Preservation of Information; Communications to
Noteholders. (a) The Indenture Trustee shall preserve, in as current a form as
is reasonably practicable, the names and addresses of the Noteholders
contained in the most recent list furnished to the Indenture Trustee as
provided in Section 7.1 and the names and addresses of Noteholders received by
the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee
may destroy any list furnished to it as provided in such Section 7.1 upon
receipt of a new list so furnished.

        (b)  Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under
the Notes. Upon receipt by the Indenture Trustee of any request by three or
more Noteholders or by one or more holders of Notes evidencing not less than
25% of the Notes Outstanding to receive a copy of the current list of
Noteholders (whether or not made pursuant to TIA Section 312(b)), the
Indenture Trustee shall promptly notify the Administrator thereof by providing
to the Administrator a copy of such request and a copy of the list of
Noteholders produced in response thereto.

        (c)  The Issuer, the Indenture Trustee and the Note Registrar shall
have the protection of TIA Section 312(c).

        SECTION 7.3.  Reports by Issuer. (a) The Issuer shall:

               (i) file with the Indenture Trustee, within fifteen (15) days
        after the Issuer is required to file the same with the Commission,
        copies of the annual reports and of the information, documents and
        other reports (or copies of such portions of any of the foregoing as
        the Commission may from time to time by rules and regulations
        prescribe) that the Issuer may be required to file with the Commission
        pursuant to Section 13 or 15(d) of the Exchange Act;

               (ii) file with the Indenture Trustee and the Commission in
        accordance with the rules and regulations prescribed from time to time
        by the Commission such additional information, documents and reports
        with respect to compliance by the Issuer with the conditions and
        covenants of this Indenture as may be required from time to time by
        such rules and regulations; and

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<PAGE>

               (iii) supply to the Indenture Trustee (and the Indenture
        Trustee shall transmit by mail to all Noteholders described in TIA
        Section 313(c)) such summaries of any information, documents and
        reports required to be filed by the Issuer pursuant to clauses (i) and
        (ii) of this Section 7.3(a) and by rules and regulations prescribed
        from time to time by the Commission.

        (b)  Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall correspond to the calendar year.

        SECTION 7.4. Reports by Indenture Trustee. (a) If required by TIA
Section 313(a), within sixty (60) days after each May 15, beginning with May
15, 2007, the Indenture Trustee shall mail to each Noteholder as required by
TIA Section 313(c) a brief report dated as of such date that complies with TIA
Section 313(a). The Indenture Trustee also shall comply with TIA Section
313(b).

        (b)  A copy of each report at the time of its mailing to Noteholders
shall be filed by the Indenture Trustee with the Commission and each stock
exchange, if any, on which the Notes are listed. The Issuer shall notify the
Indenture Trustee if and when the Notes are listed on any stock exchange.

                                 ARTICLE VIII

                     ACCOUNTS, DISBURSEMENTS AND RELEASES

        SECTION 8.1. Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable
to or receivable by the Indenture Trustee pursuant to this Indenture and the
Sale and Servicing Agreement. The Indenture Trustee shall apply all such money
received by it as provided in this Indenture and the Sale and Servicing
Agreement. Except as otherwise expressly provided in this Indenture, if any
default occurs in the making of any payment or performance under any agreement
or instrument that is part of the Indenture Trust Estate, the Indenture
Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate
Proceedings. Any such action shall be without prejudice to any right to claim
a Default or Event of Default under this Indenture and any right to proceed
thereafter as provided in Article V.

        SECTION 8.2. Trust Accounts. (a) On or prior to the Closing Date, the
Issuer shall cause the Servicer to establish and maintain the Trust Accounts
as provided in Sections 4.1 and 4.7 of the Sale and Servicing Agreement.

        (b)  On or before each Payment Date, the Servicer shall deposit all
Available Collections with respect to the Collection Period preceding such
Payment Date in the Collection Account as provided in Sections 4.2, 4.3, 4.4
and 4.5 of the Sale and Servicing Agreement. On or before each Payment Date,
all amounts required to be withdrawn from the Reserve Account and deposited in
the Collection Account pursuant to Section 4.5 of the Sale and Servicing
Agreement shall be withdrawn by the Indenture Trustee (based on the
information contained in

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<PAGE>

the Servicer's Certificate delivered on or before the related Determination
Date pursuant to Section 3.9 of the Sale and Servicing Agreement) from the
Reserve Account and deposited to the Collection Account.

        (c)  On each Payment Date, the Indenture Trustee (based on the
information contained in the Servicer's Certificate delivered on or before the
related Determination Date pursuant to Section 3.9 of the Sale and Servicing
Agreement) shall make the following withdrawals from the Collection Account
and make deposits, distributions and payments, to the extent of Available
Funds for such Payment Date (including funds, if any, deposited therein from
the Reserve Account), in the following order of priority:

               (i) first, to the Servicer, the Servicing Fee and all unpaid
        Servicing Fees from prior Collection Periods;

               (ii) second, to the Class A Noteholders, the Accrued Class A
        Note Interest for such Payment Date; provided that if there are not
        sufficient funds available to pay the entire amount of the Accrued
        Class A Note Interest, the amounts available shall be applied to the
        payment of such interest on the Class A Notes on a pro rata basis;

               (iii) third, to the Class A Noteholders, the First Priority
        Principal Payment for such Payment Date, if any, to be distributed in
        the same priority as described under Section 8.2(d) of this Indenture;

               (iv) fourth, to the Class B Noteholders, the Accrued Class B
        Note Interest for such Payment Date;

               (v) fifth, to the Principal Distribution Account, the Regular
        Principal Distribution Amount (less any amounts distributed under
        clause (iii) above) for such Payment Date;

               (vi) sixth, if such Payment Date is a Final Scheduled Payment
        Date for any Class, the amount necessary to reduce the remaining
        principal amount of such Class to zero after giving effect to the
        amount, if any, to be applied on such Payment Date to such Class from
        funds deposited pursuant to clauses (iii) and (v) above;

               (vii) seventh, to the Reserve Account, the amount, if any,
        required to reinstate the amount in the Reserve Account up to the
        Specified Reserve Balance for such Payment Date;

               (viii) eighth, to the Indenture Trustee and the Owner Trustee,
        all amounts for fees, expenses and indemnification due under Section
        6.7 of this Indenture and Section 7.1 of the Trust Agreement,
        respectively, and not previously paid; and

               (ix) ninth, to the Certificate Distribution Account, any
        remaining Available Funds for such Payment Date.

Notwithstanding the foregoing in this Section 8.2(c),

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<PAGE>

                      (A) if the Notes have been accelerated after an Event of
               Default specified in Section 5.1(iii), then the Indenture
               Trustee shall instead apply Available Funds in the following
               order of priority:

                             (1) to the Indenture Trustee and the Owner
                      Trustee, all amounts for fees, expenses and
                      indemnification due under Section 6.7 of this Indenture
                      and Section 7.1 of the Trust Agreement and not
                      previously paid and to the Owner Trustee all amounts for
                      fees, expenses and indemnification due under Section 6.2
                      of the Sale and Servicing Agreement and not previously
                      paid;

                             (2) to the Servicer, the Servicing Fee and all
                      unpaid Servicing Fees from prior Collection Periods;

                             (3) to the Class A Noteholders, the Accrued Class
                      A Note Interest for such Payment Date; provided that if
                      there are not sufficient funds available to pay the
                      entire amount of the Accrued Class A Note Interest, the
                      amounts available shall be applied to the payment of
                      such interest on the Class A Notes on a pro rata basis;

                             (4) to the Class A Noteholders, the First
                      Priority Principal Payment, if any, for such Payment
                      Date, if any, to be distributed in the same priority as
                      described under Section 8.2(d) of this Indenture;

                             (5) to the Class B Noteholders, the Accrued Class
                      B Note Interest for such Payment Date;

                             (6) to the Principal Distribution Account, until
                      the principal amount of the Notes has been paid in full;
                      and

                             (7) to the Certificate Distribution Account, any
                      remaining Available Funds for such Payment Date; and

                      (B) if the Notes have been accelerated after an Event of
               Default specified in Section 5.1(i), (ii), (iv) or (v), then
               the Indenture Trustee shall instead apply Available Funds in
               the following order of priority:

                             (1) to the Indenture Trustee and the Owner
                      Trustee, all amounts due for fees, expenses and
                      indemnification under Section 6.7 of this Indenture,
                      Section 7.1 of the Trust Agreement and Section 6.2 of
                      the Sale and Servicing Agreement, respectively, and not
                      previously paid;

                             (2) to the Servicer, the Servicing Fee and all
                      unpaid Servicing Fees from prior Collection Periods;

                             (3) to the Class A Noteholders, the Accrued Class
                      A Note Interest for such Payment Date; provided that if
                      there are not sufficient funds available to pay the
                      entire amount of the Accrued Class A Note

                                      44
<PAGE>

                      Interest, the amounts available shall be applied to
                      the payment of such interest on the Class A Notes on a
                      pro rata basis; (4) to the Principal Distribution
                      Account, until the principal amount of the Class A
                      Notes has been paid in full;

                             (5) first, to the Class B Noteholders, the
                      Accrued Class B Note Interest for such Payment Date and
                      second, to the Principal Distribution Account, until the
                      principal amount of the Class B Notes has been paid in
                      full; and

                             (6) to the Certificate Distribution Account, any
                      remaining Available Funds for such Payment Date.

        (d)  If the Notes have not been accelerated because of an Event of
Default, on each Payment Date, the Indenture Trustee (based on the information
contained in the Servicer's Certificate delivered on or before the related
Determination Date pursuant to Section 3.9 of the Sale and Servicing
Agreement) shall withdraw the funds deposited in the Principal Distribution
Account on such Payment Date and make distributions and payments in the
following order of priority:

               (i) first, to the holders of the Class A-1 Notes on a pro rata
        basis in reduction of principal until the principal amount of the
        Class A-1 Notes has been paid in full;

               (ii) second, to the holders of the Class A-2 Notes on a pro
        rata basis in reduction of principal until the principal amount of the
        Class A-2 Notes has been paid in full;

               (iii) third, to the holders of the Class A-3 Notes on a pro
        rata basis in reduction of principal until the principal amount of the
        Class A-3 Notes have been paid in full;

               (iv) fourth, to the holders of the Class A-4 Notes on a pro
        rata basis in reduction of principal until the principal amount of the
        Class A-4 Notes have been paid in full; and

               (v) fifth, to the holders of the Class B Notes, on a pro rata
        basis in reduction of principal until the principal amount of the
        Class B Notes have been paid in full.

Any funds remaining on deposit in the Principal Distribution Account shall be
paid to the Indenture Trustee and the Owner Trustee to the extent, if any, of
amounts due to them under the Sale and Servicing Agreement that are unpaid and
then to the Certificate Distribution Account.

        Notwithstanding the foregoing in this Section 8.2(d), if the Notes
have been accelerated after an Event of Default, then the Indenture Trustee
shall (based on the information contained in the Servicer's Certificate
delivered on or before the related Determination Date pursuant to Section 3.9
of the Sale and Servicing Agreement) withdraw the funds deposited in the
Principal Distribution Account on each Payment Date and pay them, first, to
the holders of the Class A-1 Notes until the principal amount of the Class A-1
Notes have been paid in full, then to the

                                      45
<PAGE>

holders of the Class A-2 Notes, Class A-3 Notes and Class A-4 Notes on a pro
rata basis in reduction of principal until the principal amount of such Notes
has been paid in full and then to the Class B Notes until the principal amount
of such Notes has been paid in full.

        SECTION 8.3. General Provisions Regarding Accounts. (a) So long as no
Default or Event of Default shall have occurred and be continuing, all or a
portion of the funds in the Collection Account and the Reserve Account shall
be invested by the Indenture Trustee at the written direction of the Servicer,
in the case of the Collection Account, and at the written direction of the
holders of Certificates evidencing not less than a majority of the Percentage
Interests evidenced by the Certificates, in the case of the Reserve Account,
in Permitted Investments as provided in Sections 4.1 and 4.7 of the Sale and
Servicing Agreement. All income or other gain (net of losses and investment
expenses) from investments of monies deposited in the Collection Account shall
be withdrawn by the Indenture Trustee from such accounts and distributed as
provided in Section 4.1 of the Sale and Servicing Agreement. Amounts in the
Reserve Account (including net income and gain) shall be applied as provided
in Section 4.7 of the Sale and Servicing Agreement. The Servicer or the
holders of the requisite Percentage Interest evidencing the Certificates, as
applicable, shall not direct the Indenture Trustee to make any investment of
any funds or to sell any investment held in any of the Trust Accounts unless
the security interest Granted and perfected in such account will continue to
be perfected in such investment or the proceeds of such sale, in either case
without any further action by any Person, and, in connection with any
direction to the Indenture Trustee to make any such investment or sale, if
requested by the Indenture Trustee, the Issuer shall deliver to the Indenture
Trustee an Opinion of Counsel, acceptable to the Indenture Trustee, to such
effect.

        (b)  Subject to Section 6.1(c), the Indenture Trustee shall not in
any way be held liable by reason of any insufficiency in any of the Trust
Accounts resulting from any loss on any Permitted Investment included therein,
except for losses attributable to the Indenture Trustee's failure to make
payments on such Permitted Investments issued by the Indenture Trustee, in its
commercial capacity as principal obligor and not as trustee, in accordance
with their terms.

        (c)  If (i) the Servicer or holders of the requisite Percentage
Interests evidencing the Certificates, as applicable, shall have failed to
give investment directions for any funds on deposit in the Collection Account
or the Reserve Account to the Indenture Trustee or (ii) to the actual
knowledge of a Trustee Officer of the Indenture Trustee, a Default or Event of
Default shall have occurred and be continuing with respect to the Notes but
the Notes shall not have been declared due and payable pursuant to Section 5.2
or (iii) if such Notes shall have been declared due and payable following an
Event of Default, amounts collected or receivable from the Indenture Trust
Estate are being applied in accordance with Section 5.4 as if there had not
been such a declaration, then the Indenture Trustee shall, to the fullest
extent practicable, retain funds in the Collection Account or the Reserve
Account, as the case may be, uninvested.

        SECTION 8.4. Release of Indenture Trust Estate. (a) Subject to the
payment of its fees and expenses pursuant to Section 6.7, the Indenture
Trustee may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, or
convey the Indenture Trustee's interest in the same, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture.
No party relying upon an instrument executed by the Indenture Trustee as
provided in this Article VIII shall be

                                      46
<PAGE>

bound to ascertain the Indenture Trustee's authority, inquire into the
satisfaction of any conditions precedent or see to the application of any
monies.

        (b)  The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.7
have been paid in full, release any remaining portion of the Indenture Trust
Estate that secured the Notes from the lien of this Indenture and release to
the Issuer or any other Person entitled thereto any funds then on deposit in
the Trust Accounts. The Indenture Trustee shall release property from the lien
of this Indenture pursuant to this Section 8.4(b) only upon receipt of an
Issuer Request accompanied by an Officer's Certificate, an Opinion of Counsel
and (if required by the TIA) Independent Certificates in accordance with TIA
Sections 314(c) and 314(d)(1) meeting the applicable requirements of Section
11.1.

        (c)  Each Noteholder or Note Owner, by its acceptance of a Note or,
in the case of a Note Owner, a beneficial interest in a Note, acknowledges
that from time to time the Indenture Trustee shall release the lien of this
Indenture on any Receivable to be sold to (i) the Depositor in accordance with
Section 2.3 of the Sale and Servicing Agreement and (ii) to the Servicer in
accordance with Section 3.7 of the Sale and Servicing Agreement.

        SECTION 8.5. Opinion of Counsel. The Indenture Trustee shall receive
at least seven (7) days' notice when requested by the Issuer to take any
action pursuant to Section 8.4(a), accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require, except in connection
with any action contemplated by Section 8.4(c), as a condition to such action,
an Opinion of Counsel, in form and substance satisfactory to the Indenture
Trustee, stating the legal effect of any such action, outlining the steps
required to complete the same, and concluding that all conditions precedent to
the taking of such action have been complied with and such action will not
materially and adversely impair the security for the Notes or the rights of
the Noteholders in contravention of the provisions of this Indenture;
provided, however, that such Opinion of Counsel shall not be required to
express an opinion as to the fair value of the Indenture Trust Estate. Counsel
rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the
Indenture Trustee in connection with any such action.

                                  ARTICLE IX

                            SUPPLEMENTAL INDENTURES

        SECTION 9.1. Supplemental Indentures Without Consent of Noteholders.
(a) Without the consent of the Noteholders but with prior notice to the Rating
Agencies, the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the
Trust Indenture Act as in force at the date of the execution thereof), in form
satisfactory to the Indenture Trustee, for any of the following purposes:

                (i) to correct or amplify the description of any property at
        any time subject to the lien of this Indenture, or better to assure,
        convey and confirm unto the Indenture

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        Trustee any property subject or required to be subjected to the lien
        of this Indenture, or to subject to the lien of this Indenture
        additional property;

               (ii) to evidence the succession, in compliance with the
        applicable provisions hereof, of another Person to the Issuer, and the
        assumption by any such successor of the covenants of the Issuer herein
        and in the Notes contained;

               (iii) to add to the covenants of the Issuer, for the benefit of
        the Noteholders, or to surrender any right or power herein conferred
        upon the Issuer;

               (iv) to convey, transfer, assign, mortgage or pledge any
        property to or with the Indenture Trustee;

               (v) to cure any ambiguity, to correct or supplement any
        provision herein or in any supplemental indenture that may be
        inconsistent with any other provision herein or in any supplemental
        indenture or to make any other provisions with respect to matters or
        questions arising under this Indenture or under any supplemental
        indenture which shall not be inconsistent with the provisions of the
        Indenture; provided that such action shall not materially adversely
        affect the interests of the Noteholders;

               (vi) to evidence and provide for the acceptance of the
        appointment hereunder by a successor trustee with respect to the Notes
        and to add to or change any of the provisions of this Indenture as
        shall be necessary to facilitate the administration of the trusts
        hereunder by more than one trustee, pursuant to the requirements of
        Article VI; or

               (vii) to modify, eliminate or add to the provisions of this
        Indenture to such extent as shall be necessary to affect the
        qualification of this Indenture under the TIA or under any similar
        federal statute hereafter enacted and to add to this Indenture such
        other provisions as may be expressly required by the TIA.

        With respect to (iv) above, prior to the execution of such
supplemental indenture, the Rating Agency Condition shall have been satisfied.

        The Indenture Trustee is hereby authorized to join in the execution of
any such supplemental indenture and to make any further appropriate agreements
and stipulations that may be therein contained.

        (b)  The Issuer and the Indenture Trustee, when authorized by an
Issuer Order, may, also without the consent of any of the Noteholders but with
prior notice to the Rating Agencies, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, or changing
in any manner or eliminating any of the provisions of, this Indenture or of
modifying in any manner (other than the modifications set forth in Section
9.2) the rights of the Noteholders under this Indenture; provided, however,
that (i) such action shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Noteholder, (ii)
the Rating Agency Condition shall have been satisfied with respect to such
action and (iii) such action shall not, as evidenced by an Opinion of Counsel,
cause the Issuer to be characterized for federal or any then Applicable Tax
State income tax purposes as an association taxable as a corporation or
otherwise have any material adverse impact on the federal or

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any then Applicable Tax State income taxation of any Notes Outstanding or
Outstanding Certificates or any Noteholder or Certificateholder.

        SECTION 9.2. Supplemental Indentures with Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also
may, with prior notice to the Rating Agencies, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture
or modifying in any manner the rights of the Noteholders under this Indenture;
provided, however, that (i) the Rating Agency Condition shall have been
satisfied with respect to such action and (ii) such action shall not, as
evidenced by an Opinion of Counsel, cause the Issuer to be characterized for
federal or any then Applicable Tax State income tax purposes as an association
taxable as a corporation or otherwise have any material adverse impact on the
federal or any then Applicable Tax State income taxation of any Notes
Outstanding or Outstanding Certificates or any Noteholder or
Certificateholder, and (iii) (x) such action shall not, as evidenced by an
Opinion of Counsel, adversely affect in any material respect the interests of
any Noteholder, with respect to supplemental indentures relating to matters
other than those specified in clause (y) below or (y) the Noteholders of each
Outstanding Note affected thereby shall have consented thereto, with respect
to any supplemental indenture which would:

               (i) modify or alter provisions of this Section 9.2;

               (ii) change the Final Scheduled Payment Date or the date of
        payment of any installment of principal of or interest on any Note, or
        reduce the principal amount thereof, the interest rate thereon or the
        Prepayment Price with respect thereto, change the provisions of this
        Indenture relating to the application of collections on, or the
        proceeds of the sale of, the Indenture Trust Estate to payment of
        principal of or interest on the Notes, or change any place of payment
        where, or the coin or currency in which, any Note or the interest
        thereon is payable, or impair the right to institute suit for the
        enforcement of the provisions of this Indenture requiring the
        application of funds available therefor, as provided in Article V, to
        the payment of any such amount due on the Notes on or after the
        respective due dates thereof (or, in the case of redemption, on or
        after the Prepayment Date);

               (iii) reduce the percentage of the principal amount of the
        Controlling Class or of the Notes Outstanding, the consent of the
        Noteholders of which is required for any such supplemental indenture,
        or the consent of the Noteholders of which is required for any waiver
        of compliance with certain provisions of this Indenture or certain
        Defaults or Events of Default hereunder and their consequences
        provided for in this Indenture;

               (iv) modify or alter the provisions of the proviso to the
        definition of the term "Outstanding";

               (v) reduce the percentage of the principal amount of the
        Controlling Class or the Notes Outstanding required to direct or
        consent to a sale or liquidation by the Indenture Trustee of the
        Indenture Trust Estate pursuant to Section 5.4 if the proceeds of such
        sale or liquidation would be insufficient to pay the principal amount
        and accrued but unpaid interest on the Notes;

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<PAGE>

               (vi) modify any provision of this Indenture specifying a
        percentage of the aggregate principal amount of the Controlling Class
        or of the Notes necessary to amend this Indenture or the other Basic
        Documents except to increase any percentage specified herein or to
        provide that certain additional provisions of this Indenture or the
        other Basic Documents cannot be modified or waived without the consent
        of the holder of each Outstanding Note affected thereby;

               (vii) modify any of the provisions of this Indenture in such
        manner as to affect the calculation of the amount of any payment of
        interest or principal due on any Note on any Payment Date (including
        the calculation of any of the individual components of such
        calculation) or to affect the rights of the Noteholders to the benefit
        of any provisions for the redemption of the Notes contained herein; or

               (viii) permit the creation of any lien ranking prior to or on a
        parity with the lien of this Indenture with respect to any part of the
        Indenture Trust Estate or, except as otherwise permitted or
        contemplated herein, terminate the lien of this Indenture on any such
        collateral at any time subject hereto or deprive any Noteholder of the
        security provided by the lien of this Indenture.

The Indenture Trustee may in its discretion or upon receipt of an Opinion of
Counsel determine whether or not any Notes would be affected by any
supplemental indenture and any such determination shall be conclusive upon the
Noteholders of all Notes, whether theretofore or thereafter authenticated and
delivered hereunder. The Indenture Trustee shall not be liable for any such
determination made in good faith.

        It shall not be necessary for any Act of Noteholders under this
Section 9.2 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.

        Promptly after the execution by the Issuer and the Indenture Trustee
of any supplemental indenture pursuant to this Section 9.2, the Indenture
Trustee shall mail to the Noteholders of the Notes to which such amendment or
supplemental indenture relates a notice setting forth in general terms the
substance of such supplemental indenture. Any failure of the Indenture Trustee
to mail such notice, or any defect therein, shall not, however, in any way
impair or affect the validity of any such supplemental indenture.

        SECTION 9.3. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture
is authorized or permitted by this Indenture and that all conditions precedent
to the execution and delivery of such supplemental indenture have been
satisfied. The Indenture Trustee may, but shall not be obligated to, enter
into any such supplemental indenture that affects the Indenture Trustee's own
rights, duties, liabilities or immunities under this Indenture or otherwise.

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<PAGE>

        SECTION 9.4. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance
therewith with respect to the Notes affected thereby, and the respective
rights, limitations of rights, obligations, duties, liabilities and immunities
under this Indenture of the Indenture Trustee, the Issuer and the Noteholders
shall thereafter be determined, exercised and enforced hereunder subject in
all respects to such modifications and amendments, and all the terms and
conditions of any such supplemental indenture shall be and be deemed to be
part of the terms and conditions of this Indenture for any and all purposes.

        SECTION 9.5. Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as
then in effect so long as this Indenture shall then be qualified under the
Trust Indenture Act.

        SECTION 9.6. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee
shall, bear a notation in form approved by the Indenture Trustee as to any
matter provided for in such supplemental indenture. If the Issuer or the
Indenture Trustee shall so determine, new Notes so modified as to conform, in
the opinion of the Indenture Trustee and the Issuer, to any such supplemental
indenture may be prepared and executed by the Issuer and authenticated and
delivered by the Indenture Trustee in exchange for Outstanding Notes.

                                   ARTICLE X

                                  PREPAYMENT

        SECTION 10.1. Prepayment. The Class A Notes and Class B Notes are
subject to prepayment on any Payment Date on which the Servicer exercises its
option to purchase the assets of the Issuer pursuant to Section 8.1 of the
Sale and Servicing Agreement, and the amount paid by the Servicer shall be
treated as collections of Receivables and applied to pay the unpaid principal
amount of the Notes plus accrued and unpaid interest thereon. If the Notes are
to be prepaid pursuant to this Section 10.1, the Servicer or the Issuer shall
furnish notice of such election to the Indenture Trustee and the Rating
Agencies not later than forty (40) days prior to the Prepayment Date (and the
Indenture Trustee shall promptly furnish notice to the Noteholders) and the
Servicer or the Issuer shall deposit by 10:00 a.m. (New York City time) on the
Prepayment Date with the Indenture Trustee in the Collection Account the
Prepayment Price of the Notes, whereupon all Notes shall be due and payable on
the Prepayment Date.

        SECTION 10.2. Form of Prepayment Notice. Notice of prepayment under
Section 10.1 shall be given by the Indenture Trustee by first-class mail,
postage prepaid, or by facsimile mailed or transmitted promptly following
receipt of notice from the Issuer or Servicer pursuant to Section 10.1, but
not later than thirty (30) days prior to the applicable Prepayment Date, to
each Noteholder as of the close of business on the Record Date preceding the
applicable Prepayment Date, at such Noteholder's address or facsimile number
appearing in the Note Register.

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        All notices of prepayment shall state:

               (i) the Prepayment Date;

               (ii) the Prepayment Price;

               (iii) the place where such Notes are to be surrendered for
        payment of the Prepayment Price (which shall be the office or agency
        of the Issuer to be maintained as provided in Section 3.2); and

               (iv) that on the Prepayment Date, the Prepayment Price will
        become due and payable upon each such Note and that interest thereon
        shall cease to accrue for and after said date.

Notice of prepayment of the Notes shall be given by the Indenture Trustee in
the name and at the expense of the Issuer. Failure to give notice of
prepayment, or any defect therein, to any Noteholder shall not impair or
affect the validity of the prepayment of any other Note.

        SECTION 10.3. Notes Payable on Prepayment Date. The Notes shall,
following notice of prepayment as required by Section 10.2, shall on the
Prepayment Date become due and payable at the Prepayment Price and (unless the
Issuer shall default in the payment of the Prepayment Price) no interest shall
accrue on the Prepayment Price for any period after the date to which accrued
interest is calculated for purposes of calculating the Prepayment Price.

                                  ARTICLE XI

                                 MISCELLANEOUS

        SECTION 11.1. Compliance Certificates and Opinions, etc. (a) Upon any
application or request by the Issuer to the Indenture Trustee to take any
action under any provision of this Indenture, the Issuer shall furnish to the
Indenture Trustee (i) an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate
from a firm of certified public accountants meeting the applicable
requirements of this Section 11.1, except that, in the case of any such
application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture, no additional
certificate or opinion need be furnished.

        Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:

                      (A) a statement that each signatory of such certificate
               or opinion has read or has caused to be read such covenant or
               condition and the definitions herein relating thereto;

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<PAGE>

                      (B) a brief statement as to the nature and scope of the
               examination or investigation upon which the statements or
               opinions contained in such certificate or opinion are based;

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

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

        (b)  (i) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture,
the Issuer shall, in addition to any obligation imposed in Section 11.1(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within ninety (90) days of such deposit) to
the Issuer of the Collateral or other property or securities to be so
deposited.

               (ii) Whenever the Issuer is required to furnish to the
        Indenture Trustee an Officer's Certificate certifying or stating the
        opinion of any signer thereof as to the matters described in clause
        (i) above, the Issuer shall also deliver to the Indenture Trustee an
        Independent Certificate as to the same matters, if the fair value to
        the Issuer of the securities to be so deposited and of all other such
        securities made the basis of any such withdrawal or release since the
        commencement of the then-current fiscal year of the Issuer, as set
        forth in the certificates delivered pursuant to clause (i) above and
        this clause (ii), is ten percent (10%) or more of the principal amount
        of the Notes Outstanding, but such a certificate need not be furnished
        with respect to any securities so deposited, if the fair value thereof
        to the Issuer as set forth in the related Officer's Certificate is
        less than $25,000 or less than one percent (1%) of the principal
        amount of the Notes Outstanding.

               (iii) Whenever any property or securities are to be released
        from the lien of this Indenture, the Issuer shall also furnish to the
        Indenture Trustee an Officer's Certificate certifying or stating the
        opinion of each person signing such certificate as to the fair value
        (within ninety (90) days of such release) of the property or
        securities proposed to be released and stating that in the opinion of
        such person the proposed release will not impair the security under
        this Indenture in contravention of the provisions hereof.

               (iv) Whenever the Issuer is required to furnish to the
        Indenture Trustee an Officer's Certificate certifying or stating the
        opinion of any signer thereof as to the matters described in clause
        (iii) above, the Issuer shall also furnish to the Indenture Trustee an
        Independent Certificate as to the same matters if the fair value of
        the property or securities and of all other property, other than
        property as contemplated by clause (v) below or securities released
        from the lien of this Indenture since the commencement of the
        then-current calendar year, as set forth in the certificates required
        by clause (iii) above and this clause (iv), equals ten percent (10%)
        or more of the principal amount of the

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<PAGE>

        Notes Outstanding, but such certificate need not be furnished in the
        case of any release of property or securities if the fair value
        thereof as set forth in the related Officer's Certificate is less than
        $25,000 or less than one percent (1%) of the principal amount of the
        Notes Outstanding.

               (v) Notwithstanding Section 2.10 or any other provisions of
        this Section 11.1, the Issuer may, without compliance with the
        requirements of the other provisions of this Section 11.1, (A)
        collect, liquidate, sell or otherwise dispose of Receivables and
        Financed Vehicles as and to the extent permitted or required by the
        Basic Documents and (B) make cash payments out of the Trust Accounts
        as and to the extent permitted or required by the Basic Documents.

        SECTION 11.2. Form of Documents Delivered to Indenture Trustee. (a) In
any case where several matters are required to be certified by, or covered by
an opinion of, any specified Person, it is not necessary that all such matters
be certified by, or covered by the opinion of, only one such Person, or that
they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

        (b)  Any certificate or opinion of an Authorized Officer of the
Issuer may be based, insofar as it relates to legal matters, upon a
certificate or opinion of, or representations by, counsel, unless such officer
knows, or in the exercise of reasonable care should know, that the certificate
or opinion or representations with respect to the matters upon which such
officer's certificate or opinion is based are erroneous. Any such certificate
of an Authorized Officer or opinion of counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Servicer, the Depositor, the
Seller, the Administrator or the Issuer, stating that the information with
respect to such factual matters is in the possession of the Servicer, the
Depositor, the Seller, the Administrator or the Issuer, or in the exercise of
reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

        (c)  Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.

        (d)  Whenever in this Indenture, in connection with any application
or certificate or report to the Indenture Trustee, it is provided that the
Issuer shall deliver any document as a condition of the granting of such
application, or as evidence of the Issuer's compliance with any term hereof,
it is intended that the truth and accuracy, at the time of the granting of
such application or at the effective date of such certificate or report (as
the case may be), of the facts and opinions stated in such document shall in
such case be conditions precedent to the right of the Issuer to have such
application granted or to the sufficiency of such certificate or report. The
foregoing shall not, however, be construed to affect the Indenture Trustee's
right to rely upon the truth and accuracy of any statement or opinion
contained in any such document as provided in Article VI.

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<PAGE>

        SECTION 11.3. Acts of Noteholders. (a) Any request, demand,
authorization, direction, notice, consent, waiver or other action provided by
this Indenture to be given or taken by Noteholders may be embodied in and
evidenced by one or more instruments of substantially similar tenor signed by
such Noteholders in person or by agents duly appointed in writing; and except
as herein otherwise expressly provided such action shall become effective when
such instrument or instruments are delivered to the Indenture Trustee, and,
where it is hereby expressly required, to the Issuer. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Noteholders signing such instrument
or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this
Indenture and (subject to Section 6.1) conclusive in favor of the Indenture
Trustee and the Issuer, if made in the manner provided in this Section 11.3.

        (b)  The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner that the Indenture Trustee
deems sufficient.

        (c)  The ownership of Notes shall be proved by the Note Register.

        (d)  Any request, demand, authorization, direction, notice, consent,
waiver or other action by the Noteholder of any Notes shall bind the
Noteholder of every Note issued upon the registration thereof or in exchange
therefor or in lieu thereof, in respect of anything done, omitted or suffered
to be done by the Indenture Trustee or the Issuer in reliance thereon, whether
or not notation of such action is made upon such Note.

        SECTION 11.4. Notices, etc., to Indenture Trustee, Issuer and Rating
Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this
Indenture shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or Act of Noteholders is to be made upon,
given or furnished to or filed with:

               (i) the Indenture Trustee by any Noteholder, the Servicer, the
        Administrator or the Issuer shall be sufficient for every purpose
        hereunder if made, given, furnished or filed in writing to or with the
        Indenture Trustee at its Corporate Trust office; or

               (ii) the Issuer by the Indenture Trustee or by any Noteholder
        shall be sufficient for every purpose hereunder if in writing and
        mailed first-class, postage prepaid to the Issuer addressed to: USAA
        Auto Owner Trust 2006-1, in care of U.S. Bank Trust National
        Association, 300 Delaware Avenue, 9th Floor, Wilmington, DE 19801,
        with a copy to the Administrator at 10750 McDermott Freeway, San
        Antonio, TX 78288, Attention: Secretary, or at any other address
        previously furnished in writing to the Indenture Trustee by the Issuer
        or the Administrator. The Issuer shall promptly transmit any notice
        received by it from the Noteholders to the Indenture Trustee.

        Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally
delivered, telecopied or mailed by certified mail, return receipt requested,
to (i) in the case of Moody's, at the following address: Moody's Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York

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<PAGE>

10007 and (ii) in case of Standard & Poor's, at the following address:
Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
Inc., 55 Water Street, 40th Floor, New York, New York 10041, Attention: Asset
Backed Surveillance Department.

        SECTION 11.5. Notices to Noteholders; Waiver. (a) Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed
to any particular Noteholder shall affect the sufficiency of such notice with
respect to other Noteholders, and any notice that is mailed in the manner
herein provided shall conclusively be presumed to have been duly given.

        (b)  Where this Indenture provides for notice in any manner, such
notice may be waived in writing by any Person entitled to receive such notice,
either before or after the event, and such waiver shall be the equivalent of
such notice. Waivers of notice by Noteholders shall be filed with the
Indenture Trustee but such filing shall not be a condition precedent to the
validity of any action taken in reliance upon such a waiver.

        (c)  In case, by reason of the suspension of regular mail service as
a result of a strike, work stoppage or similar activity, it shall be
impractical to mail notice of any event to Noteholders when such notice is
required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee
shall be deemed to be a sufficient giving of such notice.

        (d)  Where this Indenture provides for notice to the Rating
Agencies, failure to give such notice shall not affect any other rights or
obligations created hereunder, and shall not under any circumstance constitute
a Default or Event of Default.

        SECTION 11.6. Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the
Issuer may enter into any agreement with any Noteholder providing for a method
of payment, or notice by the Indenture Trustee or any Note Paying Agent to
such Noteholder, that is different from the methods provided for in this
Indenture for such payments or notices. The Issuer shall furnish to the
Indenture Trustee a copy of each such agreement and the Indenture Trustee
shall cause payments to be made and notices to be given in accordance with
such agreements.

        SECTION 11.7. Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required or deemed to be included in this Indenture by any of the provisions
of the Trust Indenture Act, such required or deemed provision shall control.

        The provisions of TIA Sections 310 through 317 that impose duties on
any Person (including the provisions automatically deemed included herein
unless expressly excluded by this Indenture) are a part of and govern this
Indenture, whether or not physically contained herein.

                                      56
<PAGE>

        SECTION 11.8. Effect of Headings and Table of Contents. The Article
and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof.

        SECTION 11.9. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee
in this Indenture shall bind its successors, co-trustees and agents.

        SECTION 11.10. Separability. In case any provision in this Indenture
or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality, and enforceability of the remaining provisions shall not in any way
be affected or impaired thereby.

        SECTION 11.11. Benefits of Indenture. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, and the Noteholders, and any
other party secured hereunder, and any other Person with an ownership interest
in any part of the Indenture Trust Estate, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

        SECTION 11.12. Legal Holidays. In any case where the date on which any
payment is due shall not be a Business Day, then (notwithstanding any other
provision of the Notes or this Indenture) payment need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on the date on which nominally due, and no interest
shall accrue for the period from and after any such nominal date.

        SECTION 11.13. GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS
CONFLICTS OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

        SECTION 11.14. Counterparts. This Indenture may be executed in any
number of counterparts, each of which so executed shall be deemed to be an
original, but all such counterparts shall together constitute but one and the
same instrument.

        SECTION 11.15. Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which shall be counsel reasonably acceptable to the Indenture Trustee) to the
effect that such recording is necessary either for the protection of the
Noteholders or any other Person secured hereunder or for the enforcement of
any right or remedy granted to the Indenture Trustee under this Indenture.

        SECTION 11.16. Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee
or the Indenture Trustee on the Notes or under this Indenture or any
certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in their individual
capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any
partner, owner, beneficiary, agent,

                                      57
<PAGE>

officer, director, employee or agent of the Indenture Trustee or the Owner
Trustee in their individual capacities, any holder of a beneficial interest in
the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or
assign of the Indenture Trustee or the Owner Trustee in their individual
capacities, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacities), and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity.
For all purposes of this Indenture, 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 Article VI and
VII of the Trust Agreement.

        SECTION 11.17. No Petition. The Indenture Trustee, by entering into
this Indenture, and each Noteholder or Note Owner, by accepting a Note or, in
the case of a Note Owner, a beneficial interest in a Note, hereby covenant and
agree that prior to the end of the period that is one year and one day after
there has been paid in full all debt issued by any securitization vehicle in
respect of which the Seller or the Depositor holds any interest, they will not
institute against the Issuer, or join in, or assist or encourage others to
institute any institution against the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or State bankruptcy or similar law
in connection with any obligations relating to the Notes, this Indenture or
any of the other Basic Documents.

        SECTION 11.18. Subordination Agreement. Each Noteholder, by accepting
a Note, hereby covenants and agrees that, to the extent it is deemed to have
any interest in any assets of the Seller or the Depositor, or a securitization
vehicle (other than the Trust) related to the Seller or the Depositor,
dedicated to other debt obligations of the Seller or the Depositor or debt
obligations of any other securitization vehicle (other than the Trust) related
to the Seller or the Depositor, its interest in those assets is subordinate to
claims or rights of such other debtholders to those other assets. Furthermore,
each Noteholder, by accepting a Note, hereby covenants and agrees that such
agreement constitutes a subordination agreement for purposes of Section 510(a)
of the Bankruptcy Code.

        SECTION 11.19. No Recourse. Notwithstanding any provisions herein to
the contrary, all of the obligations of the Issuer under or in connection with
the Notes and this Indenture are nonrecourse obligations of the Issuer payable
solely from the Collateral and following realization of the Collateral and its
reduction to zero, any claims of the Noteholders and the Indenture Trustee
(other than in respect of Section 6.7) against the Issuer shall be
extinguished and shall not thereafter revive. It is understood that the
foregoing provisions of this Section 11.19 shall not (i) prevent recourse to
the Collateral for the sums due or to become due under any security,
instrument or agreement which is part of the Collateral or (ii) constitute a
waiver, release or discharge of any indebtedness or obligation evidenced by
the Notes or secured by this Indenture (to the extent it relates to the
obligation to make payments on the Notes) until such Collateral has been
realized and reduced to zero, whereupon any Outstanding indebtedness or
obligation in respect of the Notes shall be extinguished and shall not
thereafter revive. It is further understood that the foregoing provisions of
this Section 11.19 shall not limit the right of any Person to name the Issuer
as a party defendant in any Proceeding or in the exercise of any other remedy
under

                                      58
<PAGE>

the Notes or this Indenture, so long as no judgment in the nature of a
deficiency judgement shall be asked for or (if obtained) enforced against any
such Person or entity.

        SECTION 11.20. Inspection. The Issuer agrees that, with reasonable
prior notice, it will permit any representative of the Indenture Trustee,
during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by Independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees, and Independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee shall and shall cause its representatives to
hold in confidence all such information except to the extent disclosure may be
required by law (and all reasonable applications for confidential treatment
are unavailing) and except to the extent that the Indenture Trustee may
reasonably determine that such disclosure is 78consistent with its obligations
hereunder.

                                      59
<PAGE>

        IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused
this Indenture to be duly executed by their respective officers, thereunto
duly authorized, all as of the day and year first above written.

                                   USAA AUTO OWNER TRUST 2006-1

                                   By:  U.S. BANK TRUST NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Owner Trustee of
                                        USAA Auto Owner Trust 2006-1

                                         By:  /s/ Barbara A. Nastro
                                             ------------------------------
                                         Name:  Barbara A. Nastro
                                         Title: Vice President

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

                                         By:  /s/ Aranka R. Paul
                                             -------------------------------
                                         Name:  Aranka R. Paul
                                         Title: Assistant Vice President

<PAGE>

                                  EXHIBIT A-1

                            FORM OF CLASS A-1 NOTE

        [FOR BOOK ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                        $217,000,000

No. A-1-__                                        CUSIP NO. 903278 CN 7

                         USAA AUTO OWNER TRUST 2006-1

                     CLASS A-1 4.7552% ASSET BACKED NOTES

        USAA Auto Owner Trust 2006-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of _______________ dollars payable on each Payment
Date in an amount equal to the result obtained by multiplying (i) a fraction
the numerator of which is $___________ (the original face amount of this Note)
and the denominator of which is $217,000,000 by (ii) the aggregate amount, if
any, payable to holders of Class A-1 Notes on such Payment Date from the
Principal Distribution Account or otherwise in respect of principal on the
Class A-1 Notes pursuant to Section 3.1 of the Indenture dated as of February
22, 2006 (as from time to time amended, supplemented or otherwise modified and
in effect, the "Indenture"), between the Issuer and JPMorgan Chase Bank,
National Association, as Indenture Trustee (in such capacity the "Indenture
Trustee"); provided, however, that the entire unpaid principal amount of this
Note shall be due and payable on the March 2007 Payment Date (the "Class A-1
Final Scheduled Payment Date"). Capitalized terms used but not defined herein
are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

        The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note Outstanding on the
preceding Payment Date or the Closing Date in the case of the first Payment
Date (after giving effect to all payments of principal made on such

                                    A-1-1
<PAGE>

preceding Payment Date), subject to certain limitations contained in Section
3.1 of the Indenture. Interest on this Note will accrue for each Payment Date
from and including the previous Payment Date on which interest has been paid
(or, in the case of the initial Payment Date, from the Closing Date) to but
excluding such Payment Date. Interest will be computed on the basis of actual
days elapsed and a 360-day year. Such principal of and interest on this Note
shall be paid in the manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

        [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-1-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer, as of the date
set forth below.

Date: February 22, 2006

                                   USAA AUTO OWNER TRUST 2006-1

                                   By:  U.S. BANK TRUST NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Owner Trustee of
                                        USAA Auto Owner Trust 2006-1

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Class A-1 Notes designated above and referred to in
the within-mentioned Indenture.

Date: February 22, 2006

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

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

                                    A-1-3
<PAGE>

                               [REVERSE OF NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-1 4.7552% Asset Backed Notes (the "Class A-1 Notes")
which, together with the Issuer's Class A-2 5.03% Asset Backed Notes (the
"Class A-2 Notes"), Class A-3 5.01% Asset Backed Notes (the "Class A-3
Notes"), Class A-4 5.04% Asset Backed Notes (the "Class A-4 Notes" and,
together with the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, the "Class A Notes") and Class B 5.53% Asset Backed Notes (the "Class B
Notes" and, together with the Class A Notes, the "Notes"), are issued under
the Indenture, to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture.

        Subject to the subordination provisions of the Indenture, the Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 and Class B Notes are
and will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture.

        Principal of the Class A-1 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the 15th day
of each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing March 15, 2006.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-1 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Controlling Class have declared the Notes to be immediately due and payable in
the manner provided in Section 5.2 of the Indenture. All principal payments on
the Class A-1 Notes shall be made pro rata to the Noteholders entitled
thereto.

        Payments of interest on this Note on each Payment Date, together with
the installment of principal, if any, to the extent not in full payment of
this Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in

                                    A-1-4
<PAGE>

exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid principal amount of this Note on a Payment Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Registered Noteholder hereof as of the Record
Date preceding such Payment Date by notice mailed or transmitted by facsimile
prior to such Payment Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture
Trustee's principal Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in The City of New York.

        The Issuer shall pay interest on overdue installments of interest at
the Class A-1 Rate to the extent lawful.

        As provided in the Indenture, the Notes may be prepaid, in whole but
not in part, in the manner and to the extent described in the Indenture and
the Sale and Servicing Agreement.

        As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

        Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement,

                                    A-1-5
<PAGE>

insolvency or liquidation proceedings under any United States federal or State
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note satisfy the
requirements for relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption,
or, in the case of an employee benefit plan subject to Similar Law, do not
result in a nonexempt violation of Similar Law.

        Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note (as of the day
of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note be overdue, and none of the Issuer, the Indenture Trustee or any
such agent shall be affected by notice to the contrary.

        The Indenture permits (with certain exceptions requiring the consent
of all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Controlling Class Outstanding, on behalf of all Noteholders, to
waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Noteholder of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and
upon all future Noteholders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

        The term "Issuer", as used in this Note, includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and
the Noteholders under the Indenture.

                                    A-1-6
<PAGE>

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

        No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency herein prescribed.

        Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the
payment of principal or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
assets of the Issuer for any and all liabilities, obligations and undertakings
contained in the Indenture or in this Note.

                                    A-1-7
<PAGE>

                                  ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

--------------------------------------------------------------------------

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:

-------------------------------------------------------------------------------
        (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________________, attorney, to transfer said
Note on the books kept for registration thereof, with full power of
substitution in the premises.

Dated: _____________________                     ____________________________*/
                                                 Signature Guaranteed

                                                 ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-1-8
<PAGE>

                                  EXHIBIT A-2

                            FORM OF CLASS A-2 NOTE

        [FOR BOOK-ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                        $320,000,000

No. A-2-___                                       CUSIP NO. 903278 CP 2

                         USAA AUTO OWNER TRUST 2006-1

                      CLASS A-2 5.03% ASSET BACKED NOTES

        USAA Auto Owner Trust 2006-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of ______________________ dollars payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $___________ (the original face amount of
this Note) and the denominator of which is $320,000,000 by (ii) the aggregate
amount, if any, payable to holders of Class A-2 Notes on such Payment Date
from the Principal Distribution Account or otherwise in respect of principal
on the Class A-2 Notes pursuant to Section 3.1 of the Indenture dated as of
February 22, 2006 (as from time to time amended, supplemented or otherwise
modified and in effect, the "Indenture"), between the Issuer and JPMorgan
Chase Bank, National Association, as Indenture Trustee (in such capacity the
"Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the November 2008 Payment Date
(the "Class A-2 Final Scheduled Payment Date"). No payments of principal of
the Class A-2 Notes will be made until the Class A-1 Notes have been paid in
full. Capitalized terms used but not defined herein are defined in Article I
of the Indenture, which also contains rules as to construction that shall be
applicable herein.

        The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note Outstanding on the
preceding Payment Date or the Closing Date in

                                    A-2-1
<PAGE>

the case of the first Payment Date (after giving effect to all payments of
principal made on such preceding Payment Date), subject to certain limitations
contained in Section 3.1 of the Indenture. Interest on this Note will accrue
for each Payment Date from and including the fifteenth day of the calendar
month immediately preceding such Payment Date (or, in the case of the initial
Payment Date, from the Closing Date) to but excluding the fifteenth day of the
calendar month of the Payment Date. Interest will be computed on the basis of
a 360-day year of twelve 30-day months. Such principal of and interest on this
Note shall be paid in the manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

        [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-2-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer, as of the date
set forth below.

Date: February 22, 2006
                                   USAA AUTO OWNER TRUST 2006-1

                                   By:  U.S. BANK TRUST NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Owner Trustee of
                                        USAA Auto Owner Trust 2006-1

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Class A-2 Notes designated above and referred to in
the within-mentioned Indenture.

Date: February 22, 2006

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

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

                                    A-2-3
<PAGE>

                               [REVERSE OF NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-2 5.03% Asset Backed Notes (the "Class A-2 Notes")
which, together with the Issuer's Class, A-1 4.7552% Asset Backed Notes (the
"Class A-1 Notes"), Class A-3 5.01% Asset Backed Notes (the "Class A-3
Notes"), Class A-4 5.04% Asset Backed Notes (the "Class A-4 Notes" and,
together with the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, the "Class A Notes") and Class B 5.53% Asset Backed Notes (the "Class B
Notes" and, together with the Class A Notes, the "Notes") are issued under the
Indenture, to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture.

        Subject to the subordination provisions of the Indenture, the Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 and Class B Notes are
and will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture.

        Principal of the Class A-2 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the 15th day
of each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing March 15, 2006.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-2 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Controlling Class have declared the Notes to be immediately due and payable in
the manner provided in Section 5.2 of the Indenture. All principal payments on
the Class A-2 Notes shall be made pro rata to the Noteholders entitled
thereto.

        Payments of interest on this Note on each Payment Date, together with
the installment of principal, if any, to the extent not in full payment of
this Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in

                                    A-2-4
<PAGE>

exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid principal amount of this Note on a Payment Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Registered Noteholder hereof as of the Record
Date preceding such Payment Date by notice mailed or transmitted by facsimile
prior to such Payment Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture
Trustee's principal Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in The City of New York.

        The Issuer shall pay interest on overdue installments of interest at
the Class A-2 Rate to the extent lawful.

        As provided in the Indenture, the Notes may be redeemed, in whole but
not in part, in the manner and to the extent described in the Indenture and
the Sale and Servicing Agreement.

        As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

        Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement,

                                    A-2-5
<PAGE>

insolvency or liquidation proceedings under any United States federal or State
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note satisfy the
requirements for relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption,
or, in the case of an employee benefit plan subject to Similar Law, do not
result in a nonexempt violation of Similar Law.

        Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note (as of the day
of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note be overdue, and none of the Issuer, the Indenture Trustee or any
such agent shall be affected by notice to the contrary.

        The Indenture permits (with certain exceptions requiring the consent
of all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Controlling Class Outstanding, on behalf of all Noteholders, to
waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Noteholder of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and
upon all future Noteholders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

        The term "Issuer", as used in this Note, includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and
the Noteholders under the Indenture.

                                    A-2-6
<PAGE>

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

        No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency herein prescribed.

        Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the
payment of principal or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
assets of the Issuer for any and all liabilities, obligations and undertakings
contained in the Indenture or in this Note.

                                    A-2-7
<PAGE>

                                  ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

---------------------------------------------------------------------------

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:

-------------------------------------------------------------------------------
        (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________________, attorney, to transfer said Note
on the books kept for registration thereof, with full power of substitution in
the premises.

Dated: _____________________                   ____________________________*/
                                               Signature Guaranteed

                                               ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-2-8
<PAGE>

                                  EXHIBIT A-3

                            FORM OF CLASS A-3 NOTE

        [FOR BOOK-ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                        $433,000,000

No. A-3-___                                       CUSIP NO. 903278 CQ 0

                         USAA AUTO OWNER TRUST 2006-1

                      CLASS A-3 5.01% ASSET BACKED NOTES

        USAA Auto Owner Trust 2006-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of ____________________ dollars payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $__________ (the original face amount of
this Note) and the denominator of which is $433,000,000 by (ii) the aggregate
amount, if any, payable to holders of Class A-3 Notes on such Payment Date
from the Principal Distribution Account or otherwise in respect of principal
on the Class A-3 Notes pursuant to Section 3.1 of the Indenture dated as of
February 22, 2006 (as from time to time amended, supplemented or otherwise
modified and in effect, the "Indenture"), between the Issuer and JPMorgan
Chase Bank, National Association, as Indenture Trustee (in such capacity the
"Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the September 2010 Payment
Date (the "Class A-3 Final Scheduled Payment Date"). No payments of principal
of the Class A-3 Notes will be made until the Class A-1 Notes and, except in
the case of an Event of Default, Class A-2 Notes have been paid in full.
Capitalized terms used but not defined herein are defined in Article I of the
Indenture, which also contains rules as to construction that shall be
applicable herein.

        The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the

                                    A-3-1
<PAGE>

principal amount of this Note Outstanding on the preceding Payment Date or the
Closing Date in the case of the first Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date), subject to certain
limitations contained in Section 3.1 of the Indenture. Interest on this Note
will accrue for each Payment Date from and including the fifteenth day of the
calendar month immediately preceding such Payment Date (or, in the case of the
initial Payment Date, from the Closing Date) to but excluding the fifteenth
day of the calendar month of the Payment Date. Interest will be computed on
the basis of a 360-day year of twelve 30-day months. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

        [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-3-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer, as of the date
set forth below.

Date: February 22, 2006            USAA AUTO OWNER TRUST 2006-1

                                   By:  U.S. BANK TRUST NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Owner Trustee of
                                        USAA Auto Owner Trust 2006-1

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Class A-3 Notes designated above and referred to in
the within-mentioned Indenture.

Date: February 22, 2006

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

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

                                    A-3-3
<PAGE>

                               [REVERSE OF NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-3 5.01% Asset Backed Notes (the "Class A-3 Notes")
which, together with the Issuer's Class A-1 4.7552% Asset Backed Notes (the
"Class A-1 Notes"), Class A-2 5.03% Asset Backed Notes (the "Class A-2
Notes"), Class A-4 5.04% Asset Backed Notes (the "Class A-4 Notes" and,
together with the Class A-1 Notes, the Class A-2 Notes and the Class A-3
Notes, the "Class A Notes") and Class B 5.53% Asset Backed Notes (the "Class B
Notes" and, together with the Class A Notes, the "Notes"), are issued under
the Indenture, to which Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture.

        Subject to the subordination provisions of the Indenture, the Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 and Class B Notes are
and will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture.

        Principal of the Class A-3 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the 15th day
of each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing March 15, 2006.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-3 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Controlling Class have declared the Notes to be immediately due and payable in
the manner provided in Section 5.2 of the Indenture. All principal payments on
the Class A-3 Notes shall be made pro rata to the Noteholders entitled
thereto.

        Payments of interest on this Note on each Payment Date, together with
the installment of principal, if any, to the extent not in full payment of
this Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in

                                    A-3-4
<PAGE>

exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid principal amount of this Note on a Payment Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Registered Noteholder hereof as of the Record
Date preceding such Payment Date by notice mailed or transmitted by facsimile
prior to such Payment Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture
Trustee's principal Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in The City of New York.

        The Issuer shall pay interest on overdue installments of interest at
the Class A-3 Rate to the extent lawful.

        As provided in the Indenture, the Notes may be prepaid, in whole but
not in part, in the manner and to the extent described in the Indenture and
the Sale and Servicing Agreement.

        As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

        Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement,

                                    A-3-5
<PAGE>

insolvency or liquidation proceedings under any United States federal or State
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note satisfy the
requirements for relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption,
or, in the case of an employee benefit plan subject to Similar Law, do not
result in a nonexempt violation of Similar Law.

        Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note (as of the day
of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note be overdue, and none of the Issuer, the Indenture Trustee or any
such agent shall be affected by notice to the contrary.

        The Indenture permits (with certain exceptions requiring the consent
of all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Controlling Class Outstanding, on behalf of all Noteholders, to
waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Noteholder of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and
upon all future Noteholders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

        The term "Issuer," as used in this Note, includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and
the Noteholders under the Indenture.

                                    A-3-6
<PAGE>

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

        No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency herein prescribed.

        Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the
payment of principal or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
assets of the Issuer for any and all liabilities, obligations and undertakings
contained in the Indenture or in this Note.

                                    A-3-7
<PAGE>

                                  ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

---------------------------------------------------------------------------

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:

-------------------------------------------------------------------------------
        (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________________, attorney, to transfer said Note
on the books kept for registration thereof, with full power of substitution in
the premises.

Dated: _____________________                     ____________________________*/
                                                 Signature Guaranteed

                                                 ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-3-8
<PAGE>

                                  EXHIBIT A-4

                            FORM OF CLASS A-4 NOTE

        [FOR BOOK-ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

REGISTERED                                        $206,400,000

No. A-4-___                                       CUSIP NO. 903278 CR 8

                         USAA AUTO OWNER TRUST 2006-1

                      CLASS A-4 5.04% ASSET BACKED NOTES

        USAA Auto Owner Trust 2006-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of _____________________ dollars payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $__________ (the original face amount of
this Note) and the denominator of which is $206,400,000 by (ii) the aggregate
amount, if any, payable to holders of Class A-4 Notes on such Payment Date
from the Principal Distribution Account or otherwise in respect of principal
on the Class A-4 Notes pursuant to Section 3.1 of the Indenture dated as of
February 22, 2006 (as from time to time amended, supplemented or otherwise
modified and in effect, the "Indenture"), between the Issuer and JPMorgan
Chase Bank, National Association, as Indenture Trustee (in such capacity the
"Indenture Trustee"); provided, however, that the entire unpaid principal
amount of this Note shall be due and payable on the December 2011 Payment Date
(the "Class A-4 Final Scheduled Payment Date"). No payments of principal of
the Class A-4 Notes will be made until the Class A-1 Notes and, except in the
case of an Event of Default, the Class A-2 Notes and Class A-3 Notes have been
paid in full. Capitalized terms used but not defined herein are defined in
Article I of the Indenture, which also contains rules as to construction that
shall be applicable herein.

        The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the

                                    A-4-1
<PAGE>

principal amount of this Note Outstanding on the preceding Payment Date or the
Closing Date in the case of the first Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date), subject to certain
limitations contained in Section 3.1 of the Indenture. Interest on this Note
will accrue for each Payment Date from and including the fifteenth day of the
calendar month immediately preceding such Payment Date (or, in the case of the
initial Payment Date, from the Closing Date) to but excluding the fifteenth
day of the calendar month of the Payment Date. Interest will be computed on
the basis of a 360-day year of twelve 30-day months. Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

              [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                    A-4-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer, as of the date
set forth below.

Date: February 22, 2006            USAA AUTO OWNER TRUST 2006-1

                                   By:  U.S. BANK TRUST NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Owner Trustee of
                                        USAA Auto Owner Trust 2006-1

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Class A-4 Notes designated above and referred to in
the within-mentioned Indenture.

Date: February 22, 2006

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

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

                                    A-4-3
<PAGE>

                               [REVERSE OF NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class A-4 5.04% Asset Backed Notes (the "Class A-4 Notes")
which, together with the Issuer's Class A-1 4.7552% Asset Backed Notes (the
"Class A-1 Notes"), Class A-2 5.03% Asset Backed Notes (the "Class A-2
Notes"), Class A-3 5.01% Asset Backed Notes (the "Class A-3 Notes" and,
together with the Class A-1 Notes, the Class A-2 Notes, Class A-3 Notes and
the Class A-4 Notes, the "Class A Notes") and Class B 5.53% Asset Backed Notes
(the "Class B Notes" and, together with the Class A Notes, the "Notes"), are
issued under the Indenture, to which Indenture and all indentures supplemental
thereto reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Notes are subject to all terms of the Indenture.

        Subject to the subordination provisions of the Indenture, the Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 and Class B Notes are
and will be equally and ratably secured by the collateral pledged as security
therefor as provided in the Indenture.

        Principal of the Class A-4 Notes will be payable on each Payment Date
in an amount described on the face hereof. "Payment Date" means the 15th day
of each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing March 15, 2006.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class A-4 Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Controlling Class have declared the Notes to be immediately due and payable in
the manner provided in Section 5.2 of the Indenture. All principal payments on
the Class A-4 Notes shall be made pro rata to the Noteholders entitled
thereto.

        Payments of interest on this Note on each Payment Date, together with
the installment of principal, if any, to the extent not in full payment of
this Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in

                                    A-4-4
<PAGE>

exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid principal amount of this Note on a Payment Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Registered Noteholder hereof as of the Record
Date preceding such Payment Date by notice mailed or transmitted by facsimile
prior to such Payment Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture
Trustee's principal Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in The City of New York.

        The Issuer shall pay interest on overdue installments of interest at
the Class A-4 Rate to the extent lawful.

        As provided in the Indenture, the Notes may be prepaid, in whole but
not in part, in the manner and to the extent described in the Indenture and
the Sale and Servicing Agreement.

        As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

        Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement,

                                    A-4-5
<PAGE>

insolvency or liquidation proceedings under any United States federal or State
bankruptcy or similar law in connection with any obligations relating to the
Notes, the Indenture or the other Basic Documents.

        The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, will be deemed to have
represented that (x) it is not, and is not acquiring the Note on behalf of, or
with "plan assets" (as determined under Department of Labor Regulation
ss.2510.3-101 or otherwise) of, a Plan, or any employee benefit plan subject
to Similar Law, or (y) its acquisition and holding of the Note satisfy the
requirements for relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60, PTCE 96-23 or a similar exemption,
or, in the case of an employee benefit plan subject to Similar Law, do not
result in a nonexempt violation of Similar Law.

        Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note (as of the day
of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note be overdue, and none of the Issuer, the Indenture Trustee or any
such agent shall be affected by notice to the contrary.

        The Indenture permits (with certain exceptions requiring the consent
of all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting
the Noteholders of Notes evidencing specified percentages of the principal
amount of the Controlling Class Outstanding, on behalf of all Noteholders, to
waive compliance by the Issuer with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Noteholder of this Note (or any one or more
Predecessor Notes) shall be conclusive and binding upon such Noteholder and
upon all future Noteholders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.

        The term "Issuer," as used in this Note, includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and
the Noteholders under the Indenture.

                                    A-4-6
<PAGE>

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

        No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency herein prescribed.

        Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the
payment of principal or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
assets of the Issuer for any and all liabilities, obligations and undertakings
contained in the Indenture or in this Note.

                                    A-4-7
<PAGE>

                                  ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

---------------------------------------------------------------------------

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:

-------------------------------------------------------------------------------
        (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________________, attorney, to transfer said Note
on the books kept for registration thereof, with full power of substitution in
the premises.

Dated: _____________________                   ____________________________*/
                                               Signature Guaranteed

                                               ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                    A-4-8
<PAGE>

                                   EXHIBIT B

                             FORM OF CLASS B NOTE

        [FOR BOOK-ENTRY NOTES] [UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY
AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

        THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH
HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME
MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

        PAYMENTS ON THIS NOTE ARE SUBORDINATE TO THE PAYMENT OF PRINCIPAL OF
AND INTEREST ON THE CLASS A NOTES.

REGISTERED                                        $39,517,324

No. B-1                                           CUSIP NO. 903278 CS 6

                         USAA AUTO OWNER TRUST 2006-1

                       CLASS B 5.53% ASSET BACKED NOTES

        USAA Auto Owner Trust 2006-1, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the "Issuer"),
for value received, hereby promises to pay to CEDE & CO., or registered
assigns, the principal sum of _____________________ dollars payable on each
Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $__________ (the original face amount of
this Note) and the denominator of which is $39,517,324 by (ii) the aggregate
amount, if any, payable to holders of Class B Notes on such Payment Date from
the Principal Distribution Account or otherwise in respect of principal on the
Class B Notes pursuant to Section 3.1 of the Indenture dated as of February
22, 2006 (as from time to time amended, supplemented or otherwise modified and
in effect, the "Indenture"), between the Issuer and JPMorgan Chase Bank,
National Association, as Indenture Trustee (in such capacity the "Indenture
Trustee"); provided, however, that the entire unpaid principal amount of this
Note shall be due and payable on the October 2012 Payment Date (the "Class B
Final Scheduled Payment Date"). No payments of principal of the Class B Notes
will be made until the Class A-1 Notes, the Class A-2 Notes, Class A-3 Notes
and Class A-4 Notes have been paid in full. Capitalized terms used but not
defined herein are defined in Article I of the Indenture, which also contains
rules as to construction that shall be applicable herein.

                                     B-1
<PAGE>

        The Issuer shall pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note Outstanding on the
preceding Payment Date or the Closing Date in the case of the first Payment
Date (after giving effect to all payments of principal made on such preceding
Payment Date), subject to certain limitations contained in Section 3.1 of the
Indenture. Interest on this Note will accrue for each Payment Date from and
including the fifteenth day of the calendar month immediately preceding such
Payment Date (or, in the case of the initial Payment Date, from the Closing
Date) to but excluding the fifteenth day of the calendar month of the Payment
Date. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Such principal of and interest on this Note shall be paid in
the manner specified on the reverse hereof.

        The principal of and interest on this Note are payable in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts. All payments made by the
Issuer with respect to this Note shall be applied first to interest due and
payable on this Note as provided above and then to the unpaid principal of
this Note.

        Reference is made to the further provisions of this Note set forth on
the reverse hereof, which shall have the same effect as though fully set forth
on the face of this Note.

        Unless the certificate of authentication hereon has been executed by
the Indenture Trustee whose name appears below by manual signature, this Note
shall not be entitled to any benefit under the Indenture referred to on the
reverse hereof, or be valid or obligatory for any purpose.

                      [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                     B-2
<PAGE>

        IN WITNESS WHEREOF, the Issuer has caused this instrument to be
signed, manually or in facsimile, by its Authorized Officer, as of the date
set forth below.

Date: February 22, 2006            USAA AUTO OWNER TRUST 2006-1

                                   By:  U.S. BANK TRUST NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Owner Trustee of
                                        USAA Auto Owner Trust 2006-1

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

               INDENTURE TRUSTEE'S CERTIFICATE OF AUTHENTICATION

        This is one of the Class B Notes designated above and referred to in
the within-mentioned Indenture.

Date: February 22, 2006

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

                                        By:
                                             ----------------------------------
                                                     Authorized Officer

                                     B-3
<PAGE>

                               [REVERSE OF NOTE]

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its Class B 5.53% Asset Backed Notes (the "Class B Notes")
which, together with the Issuer's Class A-1 4.7552% Asset Backed Notes (the
"Class A-1 Notes"), Class A-2 5.03% Asset Backed Notes (the "Class A-2
Notes"), Class A-3 5.01% Asset Backed Notes (the "Class A-3 Notes") and Class
A-4 5.04% Asset Backed Notes (the "Class A-4 Notes" and, together with the
Class A-1 Notes, the Class A-2 Notes and the Class A-3 Notes, the "Class A
Notes", and the Class A Notes together with the Class B Notes, the "Notes"),
are issued under the Indenture, to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Noteholders. The Notes are subject to all terms of the
Indenture.

        Subject to the subordination provisions of the Indenture, the Class
A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and Class B Notes
are and will be equally and ratably secured by the collateral pledged as
security therefor as provided in the Indenture.

        Principal of the Class B Notes will be payable on each Payment Date in
an amount described on the face hereof. "Payment Date" means the 15th day of
each month, or, if any such day is not a Business Day, the next succeeding
Business Day, commencing March 15, 2006.

        As described on the face hereof, the entire unpaid principal amount of
this Note shall be due and payable on the Class B Final Scheduled Payment
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Noteholders
of Notes evidencing not less than a majority of the principal amount of the
Controlling Class have declared the Notes to be immediately due and payable in
the manner provided in Section 5.2 of the Indenture. All principal payments on
the Class B Notes shall be made pro rata to the Noteholders entitled thereto.

        Payments of interest on this Note on each Payment Date, together with
the installment of principal, if any, to the extent not in full payment of
this Note, shall be made to the Person whose name appears as the Registered
Noteholder of the Note (or one or more Predecessor Notes) on the Note Register
as of the close of business on each Record Date either by wire transfer in
immediately available funds, to the account of such Noteholder at a bank or
other entity having appropriate facilities therefor, if such Noteholder shall
have provided to the Note Registrar appropriate written instructions at least
five Business Days prior to such Payment Date and such Noteholder's Notes in
the aggregate evidence a denomination of not less than $1,000,000, or, if not,
by check mailed first-class postage prepaid to such Person's address as it
appears on the Note Register on such Record Date; provided that, unless
Definitive Notes have been issued to Note Owners, with respect to Notes
registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by
wire transfer in immediately available funds to the account designated by such
nominee. Such payments will be made without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of
this Note (or any one or more Predecessor Notes) effected by any payments made
on any Payment Date shall be binding upon all future Noteholders of this Note
and of any Note issued upon the registration of transfer hereof or in

                                     B-4
<PAGE>

exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid principal amount of this Note on a Payment Date,
then the Indenture Trustee, in the name of and on behalf of the Issuer, will
notify the Person who was the Registered Noteholder hereof as of the Record
Date preceding such Payment Date by notice mailed or transmitted by facsimile
prior to such Payment Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this Note at the Indenture
Trustee's principal Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located in The City of New York.

        The Issuer shall pay interest on overdue installments of interest at
the Class B Rate to the extent lawful.

        As provided in the Indenture, the Notes may be prepaid, in whole but
not in part, in the manner and to the extent described in the Indenture and
the Sale and Servicing Agreement.

        As provided in the Indenture, and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note
Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Noteholder hereof
or such Noteholder's attorney duly authorized in writing, with such signature
guaranteed by an "eligible guarantor institution" meeting the requirements of
the Note Registrar, and thereupon one or more new Notes of the same Class in
authorized denominations and in the same aggregate principal amount will be
issued to the designated transferee or transferees. No service charge will be
charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any such
registration of transfer or exchange.

        The Class B Notes may be acquired only by an entity that either: (A)
(x) for the entire period during which such purchaser or transferee holds its
interest in the Class B Notes, no portion of such purchaser's or transferee's
assets constitutes assets of any Benefit Plan Investor; or (B) (1) the assets
used by such purchaser or transferee to acquire the Class B Notes (or any
interest therein) constitute assets of an insurance company general account,
(2) for the entire period during which such purchaser or transferee holds its
interest in the Class B Notes, less than 25% of the assets of such insurance
company general account will constitute "plan assets" of any Benefit Plan
Investors, (3) neither such purchaser or transferee nor any affiliate is a
Controlling Person of the Trust and (4) the acquisition and holding of the
Class B Notes by such purchaser or transferee will satisfy the requirements of
Section I of PTCE 95-60 and will not constitute a non-exempt prohibited
transaction under Section 406 of ERISA or Section 4975 of the Code or a
violation of any applicable Similar Law.

        In addition, the Class B Notes may not be acquired by or on behalf of
a Person other than (A) a citizen or resident of the United States, (B) a
corporation or partnership organized in or under the laws of the United
States, any state thereof or the District of Columbia, (C) an estate the
income of which is includible in gross income for United States tax purposes,
regardless of its source, (D) a trust with respect to which a U.S. court is
able to exercise primary supervision over the administration of such trust and
one or more Persons meeting the conditions of this

                                     B-5
<PAGE>

paragraph has the authority to control all substantial decisions of the trust
or (E) a Person not described in clauses (A) through (D) above whose ownership
of the Class B Notes is effectively connected with such Person's conduct of a
trade or business within the United States (within the meaning of the Code)
and who provides the Indenture Trustee and the Depositor with an IRS Form W-8
ECI (and such other certifications, representations, or opinions of counsel as
may be requested by the Indenture Trustee or the Depositor).

        Each Noteholder or Note Owner, by its acceptance of a Note or, in the
case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee,
each in its individual capacity, (ii) any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director
or employee of the Indenture Trustee or the Owner Trustee, each in its
individual capacity, any holder of a beneficial interest in the Issuer, the
Owner Trustee or the Indenture Trustee or of any successor or assign of the
Indenture Trustee or the Owner Trustee, each in its individual capacity,
except as any such Person may have expressly agreed and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

        Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees by
accepting the benefits of the Indenture that such Noteholder or Note Owner
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings under any United States federal or State bankruptcy
or similar law in connection with any obligations relating to the Notes, the
Indenture or the other Basic Documents.

        The Issuer has entered into the Indenture and this Note is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the Notes will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a Note (and each
Note Owner by its acceptance of a beneficial interest in a Note), will be
deemed to agree to treat the Notes for federal, State and local income and
franchise tax purposes as indebtedness of the Issuer.

        Prior to the due presentment for registration of transfer of this
Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name this Note (as of the day
of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note be overdue, and none of the Issuer, the Indenture Trustee or any
such agent shall be affected by notice to the contrary.

        The Indenture permits (with certain exceptions requiring the consent
of all Noteholders adversely affected) the amendment thereof by the Issuer and
the Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains

                                     B-6
<PAGE>

provisions permitting the Noteholders of Notes evidencing specified
percentages of the principal amount of the Controlling Class Outstanding, on
behalf of all Noteholders, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Noteholder of this Note
(or any one or more Predecessor Notes) shall be conclusive and binding upon
such Noteholder and upon all future Noteholders of this Note and of any Note
issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof whether or not notation of such consent or waiver is made upon
this Note.

        The term "Issuer," as used in this Note, includes any successor to the
Issuer under the Indenture.

        The Issuer is permitted by the Indenture, under certain circumstances,
to merge or consolidate, subject to the rights of the Indenture Trustee and
the Noteholders under the Indenture.

        The Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

        This Note and the Indenture shall be governed by, and construed in
accordance with the laws of the State of New York, without reference to its
conflicts of law provisions.

        No reference herein to the Indenture, and no provision of this Note or
of the Indenture, shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note
at the times, place and rate, and in the coin or currency herein prescribed.

        Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of Indenture Trustee, in its individual
capacity, Owner Trustee, in its individual capacity, any owner of a beneficial
interest in the Issuer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be
personally liable for, nor shall recourse be had to any of them for, the
payment of principal or of interest on this Note or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in the Indenture. The holder of this Note, by such holder's
acceptance hereof, agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the
Noteholder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
assets of the Issuer for any and all liabilities, obligations and undertakings
contained in the Indenture or in this Note.

                                     B-7
<PAGE>

                                  ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

-------------------------------------------------------------------------

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns and
transfers unto:

-------------------------------------------------------------------------------
        (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints ________________________________, attorney, to transfer said Note
on the books kept for registration thereof, with full power of substitution in
the premises.

Dated: _____________________                   ____________________________*/
                                               Signature Guaranteed

                                               ____________________________*/
---------------------------
*/ NOTICE: The signature to this assignment must correspond with the name of
the registered owner as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting
the requirements of the Note Registrar.

                                     B-8
<PAGE>

                                  SCHEDULE A

                            Schedule of Receivables

                       [On file with Indenture Trustee]

                                     SA-1
<PAGE>

                                  APPENDIX A

                             Definitions and Usage

         (attached to the Sale and Servicing Agreement as Appendix A)

                                 Appendix A-1EXHIBIT 10.1
                                                                  ------------

                                                                EXECUTION COPY

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

                         SALE AND SERVICING AGREEMENT

                                     among

                         USAA AUTO OWNER TRUST 2006-1,
                                  as Issuer,

                             USAA ACCEPTANCE, LLC,
                                 as Depositor,

                                      and

                          USAA FEDERAL SAVINGS BANK,
                            as Seller and Servicer

                         Dated as of February 1, 2006

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

<PAGE>

                               Table of Contents
<TABLE>
<CAPTION>

<S>                   <C>                                                                                      <C>
                                                                                                               Page
                                                                                                               ----

ARTICLE I             DEFINITIONS AND USAGE.......................................................................1

ARTICLE II            TRUST PROPERTY..............................................................................1

   SECTION 2.1        Conveyance of Trust Property; Intent of the Parties.........................................1
   SECTION 2.2        Representations and Warranties of the Depositor regarding the Receivables...................2
   SECTION 2.3        Repurchase upon Breach......................................................................5
   SECTION 2.4        Custody of Receivable Files.................................................................5
   SECTION 2.5        Duties of Servicer as Custodian.............................................................6
   SECTION 2.6        Instructions; Authority to Act..............................................................7
   SECTION 2.7        Custodian's Indemnification.................................................................7
   SECTION 2.8        Effective Period and Termination............................................................7

ARTICLE III           ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY..............................8

   SECTION 3.1        Duties of Servicer..........................................................................8
   SECTION 3.2        Collection of Receivable Payments...........................................................8
   SECTION 3.3        Realization Upon Receivables................................................................9
   SECTION 3.4        Allocations of Collections.................................................................10
   SECTION 3.5        Maintenance of Security Interests in Financed Vehicles.....................................10
   SECTION 3.6        Covenants of Servicer......................................................................10
   SECTION 3.7        Purchase of Receivables Upon Breach........................................................10
   SECTION 3.8        Servicer Fees..............................................................................11
   SECTION 3.9        Servicer's Certificate.....................................................................11
   SECTION 3.10       Annual Statement as to Compliance; Item 1122 Servicing Criteria Assessment;
                       Notice of Event of Servicing Termination..................................................11
   SECTION 3.11       Annual Independent Certified Public Accountant's Report....................................13
   SECTION 3.12       Access to Certain Documentation and Information Regarding Receivables......................13
   SECTION 3.13       Servicer Expenses..........................................................................13
   SECTION 3.14       Insurance..................................................................................13

ARTICLE IV            DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS AND CERTIFICATEHOLDERS...........14

   SECTION 4.1        Accounts...................................................................................14
   SECTION 4.2        Collections................................................................................15
   SECTION 4.3        Application of Collections.................................................................15
   SECTION 4.4        Advances...................................................................................16

<PAGE>

   SECTION 4.5        Additional Deposits........................................................................16
   SECTION 4.6        Distributions..............................................................................17
   SECTION 4.7        Reserve Account............................................................................20
   SECTION 4.8        Net Deposits...............................................................................22
   SECTION 4.9        Statements to Noteholders and Certificateholders...........................................22

ARTICLE V             THE DEPOSITOR..............................................................................24

   SECTION 5.1        Representations, Warranties and Covenants of Depositor.....................................24
   SECTION 5.2        Liability of Depositor; Indemnities........................................................25
   SECTION 5.3        Merger or Consolidation of, or Assumption of the Obligations of Depositor..................26
   SECTION 5.4        Limitation on Liability of Depositor and Others............................................26
   SECTION 5.5        Depositor May Own Notes or Certificates....................................................26

ARTICLE VI            THE SERVICER...............................................................................26

   SECTION 6.1        Representations of Servicer................................................................26
   SECTION 6.2        Indemnities of Servicer....................................................................28
   SECTION 6.3        Merger or Consolidation of, or Assumption of the Obligations of Servicer...................29
   SECTION 6.4        Limitation on Liability of Servicer and Others.............................................29
   SECTION 6.5        Delegation of Duties.......................................................................30
   SECTION 6.6        Servicer Not to Resign as Servicer.........................................................30
   SECTION 6.7        Servicer May Own Notes or Certificates.....................................................30

ARTICLE VII           SERVICING TERMINATION......................................................................31

   SECTION 7.1        Events of Servicing Termination............................................................31
   SECTION 7.2        Appointment of Successor Servicer..........................................................32
   SECTION 7.3        Repayment of Advances......................................................................33
   SECTION 7.4        Notification to Noteholders and Certificateholders.........................................33
   SECTION 7.5        Waiver of Past Events of Servicing Termination.............................................34

ARTICLE VIII          TERMINATION................................................................................34

   SECTION 8.1        Optional Purchase of All Receivables.......................................................34
   SECTION 8.2        Succession Upon Satisfaction and Discharge of Indenture....................................34

ARTICLE IX            MISCELLANEOUS PROVISIONS...................................................................35

   SECTION 9.1        Amendment..................................................................................35
   SECTION 9.2        Protection of Title to Trust Property......................................................36
   SECTION 9.3        GOVERNING LAW..............................................................................38
   SECTION 9.4        Notices....................................................................................38

<PAGE>

   SECTION 9.5        Severability of Provisions.................................................................38
   SECTION 9.6        Assignment.................................................................................39
   SECTION 9.7        Further Assurances.........................................................................39
   SECTION 9.8        No Waiver; Cumulative Remedies.............................................................39
   SECTION 9.9        Third-Party Beneficiaries..................................................................39
   SECTION 9.10       Actions by Noteholders or Certificateholders...............................................39
   SECTION 9.11       Limitation of Liability of Owner Trustee and Indenture Trustee.............................40
   SECTION 9.12       Savings Clause.............................................................................40

ARTICLE X             Exchange Act Reporting.....................................................................40

   SECTION 10.1       Further Assurances.........................................................................40
   SECTION 10.2       Form 10-D Filings..........................................................................41
   SECTION 10.3       Form 8-K Filings...........................................................................41
   SECTION 10.4       Form 10-K Filings..........................................................................41
   SECTION 10.5       Report on Assessment of Compliance and Attestation.........................................42
   SECTION 10.6       Back-up Sarbanes-Oxley Certification.......................................................42
   SECTION 10.7       Use of Subcontractors......................................................................43
   SECTION 10.8       Representations and Warranties.............................................................43
   SECTION 10.9       Indemnification............................................................................44
   SECTION 10.10      Amendments.................................................................................45

Schedule A            Schedule of Receivables...................................................................A-1
Schedule B-1          Location of Receivable Files .............................................................B-1
Schedule B-2          Location of Lien Certificates ............................................................B-2
Appendix A            Definitions and Usage............................................................Appendix A-1
Appendix B            Item 1119 Parties................................................................Appendix B-1
Appendix C            Minimum Servicing Criteria Assessment............................................Appendix C-1
Appendix D            Performance Certification (Trustee/Reporting Subcontractor)......................Appendix D-1
Appendix E            Performance Certification (Servicer).............................................Appendix E-1

</TABLE>

<PAGE>

      SALE AND SERVICING AGREEMENT, dated as of February 1, 2006 (as from time
to time amended, supplemented or otherwise modified and in effect, this
"Agreement"), among USAA AUTO OWNER TRUST 2006-1 (the "Issuer"), a Delaware
statutory trust, USAA ACCEPTANCE, LLC, a Delaware limited liability company
(the "Depositor") and USAA FEDERAL SAVINGS BANK, a federally chartered savings
association, as seller of the Receivables to the Depositor (in such capacity,
the "Seller") and servicer (in such capacity, the "Servicer").

      WHEREAS, the Issuer desires to purchase a portfolio of receivables and
related property consisting of motor vehicle installment loan contracts
originated by the Seller in the ordinary course of its business;

      WHEREAS, the Seller is concurrently selling such portfolio of
receivables and related property to the Depositor pursuant to the Receivables
Purchase Agreement, and the Depositor is willing to sell such portfolio of
receivables and related property to the Issuer; and

      WHEREAS, the Servicer is willing to service such receivables on behalf
of the Issuer.

      NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

                                  ARTICLE I

                             DEFINITIONS AND USAGE

      Except as otherwise specified herein or as the context may otherwise
require, capitalized terms used but not otherwise defined herein are defined
in Appendix A hereto, which also contains rules as to usage that shall be
applicable herein.

                                  ARTICLE II

                                TRUST PROPERTY

      SECTION 2.1 Conveyance of Trust Property; Intent of the Parties. In
consideration of the Issuer's delivery to, or upon the order of, the Depositor
of the Notes and the Certificates, the Depositor does hereby irrevocably sell,
transfer, assign and otherwise convey to the Issuer (i) without recourse
(subject to the obligations herein) all right, title and interest of the
Depositor, whether now owned or hereafter acquired, in and to the Trust
Property and (ii) funds in the amount of the Reserve Initial Deposit. The
sale, transfer, assignment and conveyance made hereunder shall not constitute
and is not intended to result in an assumption by the Issuer of any obligation
of the Depositor to the Obligors or any other Person in connection with the
Receivables and the other Trust Property or any agreement, document or
instrument related thereto. The Depositor and the Issuer intend that the sale,
transfer, assignment and conveyance of the Trust Property pursuant to this
Section 2.1 shall be a sale, and not a secured borrowing, for accounting
purposes.

<PAGE>

      SECTION 2.2 Representations and Warranties of the Depositor regarding
the Receivables. The Depositor makes the following representations and
warranties with respect to the Receivables, on which the Issuer relies in
purchasing the Receivables and pledging the same to the Indenture Trustee.
Such representations and warranties speak as of the execution and delivery of
this Agreement and as of the Transfer Date, but shall survive the sale,
transfer and assignment of the Receivables by the Depositor to the Issuer and
the pledge of the Receivables by the Issuer to the Indenture Trustee pursuant
to the Indenture.

      (i)   Schedule of Receivables. The information set forth in Schedule A
            to this Agreement with respect to each Receivable is true and
            correct in all material respects, and no selection procedures
            adverse to the Securityholders have been used in selecting the
            Receivables from all receivables owned by the Seller which meet
            the selection criteria specified herein.

      (ii)  No Sale or Transfer. No Receivable has been sold, transferred,
            assigned or pledged by the Depositor to any Person other than the
            Issuer.

      (iii) Good Title. Immediately prior to the transfer and assignment of
            the Receivables to the Issuer herein contemplated, the Depositor
            had good and marketable title to each Receivable free and clear of
            all Liens and rights of others; and, immediately upon the transfer
            thereof, the Issuer, has either (i) good and marketable title to
            each Receivable, free and clear of all of all Liens and rights of
            others, and the transfer has been perfected under applicable law
            or (ii) a first priority perfected security interest in each
            Receivable.

      (iv)  Receivable Files. The Receivable Files shall be kept at one or
            more of the locations specified in Schedule B-1 hereto; provided,
            that the Lien Certificates shall be kept at one or more of the
            locations specified in Schedule B-2 hereto.

      (v)   Characteristics of Receivables. Each Receivable (a) has been
            originated for the retail financing of a Financed Vehicle by an
            Obligor located in one of the States of the United States or the
            District of Columbia; (b) contains customary and enforceable
            provisions such that the rights and remedies of the holder thereof
            are adequate for realization against the collateral of the
            benefits of the security; and (c) provides for fully amortizing
            level scheduled monthly or semi-monthly payments (provided that
            the payment in the last month in the life of the Receivable may be
            different from the level scheduled payment) and for accrual of
            interest at a fixed rate according to the simple interest method.

      (vi)  Compliance with Law. Each Receivable and each sale of the related
            Financed Vehicle complied at the time it was originated or made,
            and complies on and after the Cut-off Date, in all material
            respects with all requirements of applicable federal, state, and
            local laws, and regulations thereunder, including usury laws, the
            Federal Truth-in-Lending Act, the Equal Credit Opportunity Act,
            the Fair Credit Reporting Act, the Federal Trade Commission Act,
            the Magnuson-Moss Warranty Act, Federal Reserve Board Regulations
            B and Z, state adaptations of the National Consumer Act and of the
            Uniform Consumer Credit Code, and any

                                      2
<PAGE>

            other consumer credit, equal opportunity, and disclosure laws
            applicable to such Receivable and sale.

      (vii) Binding Obligation. Each Receivable constitutes the legal, valid,
            and binding payment obligation in writing of the Obligor,
            enforceable by the holder thereof in all material respects in
            accordance with its terms, subject, as to enforcement, to
            applicable bankruptcy, insolvency, reorganization, liquidation and
            other similar laws and equitable principles relating to or
            affecting the enforcement of creditors' rights.

     (viii) No Government Obligor. No Receivable is due from the United
            States of America or any state or from any agency, department,
            instrumentality or political subdivision of the United States of
            America or any state or local municipality and no Receivable is
            due from a business except to the extent that such receivable has
            a personal guaranty.

      (ix)  Security Interest in Financed Vehicle. Immediately prior to the
            sale and assignment thereof to the Issuer as herein contemplated,
            each Receivable was secured by a validly perfected first priority
            security interest in the Financed Vehicle in favor of the Seller
            as secured party or all necessary and appropriate action with
            respect to such Receivable had been taken to perfect a first
            priority security interest in the related Financed Vehicle in
            favor of the Seller as secured party, which security interest is
            assignable and has been so assigned by the Seller to the Depositor
            and by the Depositor to the Issuer.

      (x)   Receivables in Force. No Receivable has been satisfied,
            subordinated, or rescinded, nor has any Financed Vehicle been
            released from the Lien granted by the related Receivable in whole
            or in part.

      (xi)  No Waiver. No provision of a Receivable has been waived in such a
            manner that such Receivable fails either to meet all of the
            representations and warranties made by the Depositor herein with
            respect thereto pursuant to this Section 2.2.

      (xii) No Amendments. No Receivable has been amended except pursuant to
            instruments included in the Receivable Files and no such amendment
            has caused such Receivable either to fail to meet all of the
            representations and warranties made by the Depositor herein with
            respect thereto pursuant to this Section 2.2.

     (xiii) No Defenses. As of the Cut-off Date, there are no rights of
            rescission, setoff, counterclaim, or defense, and the Depositor
            has no knowledge of the same being asserted or threatened, with
            respect to any Receivable.

      (xiv) No Liens. As of the Cut-off Date, the Depositor has no knowledge
            of any Liens, claims that have been filed, including Liens for
            work, labor, materials or unpaid taxes relating to a Financed
            Vehicle, that would be Liens prior to, or equal or coordinate
            with, the Lien granted by the Receivable.

                                      3
<PAGE>

      (xv)  No Default. Except for payment defaults continuing for a period of
            not more than thirty (30) days as of the Cut-off Date, the
            Depositor has no knowledge that a default, breach, violation, or
            event permitting acceleration under the terms of any Receivable
            exists; the Depositor has no knowledge that a continuing condition
            that with notice or lapse of time would constitute a default,
            breach, violation, or event permitting acceleration under the
            terms of any Receivable exists; and the Depositor has not waived
            any of the foregoing.

      (xvi) Insurance. Each Receivable requires that the Obligor thereunder
            obtain comprehensive and collision insurance covering the Financed
            Vehicle.

     (xvii) Lawful Assignment. No Receivable has been originated in, or is
            subject to the laws of, any jurisdiction under which the sale,
            transfer, and assignment of such Receivable under the Agreement is
            unlawful, void or voidable.

    (xviii) All Filings Made. No filings (other than UCC filings which have
            been made) or other actions are necessary in any jurisdiction to
            give the Issuer a first priority perfected security interest in
            the Receivables and to give the Indenture Trustee a first priority
            perfected security interest in the Receivables.

      (xix) One Original. With respect to any Receivable for which an original
            executed copy exists, there is no more than one original executed
            copy of such Receivable which does not have any marks or notations
            indicating that it has been pledged, assigned or otherwise
            conveyed to any Person other than the Seller and which,
            immediately prior to the delivery thereof to the Servicer, as
            custodian for the Indenture Trustee, was in the possession of the
            Seller.

      (xx)  Security. Each Receivable is secured by a new or used automobile
            or light-duty truck.

      (xxi) Maturity of Receivables. Each Receivable has a remaining maturity,
            as of the Cut-off Date, of not less than 6 months and not more
            than 72 months and an original maturity of not less than 9 months
            and not more than 72 months. No Receivable has a scheduled
            maturity later than April 1, 2012.

     (xxii) Annual Percentage Rate. Each Receivable is a fully-amortizing
            simple interest contract which bears interest at a fixed rate per
            annum and which provides for level scheduled monthly or
            semi-monthly payments (except for the last payment, which may be
            minimally different from the level payments) over its respective
            remaining term, is not secured by any interest in real estate.

    (xxiii) No Repossessions. Each Receivable is secured by a Financed
            Vehicle that, as of the Cut-off Date, has not been repossessed
            without reinstatement of such Receivable.

                                      4
<PAGE>

     (xxiv) Obligor Not Subject to Bankruptcy Proceedings. Each Receivable
            has been entered into by an Obligor who has not been identified on
            the computer files of the Seller as being a debtor in any
            bankruptcy proceeding as of the Cut-off Date.

      (xxv) No Overdue Payments. No Receivable has any payment that is more
            than thirty (30) days past due as of the Cut-off Date.

     (xxvi) Tangible Chattel Paper. The Receivables constitute "tangible
            chattel paper" within the meaning of UCC Section 9-102.

    (xxvii) Remaining Principal Balance. Each Receivable had a remaining
            principal balance, as of the Cut-off Date, of at least $800.00.

   (xxviii) Filing Statement Language. The financing statements referenced
            in paragraph (xviii) above, will contain a statement to the
            following effect "A purchase of or security interest in any
            collateral described in this financing statement will violate the
            rights of the Secured Party".

      SECTION 2.3 Repurchase upon Breach. Each of the Depositor, the Servicer,
the Issuer and the Owner Trustee shall inform the other parties to this
Agreement promptly, in writing, upon the discovery by it of any breach of the
Depositor's representations and warranties pursuant to Section 2.2. Unless the
breach shall have been cured by the last day of the second Collection Period
following written notice to the Indenture Trustee of such breach, the
Indenture Trustee shall enforce the obligation of the Depositor under this
Section 2.3 to repurchase any Receivable, the Issuer's interest in which is
materially and adversely affected by the breach as of such last day (or, at
the Depositor's option, the last day of the first Collection Period following
the discovery). In consideration of the purchase of the Receivable, the
Depositor shall remit the Purchase Amount (less any Liquidation Proceeds
deposited, or to be deposited, in the Collection Account with respect to such
Receivable pursuant to Section 3.3), in the manner specified in Section 4.5.
The sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee, the
Noteholders or the Certificateholders with respect to a breach of the
Depositor's representations and warranties pursuant to Section 2.2 shall be to
require the Depositor to repurchase such Receivables pursuant to this Section
2.3. The obligation of the Depositor to repurchase under this Section 2.3
shall not be solely dependent upon the actual knowledge of the Depositor of
any breached representation or warranty. Neither the Owner Trustee nor the
Indenture Trustee shall have any duty to conduct an affirmative investigation
as to the occurrence of any condition requiring the repurchase of any
Receivable pursuant to this Section 2.3 or the eligibility of any Receivable
for purposes of this Agreement. Notwithstanding anything herein to the
contrary, the Depositor shall only be obligated to pay such Purchase Amount
and repurchase the related Receivable to the extent it receives the Purchase
Amount from the Seller pursuant to Section 7.02 of the Receivables Purchase
Agreement.

      SECTION 2.4 Custody of Receivable Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of this Agreement, hereby revocably appoints the
Servicer, and the Servicer hereby accepts such appointment, to act as the
agent of the Issuer and the Indenture Trustee as custodian of the

                                      5
<PAGE>

following documents or instruments, which are hereby constructively delivered
to the Indenture Trustee, as pledgee of the Issuer pursuant to the Indenture,
with respect to each Receivable:

                  (i) The original executed Receivable or, if no such original
         exists, a copy thereof.

                  (ii) The original credit application fully executed by the
         Obligor or a photocopy thereof or a record thereof on a computer
         file, diskette or on microfiche.

                  (iii) The notice of recorded Lien or such documents that the
         Servicer or the Depositor shall keep on file, in accordance with its
         customary procedures, evidencing the first priority perfected
         security interest of the Seller in the Financed Vehicle.

                  (iv) Any and all other documents (including any computer
         file, diskette or microfiche) that the Servicer or the Seller shall
         keep on file, in accordance with its customary procedures, relating
         to a Receivable, an Obligor (to the extent relating to a Receivable),
         or a Financed Vehicle.

      The Servicer acknowledges that it holds the documents and instruments
relating to the Receivables for the benefit of the Issuer and the Indenture
Trustee. The Issuer and the Indenture Trustee shall have no responsibility to
monitor the Servicer's performance as custodian and shall have no liability in
connection with the Servicer's performance of such duties hereunder.

      SECTION 2.5 Duties of Servicer as Custodian.

      (a) Safekeeping. The Servicer shall hold the Receivable Files for the
benefit of the Issuer and the Indenture Trustee and shall maintain such
accurate and complete accounts, records and computer systems pertaining to
each Receivable File as shall enable the Servicer and the Issuer to comply
with the terms and conditions of this Agreement, and the Indenture Trustee to
comply with the terms and conditions of the Indenture. In performing its
duties as custodian, the Servicer shall act with reasonable care, using that
degree of skill and attention that the Servicer exercises with respect to the
receivable files relating to all comparable automotive receivables that the
Servicer services for itself or others. The Servicer shall conduct, or cause
to be conducted, periodic audits of the Receivable Files held by it under this
Agreement and of the related accounts, records and computer systems, in such a
manner as shall enable the Issuer or the Indenture Trustee to identify all
Receivables Files and such related accounts, records and computer systems and
verify the accuracy of the Servicer's record keeping. The Servicer shall
promptly report to the Issuer and the Indenture Trustee any failure on its
part to hold the Receivable Files and maintain its accounts, records, and
computer systems as herein provided and shall promptly take appropriate action
to remedy any such failure. Nothing herein shall be deemed to require an
initial review or any periodic review by the Issuer, the Owner Trustee or the
Indenture Trustee of the Receivable Files.

      (b) Maintenance of and Access to Records. The Servicer shall maintain
each Receivable File at its offices specified in Schedule B-1 to this
Agreement provided, that all Lien Certificates will be maintained at the
location specified in Schedule B-2, or at such other office as shall be
specified to the Issuer and the Indenture Trustee by 30 days' prior written
notice. The Servicer shall make available to the Issuer and the Indenture
Trustee or their duly authorized

                                      6
<PAGE>

representatives, attorneys, or auditors, the Receivable Files and the related
accounts, records and computer systems maintained by the Servicer during
normal business hours as the Issuer or the Indenture Trustee shall reasonably
request, which does not unreasonably interfere with the Servicer's normal
operations.

      (c) Release of Documents. Upon written instructions from the Indenture
Trustee, the Servicer shall release or cause to be released any document in
the Receivable Files to the Indenture Trustee, the Indenture Trustee's agent
or the Indenture Trustee's designee, as the case may be, at such place or
places as the Indenture Trustee may reasonably designate, as soon as is
reasonably practicable, to the extent it does not unreasonably interfere with
the Servicer's normal operations. The Servicer shall not be responsible for
any loss occasioned by the failure of the Indenture Trustee or its agent or
designee to return any document or any delay in doing so.

      SECTION 2.6 Instructions; Authority to Act. All instructions from the
Indenture Trustee shall be in writing and signed by an Authorized Officer of
the Indenture Trustee, and the Servicer shall be deemed to have received
proper instructions with respect to the Receivable Files upon its receipt of
such written instructions.

      SECTION 2.7 Custodian's Indemnification. The Servicer, as custodian,
shall indemnify the Issuer, the Owner Trustee and the Indenture Trustee for
any and all liabilities, obligations, losses, compensatory damages, payments,
costs, or expenses of any kind whatsoever that may be imposed on, incurred, or
asserted against the Issuer, the Owner Trustee or the Indenture Trustee as the
result of any improper act or omission in any way relating to the maintenance
and custody by the Servicer as custodian of the Receivable Files; provided,
however, that the Servicer shall not be liable (i) to the Issuer for any
portion of any such amount resulting from the willful misfeasance, bad faith,
or negligence of the Indenture Trustee, the Owner Trustee or the Issuer, (ii)
to the Owner Trustee for any portion of any such amount resulting from the
willful misfeasance, bad faith, or negligence of the Indenture Trustee, the
Owner Trustee or the Issuer and (iii) to the Indenture Trustee for any portion
of any such amount resulting from the willful misfeasance, bad faith, or
negligence of the Indenture Trustee, the Owner Trustee or the Issuer.

      SECTION 2.8 Effective Period and Termination. The Servicer's appointment
as custodian shall become effective as of the Cut-off Date and shall continue
in full force and effect until terminated pursuant to this Section 2.8. If the
Bank shall resign as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of the Servicer shall have
been terminated under Section 7.1, the appointment of the Servicer as
custodian hereunder may be terminated by the Indenture Trustee, or by the
holders of Notes evidencing not less than a majority of the principal amount
of the Controlling Class Outstanding (or if no Notes are Outstanding, by
holders of Certificates evidencing not less than a majority of the Percentage
Interests evidenced by the Certificates), in the same manner as the Indenture
Trustee or such Securityholders may terminate the rights and obligations of
the Servicer under Section 7.1. As soon as practicable after any termination
of such appointment, the Servicer shall deliver to the Indenture Trustee or
the Indenture Trustee's agent the Receivable Files and the related accounts
and records maintained by the Servicer at such place or places as the
Indenture Trustee may reasonably designate.

                                      7
<PAGE>

                                 ARTICLE III

        ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY

      SECTION 3.1 Duties of Servicer. The Servicer shall manage, service,
administer and make collections on the Receivables with reasonable care, using
that degree of skill and attention that the Servicer exercises with respect to
all comparable new or used automobile and light-duty truck receivables that it
services for itself. The Servicer's duties shall include collection and
posting of all payments, responding to inquiries of Obligors on such
Receivables, investigating delinquencies, sending payment coupons to Obligors,
reporting tax information to Obligors, accounting for collections, furnishing
monthly and annual statements to the Owner Trustee and the Indenture Trustee
with respect to distributions, making Advances pursuant to Section 4.4,
preparing (or causing to be prepared) the tax returns of the Trust in
accordance with Section 5.6 of the Trust Agreement and, if requested to do so,
providing the certifications required, pursuant to Section 5.1(b) hereof. The
Servicer shall follow its customary standards, policies and procedures in
performing its duties as Servicer. Without limiting the generality of the
foregoing, the Servicer is hereby authorized and empowered to execute and
deliver, on behalf of itself, the Issuer, the Owner Trustee, the Indenture
Trustee, the Noteholders, the Certificateholders, or any of them, any and all
instruments of satisfaction or cancellation, or partial or full release or
discharge, and all other comparable instruments, with respect to such
Receivables or to the Financed Vehicles securing such Receivables. If the
Servicer shall commence a legal proceeding to enforce a Receivable, the Issuer
(in the case of a Receivable other than a Purchased Receivable) shall
thereupon be deemed to have automatically assigned, solely for the purpose of
collection, such Receivable to the Servicer. If in any enforcement suit or
legal proceeding it shall be held that the Servicer may not enforce a
Receivable on the ground that it shall not be a real party in interest or a
holder entitled to enforce the Receivable, the Issuer shall, at the Servicer's
expense and direction, take steps to enforce the Receivable, including
bringing suit in its name or the names of the Indenture Trustee, the
Noteholders, the Certificateholders, or any of them. The Issuer shall furnish
the Servicer with any powers of attorney and other documents reasonably
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.

      SECTION 3.2 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
new or used automobile and light-duty truck receivables that it services for
itself. The Servicer shall not change the amount of or reschedule the due date
of any scheduled payment of a Receivable to a date more than 30 days from the
original due date of such scheduled payment, change the annual percentage rate
of or extend any Receivable or change any material term of a Receivable,
except as provided by the terms of the Receivable or of this Agreement or as
required by law or court order; provided, however, that the Servicer may
extend any Receivable that is in default or with respect to which default is
reasonably foreseeable and that would be acceptable to the Servicer with
respect to comparable new or used automobile and light-duty truck receivables
that it services for itself if (a) the amount on deposit in the Reserve
Account is greater than zero at the time of the extension, (b) the total
credit-related extensions granted on the Receivable will not exceed four
months in

                                      8
<PAGE>

the aggregate, (c) the total number of credit-related extensions granted on
the Receivable will not exceed two, and (d) the maturity of such Receivable
will not be extended beyond April 2012. If, as a result of inadvertently
rescheduling or extending payments, such rescheduling or extension breaches
any of the terms of the proviso to the preceding sentence, then the Servicer
shall be obligated to purchase such Receivable pursuant to Section 3.7. For
the purpose of such purchases pursuant to Section 3.7, notice shall be deemed
to have been received by the Servicer at such time as shall make purchase
mandatory as of the last day of the Collection Period during which the
discovery of such breach occurred.

      Notwithstanding anything to the contrary herein, the Servicer may
implement programs that grant payment extensions in respect of receivables
that are not delinquent. Any such program shall be implemented with the
approval of the senior officer's credit committee of the Servicer in
accordance with the Servicer's general lending and policy guidelines. Any such
payment extension may extend the maturity of the applicable receivable beyond
its original term to maturity. Notwithstanding anything to the contrary
herein, the Servicer may also reduce the interest rate on Receivables affected
by the application of the Servicemembers Civil Relief Act to a rate that is
lower than the maximum rate prescribed by the Servicemembers Civil Relief Act
and may readjust the payment schedule for any Receivable that is affected by
the application of the Servicemembers Civil Relief Act until the maturity of
the receivable.

      The Servicer may at any time perform specific duties as servicer or
custodian under this Agreement through subcontractors; provided, however, that
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. All amounts payable to any
subcontractor shall be paid by the Servicer and shall not be obligations of
the Indenture Trustee, the Owner Trustee or the Issuer or paid from the
Indenture Trust Estate. References in this Agreement to actions taken or to be
taken by the Servicer include actions taken or to be taken by a subcontractor
on behalf of the Servicer.

      SECTION 3.3 Realization Upon Receivables. On behalf of the Issuer, the
Servicer shall use reasonable efforts, consistent with its customary
standards, policies and procedures, to repossess or otherwise convert the
ownership of the Financed Vehicle securing any Receivable as to which the
Servicer shall have determined to be a Defaulted Receivable or otherwise (and
shall specify any such Defaulted Receivable to the Indenture Trustee no later
than the Determination Date following the Collection Period in which the
Servicer shall have made such determination). The Servicer shall follow such
customary standards, policies and procedures as it shall deem necessary or
advisable in its servicing of comparable receivables, which may include
selling the Financed Vehicle at public or private sale. The Servicer shall be
entitled to recover from proceeds all reasonable expenses incurred by it in
the course of converting the Financed Vehicle into cash proceeds. The
Liquidation Proceeds (net of such expenses) realized in connection with any
such action with respect to a Receivable shall be deposited by the Servicer in
the Collection Account in the manner specified in Section 4.2 and shall be
applied to reduce (or to satisfy, as the case may be) the Purchase Amount of
the Receivable, if such Receivable is to be repurchased by the Depositor
pursuant to Section 2.3, or is to be purchased by the Servicer pursuant to
Section 3.7. The foregoing shall be subject to the provision that, in any case
in which the Financed Vehicle shall have suffered damage, the Servicer shall
not be required to

                                      9
<PAGE>

expend funds in connection with the repair or the repossession of such
Financed Vehicle unless it shall determine in its discretion that such repair
and/or repossession will increase the Liquidation Proceeds by an amount
greater than the amount of such expenses.

      SECTION 3.4 Allocations of Collections. If an Obligor is obligated under
one or more Receivables and also under one or more other assets owned by the
Bank or assigned by the Bank to third parties, then any payment on any such
asset received from or on behalf of such Obligor shall, if identified as being
made with respect to a particular item or asset, be applied to such item, and
otherwise shall be allocated by the Bank in accordance with its customary
standards, policies and procedures.

      SECTION 3.5 Maintenance of Security Interests in Financed Vehicles. The
Servicer shall, in accordance with its customary procedures, take such steps
as are necessary to maintain perfection of the security interest created by
each Receivable in the related Financed Vehicle. The Issuer hereby authorizes
the Servicer to take such steps as are necessary to re-perfect such security
interest on behalf of the Issuer and the Indenture Trustee in the event of the
relocation of a Financed Vehicle or for any other reason, in either case, when
the Servicer has knowledge of the need for such re-perfection. In the event
that the assignment of a Receivable to the Issuer is insufficient, without a
notation on the related Financed Vehicle's certificate of title, or without
fulfilling any additional administrative requirements under the laws of the
state in which the Financed Vehicle is located, to transfer to the Issuer a
perfected security interest in the related Financed Vehicle, the Servicer
hereby agrees that the Servicer's listing as the secured party on the
certificate of title is deemed to be in its capacity as agent of the Issuer
and the Indenture Trustee and further agrees to hold such certificate of title
as the agent and custodian of the Issuer and the Indenture Trustee; provided
that the Servicer shall not, nor shall the Issuer or the Indenture Trustee
have the right to require that the Servicer, make any such notation on the
related Financed Vehicles' certificate of title or fulfill any such additional
administrative requirement of the laws of the state in which a Financed
Vehicle is located.

      SECTION 3.6 Covenants of Servicer. The Servicer shall not (i) release
the Financed Vehicle securing each such Receivable from the security interest
granted by such Receivable in whole or in part except in the event of payment
in full by or on behalf of the Obligor thereunder, (ii) impair the rights of
the Trust or the Indenture Trustee in the Receivables, or (iii) increase the
number of payments under a Receivable, increase the Amount Financed under a
Receivable or extend or forgive payments on a Receivable, except as provided
in Section 3.2. In the event that at the end of the scheduled term of any
Receivable, the outstanding principal amount thereof is such that the final
payment to be made by the related Obligor is larger than the regularly
scheduled payment of principal and interest made by such Obligor, the Servicer
may permit such Obligor to pay such remaining principal amount in more than
one payment of principal and interest; provided that the last such payment
shall be due on or prior to the Collection Period immediately preceding the
Class B Final Scheduled Payment Date.

      SECTION 3.7 Purchase of Receivables Upon Breach. (a) The Servicer, the
Depositor or the Owner Trustee, as the case may be, promptly shall inform the
other parties to this Agreement, in writing, upon the discovery of any breach
pursuant to Section 3.2, 3.5 or 3.6. Unless the breach shall have been cured
by the last day of the second Collection Period

                                      10
<PAGE>

following such discovery (or, at the Servicer's election, the last day of the
first following Collection Period), the Servicer shall purchase any Receivable
materially and adversely affected by such breach as determined by the
Indenture Trustee (which shall include any Receivable as to which a breach of
Section 3.6 has occurred) at the Purchase Amount (less any Liquidation
Proceeds deposited, or to be deposited, in the Collection Account with respect
to such Receivable pursuant to Section 3.3). In consideration of the purchase
of such Receivable, the Servicer shall remit the Purchase Amount in the manner
specified in Section 4.5. For purposes of this Section 3.7, the Purchase
Amount shall consist in part of a release by the Servicer of all rights of
reimbursement with respect to Outstanding Advances on the Receivable. The sole
remedy of the Issuer, the Owner Trustee, the Indenture Trustee, the
Noteholders or the Certificateholders with respect to a breach pursuant to
Section 3.2, 3.5 or 3.6 shall be to require the Servicer to purchase
Receivables pursuant to this Section 3.7.

      (b) With respect to all Receivables purchased pursuant to this Section
3.7, the Issuer shall assign to the Servicer or the Depositor, as applicable,
without recourse, representation or warranty, all of the Issuer's right, title
and interest in and to such Receivables and all security and documents
relating thereto.

      SECTION 3.8 Servicer Fees. The Servicer shall be entitled to any
interest earned on the amounts deposited in the Collection Account during each
Collection Period plus all late fees, prepayment charges and other
administrative fees and expenses or similar charges, if any, allowed by
applicable law and the terms of the Receivables during each Collection Period
(the "Supplemental Servicing Fee"). The Servicer also shall be entitled to the
Servicing Fee, as provided herein.

      SECTION 3.9 Servicer's Certificate. On or prior to the Determination
Date for each Payment Date, the Servicer shall deliver to the Depositor, the
Owner Trustee, each Note Paying Agent and Certificate Paying Agent, the
Indenture Trustee and the Seller, with a copy to the Rating Agencies, a
Servicer's Certificate containing all information (including all specific
dollar amounts) necessary to make the transfers and distributions pursuant to
Sections 4.3, 4.4, 4.5, 4.6 and 4.7 hereof, and Section 8.2 of the Indenture
for the Collection Period preceding the date of such Servicer's Certificate,
together with the written statements to be furnished by the Owner Trustee to
Certificateholders pursuant to Section 4.9 hereof and by the Indenture Trustee
to the Noteholders pursuant to Section 4.9 hereof and Section 6.6 of the
Indenture. Receivables purchased or to be purchased by the Servicer or the
Depositor shall be identified by the Servicer by the Seller's account number
with respect to such Receivable (as specified in the Schedule of Receivables).

      SECTION 3.10 Annual Statement as to Compliance; Item 1122 Servicing
Criteria Assessment; Notice of Event of Servicing Termination. (a) The
Servicer shall deliver to the Owner Trustee, the Indenture Trustee and each
Rating Agency on or before March 31 of each year beginning March 31, 2007,

      (i) an Officer's Certificate, with respect to the preceding 12-month
period (or such shorter period in the case of the first such certificate),
stating that (x) a review of the activities of the Servicer during the
preceding 12-month period (or such shorter period in the case of the first

                                      11
<PAGE>

such certificate) and of its performance under this Agreement has been made
under such officer's supervision and (y) to the best of such officer's
knowledge, based on such review, the Servicer has fulfilled all its
obligations in all material respects under this Agreement throughout such
period, or, if there has been a failure to fulfill any such obligation in any
material respect, specifying each such failure known to such officer and the
nature and status thereof, and

      (ii) the servicing criteria assessment required to be filed in respect
of the Trust under the Exchange Act under Item 1122 of Regulation AB if
periodic reports under Section 15(d) of the Exchange Act, or any successor
provision thereto, were required to be filed in respect of the Trust. Such
report shall be signed by an authorized officer of the Servicer and shall at a
minimum address each of the Servicing Criteria specified on a certification
substantially in the form of Appendix C hereto delivered to the Depositor
concurrently with the execution of this Agreement. To the extent any of the
Servicing Criteria are not applicable to the Servicer, with respect to
asset-backed securities transactions taken as a whole involving the Servicer
and that are backed by the same asset type backing the Notes, such report
shall include such a statement to that effect. The Depositor and the Servicer,
and each of their respective officers and directors shall be entitled to rely
on upon each such servicing criteria assessment.

      A copy of such Officer's Certificate and the report referred to in
Section 3.11 may be obtained by any Certificateholder by a request in writing
to the Owner Trustee, or by any Noteholder or Person certifying that it is a
Note Owner by a request in writing to the Indenture Trustee, in either case
addressed to the applicable Corporate Trust Office. Upon the telephone request
of the Owner Trustee, the Indenture Trustee shall promptly furnish the Owner
Trustee a list of Noteholders as of the date specified by the Owner Trustee.

      (b) The Servicer shall deliver to the Owner Trustee, the Indenture
Trustee and each Rating Agency promptly after having obtained knowledge
thereof, but in no event later than five (5) Business Days thereafter, written
notice in an Officer's Certificate of any event which with the giving of
notice or lapse of time, or both, would become an Event of Servicing
Termination under Section 7.1. The Seller shall deliver to the Owner Trustee,
the Indenture Trustee and each Rating Agency promptly after having obtained
knowledge thereof, but in no event later than five (5) Business Days
thereafter, written notice in an Officer's Certificate of any event which with
the giving of notice or lapse of time, or both, would become an Event of
Servicing Termination under clause (a)(ii) of Section 7.1.

      (c) The Servicer shall cause each Reporting Subcontractor to deliver to
the Depositor an assessment of compliance and accountant's attestation as and
when provided in paragraph (a)(ii) of this Section 3.10 and Section 3.11. The
Servicer shall execute (provided the Servicer is not an Affiliate of the
Depositor) (and shall cause each Reporting Subcontractor to execute) a
reliance certificate to enable the Certification Parties to rely upon each (i)
annual report on assessments of compliance with servicing criteria provided
pursuant to Section 3.10 and (ii) accountant's report provided pursuant to
Section 3.10 and shall include a certification that each such annual
compliance statement or report discloses any deficiencies or defaults
described to the registered public accountants of such Person to enable such
accountants to render the certificates provided for in Section 3.11.

                                      12
<PAGE>

      (d) In the event the Servicer, any Subservicer or Reporting
Subcontractor is terminated or resigns during the term of this Agreement, such
Person shall provide the documents and information pursuant to Section 3.10
and Section 3.11 with respect to the period of time it was subject to this
Agreement or provided services with respect to the Trust or the Receivables.
Notwithstanding anything to the contrary contained herein, if the Servicer has
exercised commercially reasonable efforts to obtain any assessment or
attestation required hereunder from a Reporting Subcontractor, the failure by
the Reporting Subcontractor to provide such attestation on or assessment shall
not constitute a breach hereunder by the Servicer.

      SECTION 3.11 Annual Independent Certified Public Accountant's Report.
The Servicer shall cause a firm of independent certified public accountants,
who may also render other services to the Servicer, the Seller or the
Depositor, to deliver to the Owner Trustee and the Indenture Trustee on or
before March 31 of each year beginning March 31, 2007 with respect to the
prior calendar year (or such shorter period in the case of the first such
report) the attestation report that would be required to be filed in respect
of the Trust under the Exchange Act if periodic reports under Section 15(d) of
the Exchange Act, or any successor provision thereto, were required to be
filed in respect of the Trust. Such attestation shall be in accordance with
Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and
the Exchange Act, including, without limitation that in the event that an
overall opinion cannot be expressed, such registered public accounting firm
shall state in such report why it was unable to express such an opinion.

      SECTION 3.12 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Certificateholders, the
Indenture Trustee and the Noteholders access to the Receivable Files in such
cases where the Certificateholders, the Indenture Trustee or the Noteholders
shall be required by applicable statutes or regulations to review such
documentation. Access shall be afforded without charge, but only upon
reasonable request and during the normal business hours at the respective
offices of the Servicer. Nothing in this Section 3.12 shall affect the
obligation of the Servicer to observe any applicable law prohibiting
disclosure of information regarding the Obligors, and the failure of the
Servicer to provide access to information as a result of such obligation shall
not constitute a breach of this Section 3.12.

      SECTION 3.13 Servicer Expenses. The Servicer shall be required to pay
all expenses incurred by it in connection with its activities hereunder,
including fees, expenses (including counsel fees and expenses) and
disbursements of the Owner Trustee and the Indenture Trustee, independent
accountants, taxes imposed on the Servicer and expenses incurred in connection
with distributions and reports to Noteholders and Certificateholders.

      SECTION 3.14 Insurance. The Servicer, in accordance with its customary
servicing procedures and underwriting standards, shall require that each
Obligor shall have obtained and shall maintain comprehensive and collision
insurance covering the related Financed Vehicle as of the execution of the
Receivable. The Servicer shall enforce its rights under the Receivables to
require the Obligors to maintain comprehensive and collision insurance, in
accordance with the Servicer's customary practices and procedures with respect
to comparable new or used automobile and light-duty truck receivables that it
services for itself or others.

                                      13
<PAGE>

                                  ARTICLE IV

        DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO NOTEHOLDERS AND
                              CERTIFICATEHOLDERS

      SECTION 4.1 Accounts. (a) The Servicer shall, prior to the Closing Date,
cause to be established and maintained an Eligible Deposit Account in the name
"JPMorgan Chase Bank, National Association, as Indenture Trustee, as secured
party from USAA Auto Owner Trust 2006-1", initially at the corporate trust
department of the Indenture Trustee, which shall be designated as the
"Collection Account". The Collection Account shall be under the sole dominion
and control of the Indenture Trustee; provided, that the Servicer may make
deposits to and direct the Indenture Trustee in writing to make withdrawals
from the Collection Account in accordance with the terms of the Basic
Documents. The Collection Account will be established and maintained pursuant
to an account agreement which specifies New York law as the governing law. In
addition, the Collection Account shall be established and maintained at an
institution which agrees in writing that for so long as the Notes are
outstanding it will comply with entitlement orders (as defined in Article 8 of
the UCC) originated by the Indenture Trustee without further consent of the
Issuer. All monies deposited from time to time in the Collection Account shall
be held by the Indenture Trustee as secured party for the benefit of the
Noteholders and, after payment in full of the Notes, as agent of the Issuer
and as part of the Trust Property. All deposits to and withdrawals from the
Collection Account shall be made only upon the terms and conditions of the
Basic Documents.

      If the Servicer is required to remit collections pursuant to the first
sentence of Section 4.2, all amounts held in the Collection Account shall, to
the extent permitted by applicable law, rules and regulations, be invested, as
directed in writing by the Servicer, by the bank or trust company then
maintaining the Collection Account in specified Permitted Investments that
mature not later than the Business Day immediately prior to the Payment Date
for the Collection Period to which such amounts relate and such Permitted
Investments shall be held to maturity. All interest and other income (net of
losses and investment expenses) on funds on deposit in the Collection Account
shall be withdrawn from the Collection Account at the written direction of the
Servicer and shall be paid to the Servicer. The Indenture Trustee shall not be
liable for investment losses in Permitted Investments made in accordance with
directions from the Servicer. In the event that the Collection Account is no
longer to be maintained at the corporate trust department of the Indenture
Trustee, the Servicer shall, with the Indenture Trustee's or Issuer's
assistance as necessary, cause an Eligible Deposit Account to be established
as the Collection Account within ten (10) Business Days (or such longer period
not to exceed thirty (30) calendar days as to which each Rating Agency may
consent) and give written notice of the location and account number of such
account to the Indenture Trustee.

      (b) The Servicer shall, prior to the Closing Date, establish and
maintain an administrative subaccount within the Collection Account at the
bank or trust company then maintaining the Collection Account, which
subaccount shall be designated as the "Principal Distribution Account". The
Principal Distribution Account is established and maintained solely for
administrative purposes.

                                      14
<PAGE>

      (c) The Servicer shall, prior to the Closing Date, cause an Eligible
Deposit Account to be established and maintained, in the name "USAA Auto Owner
Trust 2006-1 Certificate Distribution Account", initially at the corporate
trust department of the Owner Trustee, which shall be designated as the
"Certificate Distribution Account". The Certificate Distribution Account shall
be under the sole dominion and control of the Owner Trustee. All monies
deposited from time to time in the Certificate Distribution Account pursuant
to this Agreement and the Indenture shall be held by the Owner Trustee as part
of the Trust Property and shall be applied as provided in the Basic Documents.
In the event that the Certificate Distribution Account is no longer to be
maintained at the corporate trust department of the Owner Trustee, the
Servicer shall cause an Eligible Deposit Account to be established as the
Certificate Distribution Account within ten (10) Business Days (or such longer
period not to exceed thirty (30) calendar days as to which each Rating Agency
may consent) and give written notice of the location and account number of
such account to the Owner Trustee. The Certificate Distribution Account will
be established and maintained pursuant to an account agreement which specifies
New York law as the governing law.

      SECTION 4.2 Collections. The Servicer shall remit to the Collection
Account within two (2) Business Days of the receipt thereof (i) all payments
by or on behalf of the Obligors (but excluding Purchased Receivables) and (ii)
all Liquidation Proceeds, both as collected during the Collection Period;
provided that the Bank, so long as it is acting as the Servicer and no Event
of Servicing Termination has occurred and is continuing, may make remittances
of collections on a less frequent basis than that specified in the immediately
preceding sentence. It is understood that such less frequent remittances may
be made only on the specific terms and conditions set forth below in this
Section 4.2 and only for so long as such terms and conditions are fulfilled.
Accordingly, notwithstanding the provisions of the first sentence of this
Section 4.2, the Servicer shall remit collections received during a Collection
Period to the Collection Account in immediately available funds on the
Business Day preceding the related Payment Date but only for so long as the
Monthly Remittance Condition is satisfied. The Owner Trustee or the Indenture
Trustee shall not be deemed to have knowledge of any event or circumstance in
the definition of Monthly Remittance Condition that would require remittance
by the Servicer to the Collection Account within two (2) Business Days of
receipt as aforesaid unless the Owner Trustee or the Indenture Trustee has
received written notice of such event or circumstance from the Seller or the
Servicer in an Officer's Certificate or from the holders of Notes evidencing
not less than 25% of the principal amount of the Notes Outstanding or from the
Certificateholders of Certificates evidencing not less than 25% of the
Percentage Interests evidenced by the Certificates or a Trustee Officer in the
Corporate Trust Office with knowledge hereof or familiarity herewith has
actual knowledge of such event or circumstance. For purposes of this Article
IV the phrase "payments by or on behalf of Obligors" shall mean payments made
by Persons other than the Servicer or by other means.

      SECTION 4.3 Application of Collections. For the purposes of this
Agreement, as of the close of business on the last day of each Collection
Period, all collections for the Collection Period with respect to each
Receivable (other than a Purchased Receivable) shall be applied by the
Servicer first to the amount of interest accrued on such Receivable to the
date of receipt, then to reduce the scheduled principal amount outstanding on
the Receivable to the extent of the remaining scheduled payment and then to
any outstanding fees under the terms of the

                                      15
<PAGE>

Receivable. Amounts paid by the Depositor, the Seller or the Servicer in
respect of Purchased Receivables shall be allocated first to any interest
accrued on the related Receivable and then to the Principal Balance of the
related Receivable.

      SECTION 4.4 Advances. (a) As of each Determination Date, the Servicer
shall make a payment with respect to each Receivable (other than a Defaulted
Receivable) equal to the excess, if any, of (x) the product of the Principal
Balance of such Receivable as of the first day of the related Collection
Period and one-twelfth of the Annual Percentage Rate (as adjusted downward, as
the case may be, in accordance with the Servicemembers Civil Relief Act or
pursuant to Section 3.2) on such Receivable (calculated on the basis of a
360-day year of twelve 30-day months), over (y) the interest actually received
by the Servicer with respect to such Receivable from the Obligor or from
payment of the Purchase Amount during or with respect to such Collection
Period. The Servicer shall deposit all such Advances into the Collection
Account in immediately available funds no later than, 11:00 a.m. New York City
time, on the Determination Date. Notwithstanding the foregoing, the Servicer
may elect not to make any Advance with respect to a Receivable to the extent
that the Servicer, in its sole discretion, shall determine that such Advance
is not recoverable from subsequent payments on such Receivable or from
withdrawals from the Reserve Account. To the extent that the amount set forth
in clause (y) above with respect to a Receivable is greater than the amount
set forth in clause (x) above with respect thereto, such excess amount shall
be distributed to the Servicer pursuant to Section 4.6(b). In addition, in the
event that a Receivable becomes a Defaulted Receivable, Outstanding Advances
in respect of that Receivable shall be reimbursed to the extent of interest
Collections with respect to such Receivable and, if such amounts are
insufficient, from amounts on deposit in the Reserve Account, and if such
amounts are not sufficient, from amounts on deposit in the Collection Account.
The Servicer shall not make any advance with respect to principal of
Receivables.

      (b) The Servicer shall deposit in the Collection Account the aggregate
Advances on the Receivables pursuant to Section 4.4(a). To the extent that the
Servicer fails to make an Advance pursuant to Section 4.4(a) on the date
required, the Servicer shall so notify the Issuer and the Indenture Trustee in
writing specifying the amount of the Advance and the Receivable to which such
Advance related, and the Indenture Trustee shall withdraw such amount (or, if
determinable by the Servicer, such portion of such amount as does not
represent advances for delinquent interest) from the Reserve Account and
deposit such amount in the Collection Account.

      SECTION 4.5 Additional Deposits. (a) The Depositor and the Servicer
shall deposit in the Collection Account the aggregate Purchase Amounts with
respect to Purchased Receivables pursuant to Sections 2.3 and 3.7,
respectively, and the Servicer shall deposit therein all Purchase Amounts to
be paid under Section 8.1. All such deposits with respect to a Collection
Period shall be made, in immediately available funds, on the Business Day
preceding the Payment Date related to such Collection Period.

      (b) The Indenture Trustee, in accordance with the written instructions
of the Servicer, shall, on each Payment Date make a withdrawal from the
Reserve Account (i) first, in an amount equal to the Reserve Account Excess
Amount for such Payment Date and (ii) second, in an

                                      16
<PAGE>

amount equal to the amount (if positive) calculated by the Servicer pursuant
to the second sentence of Section 4.6(b).

      SECTION 4.6 Distributions. (a) On each Payment Date, the Indenture
Trustee shall cause the transfer and distribution of the amounts set forth in
the Servicer's Certificate for such Payment Date from the Collection Account
to the Servicer, in immediately available funds, for repayment of Outstanding
Advances pursuant to Section 4.4(a).

      (b) The Servicer shall on or before each Determination Date calculate
the Available Collections, the Reserve Account Excess Amount, the Available
Funds, the Servicing Fee and all unpaid Servicing Fees from prior Collection
Periods, if any, the Accrued Class A Note Interest, the Accrued Class B Note
Interest, the First Priority Principal Payment, if any, and the Regular
Principal Distribution Amount. In addition, the Servicer shall calculate on or
before each Determination Date the difference, if any, between the Total
Required Payment and the Available Funds and, pursuant to Section 4.5(b), the
Indenture Trustee shall withdraw funds from the Reserve Account in an amount
equal to the lesser of such difference (if positive) or the balance of such
Reserve Account.

      (c) On each Payment Date, the Servicer shall instruct the Indenture
Trustee (based on the information contained in the Servicer's Certificate
delivered on or before the related Determination Date pursuant to Section
3.9), to make the following withdrawals from the Collection Account and make
deposits, distributions and payments, to the extent of Available Funds for
such Payment Date (plus funds, if any, deposited in the Collection Account
from the Reserve Account pursuant to Section 4.5(b)), in the following order
of priority:

            (i) first, to the Servicer, the Servicing Fee and all unpaid
      Servicing Fees from prior Collection Periods;

            (ii) second, to the Class A Noteholders, the Accrued Class A Note
      Interest for such Payment Date; provided that if there are not
      sufficient funds available to pay the entire amount of the Accrued Class
      A Note Interest, the amounts available shall be applied to the payment
      of such interest on the Class A Notes on a pro rata basis;

            (iii) third, to the Class A Noteholders, the First Priority
      Principal Payment, if any, for such Payment Date to be distributed in
      the same priority as described under Section 4.6(d) of this Agreement;

            (iv) fourth, to the Class B Noteholders, the Accrued Class B Note
      Interest for such Payment Date;

            (v) fifth, to the Principal Distribution Account, the Regular
      Principal Distribution Amount (less any amounts distributed under clause
      (iii) above) for such Payment Date;

            (vi) sixth, if such Payment Date is a Final Scheduled Payment Date
      for any Class, to the Principal Distribution Account, the amount
      necessary to reduce the remaining principal amount of such Class to zero
      after giving effect to the amount, if any, to be

                                      17
<PAGE>

      applied on such Payment Date to such Class from funds deposited
      pursuant to clauses (iii) and (v) above;

            (vii) seventh, to the Reserve Account, the amount, if any,
      required to reinstate the amount in the Reserve Account up to the
      Specified Reserve Balance for such Payment Date;

            (viii) eighth, to the Indenture Trustee and the Owner Trustee, all
      amounts due for fees, expenses and indemnification pursuant to Section
      6.7 of the Indenture and Section 7.1 of the Trust Agreement,
      respectively, and not previously paid; and

            (ix) ninth, to the Certificate Distribution Account, any remaining
      Available Funds for such Payment Date.

      Notwithstanding the foregoing in this Section 4.6(c),

                  (A) if the Notes have been accelerated after an Event of
            Default specified in Section 5.1(iii) of the Indenture, then the
            Available Funds shall instead be applied in the following order of
            priority:

                        (1)   to the Indenture Trustee and the Owner Trustee,
                              all amounts due for fees, expenses and
                              indemnification under Section 6.7 of the
                              Indenture, Section 7.1 of the Trust Agreement
                              and Section 6.2 of this Agreement, respectively,
                              and not previously paid;

                        (2)   to the Servicer, the Servicing Fee and all
                              unpaid Servicing Fees from prior Collection
                              Periods;

                        (3)   to the Class A Noteholders, the Accrued Class A
                              Note Interest for such Payment Date; provided
                              that if there are not sufficient funds available
                              to pay the entire amount of the Accrued Class A
                              Note Interest, the amounts available shall be
                              applied to the payment of such interest on the
                              Class A Notes on a pro rata basis;

                        (4)   to the Class A Noteholders, the First Priority
                              Principal Payment, if any, for such Payment Date
                              to be distributed in the same manner as
                              described under Section 4.6(d) of this
                              Agreement;

                        (5)   to the Class B Noteholders, the Accrued Class B
                              Note Interest for such Payment Date;

                        (6)   first, to the holders of the Class A-1 Notes in
                              reduction of principal until the principal
                              amount of the Class A-1 Notes has been paid in
                              full and then to the holders of the Class A-2
                              Notes, the Class A-3 Notes and the Class A-4
                              Notes on a pro rata basis in reduction of
                              principal until the principal amount of such
                              Class A Notes has been paid in full;

                                      18
<PAGE>

                        (7)   to the holders of the Class B Notes in reduction
                              of principal until the principal amount of the
                              Class B Notes has been paid in full; and

                        (8)   to the Certificate Distribution Account, any
                              remaining Available Funds for such Payment Date;
                              and

                  (B) if the Notes have been accelerated after an Event of
            Default specified in Section 5.1(i), (ii), (iv) or (v) of the
            Indenture, then the Available Funds shall instead be applied in
            the following order of priority:

                        (1)   to the Indenture Trustee and the Owner Trustee,
                              all amounts due for fees, expenses and
                              indemnification under Section 6.7 of the
                              Indenture, Section 7.1 of the Trust Agreement
                              and Section 6.2 of this Agreement, respectively,
                              and not previously paid;

                        (2)   to the Servicer, the Servicing Fee and all
                              unpaid Servicing Fees from prior Collection
                              Periods;

                        (3)   to the Class A Noteholders, the Accrued Class A
                              Note Interest for such Payment Date; provided
                              that if there are not sufficient funds available
                              to pay the entire amount of the Accrued Class A
                              Note Interest, the amounts available shall be
                              applied to the payment of such interest on the
                              Class A Notes on a pro rata basis;

                        (4)   first, to the holders of the Class A-1 Notes in
                              reduction of principal until the principal
                              amount of the Class A-1 Notes has been paid in
                              full and then to the holders of the Class A-2
                              Notes, the Class A-3 Notes and the Class A-4
                              Notes on a pro rata basis in reduction of
                              principal until the principal amount of such
                              Class A Notes has been paid in full;

                        (5)   to the Class B Noteholders, first, the Accrued
                              Class B Note Interest for such Payment Date and
                              second, in reduction of principal until the
                              principal amount of the Class B Notes has been
                              paid in full; and

                        (6)   to the Certificate Distribution Account, any
                              remaining Available Funds for such Payment Date.

      (d) If the Notes have not been accelerated because of an Event of
Default, then on each Payment Date the Servicer shall instruct the Indenture
Trustee (based on the information contained in the Servicer's Certificate
delivered on or before the related Determination Date pursuant to Section
3.9), to withdraw the funds deposited in the Principal Distribution Account on
such Payment Date and make distributions and payments in the following order
of priority:

            (i)   first, to the holders of the Class A-1 Notes on a pro rata
                  basis in reduction of principal until the principal amount
                  of the Class A-1 Notes has been paid in full;

                                      19
<PAGE>

            (ii)  second, to the holders of the Class A-2 Notes on a pro rata
                  basis in reduction of principal until the principal amount
                  of the Class A-2 Notes has been paid in full;

            (iii) third, to the holders of the Class A-3 Notes on a pro rata
                  basis in reduction of principal until the principal amount
                  of the Class A-3 Notes has been paid in full;

            (iv)  fourth, to the holders of the Class A-4 Notes on a pro rata
                  basis in reduction of principal until the principal amount
                  of the Class A-4 Notes has been paid in full; and

            (v)   fifth, to the holders of the Class B Notes on a pro rata
                  basis in reduction of principal until the principal amount
                  of the Class B Notes has been paid in full.

Any funds remaining on deposit in the Principal Distribution Account shall be
paid to the Indenture Trustee and the Owner Trustee to the extent, if any, of
amounts due to them hereunder that are unpaid and then to the Certificate
Distribution Account.

      If the Notes have been accelerated because of an Event of Default, then
on each Payment Date the Servicer shall instruct the Indenture Trustee (based
on the information contained in the Servicer's Certificate delivered on or
before the related Determination Date pursuant to Section 3.9), to withdraw
the funds deposited in the Principal Distribution Account on such Payment Date
and pay them to the holders of the Class A-1 Notes until the principal amount
of the Class A-1 Notes has been paid in full, then to the holders of the Class
A-2 Notes, Class A-3 Notes and Class A-4 Notes on a pro rata basis in
reduction of principal until the principal amount of the Class A Notes has
been paid in full and then to the holders of the Class B Notes in reduction of
principal until the principal amount of the Class B Notes has been paid in
full.

      SECTION 4.7 Reserve Account. (a) (i) The Servicer shall, prior to the
Closing Date, cause to be established and maintained an Eligible Deposit
Account in the name "JPMorgan Chase Bank, National Association, as Indenture
Trustee, as secured party from USAA Auto Owner Trust 2006-1", initially at the
corporate trust department of the Indenture Trustee, which shall be designated
as the "Reserve Account" (the Reserve Account, together with the Collection
Account (including the Principal Distribution Account), the "Trust Accounts").
The Reserve Account shall be under the sole dominion and control of the
Indenture Trustee; provided, that the Servicer may make deposits to the
Reserve Account in accordance with the Basic Documents. The Reserve Account
will be established and maintained pursuant to an account agreement which
specifies New York law as the governing law. In addition, the Reserve Account
shall be established and maintained at an institution which agrees in writing
that for so long as the Notes are Outstanding it will comply with entitlement
orders (as defined in Article 8 of the UCC) originated by the Indenture
Trustee without further consent of the Issuer. On the Closing Date, the
Depositor shall deposit the Reserve Initial Deposit into the Reserve Account.
The Reserve Account and all amounts, securities, investments, financial assets
and other property deposited in or credited to the Reserve Account (such
amounts, the "Reserve Account Property") shall be

                                      20
<PAGE>

held by the Indenture Trustee as secured party for the benefit of the
Noteholders and, after payment in full of the Notes, as agent of the Owner
Trustee and as part of the Trust Property, and all deposits to and withdrawals
from there from shall be made only upon the terms and conditions of the Basic
Documents.

      The Reserve Account Property shall, to the extent permitted by
applicable law, rules and regulations, be invested, as directed in writing by
holders of Certificates holding not less than a majority of the Percentage
Interests evidenced by the Certificates, by the bank or trust company then
maintaining the Reserve Account in Permitted Investments that mature not later
than the next Payment Date or such later date that satisfies the Rating Agency
Condition, and such Permitted Investments shall be held to maturity. If
JPMorgan Chase Bank, National Association is the Indenture Trustee, in the
absence of written direction, all funds shall be retained uninvested.
Additionally, amounts in the Reserve Account will be retained uninvested in
the circumstances described in Section 8.3(c) of the Indenture. All interest
and other income (net of losses and investment expenses) on funds on deposit
in the Reserve Account shall be deposited therein. The Indenture Trustee shall
not be liable for investment losses in Permitted Investments made in
accordance with directions from the investment instructions received from
holders of the Certificates as provided above. In the event the Reserve
Account is no longer to be maintained at the corporate trust department of the
Indenture Trustee, the Servicer shall, with the Indenture Trustee's or Owner
Trustee's assistance as necessary, cause an Eligible Deposit Account to be
established as the Reserve Account within ten (10) Business Days (or such
longer period not to exceed thirty (30) calendar days as to which each Rating
Agency may consent) and give written notice of the location and account number
of such account to the Indenture Trustee.

                  (ii) With respect to Reserve Account Property:

                           (A) any Reserve Account Property that is a
                  "financial asset" as defined in Section 8-102(a)(9) of the
                  UCC shall be physically delivered to, or credited to an
                  account in the name of, the institution maintaining the
                  Reserve Account in accordance with such institution's
                  customary procedures such that such institution establishes
                  a "securities entitlement" in favor of the Indenture Trustee
                  with respect thereto; and

                           (B) any Reserve Account Property that is held in
                  deposit accounts shall be held solely in the name of the
                  Indenture Trustee at one or more depository institutions
                  having the Required Rating and each such deposit account
                  shall be subject to the exclusive custody and control of the
                  Indenture Trustee and the Indenture Trustee shall have sole
                  signature authority with respect thereto.

                  (iii) Except for any deposit accounts specified in clause
         (ii)(B) above, the Reserve Account shall only be invested in
         securities or in other assets which the institution maintaining the
         Reserve Account agrees to treat as "financial assets" as defined in
         Section 8-102(a)(9) of the UCC.

      (b) If the Servicer pursuant to Section 4.4 determines on or before any
Determination Date that it is required to make an Advance and does not do so
from its own funds, the Servicer shall promptly instruct the Indenture Trustee
in writing to draw funds, in an amount specified by

                                      21
<PAGE>

the Servicer, from the Reserve Account and deposit them in the Collection
Account to cover any shortfall. Such payment shall be deemed to have been made
by the Servicer pursuant to Section 4.4 for purposes of making distributions
pursuant to this Agreement, but shall not otherwise satisfy the Servicer's
obligation to deliver the amount of the Advances to the Indenture Trustee, and
the Servicer shall within two (2) Business Days replace any funds in the
Reserve Account so used.

      (c) Following the payment in full of the aggregate principal amount of
the Notes and of all other amounts owing or to be distributed hereunder or
under the Indenture or the Trust Agreement to Noteholders, the Indenture
Trustee and the Owner Trustee, any remaining Reserve Account Property shall be
distributed to the Certificate Distribution Account.

      SECTION 4.8 Net Deposits. For so long as (i) the Bank shall be the
Servicer and (ii) the Servicer shall be entitled pursuant to Section 4.2 to
remit collections on a monthly basis rather than within two (2) Business Days
of receipt, the Bank may make the remittances pursuant to Sections 4.2 and 4.5
above, net of amounts to be distributed to the Bank pursuant to Section
4.6(c). Nonetheless, the Servicer shall account for all of the above described
remittances and distributions except for the Supplemental Servicing Fee in the
Servicer's Certificate as if the amounts were deposited and/or transferred
separately.

      SECTION 4.9 Statements to Noteholders and Certificateholders. On the
Business Day prior to each Payment Date, the Servicer shall provide to the
Indenture Trustee (with copies to the Rating Agencies, each Note Paying Agent
and the Depositor) for the Indenture Trustee to make available to each
Noteholder of record as of the most recent Record Date and to the Owner
Trustee (with copies to the Rating Agencies and to each Certificate Paying
Agent) for the Owner Trustee to forward to each Certificateholder of record as
of the most recent Record Date a statement based on information in the
Servicer's Certificate furnished pursuant to Section 3.9, setting forth for
the Collection Period relating to such Payment Date the following information
as to the Notes and the Certificates to the extent applicable:

            (i) the amount of such distribution allocable to principal
      allocable to the Notes and to the Certificates;

            (ii) the amount of such distribution allocable to interest
      allocable to the Notes and the Certificates;

            (iii) the amount of such distribution allocable to draws from the
      Reserve Account, if any;

            (iv) the number of receivables and the Pool Balance as of the
      beginning of business on the first day of the preceding Collection
      Period and the close of business on the last day of the preceding
      Collection Period;

            (v) the Specified Reserve Balance as of such Payment Date;

                                      22
<PAGE>

            (vi) the amount of the Servicing Fee paid to the Servicer with
      respect to the related Collection Period and the amount of any unpaid
      Servicing Fees and the change in such amount from that of the prior
      Payment Date;

            (vii) the amounts of the Class A Noteholders' Interest Carryover
      Shortfall and the Class B Noteholders' Interest Carryover Shortfall, if
      any, on such Payment Date and the change in such amounts from the
      preceding Payment Date;

            (viii) the aggregate outstanding principal amount of each Class of
      Notes and the Note Pool Factor for each Class of Notes as of such
      Payment Date;

            (ix) the amount of any previously due and unpaid payment of
      principal of the Notes, and the change in such amount from that of the
      prior Payment Date;

            (x) [reserved];

            (xi) the balance of the Reserve Account on such Payment Date,
      after giving effect to distributions made on such Payment Date and the
      change in such balance from the preceding Payment Date;

            (xii) [reserved];

            (xiii) the aggregate Purchase Amount of Receivables repurchased by
      the Depositor or the Seller or purchased by the Servicer, if any, with
      respect to the related Collection Period;

            (xiv) the amount of Advances, if any, on such Payment Date;

            (xv) the aggregate Collections for the related Collection Period;

            (xvi) the aggregate Principal Balance of the Receivables that
      became designated as Defaulted Receivables during the related Collection
      Period;

            (xvii) the applicable Record Dates, Interest Period and
      Determination Dates for calculating distributions and the actual Payment
      Date;

            (xviii) the amount of Collections received on the Receivables and
      any other assets of the Trust for the related Collection Period and any
      fees and expenses of the trust paid with respect to the Collection
      Period;

            (xix) delinquency and loss information for the receivables for the
      related Collection Period; and

            (xx) information on any coverage ratios or performance triggers,
      if applicable, and an indication if such triggers have been reached.

         In addition, such statements may be posted by the Indenture Trustee
on its website at www.jpmorgan.com/sfr.

                                      23
<PAGE>

         Each amount set forth on the Payment Date statement pursuant to
clauses (i), (ii), (vi), (vii) and (ix) above shall be expressed as a dollar
amount per $1,000 of original principal amount of a Note.

                                  ARTICLE V

                                 THE DEPOSITOR

      SECTION 5.1 Representations, Warranties and Covenants of Depositor.

      (a) The Depositor makes the following representations and warranties on
which the Issuer is deemed to have relied in acquiring the Trust Property. The
representations and warranties speak as of the execution and delivery of this
Agreement and shall survive the conveyance of the Trust Property, by the
Depositor to the Issuer and the pledge thereof by the Issuer to the Indenture
Trustee pursuant to the Indenture:

      (i) Organization and Good Standing. The Depositor is a limited liability
company duly formed, validly existing and in good standing under the laws of
the State of Delaware, with all requisite power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, power, authority, and legal right to acquire and own the Receivables.

      (ii) Power and Authority. The Depositor has all requisite power and
authority to execute and deliver this Agreement and the other Basic Documents
to which it is a party and to carry out their terms; the Depositor has full
power and authority to sell and assign the property to be sold, and assigned
to and deposited with the Issuer, and the Depositor shall have duly authorized
such sale and assignment to the Issuer by all necessary limited liability
company action; and the execution, delivery, and performance of this Agreement
and the other Basic Documents to which the Depositor is a party have been duly
authorized, executed and delivered by the Depositor by all necessary limited
liability company action.

      (iii) Binding Obligations. This Agreement, when duly executed and
delivered by the other parties hereto, constitutes a legal, valid, and binding
obligation of the Depositor enforceable against the Depositor in accordance
with its terms, except as the enforceability hereof may be limited by
bankruptcy, insolvency, reorganization, or other similar laws affecting
creditors' rights in general and by general principles of equity, regardless
of whether such enforceability is considered in a proceeding in equity or at
law.

      (iv) No Violation. The consummation of the transactions contemplated by
this Agreement and the other Basic Documents to which the Depositor is a party
and the fulfillment of the terms hereof and thereof do not (i) conflict with,
result in any breach of any of the terms and provisions of, or constitute
(with or without notice or lapse of time) a default under, the limited
liability company agreement of the Depositor, or conflict with or breach any
of the material terms or provisions of, or constitute (with or without notice
or lapse of time) a default under, any indenture, agreement, or other
instrument to which the Depositor is a party or by which it is bound, (ii)
result in the creation or imposition of any lien upon any of its properties
pursuant to the terms of any such indenture, agreement, or other instrument,
or (iii) violate any

                                      24
<PAGE>

law or, to the best of the Depositor's knowledge, any order, rule, or
regulation applicable to the Depositor of any court or of any federal or state
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Depositor or its properties.

      (v) No Proceedings. There are no proceedings or investigations pending,
or, to the best of the Depositor's knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Depositor or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement or the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Depositor of its
obligations under, or the validity or enforceability of, this Agreement, any
of the other Basic Documents or the Securities or (iv) relating to the
Depositor and which might adversely affect the federal income tax attributes
of the Securities.

      (vi) Security Interest Representation. This Agreement creates a valid
and continuing security interest (as defined in the applicable UCC) in the
Receivables that is in existence in favor of the Issuer, which security
interest is prior to all other liens, and is enforceable as such as against
creditors of and purchasers from the Depositor, which security interest will
be assigned to the Indenture Trustee pursuant to the Indenture. Other than the
security interest granted to the Issuer, the Depositor has not pledged,
assigned, transferred or sold, a security interest in, or otherwise conveyed
any of the Receivables, the Depositor has not authorized the filing of and is
not aware of any financing statements against the Depositor that include a
description of such Receivables other than the financing statements in favor
of the Issuer and the Indenture Trustee, and the Depositor is not aware of any
judgment or tax lien filing against it.

      (b) The Depositor covenants that it shall provide, or cause the Servicer
to provide, in a timely manner the certifications required by Section 302 of
the Sarbanes-Oxley Act of 2002.

      SECTION 5.2 Liability of Depositor; Indemnities. The Depositor shall be
liable in accordance herewith only to the extent of the obligations
specifically undertaken by the Depositor under this Agreement, and hereby
agrees to the following:

      (a) The Depositor shall indemnify, defend, and hold harmless the Issuer,
the Owner Trustee and the Indenture Trustee from and against any taxes that
may at any time be asserted against any such Person with respect to, and as of
the date of, the conveyance of the Receivables to the Issuer or the issuance
and original sale of the Notes and the Certificates, including any sales,
gross receipts, general corporation, tangible personal property, privilege, or
license taxes (but, in the case of the Issuer, not including any taxes
asserted with respect to ownership of the Receivables or federal or state
income taxes arising out of the transactions contemplated by this Agreement
and the other Basic Documents) and costs and expenses in defending against the
same.

      (b) The Depositor shall indemnify, defend, and hold harmless the Issuer,
the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders from and against any loss, liability or expense incurred by
reason of (i) the Depositor's willful misfeasance, bad faith, or negligence in
the performance of its duties under this Agreement, or by reason of reckless

                                      25
<PAGE>

disregard of its obligations and duties under this Agreement and (ii) the
Depositor's violation of federal or State securities laws in connection with
the registration or the sale of the Notes or the Certificates.

      (c) Indemnification under this Section 5.2 shall survive the resignation
or removal of the Owner Trustee or the Indenture Trustee and the termination
of this Agreement and shall include, without limitation, reasonable fees and
expenses of counsel and expenses of litigation. If the Depositor shall have
made any indemnity payments pursuant to this Section 5.2 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
Depositor, without interest.

      SECTION 5.3 Merger or Consolidation of, or Assumption of the Obligations
of Depositor. Any Person (i) into which the Depositor may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Depositor shall be a party, or (iii) succeeding to the business of
the Depositor, which Person in any of the foregoing cases executes an
agreement of assumption to perform every obligation of the Depositor under
this Agreement, will be the successor to the Depositor under this Agreement
without the execution or filing of any document or any further act on the part
of any of the parties to this Agreement. The Depositor shall provide notice of
any merger, conversion, consolidation, or succession pursuant to this Section
5.3 to the Rating Agencies.

      SECTION 5.4 Limitation on Liability of Depositor and Others. The
Depositor and any officer or employee or agent of the Depositor may rely in
good faith on the advice of counsel or on any document of any kind, prima
facie properly executed and submitted by any Person respecting any matters
arising hereunder. The 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 5.5 Depositor May Own Notes or Certificates. The Depositor, and
any Affiliate of the Depositor, may in its individual or any other capacity
become the owner or pledgee of Notes or Certificates with the same rights as
it would have if it were not the Depositor or an Affiliate thereof, except as
otherwise expressly provided herein or in the other Basic Documents. Except as
set forth herein or in the other Basic Documents, Notes and Certificates so
owned by or pledged to the Depositor or any such Affiliate shall have an equal
and proportionate benefit under the provisions of this Agreement and the other
Basic Documents, without preference, priority, or distinction as among all of
the Notes and Certificates.

                                  ARTICLE VI

                                 THE SERVICER

      SECTION 6.1 Representations of Servicer. The Servicer makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Trust Property. The representations speak as of the execution
and delivery of this Agreement and shall survive the conveyance of the Trust
Property to the Issuer and the pledge thereof by the Issuer pursuant to the
Indenture:

                                      26
<PAGE>

      (a) Organization and Good Standing. The Servicer has been duly organized
and is validly existing as a federally chartered savings association or
corporation and is in good standing under the laws of the United States of
America or its state of incorporation, with power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, power, authority, and legal right to acquire, own, sell, and service the
Receivables and to hold the Receivable Files as custodian on behalf of the
Indenture Trustee.

      (b) Power and Authority. The Servicer has the power and authority to
execute and deliver this Agreement and the other Basic Documents to which it
is a party and to carry out their terms; and the execution, delivery, and
performance of this Agreement and the other Basic Documents to which it is a
party shall have duly authorized, executed and delivered by the Servicer by
all necessary corporate action.

      (c) Binding Obligations. This Agreement constitutes a legal, valid, and
binding obligation of the Servicer enforceable in accordance with their terms
subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other similar laws and equitable principles
relating to or affecting the enforcement of creditors' rights in general and
by general principles of equity regardless of whether such enforceability is
considered in a proceeding in equity or law.

      (d) No Violation. The consummation of the transactions contemplated by
this Agreement and the other Basic Documents to which the Servicer is a party
and the fulfillment of the terms hereof do not conflict with, result in any
breach of any of the terms and provisions of, nor constitute (i) (with or
without notice or lapse of time) a default under, the articles of association
or bylaws of the Servicer, or conflict with or breach any of the material
terms or provisions of, or constitute (with or without notice or lapse of
time) a default under, any indenture, agreement, or other instrument to which
the Servicer is a party or by which it shall be bound, (ii) result in the
creation or imposition of any lien upon any of its properties pursuant to the
terms of any such indenture, agreement, or other instrument or (iii) violate
any law or, to the best of the Servicer's knowledge, any order, rule, or
regulation applicable to the Servicer of any court or of any federal or state
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Servicer or its properties.

      (e) No Proceedings. There are no proceedings or investigations pending,
or to the best of the Servicer's knowledge, threatened, before any court,
regulatory body, administrative agency, or other governmental instrumentality
having jurisdiction over the Servicer or its properties (i) asserting the
invalidity of this Agreement, any of the other Basic Documents or the
Securities, (ii) seeking to prevent the issuance of the Securities or the
consummation of any of the transactions contemplated by this Agreement and the
other Basic Documents, (iii) seeking any determination or ruling that might
materially and adversely affect the performance by the Servicer of its
obligations under, or the validity or enforceability of, this Agreement, any
of the other Basic Documents or the Securities, or (iv) relating to the
Servicer and which might adversely affect the federal income tax attributes of
the Securities.

                                      27
<PAGE>

      (f) Fidelity Bond. The Servicer maintains a fidelity bond in such form
and amount as is customary for banks acting as custodian of funds and
documents in respect of retail automotive installment sales contracts.

      SECTION 6.2 Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement, and hereby agrees to the
following:

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

      (b) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Depositor and the Indenture Trustee from and against
any taxes that may at any time be asserted against any such Person with
respect to the transactions contemplated herein or in the other Basic
Documents, if any, including, without limitation, any sales, gross receipts,
general corporation, tangible personal property, privilege, or license taxes
(but, in the case of the Issuer, not including any taxes asserted with respect
to, and as of the date of, the conveyance of the Receivables to the Issuer or
the issuance and original sale of the Notes and the Certificates, or asserted
with respect to ownership of the Receivables, or federal or state income taxes
arising out of the transactions contemplated by this Agreement and the other
Basic Documents) and costs and expenses in defending against the same.

      (c) The Servicer shall indemnify, defend and hold harmless the Issuer,
the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholders and the Depositor from and against any and all costs,
expenses, losses, claims, damages, and liabilities to the extent that such
cost, expense, loss, claim, damage, or liability arose out of, or was imposed
upon any such Person through, the negligence, willful misfeasance, or bad
faith of the Servicer in the performance of its duties under this Agreement or
any other Basic Document to which it is a party, or by reason of reckless
disregard of its obligations and duties under this Agreement or any other
Basic Document to which it is a party.

      (d) The Servicer shall indemnify, defend, and hold harmless the Owner
Trustee and the Indenture Trustee, as applicable, 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
contained herein and in the other Basic Documents, if any, except to the
extent that such cost, expense, loss, claim, damage, or liability: (i) shall
be due to the willful misfeasance, bad faith, or negligence (except for errors
in judgment) of the Owner Trustee or the Indenture Trustee, as applicable;
(ii) in the case of the Owner Trustee, shall arise from the Owner Trustee's
breach of any of its representations or warranties set forth in Section 6.9 of
the Trust Agreement or, in the case of the Indenture Trustee, from the
Indenture Trustee's breach of any of its representations or warranties set
forth in the Indenture; or (iii) in the case of the Indenture Trustee, shall
arise out of or be incurred in connection with the performance by the
Indenture Trustee of the duties of a Successor Servicer hereunder.

                                      28
<PAGE>

      (e) Indemnification under this Section 6.2 by the Bank (or any successor
thereto pursuant to Section 7.2) as Servicer, with respect to the period such
Person was the Servicer, shall survive the termination of such Person as
Servicer or a resignation by such Person as Servicer as well as the
termination of this Agreement or the resignation or removal of the Owner
Trustee or the Indenture Trustee and shall include reasonable fees and
expenses of counsel and expenses of litigation. If the Servicer shall have
made any indemnity payments pursuant to this Section 6.2 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
Servicer, without interest.

      SECTION 6.3 Merger or Consolidation of, or Assumption of the Obligations
of Servicer. Any Person (i) into which the Servicer may be merged or
consolidated, (ii) resulting from any merger, conversion, or consolidation to
which the Servicer shall be a party, (iii) succeeding to the business of the
Servicer or (iv) 50% or more of the equity of which is owned, directly or
indirectly, by the United Services Automobile Association, which Person in any
of the foregoing cases executes an agreement of assumption to perform every
obligation of the Servicer under this Agreement, will be the successor to the
Servicer under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties to this Agreement. The
Servicer shall provide prior notice of the effective date of any merger,
conversion, consolidation or succession pursuant to this Section 6.3 to the
Rating Agencies, the Indenture Trustee and the Depositor. The Servicer shall
provide the Depositor in writing such information as reasonably requested by
the Depositor to comply with its Exchange Act reporting obligations with
respect to a successor Servicer.

      SECTION 6.4 Limitation on Liability of Servicer and Others. (a) Neither
the Servicer nor any of the directors or officers or employees or agents of
the Servicer shall be under any liability to the Issuer, the Noteholders or
the Certificateholders, 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 or bad faith in
the performance of duties or by reason of reckless disregard of obligations
and duties under this Agreement, or by reason of negligence in the performance
of its duties under this Agreement. The Servicer and any director, officer or
employee or agent of the Servicer may rely in good faith on any Opinion of
Counsel or on any Officer's Certificate of the Depositor or certificate of
auditors believed to be genuine and to have been signed by the proper party in
respect of 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 Receivables in accordance
with this Agreement, and that in its opinion may involve it in any expense or
liability; provided, however, that the Servicer may undertake any reasonable
action that it may deem necessary or desirable in respect of this Agreement
and the rights and duties of the parties to this Agreement and the interests
of the Noteholders and Certificateholders under this Agreement. In such event,
the legal expenses and costs of such action and any liability resulting
therefrom shall be expenses, costs and liabilities of the Issuer, and the
Servicer shall be entitled to be reimbursed therefor.  Any amounts due the
Servicer

                                      29
<PAGE>

pursuant to this subsection shall be payable on a Payment Date from the
Available Collections on deposit in the Collection Account only after all
payments required to be made on such date to the Noteholders, the
Certificateholders and the Servicer have been made, and deposits of any amount
required to be deposited into the Reserve Account pursuant to Section
4.6(c)(vi) to maintain the amount on deposit therein (exclusive of investment
income and earnings on amounts on deposit therein) at the Specified Reserve
Balance on such date have been made.

      (c) The Servicer and any director or officer or employee or agent of the
Servicer shall be indemnified by the Trust and held harmless against any loss,
liability, or expense including reasonable attorneys' fees and expenses
incurred in connection with any legal action relating to the performance of
the Servicer's duties under this Agreement, other than (i) any loss or
liability otherwise reimbursable pursuant to this Agreement; (ii) any loss,
liability, or expense incurred solely by reason of the Servicer's willful
misfeasance, negligence, or bad faith in the performance of its duties
hereunder or by reason of reckless disregard of its obligations and duties
under this Agreement; and (iii) any loss, liability, or expense for which the
Issuer is to be indemnified by the Servicer under this Agreement. Any amounts
due the Servicer pursuant to this subsection shall be payable on a Payment
Date from the Available Funds on deposit in the Collection Account only after
all payments required to be made on such date to the Noteholders, the
Certificateholders and the Servicer have been made, and deposits of any amount
required to be deposited into the Reserve Account pursuant to Section
4.6(c)(vi) to maintain the amount on deposit therein (exclusive of investment
income and earnings on amounts on deposit therein) at the Specified Reserve
Balance on such date have been made.

      SECTION 6.5 Delegation of Duties. The Servicer may at any time perform
specific duties as servicer under this Agreement through sub-contractors;
provided that 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 and the Servicer shall be solely
responsible for the fees of any such sub-contractors.

      SECTION 6.6 Servicer Not to Resign as Servicer. Subject to the
provisions of Section 6.3, the Servicer shall not resign from its obligations
and duties 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
the Servicer shall be communicated to the Owner Trustee, the Indenture Trustee
and the Depositor at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable
time) and any such determination shall be evidenced by an Opinion of Counsel
to such effect delivered to the Owner Trustee and the Indenture Trustee
concurrently with or promptly after such notice. No such resignation shall
become effective until the Indenture Trustee or a Successor Servicer shall
have (i) taken the actions required by Section 7.1(b), (ii) assumed the
responsibilities and obligations of the Servicer in accordance with Section
7.2 and (iii) provided in writing the information reasonably requested by the
Depositor to comply with its reporting obligations under the Exchange Act with
respect to a replacement Servicer.

      SECTION 6.7 Servicer May Own Notes or Certificates. The Servicer, and
any Affiliate of the Servicer, may, in its individual or any other capacity,
become the owner or

                                      30
<PAGE>

pledgee of Notes or Certificates with the same rights as it would have if it
were not the Servicer or an Affiliate thereof, except as otherwise expressly
provided herein or in the other Basic Documents. Except as set forth herein or
in the other Basic Documents, Notes and Certificates so owned by or pledged to
the Servicer or such Affiliate shall have an equal and proportionate benefit
under the provisions of this Agreement, without preference, priority or
distinction as among all of the Notes and Certificates.

                                 ARTICLE VII

                             SERVICING TERMINATION

      SECTION 7.1 Events of Servicing Termination. (a) If any one of the
following events ("Events of Servicing Termination") shall occur and be
continuing:

            (i) Any failure by the Servicer (or, so long as the Seller is the
      Servicer, the Seller) to deliver to the Owner Trustee or the Indenture
      Trustee any proceeds or payment required to be so delivered under the
      terms of the Notes and the Certificates and this Agreement that shall
      continue unremedied for a period of five (5) Business Days after written
      notice of such failure is received by the Servicer or the Seller, as the
      case may be, from the Owner Trustee or the Indenture Trustee or after
      discovery of such failure by an officer of the Servicer or the Seller,
      as the case may be; or

            (ii) Failure on the part of the Servicer (or, so long as the
      Seller is the Servicer, the Seller) duly to observe or to perform in any
      material respect any other covenants or agreements, as the case may be,
      set forth in the Notes, the Certificates or in this Agreement, which
      failure shall (A) materially and adversely affect the rights of
      Noteholders or Certificateholders and (B) continue unremedied for a
      period of ninety (90) days after the date on which written notice of
      such failure, requiring the same to be remedied, shall have been given
      (1) to the Servicer or the Seller, as the case may be, by the Owner
      Trustee or the Indenture Trustee, or (2) to the Owner Trustee, the
      Indenture Trustee, the Seller and the Servicer by the Noteholders of
      Notes evidencing not less than 25% of the principal amount of the
      Controlling Class or, if no Notes are outstanding, by Certificateholders
      of Certificates evidencing not less than 25% of the Percentage Interests
      evidenced by the Certificates; or

            (iii) So long as the Bank or another depository institution is not
      the Servicer, the entry of a decree or order by a court or agency or
      supervisory authority having jurisdiction in the premises for the
      appointment of a conservator, receiver, or liquidator for the Servicer
      in any insolvency, readjustment of debt, marshalling of assets and
      liabilities, or similar proceedings, or for the winding up or
      liquidation of its respective affairs, and the continuance of any such
      decree or order unstayed and in effect for a period of sixty (60)
      consecutive days; or

              (iv) So long as the Bank or another depository institution is
      not the Servicer, the consent by the Servicer to the appointment of a
      conservator or receiver or liquidator in any insolvency, readjustment
      of debt, marshalling of assets and liabilities, or similar proceedings
      of or relating to the Servicer of or relating to substantially all of
      its property;

                                      31
<PAGE>

         or the Servicer shall admit in writing its inability to pay its
         debts generally as they become due, file a petition to take
         advantage of any applicable insolvency or reorganization statute,
         make an assignment for the benefit of its creditors, or voluntary
         suspend payment of its obligations or become insolvent;

then the Indenture Trustee shall promptly notify each Rating Agency, and in
each and every case, so long as an Event of Servicing Termination shall not
have been remedied, either the Indenture Trustee or the holders of Notes
evidencing not less than a majority of the principal amount of the Controlling
Class Outstanding (or, if no Notes are Outstanding, Certificates evidencing
not less than a majority of the Percentage Interests evidenced by the
Certificates), by notice then given in writing to the Servicer (and to the
Indenture Trustee and the Owner Trustee if given by the Noteholders and to the
Owner Trustee if given by the Certificateholders) (with a copy to the Rating
Agencies) may terminate all of the rights and obligations of the Servicer
under this Agreement. On or after the receipt by the Servicer of such written
notice, all authority and power of the Servicer under this Agreement, whether
with respect to the Notes, the Certificates or the Trust Property or
otherwise, shall pass to and be vested in the Indenture Trustee or such
Successor Servicer as may be appointed under Section 7.2; and, without
limitation, the Indenture Trustee and the Owner Trustee are hereby authorized
and empowered to execute and deliver, on behalf of the predecessor Servicer,
as attorney-in-fact or otherwise, any and all documents and other instruments,
and to do or accomplish all other acts or things necessary or appropriate to
effect the purposes of such notice of termination, whether to complete the
transfer and endorsement of the Receivables and related documents, or
otherwise.

      (b) Upon termination of the Servicer under Section 7.1(a), the
predecessor Servicer shall cooperate with the Indenture Trustee, the Owner
Trustee and such Successor Servicer in effecting the termination of the
responsibilities and rights of the predecessor Servicer under this Agreement,
including the transfer to the Indenture Trustee or such Successor Servicer for
administration of all cash amounts that shall at the time be held by the
predecessor Servicer for deposit, or shall thereafter be received with respect
to a Receivable and the delivery of the Receivable Files and the related
accounts and records maintained by the Servicer. All reasonable costs and
expenses (including attorneys' fees) incurred in connection with transferring
the Receivable Files to the Successor Servicer and amending this Agreement to
reflect such succession as Servicer pursuant to this Section 7.1 shall be paid
by the predecessor Servicer upon presentation of reasonable documentation of
such costs and expenses.

      SECTION 7.2 Appointment of Successor Servicer. (a) Upon the Servicer's
receipt of notice of termination pursuant to Section 7.1 or the Servicer's
resignation in accordance with the terms of this Agreement, the predecessor
Servicer shall continue to perform its functions as Servicer under this
Agreement, in the case of termination, only until the date specified in such
termination notice or, if no such date is specified in a notice of
termination, until receipt of such notice and, in the case of resignation,
until the later of (x) the date 90 days from the delivery to the Indenture
Trustee and the Owner Trustee of written notice of such resignation (or
written confirmation of such notice) in accordance with the terms of this
Agreement and (y) the date upon which the predecessor Servicer shall become
unable to act as Servicer, as specified in the notice of resignation and
accompanying Opinion of Counsel. In the event of the Servicer's resignation or
termination hereunder, the Issuer shall appoint a Successor Servicer, and the

                                      32
<PAGE>

Successor Servicer shall accept its appointment by a written assumption in
form acceptable to the Owner Trustee and the Indenture Trustee (with a copy to
each Rating Agency) and shall provide the Depositor in writing with such
information as reasonably requested by the Depositor to comply with its
reporting obligations under the Exchange Act with respect to a replacement
servicer. In the event that a Successor Servicer has not been appointed at the
time when the predecessor Servicer has ceased to act as Servicer in accordance
with this Section 7.2, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer and the Indenture Trustee
shall be entitled to the Servicing Fee and shall provide the Depositor in
writing with such information as reasonably requested by the Depositor to
comply with its reporting obligations under the Exchange Act with respect to a
Master Servicer. The Indenture Trustee may resign as the Servicer by giving
written notice of such resignation to the Issuer and in such event shall be
released from such duties and obligations, such release not to be effective
until the date a Successor Servicer enters into a written assumption as
provided in this Section. Upon delivery of any such notice to the Issuer, the
Issuer shall obtain a new servicer as the Successor Servicer in accordance
with this Section. Notwithstanding the above, if the Indenture Trustee shall
be legally unable so to act or if, within 30 days after the delivery of its
notice of resignation, the Issuer shall not have obtained a Successor
Servicer, the Indenture Trustee shall appoint, or petition a court of
competent jurisdiction to appoint, any established institution, having a net
worth of not less than $100,000,000 and whose regular business shall include
the servicing of automotive receivables, as the successor to the Servicer
under this Agreement; provided that the Rating Agency Condition shall be
satisfied in connection with such appointment.

      (b) Upon appointment, the Successor Servicer shall be the successor in
all respects to the predecessor Servicer and shall be subject to all the
responsibilities, duties, and liabilities arising thereafter relating thereto
placed on the predecessor Servicer, by the terms and provisions of this
Agreement.

      (c) In connection with such appointment, subject to Section 3.7(e) of
the Indenture, the Indenture Trustee may make such arrangements for the
compensation of such Successor Servicer out of payments on Receivables as it
and such Successor Servicer shall agree; provided, however, that no such
compensation shall be in excess of that permitted the predecessor Servicer
under this Agreement. The Indenture Trustee and such Successor Servicer shall
take such action, consistent with this Agreement, as shall be necessary to
effectuate any such succession.

      SECTION 7.3 Repayment of Advances. If the identity of the Servicer shall
change, the predecessor Servicer shall be entitled to receive to the extent of
available funds reimbursement for Outstanding Advances pursuant to Section 4.3
and 4.4, in the manner specified in Section 4.6, with respect to all Advances
made by the predecessor Servicer.

      SECTION 7.4 Notification to Noteholders and Certificateholders. Upon any
termination of, or appointment of a successor to, the Servicer pursuant to
this Article VII, the Indenture Trustee shall give prompt written notice
thereof to Noteholders, and the Owner Trustee shall give prompt written notice
thereof to Certificateholders at their respective addresses of record and to
each Rating Agency.

                                      33
<PAGE>

      SECTION 7.5 Waiver of Past Events of Servicing Termination. The holders
of Notes evidencing not less than a majority of the principal amount of the
Controlling Class (or, if no Notes are Outstanding, holders of Certificates
evidencing not less than a majority of the Percentage Interests evidenced by
the Certificates) may, on behalf of all Noteholders and Certificateholders,
waive any Event of Servicing Termination hereunder and its consequences,
except an event resulting from the failure to make any required deposits to or
payments from any of the Trust Accounts or the Certificate Distribution
Account in accordance with this Agreement, which shall require the unanimous
vote of all Holders of Outstanding Securities. Upon any such waiver of a past
Event of Servicing Termination, such Event of Servicing Termination shall
cease to exist, and shall be deemed to have been remedied for every purpose of
this Agreement. No such waiver shall extend to any subsequent or other event
or impair any right consequent thereon. The Issuer shall provide written
notice of any such waiver to the Rating Agencies.

                                 ARTICLE VIII

                                  TERMINATION

      SECTION 8.1 Optional Purchase of All Receivables. As of the last day of
any Collection Period as of which the Pool Factor shall be equal to or less
than the Optional Purchase Percentage, the Servicer shall have the option to
purchase the Trust Property from the Trust. To exercise such option, the
Servicer shall deposit pursuant to Section 4.5 in the Collection Account an
amount equal to the lesser of (i) the aggregate Purchase Amount for the
Receivables and (ii) the fair market value of the Receivables, and shall
succeed to all interests in and to the Trust. Notwithstanding the foregoing,
the Servicer shall not be permitted to exercise such option unless the amount
to be deposited in the Collection Account pursuant to the preceding sentence
is greater than or equal to the sum of the outstanding principal amount of the
Notes and all accrued but unpaid interest (including any over due interest)
thereon. The amount deposited in the Collection Account pursuant to this
Section 8.1 shall be used on the next Payment Date to make payments in full to
Noteholders and Certificateholders in the manner set forth in Article IV. The
purchase of the Trust Property pursuant to this Section shall not be permitted
unless either (i) the Servicer's long-term unsecured debt is rated at the time
of such purchase at least Baa3 by Moody's or (ii) the Servicer provides to the
Indenture Trustee and the Owner Trustee an Opinion of Counsel in form
reasonably satisfactory to the Indenture Trustee and the Owner Trustee and in
form and substance satisfactory to Moody's to the effect that such purchase
will not constitute a fraudulent transfer of assets of the Servicer under
applicable state and federal law; provided that this sentence may be deleted
or modified with the consent of Moody's and without the consent of any
Securityholder, the Indenture Trustee or the Owner Trustee.

      SECTION 8.2 Succession Upon Satisfaction and Discharge of Indenture.
Following the satisfaction and discharge of the Indenture and the payment in
full of the principal of and interest on the Notes, to the extent permitted by
applicable law and until the payment of all amounts owing or to be distributed
hereunder to the Certificateholders, the Indenture Trustee will continue to
carry out its obligations hereunder as agent for the Owner Trustee, including
without limitation making distributions from the Collection Account in
accordance with Section 4.6, making withdrawals from the Reserve Account in
accordance with Section 4.5(b) and Section 4.7.

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<PAGE>

                                  ARTICLE IX

                           MISCELLANEOUS PROVISIONS

      SECTION 9.1 Amendment. (a) This Agreement may be amended by the
Depositor, the Servicer and the Issuer, with the consent of the Indenture
Trustee and the Owner Trustee to the extent that their respective rights or
obligations may be affected thereby (which consent may not be unreasonably
withheld), but without the consent of any of the Noteholders or the
Certificateholders, to cure any ambiguity, to correct or supplement any
provisions in this Agreement, or to add any provisions to or change or
eliminate any provisions or to modify the rights of the Noteholders or
Certificateholders; provided, however, that (i) such action shall not, as
evidenced by either an Opinion of Counsel or an Officer's Certificate
delivered to the Owner Trustee and the Indenture Trustee, materially and
adversely affect the interests of any Noteholder or Certificateholder and (ii)
the Rating Agency Condition shall be satisfied.

      (b) This Agreement may also be amended from time to time by the
Depositor, the Servicer and the Issuer, with the consent of the Indenture
Trustee and the Owner Trustee to the extent that their respective rights or
obligations may be affected thereby (which consent may not be unreasonably
withheld) and with the consent of (i) the Noteholders of Notes evidencing not
less than a majority of the principal amount of each Class of Notes and (ii)
the Certificateholders of Certificates evidencing not less than a majority of
the Percentage Interests evidenced by the Certificates (which consent of any
holder of a Note or holder of a Certificate given pursuant to this Section 9.1
or pursuant to any other provision of this Agreement shall be conclusive and
binding on such Note or Certificate, as the case may be, and on all future
holders of such Note or holders of such Certificate, as the case may be, and
of any Note or Certificate, as applicable, issued upon the transfer thereof or
in exchange thereof or in lieu thereof whether or not notation of such consent
is made upon such Note or the Certificate), 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 Certificateholders; provided, however, that no such amendment shall (A)
increase or reduce in any manner the amount of, or accelerate or delay the
timing of, or change the allocation or priority of, collections of payments on
Receivables or distributions that shall be required to be made on any Note or
Certificate or change any Note Interest Rate or the amount required to be on
deposit in the Reserve Account, without the consent of all Noteholders or
Certificateholders or (B) reduce the aforesaid percentage required to consent
to any such amendment, without the consent of the holders of all Notes and
holders of all Certificates. Notwithstanding the foregoing, the Depositor may
decrease the Specified Reserve Balance upon satisfaction of the Rating Agency
Condition without the consent of any other party hereto or any Noteholder or
Certificateholder.

      (c) Prior to the execution of any such amendment the Servicer will
provide written notification of the substance of such amendment to each Rating
Agency.

      (d) Promptly after the execution of any such amendment, the Servicer
shall furnish written notification of the substance of such amendment to each
Certificateholder, the Indenture Trustee and each Rating Agency and the
Indenture Trustee will provide notification of the substance of such amendment
to each Noteholder. It shall not be necessary for the consent of

                                      35
<PAGE>

Noteholders or the Certificateholders pursuant to this Section 9.1 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 any other consents of Noteholders and
Certificateholders provided for in this Agreement) and of evidencing the
authorization of the execution thereof by Noteholders and Certificateholders
shall be subject to such reasonable requirements as the Owner Trustee and the
Indenture Trustee may prescribe, including the establishment of record dates
pursuant to the Note Depository Agreement.

      (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 and the Opinion of Counsel referred
to in Section 9.2(i)(1). The Owner Trustee or the Indenture Trustee may, but
shall not be obligated to, enter into any such amendment which affects such
Owner Trustee's or Indenture Trustee's own rights, duties or immunities under
this Agreement or otherwise.

      SECTION 9.2 Protection of Title to Trust Property. (a) The Depositor and
the Seller shall file such financing statements and cause to be filed such
continuation statements, all in such manner and in such places as may be
required by law fully to preserve, maintain, and protect the interest of the
Issuer and the Indenture Trustee for the benefit of the Noteholders in the
Receivables and in the proceeds thereof. The Depositor or the Seller, as
applicable, 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) None of the Depositor, the Seller or 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 by the
Seller or the Depositor in accordance with paragraph (a) above seriously
misleading within the meaning of ss. 9-506 of the UCC, unless it shall have
given the Owner Trustee and the Indenture Trustee at least 10 days' prior
written notice thereof, with a copy to the Rating Agencies, and shall have
promptly filed appropriate amendments to all previously filed financing
statements or continuation statements.

      (c) The Depositor, the Seller and the Servicer shall give the Owner
Trustee and the Indenture Trustee at least ten (10) days' prior written notice
of any relocation of its principal executive office or change in the
jurisdiction under whose laws it is formed if, as a result of such relocation
or change, the applicable provisions of the UCC would require the filing of
any amendment of any previously filed financing or continuation statement or
of any new financing statement and shall promptly file any such amendment or
new financing statement. The Servicer shall at all times maintain each office
from which it shall service Receivables, and its principal executive office,
within the United States of America.

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

                                      37
<PAGE>

Receivable and the amounts from time to time deposited in the Collection
Account and the Reserve Account in respect of such Receivable.

      (e) The Servicer shall maintain its computer systems so that, from and
after the time of conveyance under this Agreement of the Receivables to the
Issuer, the Servicer's master computer records (including any back-up
archives) that refer to a Receivable shall indicate clearly, by numerical code
or otherwise, that such Receivable is owned by the Issuer and has been pledged
to the Indenture Trustee pursuant to the Indenture. Indication of the Issuer's
and the Indenture Trustee's interest in a Receivable shall not be deleted from
or modified on the Servicer's computer systems until, and only until, the
Receivable shall have been paid in full or repurchased.

      (f) If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in, or otherwise transfer any interest in automotive
receivables to any prospective purchaser, lender, or other transferee, the
Servicer shall give to such prospective purchaser, lender, or other transferee
computer tapes, records, or print-outs (including any restored from back-up
archives) that, if they shall refer in any manner whatsoever to any
Receivable, shall indicate clearly that such Receivable has been conveyed to
and is owned by the Issuer and has been pledged to the Indenture Trustee.

      (g) The Servicer, upon receipt of reasonable prior notice, shall permit
the Owner Trustee, the Indenture Trustee and their respective agents at any
time during normal business hours to inspect, audit, and make copies of and to
obtain abstracts from the Servicer's records regarding any Receivable. "

      (h) Upon request, the Servicer shall furnish to the Owner Trustee and
the Indenture Trustee, within five (5) Business Days, a list of all
Receivables (by contract number and name of Obligor) then owned by the Issuer,
together with a reconciliation of such list to the Schedule of Receivables and
to each of the Servicer's Certificates furnished before such request
indicating removal of Receivables from the Trust.

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

            (1) promptly after the execution and delivery of this Agreement
      and of each amendment thereto, an Opinion of Counsel either (A) stating
      that, in the opinion of such Counsel and subject to customary
      qualifications and assumptions, all financing statements and
      continuation statements have been filed that are necessary fully to
      preserve and protect the interest of the Issuer and the Indenture
      Trustee in the Receivables, and reciting the details of such filings or
      referring to prior Opinions of Counsel in which such details are given,
      or (B) stating that, in the opinion of such Counsel, no such action
      shall be necessary to preserve and protect such interest; and

            (2) within 120 days after the beginning of each calendar year
      beginning with the first calendar year beginning more than three months
      after the Cut-off Date, an Opinion of Counsel, dated as of a date during
      such 120-day period, either (A) stating that, in the opinion of such
      counsel and subject to customary qualifications and assumptions, all
      financing statements and continuation statements have been filed that
      are necessary fully

                                      37
<PAGE>

      to preserve and protect the interest of the Issuer and the Indenture
      Trustee in the Receivables, and reciting the details of such filings or
      referring to prior Opinions of Counsel in which such details are given,
      or (B) stating that, in the opinion of such Counsel, no such action
      shall be necessary to preserve and protect such interest.

      Each Opinion of Counsel referred to in clause (i)(1) or (i)(2) above
shall specify any action necessary (as of the date of such opinion) to be
taken in the following year to preserve and protect such interest.

      (j) For the purpose of facilitating the execution of this Agreement and
for other purposes, this Agreement may be executed in any number of
counterparts, each of which counterparts shall be deemed to be an original,
and all of which counterparts shall constitute but one and the same
instrument.

      SECTION 9.3 GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS
CONFLICTS OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES
HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

      SECTION 9.4 Notices. All demands, notices, and communications under this
Agreement shall be in writing, personally delivered, sent by telecopier, over
night courier or mailed by certified mail, return receipt requested, and shall
be deemed to have been duly given upon receipt (a) in the case of the Seller
or the Servicer, at 10750 McDermott Freeway, San Antonio, Texas 78288,
Attention: Mike Broker, Vice President, or at such other address as shall be
designated by the Seller or the Servicer in a written notice to the Owner
Trustee and the Indenture Trustee, (b) in the case of the Depositor, at 9830
Colonnade Blvd., Suite 600, San Antonio, Texas 78230, Attention: Vice
President, Legal Counsel, (c) in the case of the Owner Trustee, at the
Corporate Trust Office of the Owner Trustee, Attention: Rita M. Ritrovato, (d)
in the case of the Indenture Trustee, at the Corporate Trust Office of the
Indenture Trustee, (e) in the case of Moody's Investors Service, Inc., at the
following address: Moody's Investors Service, Inc., ABS Monitoring Department,
99 Church Street, New York, New York 10007, and (f) in the case of Standard &
Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc., at the
following address: Standard & Poor's Rating Services, a division of The
McGraw-Hill Companies, Inc., 55 Water Street, 40th Floor, New York, New York
10041, Attention: Asset Backed Surveillance Department. Any notice required or
permitted to be mailed to a Noteholder or Certificateholder shall be given by
first class mail, postage prepaid, at the address of such Person as shown in
the Note Register or the Certificate Register, as applicable. Any notice so
mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given, whether or not the Noteholder or
Certificateholder shall receive such notice.

      SECTION 9.5 Severability of Provisions. If any 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

                                      38
<PAGE>

affect the validity or enforceability of the other provisions of this
Agreement or of the Notes, the Certificates or the rights of the holders
thereof.

      SECTION 9.6 Assignment. Notwithstanding anything to the contrary
contained herein, except as provided in Sections 6.3 and 7.2 and as provided
in the provisions of this Agreement concerning the resignation of the
Servicer, this Agreement may not be assigned by the Depositor or the Servicer
unless (i)(A) the Rating Agency Condition is satisfied and (B) the Indenture
Trustee and the Owner Trustee have consented thereto, which consent shall not
be unreasonably withheld or (ii) the Owner Trustee, the Indenture Trustee, the
Noteholders of Notes evidencing not less than 66 2/3% of the principal amount
of the Notes Outstanding and the Certificateholders of Certificates evidencing
not less than 66 2/3% of the Percentage Interests evidenced by the
Certificates consent thereto. Any transfer or assignment with respect to the
Servicer of all its rights, obligations and duties will not become effective
until a successor Servicer has assumed the Servicer's rights, duties and
obligations under this Agreement. In the event of a transfer or assignment
pursuant to clause (ii) above, the Rating Agencies shall be provided with
notice of such transfer or assignment.

      SECTION 9.7 Further Assurances. The Depositor and the Servicer agree to
do and perform, from time to time, any and all acts and to execute any and all
further instruments required or reasonably requested by the Owner Trustee or
the Indenture Trustee more fully to effect the purposes of this Agreement.

      SECTION 9.8 No Waiver; Cumulative Remedies. No failure to exercise and
no delay in exercising, on the part of the Owner Trustee, the Indenture
Trustee, the Noteholders or the Certificateholders, any right, remedy, power
or privilege hereunder, shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege. The rights, remedies, powers and privileges
therein provided are cumulative and not exhaustive of any rights, remedies,
powers and privileges provided by law.

      SECTION 9.9 Third-Party Beneficiaries. This Agreement will inure to the
benefit of and be binding upon the parties hereto, the Indenture Trustee and
the Owner Trustee and their respective successors and permitted assigns and
each of the Indenture Trustee and the Owner Trustee may enforce the provisions
hereof as if they were parties thereto. Except as otherwise provided in this
Article IX, no other Person will have any right or obligation hereunder. The
parties hereto hereby acknowledge and consent to the pledge of this Agreement
by the Issuer to the Indenture Trustee for the benefit of the Noteholders
pursuant to the Indenture.

      SECTION 9.10 Actions by Noteholders or Certificateholders. (a) Wherever
in this Agreement a provision is made that an action may be taken or a notice,
demand, or instruction given by Noteholders or Certificateholders, such
action, notice, or instruction may be taken or given by any Noteholder or
Certificateholder, as applicable, unless such provision requires a specific
percentage of Noteholders or Certificateholders.

      (b) Any request, demand, authorization, direction, notice, consent,
waiver, or other act by a Noteholder or Certificateholder shall bind such
Noteholder or Certificateholder and every subsequent holder of such Note or
Certificate issued upon the registration of transfer

                                      39
<PAGE>

thereof or in exchange therefor or in lieu thereof in respect of anything done
or omitted to be done by the Owner Trustee, the Indenture Trustee or the
Servicer in reliance thereon, whether or not notation of such action is made
upon such Note or Certificate.

      SECTION 9.11 Limitation of Liability of Owner Trustee and Indenture
Trustee. (a) Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by U.S. Bank Trust National Association not
in its individual capacity but solely in its capacity as Owner Trustee of the
Issuer and in no event shall U.S. Bank Trust National Association, in its
individual capacity or, except as expressly provided in the Trust Agreement,
as Owner Trustee of the Issuer 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. For all purposes of this Agreement, in the performance of its duties
or obligations hereunder or in the performance of any duties or obligations of
the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to
the benefits of, the terms and provisions of Articles VI and VII of the Trust
Agreement.

      (b) Notwithstanding anything contained herein to the contrary, this
Agreement has been accepted by JPMorgan Chase Bank, National Association, not
in its individual capacity but solely as Indenture Trustee, and in no event
shall JPMorgan Chase Bank, 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. For all purposes of this Agreement, in the
performance of its duties or obligations hereunder or in the performance of
any duties or obligations of the Issuer hereunder, the Indenture Trustee shall
be subject to, and entitled to the benefits of, the terms and provisions of
Article VI of the Indenture.

      SECTION 9.12 Savings Clause. It is the intention of the Depositor and
the Issuer that the transfer of the Trust Property contemplated herein
constitute an absolute transfer of the Trust Property, conveying good title to
the Trust Property from the Depositor to the Issuer. However, in the event
that such transfer is deemed to be a pledge or other transfer for security,
the Depositor hereby grants to the Issuer a first priority security interest
in all of the Depositor's right, title and interest in, to and under the Trust
Property, and all proceeds thereof, to secure a loan in an amount equal to all
amounts payable under the Notes and the Certificates, and in such event, this
Agreement shall constitute a security agreement under applicable law.

                                  ARTICLE X
                            EXCHANGE ACT REPORTING

      SECTION 10.1 Further Assurances. The Indenture Trustee, the Owner
Trustee and the Servicer shall reasonably cooperate with the Depositor in
connection with the satisfaction of the Depositor's reporting requirements
under the Exchange Act with respect to the Trust. The Depositor shall not
exercise its right to request delivery of information or other performance
under these provisions other than in good faith. In addition to the
information specified below, if so requested by the Depositor for the purpose
of satisfying its reporting obligation under the Exchange Act, the Indenture
Trustee, the Owner Trustee and the Servicer shall provide the

                                      40
<PAGE>

Depositor with (a) such information which is available to such Person without
unreasonable effort or expense and within such timeframe as may be reasonably
requested by the Depositor to comply with the Depositor's reporting
obligations under the Exchange Act and (b) to the extent such Person is a
party (and the Depositor is not a party) to any agreement or amendment
required to be filed, copies of such agreement or amendment in
EDGAR-compatible form. Each of the Servicer, the Indenture Trustee and the
Owner Trustee acknowledges that interpretations of the requirements of
Regulation AB may change over time, whether due to interpretive guidance
provided by the Commission or its staff, consensus among participants in the
asset-backed securities markets, advice of counsel, or otherwise, and agrees
to comply with requests made by the Depositor in good faith for delivery of
information under these provisions on the basis of evolving interpretations of
Regulation AB.

      SECTION 10.2 Form 10-D Filings. So long as the Depositor is required to
file Exchange Act Reports with respect to the Issuer, no later than each
Payment Date, each of the Indenture Trustee, the Owner Trustee and the
Servicer shall notify (and the Servicer shall cause any Subservicer to notify)
the Depositor of any Form 10-D Disclosure Item with respect to such Person,
together with a description of any such Form 10-D Disclosure Item in form and
substance reasonably acceptable to the Depositor. In addition to such
information as the Servicer is obligated to provide pursuant to other
provisions of this Agreement, if so requested by the Depositor, the Servicer
shall provide such information which is available to the Servicer, without
unreasonable effort or expense regarding the performance or servicing of the
Receivables as is reasonably required to facilitate preparation of
distribution reports in accordance with Item 1121 of Regulation AB. Such
information shall be provided concurrently with the Statements to Noteholders
pursuant to Section 4.9, commencing with the first such report due not less
than five Business Days following such request.

      SECTION 10.3 Form 8-K Filings. So long as the Depositor is required to
file Exchange Act Reports with respect to the Issuer, each of the Indenture
Trustee, the Owner Trustee and the Servicer shall promptly notify the
Depositor, but in no event later than one (1) Business Day after its
occurrence, of any Reportable Event (in the case of the Owner Trustee, only an
event in clause (d) of the definition of "Reportable Event") of which such
Person (or in the case of the Owner Trustee and the Indenture Trustee, a
Responsible Officer of such Person) has actual knowledge. Each Person shall be
deemed to have actual knowledge of any such event to the extent that it
relates to such Person or any action or failure to act by such Person.

      SECTION 10.4 Form 10-K Filings. So long as the Depositor is required to
file Exchange Act Reports: (i) if the Item 1119 Parties listed on Appendix B
have changed since the Closing Date, no later than March 1 of each year, the
Depositor shall provide each of the Indenture Trustee, the Owner Trustee and
the Servicer with an updated Appendix B setting forth the Item 1119 Parties
and (ii) no later than March 15 of each year, commencing in 2007, the
Indenture Trustee, the Owner Trustee and the Servicer shall notify the
Depositor of any Form 10-K Disclosure Item, together with a description of any
such Form 10-K Disclosure Item in form and substance reasonably acceptable to
the Depositor.

                                      41
<PAGE>

      SECTION 10.5 Report on Assessment of Compliance and Attestation. So long
as the Depositor is required to file Exchange Act Reports, on or before March
15 of each calendar year, commencing in 2007:

      (a) The Indenture Trustee shall deliver to the Depositor and the
Servicer a report of the Indenture Trustee's assessment of compliance with the
Servicing Criteria during the immediately preceding calendar year, as set
forth under Rules 13a-18 and 15d-18 of the Exchange Act (or any successor
provisions) and Item 1122 of Regulation AB. Such report shall be signed by an
authorized officer of the Indenture Trustee and shall at a minimum address
each of the Servicing Criteria specified on a certification substantially in
the form of Appendix C hereto delivered to the Depositor concurrently with the
execution of this Agreement (provided that such certification may be revised
after the date of this Agreement as agreed by the Depositor and the Indenture
Trustee to reflect any guidance with respect to such criteria from the
Commission). To the extent any of the Servicing Criteria are not applicable to
the Indenture Trustee, with respect to asset-backed securities transactions
taken as a whole involving the Indenture Trustee and that are backed by the
same asset type backing the Notes, such report shall include such a statement
to that effect. The Indenture Trustee acknowledges and agrees that the
Depositor and the Servicer with respect to its duties as the Certifying
Person, and each of their respective officers and directors shall be entitled
to rely on upon each such servicing criteria assessment and the attestation
delivered pursuant to Section 10.5(b) below.

      (b) The Indenture Trustee shall deliver to the Depositor and the
Servicer a report of a registered public accounting firm that attests to, and
reports on, the assessment of compliance made by the Indenture Trustee and
delivered pursuant to the preceding paragraph. Such attestation shall be in
accordance with Rules 13a-18 and 15d-18 of the Exchange Act (or any successor
provisions), Rules 1-02(a)(3) and 2-02(g) of Regulation S-X (or any successor
provisions) under the Securities Act and the Exchange Act, including, without
limitation that in the event that an overall opinion cannot be expressed, such
registered public accounting firm shall state in such report why it was unable
to express such an opinion. Such report must be available for general use and
not contain restricted use language.

      (c) The Indenture Trustee shall cause each Reporting Subcontractor to
deliver to the Depositor and the Servicer an assessment of compliance and
accountant's attestation as and when provided in paragraphs (a) and (b) of
this Section. An assessment of compliance provided by a Subcontractor need not
address any elements of the Servicing Criteria other than those specified by
the Indenture Trustee pursuant to Section 10.5(a).

      (d) In the event the Indenture Trustee or Reporting Subcontractor is
terminated or resigns during the term of this Agreement, such Person shall
provide the documents and information pursuant to this Section 10.5 with
respect to the period of time it was subject to this Agreement or provided
services with respect to the Trust or the Receivables.

      SECTION 10.6 Back-up Sarbanes-Oxley Certification. No later than March
15 of each year, beginning in 2007, the Indenture Trustee and the Servicer
shall provide to the Person who signs the Sarbanes-Oxley Certification (the
"Certifying Person") a certification (each, a "Performance Certification") and
shall cause each Reporting Subcontractor, in the form attached

                                      43
<PAGE>

hereto as Appendix D (in the case of the Indenture Trustee or a Reporting
Subcontractor) and as Appendix E (in the case of the Servicer) on which the
Certifying Person, the entity for which the Certifying Person acts as an
officer, and such entity's officers, directors and Affiliates (collectively
with the Certifying Person, "Certification Parties") can reasonably rely. The
Depositor will not request delivery of a certification under this clause
unless the Depositor is required under the Exchange Act to file an annual
report on Form 10-K with respect to the Trust. So long as the Servicer is an
Affiliate of the Depositor, the Servicer may, but is not required to deliver
the Performance Certificate. In the event that prior to the filing date of the
Form 10-K in March of each year, the Indenture Trustee or the Servicer has
actual knowledge of information material to the Sarbanes-Oxley Certification,
the Indenture Trustee or the Servicer shall promptly notify the Depositor.
Each of the Indenture Trustee and the Servicer agrees to cooperate with all
reasonable requests made by any Certifying Person or Certification Party in
connection with such Person's attempt to conduct any due diligence that such
Person reasonably believes to be appropriate in order to allow it to deliver
any Sarbanes-Oxley Certification or portion thereof with respect to the Trust.

      SECTION 10.7 Use of Subcontractors.

      (a) It shall not be necessary for the Indenture Trustee or the Servicer
to seek the consent of the Depositor or any other party hereto to the
utilization of any Subcontractor. Each of the Indenture Trustee and the
Servicer shall promptly upon request provide to the Depositor (or any designee
of the Depositor, such as the Servicer or the Administrator) a written
description (in form and substance satisfactory to the Depositor) of the role
and function of each Subcontractor utilized by such Person, specifying (i) the
identity of each such Subcontractor, (ii) which (if any) of such
Subcontractors are "participating in the servicing function" within the
meaning of Item 1122 of Regulation AB and (iii) which elements of the
Servicing Criteria will be addressed in assessments of compliance provided by
each Subcontractor identified pursuant to clause (ii) of this paragraph. As a
condition to the utilization of any Subcontractor determined to be a Reporting
Subcontractor, the Indenture Trustee shall cause any such Subcontractor for
the benefit of the Depositor to comply with the provisions of Sections 10.5
and 10.6 of this Agreement to the same extent as if such Subcontractor were
the Indenture Trustee. The Indenture Trustee shall be responsible for
obtaining from each Subcontractor and delivering to the Depositor, any
assessment of compliance and attestation required to be delivered by such
Subcontractor under Section 10.5 and Section 10.6, in each case as and when
required to be delivered.

      (b) As a condition to the utilization of any Subcontractor determined to
be a Reporting Subcontractor, the Servicer shall cause any such Subcontractor
for the benefit of the Depositor to comply with the provisions of Section
3.10(a)(ii), Section 3.11 and Section 10.6 of this Agreement to the same
extent as if such Subcontractor were the Servicer. The Servicer shall be
responsible for obtaining from each Subcontractor and delivering to the
Depositor, any assessment of compliance and attestation required to be
delivered by such Subcontractor under this Agreement, in each case as and when
required to be delivered.

      SECTION 10.8 Representations and Warranties. Each of the Indenture
Trustee and the Owner Trustee represents that (i) there are no affiliations,
relating to such Person with respect to

                                      44
<PAGE>

any 1119 Party, (ii) there are no relationships or transactions with respect
to any 1119 Party and such Person that are outside the ordinary course of
business or on terms other than would be obtained in an arm's length
transaction with an unrelated third party, apart from the transactions
contemplated under the Basic Documents, and that are material to the
investors' understanding of the Notes and (iii) there are no legal proceedings
pending, or known to be contemplated by governmental authorities, against such
Person, or of which the property of such Person is subject, that is material
to the Noteholders.

      SECTION 10.9 Indemnification.

      (a) Each of the Indenture Trustee and the Servicer shall indemnify the
Depositor, each affiliate of the Depositor, the Servicer with respect to its
duties as Certifying Person or each Person who controls any of such parties
(within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act) and the respective present and former directors, officers,
employees and agents of each of the foregoing, and shall hold each of them
harmless from and against any losses, damages, penalties, fines, forfeitures,
legal fees and expenses and related costs, judgments, and any other costs,
fees and expenses that any of them may sustain arising out of or based upon:

      (i) (A) any untrue statement of a material fact contained or alleged to
be contained in (x) with respect to the Indenture Trustee, the servicing
criteria assessment provided under this Article X and (y) with respect to the
Servicer, Section 3.10 and Section 3.11 of this Agreement by or on behalf of
such Person (with respect to each such party, the "Provided Information"), or
(B) the omission or alleged omission to state in the Provided Information a
material fact required to be stated in the Provided Information, or necessary
in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided, by way of clarification,
that clause (B) of this paragraph shall be construed solely by reference to
the related Provided Information and not to any other information communicated
in connection with a sale or purchase of securities, without regard to whether
the Provided Information or any portion thereof is presented together with or
separately from such other information; or

      (ii) with respect to the Indenture Trustee, any failure by the Indenture
Trustee to deliver any servicing criteria assessment when and as required
under this Article X and with respect to the Servicer, any failure by the
Servicer to deliver any information, report, certification, accountant's
letter or other material when and as required under Section 3.10, Section 3.11
or Article X, as applicable.

      (b) In the case of any failure of performance described in clause (ii)
of this Section, each of the Indenture Trustee and the Servicer shall promptly
reimburse the Depositor for all costs reasonably incurred by each such party
in order to obtain the information, report, certification, accountants' letter
or other material not delivered as required by the Indenture Trustee or the
Servicer, as applicable.

      (c) Each of the Indenture Trustee and the Servicer shall require that
any Reporting Subcontractor agree to the provisions of paragraphs (a) and (b)
of this Section 10.9, or shall be responsible for all such indemnification,
costs or expenses if the Reporting Subcontractor will not agree to such
provisions.

                                      44
<PAGE>

      (d) Notwithstanding anything to the contrary contained herein, in no
event shall the Indenture Trustee be liable for special, indirect or
consequential damages of any kind whatsoever, including but not limited to
lost profits, even if the Indenture Trustee has been advised of the likelihood
of such loss or damage and regardless of the form of action.

      SECTION 10.10 Amendments. In the event the parties to this Agreement
desire to further clarify or amend any provision of this Article X, this
Agreement shall be amended to reflect the new agreement between the parties
covering matters in this Article X pursuant to Section 9.01, provided such
amendment will not require any Opinion of Counsel or satisfaction of the
Rating Agency Condition or the consent of any Noteholder or Certificateholder.

                                      45
<PAGE>

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

                          USAA AUTO OWNER TRUST 2006-1,
                          as Issuer

                          By:  U.S. BANK TRUST NATIONAL ASSOCIATION,
                               not in its individual capacity but solely as
                               Owner Trustee

                               By: /s/ Barbara A. Nastro
                                   --------------------------------------------
                               Name:  Barbara A. Nastro
                               Title: Vice President

                         USAA FEDERAL SAVINGS BANK,
                         as Seller and Servicer

                          By: /s/ Fritz D. Bohne
                              -------------------------------------------------
                              Name: Fritz D. Bohne
                              Title: Vice President, Senior Financial Officer
                                     and Treasurer

                          USAA ACCEPTANCE, LLC,
                          as Depositor

                          By: /s/ Edwin T. McQuiston
                              -------------------------------------------------
                          Name:   Edwin T. McQuiston
                          Title:  Vice President

                         Sale and Servicing Agreement

<PAGE>

Accepted and agreed:

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

By:  /s/ Aranka R. Paul
    ----------------------------------------------------------
     Name:  Aranka R. Paul
     Title: Assistant Vice President

U.S. BANK TRUST NATIONAL ASSOCIATION,
     not in its individual capacity but
     solely as Owner Trustee

By: /s/ Barbara A. Nastro
    ----------------------------------------------------------
     Name:  Barbara A. Nastro
     Title: Vice President

                         Sale and Servicing Agreement

<PAGE>

                                  SCHEDULE A

                            SCHEDULE OF RECEIVABLES

                     [On File with the Indenture Trustee]

                                     A-1
<PAGE>
                                 SCHEDULE B-1

                         Location of Receivable Files

c/o USAA Federal Savings Bank
10750 McDermott Freeway
San Antonio, TX 78288

                                     B-1
<PAGE>
                                 SCHEDULE B-2

                         Location of Lien Certificates

FDI Consulting, Inc.
1610 Arden Way, Suite 145
Sacramento, CA 95815

                                     B-2
<PAGE>
                                  Appendix A

                             DEFINITIONS AND USAGE

      The following rules of construction and usage shall be applicable to any
agreement or instrument that is governed by this Appendix:

      (a) All terms defined in this Appendix shall have the defined meanings
when used in any agreement or instrument governed hereby and in any
certificate or other document made or delivered pursuant thereto unless
otherwise defined therein.

      (b) As used herein, in any agreement or instrument governed hereby and
in any certificate or other document made or delivered pursuant thereto,
accounting terms not defined in this Appendix or in any such agreement,
instrument, certificate or other document, and accounting terms partly defined
in this Appendix or in any such agreement, instrument, certificate or other
document, to the extent not defined, shall have the respective meanings given
to them under generally accepted accounting principles as in effect on the
date of such agreement or instrument. To the extent that the definitions of
accounting terms in this Appendix or in any such agreement, instrument,
certificate or other document are inconsistent with the meanings of such terms
under generally accepted accounting principles, the definitions contained in
this Appendix or in any such instrument, certificate or other document shall
control.

      The words "hereof," "herein," "hereunder" and words of similar import
when used in an agreement or instrument refer to such agreement or instrument
as a whole and not to any particular provision or subdivision thereof;
references in an agreement or instrument to "Article," "Section" or another
subdivision or to an attachment are, unless the context otherwise requires, to
an article, section or subdivision of or an attachment to such agreement or
instrument; and the term "including" and its variations shall be deemed to be
followed by "without limitation."

      The definitions contained in this Appendix are equally applicable to
both the singular and plural forms of such terms and to the masculine as well
as to the feminine and neuter genders of such terms.

      Any agreement, instrument or statute defined or referred to below or in
any agreement or instrument that is governed by this Appendix means such
agreement or instrument or statute as from time to time amended, modified or
supplemented, including (in the case of agreements or instruments) by waiver
or consent and (in the case of statutes) by succession of comparable successor
statutes and includes (in the case of agreements or instruments) references to
all attachments thereto and instruments incorporated therein. References to a
Person are also to its permitted successors and assigns.

                                  Definitions

      "Accrued Class A Note Interest" shall mean, with respect to any Payment
Date, the sum of the Class A Noteholders' Monthly Accrued Interest for such
Payment Date and the Class A Noteholders' Interest Carryover Shortfall for
such Payment Date.

                                 Appendix A-1
<PAGE>

      "Accrued Class B Note Interest" shall mean, with respect to any Payment
Date, the sum of the Class B Noteholders' Monthly Accrued Interest for such
Payment Date and the Class B Noteholders' Interest Carryover Shortfall for
such Payment Date.

      "Act" shall have the meaning specified in Section 11.3(a) of the
Indenture.

      "Administration Agreement" shall mean the Administration Agreement,
dated as of February 22, 2006, by and among the Administrator, the Issuer and
the Indenture Trustee.

      "Administrator" shall mean the Bank, in its capacity as administrator
under the Administration Agreement, or any successor Administrator thereunder.

      "Advance" shall mean the amount of interest, as of a Determination Date,
which the Servicer is required to advance on the Receivables pursuant to
Section 4.4(a) of the Sale and Servicing Agreement.

      "Affiliate" shall mean, with respect to any specified Person, any other
Person controlling or controlled by or under common control with such
specified Person. For the purposes of this definition, "control" when used
with respect to any Person shall mean 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"
and "controlled" shall have meanings correlative to the foregoing.

      "Amount Financed" shall mean, with respect to a Receivable, the amount
advanced under the Receivable toward the purchase price of the Financed
Vehicle and any related costs.

      "Annual Percentage Rate" or "APR" of a Receivable shall mean the annual
rate of finance charges stated in the Receivable.

      "Applicable Tax State" shall mean, as of any date of determination, each
State as to which any of the following is then applicable: (a) a State in
which the Owner Trustee maintains its Corporate Trust Office and (b) the State
of Texas.

      "Authenticating Agent" shall have the meaning specified in Section 2.14
of the Indenture or 3.14 of the Trust Agreement, as applicable.

      "Authorized Officer" shall mean, (i) with respect to the Issuer, any
officer within the Corporate Trust Office of the Owner Trustee, including any
vice president, assistant vice president, secretary, assistant secretary or
any other officer of the Owner Trustee customarily performing functions
similar to those performed by any of the above designated officers and, for so
long as the Administration Agreement is in full force and effect, any officer
of the Administrator who is authorized to act for the Administrator in matters
relating to the Issuer and to be acted upon by the Administrator pursuant to
the Administration Agreement; and (ii) with respect to the Indenture Trustee
or the Owner Trustee, any officer within the Corporate Trust Office of the
Indenture Trustee or the Owner Trustee, as the case may be, including any vice
president, assistant vice president, secretary, assistant secretary or any
other officer of the Indenture Trustee or the Owner Trustee, as the case may
be, customarily performing functions similar to those performed by any of the
above designated officers and also, with respect to a

                                 Appendix A-2
<PAGE>

particular matter, any other officer to whom such matter is referred because
of such officer's knowledge of and familiarity with the particular subject, in
each case having direct responsibility for the administration of the Indenture
or the Trust Agreement, as applicable, and shall also mean, with respect to
the Owner Trustee, any officer of the Administrator.

      "Available Collections" shall mean, for any Payment Date, the sum of the
following amounts with respect to the Collection Period preceding such Payment
Date: (i) all payments collected with respect to Receivables; (ii) all
Liquidation Proceeds attributable to Receivables which were designated as
Defaulted Receivables in prior Collection Periods in accordance with the
Servicer's customary servicing procedures; (iii) all Advances made by the
Servicer of interest due on the Receivables; (iv) the Purchase Amount received
with respect to each Receivable that became a Purchased Receivable during such
Collection Period; and (v) partial prepayments of any refunded item included
in the principal balance of a Receivable, such as extended warranty protection
plan costs, or physical damage, credit life, disability insurance premiums, or
any partial prepayment which causes a reduction in the Obligor's periodic
payment to an amount below the Scheduled Payment as of the Cut-off Date;
provided however, that in calculating the Available Collections the following
will be excluded: (i) amounts received on any Receivable to the extent that
the Servicer has previously made an unreimbursed Advance on such Receivable
and the amount received exceeds the accrued and unpaid interest on such
Receivable that has not been advanced; (ii) amounts received on any of the
Receivables to the extent that the Servicer has previously made an
unreimbursed Advance on a Receivable which is not recoverable from collections
on the particular Receivable; (iii) all payments and proceeds (including
Liquidation Proceeds) of any Receivables the Purchase Amount of which has been
included in Available Funds in a prior Collection Period; (iv) Liquidation
Proceeds with respect to a Receivable attributable to accrued and unpaid
interest thereon (but not including interest for the then current Collection
Period) but only to the extent of any unreimbursed Advances; and (v) amounts
constituting the Supplemental Servicing Fee.

      "Available Funds" shall mean, for any Payment Date, the sum of the
Available Collections for such Payment Date and the Reserve Account Excess
Amount for such Payment Date.

      "Bank" shall mean USAA Federal Savings Bank, a federally chartered
savings association.

      "Bankruptcy Code" shall mean the United States Bankruptcy Code, 11
U.S.C. 101 et seq., as amended.

      "Basic Documents" shall mean the Certificate of Trust, the Trust
Agreement, the Sale and Servicing Agreement, the Receivables Purchase
Agreement, the Indenture, the Administration Agreement, the Underwriting
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection therewith.

      "Benefit Plan" or "Benefit Plan Investor" shall mean (a) an "employee
benefit plan" (as defined in Section 3(3) of ERISA), whether or not subject to
the provisions of Title I of ERISA, (b) any "plan" described in Section
4975(e)(1) of the Code, and (c) any entity whose underlying assets included
plan assets by reason of a plan's investment in the entity.

                                 Appendix A-3
<PAGE>

      "Book-Entry Note" shall mean a beneficial interest in any of the Class
A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and
the Class B Notes, in each case issued in book-entry form.

      "Business Day" shall mean any day other than a Saturday, a Sunday or a
day on which banking institutions or trust companies in the State of New York,
the State of Delaware or the State of Texas are authorized by law, regulation
or executive order to be closed.

      "Certificate Distribution Account" shall mean the account established
and maintained as such pursuant to Section 4.1(c) of the Sale and Servicing
Agreement.

      "Certificateholder" or "holder of a Certificate" shall mean a Person in
whose name a Certificate is registered in the Certificate Register.

      "Certificate of Trust" shall mean the Certificate of Trust in the form
of Exhibit B to the Trust Agreement filed for the Trust pursuant to Section
3810(a) of the Statutory Trust Statute.

      "Certificate Paying Agent" shall mean any paying agent or co-paying
agent appointed pursuant to Section 3.9 of the Trust Agreement and shall
initially be the Owner Trustee.

      "Certificate Register" and "Certificate Registrar" shall have the
respective meanings specified in Section 3.4 of the Trust Agreement.

      "Certificates" shall mean the asset backed Certificates evidencing the
beneficial interest of a Certificateholder in the property of the Trust,
substantially in the form of Exhibit A to the Trust Agreement; provided,
however, that the Owner Trust Estate has been pledged to the Indenture Trustee
to secure payment of the Notes and the rights of the Certificateholders to
receive distributions on the Certificates are subordinated to the rights of
the Noteholders as described in the Sale and Servicing Agreement, the
Indenture and the Trust Agreement.

      "Certification Party" shall have the meaning set forth in Section 10.6
of the Sale and Servicing Agreement.

      "Certifying Person" shall have the meaning set forth in Section 10.6 of
the Sale and Servicing Agreement.

      "Class" shall mean a class of Notes, which may be the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes or the Class B
Notes.

      "Class A Noteholder" shall mean any holder of a Class A Note.

      "Class A Noteholders' Interest Carryover Shortfall" shall mean, for any
Payment Date, the excess of the Accrued Class A Note Interest for the
preceding Payment Date over the amount in respect of interest that is actually
paid to Noteholders of Class A Notes on such preceding Payment Date, plus
interest on the amount of interest due but not paid to Noteholders of Class A
Notes on the preceding Payment Date, to the extent permitted by law, at the
respective Note Interest Rates borne by such Class A Notes for the related
Interest Period.

                                 Appendix A-4
<PAGE>

      "Class A Noteholders' Monthly Accrued Interest" shall mean, with respect
to any Payment Date, the aggregate interest accrued for the related Interest
Period on the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes at the respective Note Interest Rate for such Class in
accordance with its terms on the outstanding principal amount of the Notes of
each such Class on the immediately preceding Payment Date or the Closing Date,
as the case may be, after giving effect to all payments of principal to the
holders of the Notes of such Class on or prior to such preceding Payment Date.

      "Class A Notes" shall mean, collectively, the Class A-1 Notes, the Class
A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

      "Class A-1 Final Scheduled Payment Date" shall mean the March 2007
Payment Date.

      "Class A-1 Noteholder" shall mean the Person in whose name a Class A-1
Note is registered on the Note Register.

      "Class A-1 Notes" shall mean the $217,000,000 aggregate initial
principal amount Class A-1 4.7552% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-1 to the
Indenture.

      "Class A-1 Rate" shall mean 4.7552% per annum. Interest with respect to
the Class A-1 Notes shall be computed on the basis of actual days elapsed in
the applicable Interest Period divided by 360 for all purposes of the Basic
Documents.

      "Class A-2 Final Scheduled Payment Date" shall mean the November 2008
Payment Date.

      "Class A-2 Noteholder" shall mean the Person in whose name a Class A-2
Note is registered on the Note Register.

      "Class A-2 Notes" shall mean the $320,000,000 aggregate initial
principal amount Class A-2 5.03% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-2 to the
Indenture.

      "Class A-2 Rate" shall mean 5.03% per annum. Interest with respect to
the Class A-2 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

      "Class A-3 Final Scheduled Payment Date" shall mean the September 2010
Payment Date.

      "Class A-3 Noteholder" shall mean the Person in whose name a Class A-3
Note is registered on the Note Register.

      "Class A-3 Notes" shall mean the $433,000,000 aggregate initial
principal amount Class A-3 5.01% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-3 to the
Indenture.

                                 Appendix A-5
<PAGE>

      "Class A-3 Rate" shall mean 5.01% per annum. Interest with respect to
the Class A-3 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

      "Class A-4 Final Scheduled Payment Date" shall mean the December 2011
Payment Date.

      "Class A-4 Noteholder" shall mean the Person in whose name a Class A-4
Note is registered on the Note Register.

      "Class A-4 Notes" shall mean the $206,400,000 aggregate initial
principal amount Class A-4 5.04% Asset Backed Notes issued by the Trust
pursuant to the Indenture, substantially in the form of Exhibit A-4 to the
Indenture.

      "Class A-4 Rate" shall mean 5.04% per annum. Interest with respect to
the Class A-4 Notes shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of the Basic Documents.

      "Class B Final Scheduled Payment Date" shall mean the October 2012
Payment Date.

      "Class B Noteholder" shall mean the Person in whose name a Class B Note
is registered on the Note Register.

      "Class B Noteholders' Interest Carryover Shortfall" shall mean, for any
Payment Date, the excess of the Accrued Class B Note Interest for the
preceding Payment Date over the amount in respect of interest that is actually
paid to Noteholders of Class B Notes on such preceding Payment Date, plus
interest on the amount of interest due but not paid to the Noteholders of
Class B Notes on the preceding Payment Date, to the extent permitted by law,
at the Class B Rate borne for the related Interest Period.

      "Class B Noteholders' Monthly Accrued Interest" shall mean, with respect
to any Payment Date, the aggregate interest accrued for the related Interest
Period on the Class B Notes at the Class B Rate for such Class in accordance
with its terms on the outstanding principal amount of the Class B Notes on the
immediately preceding Payment Date or the Closing Date, as the case may be,
after giving effect to all payments of principal to the holders of the Class B
Notes on or prior to such preceding Payment Date.

      "Class B Notes" shall mean the $39,517,324 aggregate initial principal
amount Class B 5.53% Asset Backed Notes issued by the Trust pursuant to the
Indenture, substantially in the form of Exhibit B to the Indenture.

      "Class B Rate" shall mean 5.53% per annum. Interest with respect to the
Class B Notes shall be computed on the basis of a 360-day year consisting of
twelve 30-day months for all purposes of the Basic Documents.

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

                                 Appendix A-6
<PAGE>

      "Clearing Agency Participant" shall mean a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with
the Clearing Agency.

      "Closing Date" shall mean February 22, 2006.

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

      "Collateral" shall have the meaning specified in the Granting Clause of
the Indenture.

      "Collection Account" shall mean the account or accounts established and
maintained as such pursuant to Section 4.1(a) of the Sale and Servicing
Agreement.

      "Collection Period" shall mean, with respect to the first Payment Date,
the period from and including the Cut-off Date to and including February 28,
2006 and, with respect to each subsequent Payment Date, the calendar month
preceding the calendar month in which the Payment Date occurs.

      "Collections" shall mean all amounts collected by the Servicer (from
whatever source) on or with respect to the Receivables.

      "Commission" shall mean the Securities and Exchange Commission.

      "Computer Tape" shall mean the computer tape generated by the Seller
which provides information relating to the Receivables and which was used by
the Seller in selecting the Receivables conveyed to the Trust hereunder.

      "Controlling Class" shall mean the Class A Notes voting together as a
single class until they are paid in full; thereafter the Class B Notes will be
the controlling class.

      "Controlling Person" shall mean a Person, other than a Benefit Plan
Investor, that has discretionary authority or control with respect to the
assets of the Trust or who provides investment advice for a direct or indirect
fee with respect to those assets, or any affiliate of such a Person.

      "Corporate Trust Office" shall mean, (i) with respect to the Owner
Trustee, the principal corporate trust office of the Owner Trustee located at
300 Delaware Avenue, 9th Floor, Wilmington, Delaware 19801 or at such other
address as the Owner Trustee may designate from time to time by notice to the
Certificateholders and the Depositor, or the principal corporate trust office
of any successor Owner Trustee (the address of which the successor Owner
Trustee will notify the Certificateholders and the Depositor); and (ii) with
respect to the Indenture Trustee, the principal corporate trust office of the
Indenture Trustee located at 4 New York Plaza, 6th Floor, New York, New York
10004, Attention: Worldwide Securities Services/Structured Finance
Services--USAA 2006-1 or at such other address as the Indenture Trustee may
designate from time to time by notice to the Noteholders and the Issuer, or
the principal corporate trust office of any successor Indenture Trustee (the
address of which the successor Indenture Trustee will notify the Noteholders
and the Issuer).

                                 Appendix A-7
<PAGE>

      "Cut-off Date" shall mean February 1, 2006.

      "Default" shall mean any occurrence that is, or with notice or the lapse
of time or both would become, an Event of Default.

      "Defaulted Receivable" shall mean a Receivable (i) that the Servicer
determines is unlikely to be paid in full or (ii) with respect to which at
least 5% of a Scheduled Payment is 120 or more days delinquent as of the end
of a calendar month.

      "Definitive Certificates" shall have the meaning specified in Section
3.13 of the Trust Agreement.

      "Definitive Notes" shall have the meaning specified in Section 2.11 of
the Indenture.

      "Depositor" shall mean USAA Acceptance, LLC, a Delaware limited
liability company.

      "Determination Date" shall mean, with respect to any Collection Period,
the second Business Day immediately preceding the Payment Date following such
Collection Period.

      "EDGAR" shall mean the Commission's Electronic Data Gathering, Analysis
and Retrieval system.

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

      "Eligible Institution" shall mean either (i) the corporate trust
department of the Indenture Trustee or the Owner Trustee, as applicable; or
(ii) a depository institution organized under the laws of the U.S. or any one
of the states thereof or the District of Columbia (or any domestic branch of a
foreign bank), (1) which has either (A) a long-term unsecured debt rating of
at least "AA-" by Standard & Poor's and "Baa3" by Moody's or (B) a short-term
unsecured debt rating or certificate of deposit rating of "A-1+" by Standard &
Poor' and "Prime-1" by Moody's and (2) whose deposits are insured by the FDIC.

      "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended.

      "Event of Default" shall have the meaning specified in Section 5.1 of
the Indenture.

      "Event of Servicing Termination" shall mean an event specified in
Section 7.1 of the Sale and Servicing Agreement.

      "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

                                 Appendix A-8
<PAGE>

      "Exchange Act Reports" shall mean any reports on Form 10-D, Form 8-K and
Form 10-K required to be filed by the Depositor with respect to the Trust
under the Exchange Act.

      "Executive Officer" shall mean, with respect to any corporation or
depository institution, the Chief Executive Officer, Chief Operating Officer,
Chief Financial Officer, President, Executive Vice President, any Vice
President, the Secretary or the Treasurer of such corporation and, with
respect to any partnership, any general partner thereof.

      "FDIC" shall mean the Federal Deposit Insurance Corporation.

      "Final Scheduled Payment Date" shall mean, with respect to (i) the Class
A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) the Class A-2
Notes, the Class A-2 Final Scheduled Payment Date, (iii) the Class A-3 Notes,
the Class A-3 Final Scheduled Payment Date, (iv) the Class A-4 Notes, the
Class A-4 Final Scheduled Payment Date, and (v) the Class B Notes, the Class B
Final Scheduled Payment Date.

      "Financed Vehicle" shall mean a new or used automobile or light-duty
truck, together with all accessions thereto, securing an Obligor's
indebtedness under the respective Receivable.

      "First Priority Principal Payment" shall mean, for each Payment Date, a
payment of principal equal to the excess, if any, of the aggregate principal
amount of the Class A Notes (before giving effect to any payments on that
Payment Date) over the Pool Balance at the end of the related Collection
Period.

      "Form 10-D Disclosure Item" shall mean with respect to any Person, any
litigation or governmental proceedings pending against such Person, or any of
the Trust, the Depositor, the Indenture Trustee, the Owner Trustee or the
Servicer if such Person or in the case of the Owner Trustee or Indenture
Trustee, a Responsible Officer of such Person, has actual knowledge thereof,
in each case that would be material to the noteholders.

      "Form 10-K Disclosure Item" shall mean with respect to any Person, (a)
any Form 10-D Disclosure Item and (b) any affiliations or relationships
between such Person and any Item 1119 Party to the extent a Responsible
Officer of such Person (in the case of the Indenture Trustee and the Owner
Trustee) has actual knowledge thereof.

      "Grant" shall mean to mortgage, pledge, bargain, sell, warrant,
alienate, remise, release, convey, assign, transfer, create, and to grant a
lien upon and a security interest in and right of set-off against, and to
deposit, set over and confirm pursuant to the Indenture. A Grant of the
Collateral or of any other agreement or instrument shall include all rights,
powers and options (but none of the obligations) of the granting party
thereunder, including the immediate and continuing right to claim for,
collect, receive and give receipt for principal and interest payments in
respect of the Collateral and all other monies payable thereunder, to give and
receive notices and other communications, to make waivers or other agreements,
to exercise all rights and options, to bring Proceedings in the name of the
granting party or otherwise, and generally to do and receive anything that the
granting party is or may be entitled to do or receive thereunder or with
respect thereto.

                                 Appendix A-9
<PAGE>

      "Indemnified Parties" shall have the meaning assigned to such term in
Section 7.2 of the Trust Agreement.

      "Indenture" shall mean the Indenture, dated as of February 22, 2006, by
and between the Trust and the Indenture Trustee, as supplemented from time to
time.

      "Indenture Trust Estate" shall mean all money, instruments, rights and
other property that are subject or intended to be subject to the lien and
security interest of Indenture for the benefit of the Noteholders (including,
without limitation, all property and interests Granted to the Indenture
Trustee), including all proceeds thereof.

      "Indenture Trustee" shall mean JPMorgan Chase Bank, National
Association, a banking association organized under the laws of the United
States, not in its individual capacity but solely as Indenture Trustee under
the Indenture, or any successor Indenture Trustee under the Indenture.

      "Independent" shall mean, when used with respect to any specified
Person, that such Person (a) is in fact independent of the Issuer, any other
obligor on the Notes, the Seller and any Affiliate of any of the foregoing
Persons, (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, any such other obligor, the Seller
or any Affiliate of any of the foregoing Persons and (c) is not connected with
the Issuer, any such other obligor, the Seller or any Affiliate of any of the
foregoing Persons as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions.

      "Independent Certificate" shall mean a certificate or opinion to be
delivered to the Indenture Trustee under the circumstances described in, and
otherwise complying with, the applicable requirements of Section 11.1 of the
Indenture, made by an Independent appraiser, firm of certified public
accountants or other expert appointed by an Issuer Order and approved by the
Indenture Trustee in the exercise of reasonable care, and such opinion or
certificate shall state that the signer has read the definition of
"Independent" in the Indenture and that the signer is Independent within the
meaning thereof.

      "Initial Pool Balance" shall mean $1,215,917,324.39.

      "Insolvency Event" shall mean, with respect to any Person, (i) the
making of a general assignment for the benefit of creditors, (ii) the filing
of a voluntary petition in bankruptcy, (iii) being adjudged a bankrupt or
insolvent, or having had entered against such Person an order for relief in
any bankruptcy or insolvency proceeding, (iv) the filing by such Person of a
petition or answer seeking reorganization, arrangement, composition,
readjustment, liquidation, dissolution or similar relief under any statute,
law or regulation, (v) the filing by such Person of an answer or other
pleading admitting or failing to contest the material allegations of a
petition filed against such Person in any proceeding specified in (vii) below,
(vi) seeking, consent to or acquiescing in the appointment of a trustee,
receiver or liquidator of such Person or of all or any substantial part of the
assets of such Person or (vii) the failure to obtain dismissal within 60 days
of the commencement of any proceeding against such Person seeking
reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under any statute, law or

                                 Appendix A-10
<PAGE>

regulation, or the entry of any order appointing a trustee, liquidator or
receiver of such Person or of such Person's assets or any substantial portion
thereof.

      "Interest Period" shall mean, with respect to any Payment Date (i) with
respect to the Class A-1 Notes, from and including the Closing Date (in the
case of the first Payment Date) or from and including the most recent Payment
Date on which interest has been paid to but excluding the following Payment
Date and (ii) with respect to each Class of Notes (other than the Class A-1
Notes) and the Certificates, from and including the Closing Date (in the case
of the first Payment Date) or from and including the 15th day of the calendar
month preceding each Payment Date to but excluding the 15th day of the
calendar month of such Payment Date.

      "IRS" shall mean the Internal Revenue Service.

      "Issuer" shall mean the Trust unless a successor replaces it and,
thereafter, shall mean the successor.

      "Issuer Order" and "Issuer Request" shall mean a written order or
request signed in the name of the Issuer by any one of its Authorized Officers
and delivered to the Indenture Trustee.

      "Item 1119 Party" shall mean the Depositor, the Seller, the Servicer,
the Indenture Trustee, the Owner Trustee and any other material transaction
party, as identified in Appendix C to the Sale and Servicing Agreement.

      "Investment Letter" shall have the meaning specified in Section 3.4(b)
of the Trust Agreement

      "Lien" shall mean a security interest, lien, charge, pledge, equity, or
encumbrance of any kind other than, in respect of a Receivable, tax liens,
mechanics' liens, and any liens which attach to the respective Receivable by
operation of law.

      "Lien Certificate" shall mean the notice or other document referenced in
clause (iii) of the description of the Receivable Files.

      "Liquidation Proceeds" shall mean with respect to any Receivable (a)
insurance proceeds received by the Servicer and (b) monies collected by the
Servicer on a Defaulted Receivable from whatever source, including but not
limited to proceeds of Financed Vehicles after repossession, net of any
payments required by law to be remitted to the Obligor and net of all
reasonable expenses incurred by the Servicer in converting to cash the
Financed Vehicle securing such Defaulted Receivable.

      "Monthly Remittance Condition" shall mean either (a) the Servicer
obtains a short-term certificate of deposit rating of the Servicer from
Standard & Poor's and Moody's of "A-1+" and "Prime-1," respectively, or (b)
the Servicer provides the Indenture Trustee with a letter from each Rating
Agency to the effect that the current ratings assigned to the Securities by
such Rating Agency will not be adversely affected by the remittance of
Collections on a monthly, rather than a daily, basis.

      "Moody's" shall mean Moody's Investors Service, Inc.

                                 Appendix A-11
<PAGE>

      "Note Depository Agreement" shall mean the Letter of Representations,
dated as of February 21, 2006 by and between the Issuer and The Depository
Trust Company regarding the Notes and Certificates.

      "Note Interest Rate" shall mean the Class A-1 Rate, the Class A-2 Rate,
the Class A-3 Rate, the Class A-4 Rate or the Class B Rate, as applicable.

      "Note Owner" shall mean, with respect to any Book-Entry Note, the Person
who is the beneficial owner of such Book-Entry Note, as reflected on the books
of the Clearing Agency or on the books of a Person maintaining an account with
such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such
Clearing Agency).

      "Note Paying Agent" shall mean the Indenture Trustee or any other Person
that meets the eligibility standards for the Indenture Trustee specified in
Section 6.11 of the Indenture and is authorized by the Issuer to make payments
to and distributions from the Collection Account (including the Principal
Distribution Account), including payment of principal of or interest on the
Notes on behalf of the Issuer.

      "Note Pool Factor" shall mean, with respect to each Class of Notes as of
the close of business on the last day of a Collection Period, a seven-digit
decimal figure calculated by the Servicer and equal to the outstanding
principal balance of such Class of Notes (after giving effect to any
reductions thereof to be made on the immediately following Payment Date)
divided by the original outstanding principal balance of such Class of Notes.
The Note Pool Factor will be 1.0000000 as of the Closing Date; thereafter, the
Note Pool Factor will decline to reflect reductions in the outstanding
principal amount of such Class of Notes.

      "Note Register" and "Note Registrar" shall have the respective meanings
specified in Section 2.5 of the Indenture.

      "Noteholder" or "holder of a Note" shall mean the Person in whose name a
Note is registered on the Note Register.

      "Notes" shall mean the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes and the Class B Notes, collectively.

      "Obligor" on a Receivable shall mean the purchaser or co-purchasers of
the Financed Vehicle or any other Person who owes payments under the
Receivable.

      "Officer's Certificate" shall mean (i) with respect to the Trust, a
certificate signed by any Authorized Officer of the Trust and (ii) with
respect to the Depositor, the Seller or the Servicer, a certificate signed by
the chairman of the board, the president, any executive or senior vice
president, any vice president, the treasurer or the controller of the
Depositor or the Servicer, as applicable.

      "Opinion of Counsel" shall mean a written opinion of counsel which
counsel shall be acceptable to the Indenture Trustee, the Owner Trustee or the
Rating Agencies, as applicable.

                                 Appendix A-12
<PAGE>

      "Optional Purchase Percentage" shall mean 10%.

      "Outstanding" shall mean with respect to the Securities, as of the date
of determination, all Securities theretofore authenticated and delivered under
the Indenture or the Trust Agreement, as applicable, except:

                           (a) Securities theretofore (i) cancelled by the
                  Note Registrar or the Certificate Registrar, as applicable,
                  or (ii) delivered to the Note Registrar or the Certificate
                  Registrar, as applicable, for cancellation;

                           (b) Securities or portions thereof the payment for
                  which money in the necessary amount has been theretofore
                  deposited with (i)in the case of the Notes, the Indenture
                  Trustee or any Note Paying Agent in trust for the
                  Noteholders of such Notes (provided, however, that if such
                  Notes are to be prepaid, notice of such prepayment has been
                  duly given pursuant to the Indenture or provision for such
                  notice has been made, satisfactory to the Indenture Trustee)
                  or (ii) in the case of the Certificates, the Owner Trustee
                  or any Certificate Paying Agent in trust for the
                  Certificateholders of such Certificates (provided, however,
                  that if such Certificates are to be prepaid, notice of such
                  prepayment has been duly given pursuant to the Trust
                  Agreement or provision for such notice has been made,
                  satisfactory to the Owner Trustee); and

                           (c) Securities in exchange for or in lieu of which
                  other Securities have been authenticated and delivered
                  pursuant to the Indenture or the Trust Agreement, as
                  applicable, unless proof satisfactory to the Indenture
                  Trustee or the Owner Trustee, as applicable, is presented
                  that any such Securities are held by a protected purchaser;

provided, that in determining whether the holders of Notes or Certificates
evidencing the requisite principal amount of the Notes Outstanding or
Certificates Outstanding have given any request, demand, authorization,
direction, notice, consent, or waiver under any Basic Document, Securities
owned by the Issuer, any other obligor upon the Securities, the Depositor, the
Seller, the Servicer or any Affiliate of any of the foregoing Persons shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee or Owner Trustee, as applicable, shall be
protected in relying on any such request, demand, authorization, direction,
notice, consent, or waiver, only (i) Notes that a Responsible Officer of the
Indenture Trustee knows to be so owned and (ii) Certificates that a
Responsible Officer of the Owner Trustee knows to be so owned, shall be so
disregarded; provided, however, if the Issuer, any other obligor upon the
Securities, the Depositor, the Seller, the Servicer or any Affiliate of any of
the foregoing Persons owns an entire Class of Securities, such Securities
shall be deemed to be Outstanding. Notes owned by the Issuer, any other
obligor upon the Notes, the Depositor, the Seller, the Servicer or any
Affiliate of any of the foregoing Persons that have been pledged in good faith
may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Indenture Trustee the pledgee's right so to act with respect to such
Notes and that the pledgee is not the Issuer, any other obligor upon the
Notes, the Depositor, the Seller, the Servicer or any Affiliate of any of the
foregoing Persons. Certificates owned by the Issuer, any other obligor upon
the Certificates, the Seller, the Servicer or any Affiliate of any of the
foregoing Persons that

                                 Appendix A-13
<PAGE>

have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Owner Trustee the pledgee's right so to
act with respect to such Certificates and that the pledgee is not the Issuer,
any other obligor upon the Certificates, the Depositor, the Seller, the
Servicer or any Affiliate of any of the foregoing Persons.

      "Outstanding Advances" on the Receivables shall mean the sum, as of the
close of business on the last day of a Collection Period, of all Advances as
reduced as provided in Section 4.4(a) of the Sale and Servicing Agreement.

      "Owner Trustee" shall mean U.S. Bank Trust National Association, a
national banking association, not in its individual capacity but solely as
Owner Trustee under the Trust Agreement, or any successor Owner Trustee under
the Trust Agreement.

      "Owner Trust Estate" shall mean all right, title and interest of the
Trust in, to and under the property and rights assigned to the Trust pursuant
to Article II of the Sale and Servicing Agreement.

      "Payment Date" shall mean the fifteenth (15th) day of each calendar
month or, if such day is not a Business Day, the next succeeding Business Day.

      "Percentage Interest" shall mean, as to any Certificate, the percentage
interest, specified on the face thereof, in the distributions on the
Certificates pursuant to the Trust Agreement.

      "Permitted Investments" shall mean, on any date of determination,
book-entry securities, negotiable instruments or securities represented by
instruments in bearer or registered form with maturities not exceeding the
Business Day preceding the next Payment Date which evidence:

                           (a) direct non-callable 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 thereof (or any domestic branch of a foreign
                  bank) and subject to supervision and examination by federal
                  or State banking or depository institution authorities;
                  provided, however, that at the time of the investment or
                  contractual commitment to invest therein, the commercial
                  paper or other short-term 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 each
                  of the Rating Agencies 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 each of the Rating Agencies in the highest
                  investment category granted thereby;

                           (d) investments in money market funds having a
                  rating from each of the Rating Agencies in the highest
                  investment category granted thereby (including

                                 Appendix A-14
<PAGE>

                  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)
                  above;

                           (f) repurchase obligations with respect to any
                  security that is a direct non-callable obligation of, or
                  fully guaranteed 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); and

                           (g) any other investment with respect to which the
                  Issuer or the Servicer has received written notification
                  from the Rating Agencies that the acquisition of such
                  investment as a Permitted Investment will not result in a
                  withdrawal or downgrading of the ratings on the Notes or the
                  Certificates.

      "Person" shall mean any individual, corporation, limited liability
company, estate, partnership, joint venture, association, joint stock company,
trust, unincorporated organization, or government or any agency or political
subdivision thereof.

      "Plan" means an employee benefit plan (as defined in Section 3(3) of
ERISA) that is subject to Title I of ERISA, a plan (as defined in Section
4975(e)(1) of the Code) and any entity whose underlying assets include plan
assets by reason of a plan's investment in the entity or otherwise.

      "Pool Balance" shall mean on any date of determination, the aggregate
outstanding Principal Balance of the Receivables (exclusive of Purchased
Receivables and Defaulted Receivables) as of such date of determination.

      "Pool Factor" as of the last day of a Collection Period shall mean a
seven-digit decimal figure equal to the Pool Balance at that time divided by
the Initial Pool Balance.

      "Predecessor Note" shall mean, with respect to any particular Note,
every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note and, for purposes of this definition, any
Note authenticated and delivered under Section 2.6 of the Indenture in lieu of
a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated, lost, destroyed or stolen Note.

      "Preliminary Prospectus Supplement" shall have the meaning specified in
the Underwriting Agreement.

      "Prepayment Date" shall mean with respect to a prepayment of the Notes
pursuant to Section 10.1(a) of the Indenture, the Payment Date specified by
the Servicer pursuant to Section 10.1(a) or (b) of the Indenture, as
applicable.

                                 Appendix A-15
<PAGE>

      "Prepayment Price" shall mean in the case of a Class of Notes to be
prepaid, an amount equal to the unpaid principal amount of such Class of Notes
plus accrued and unpaid interest thereon at the applicable Note Interest Rate
plus interest on any overdue interest at the applicable Note Interest Rate (to
the extent lawful) to but excluding the Prepayment Date.

      "Principal Balance" of a Receivable, as of any date of determination,
shall mean the Amount Financed minus that portion of all payments actually
received on or prior to such date allocable to principal.

      "Principal Distribution Account" shall mean the administrative
sub-account of the Collection Account established and maintained as such
pursuant to Section 4.1(b) of the Sale and Servicing Agreement.

      "Proceeding" shall mean any suit in equity, action at law or other
judicial or administrative proceeding.

      "Prospectus" shall have the meaning specified in the Underwriting
Agreement.

      "Prospectus Supplement" shall have the meaning specified in the
Underwriting Agreement.

      "Purchase Amount" with respect to a Purchased Receivable shall mean the
sum, as of the last day of the related Collection Period, of the Principal
Balance thereof plus the accrued interest thereon at the weighted average of
the Note Interest Rates and the Class B Rate through the end of the related
Collection Period.

      "Purchased Receivable" shall mean a Receivable purchased as of the close
of business on the last day of the respective Collection Period by the
Servicer pursuant to Section 3.7 of the Sale and Servicing Agreement, by the
Seller pursuant to Section 2.3 of the Sale and Servicing Agreement or by the
Servicer pursuant to Section 8.1 of the Sale and Servicing Agreement.

      "Rating Agency" shall mean each of the nationally recognized statistical
rating organizations designated by the Depositor to provide a rating on the
Notes or the Certificates which is then rating such Notes or Certificates. If
no such organization or successor is any longer in existence, "Rating Agency"
shall be a nationally recognized statistical rating organization or other
comparable Person designated by the Depositor, notice of which designation
shall be given to the Indenture Trustee, the Owner Trustee and the Servicer.

      "Rating Agency Condition" shall mean, with respect to any action, that
each of the Rating Agencies shall have notified the Servicer, the Depositor,
the Owner Trustee and the Indenture Trustee in writing that such action will
not result in a reduction or withdrawal of the then current ratings of the
Notes or the Certificates.

      "Receivable" shall mean a motor vehicle installment loan contract listed
on Schedule A to the Receivables Purchase Agreement and all proceeds thereof
and payments thereunder, which Receivable shall not have been released by the
Indenture Trustee and the Owner Trustee from the Trust.

                                 Appendix A-16
<PAGE>

      "Receivable Files" shall mean the documents specified in Section 2.4 of
the Sale and Servicing Agreement.

      "Receivables Purchase Agreement" shall mean the Receivables Purchase
Agreement, dated as of February 1, 2006, by and between the Bank, as seller,
and the Depositor, as purchaser.

      "Record Date" shall mean, with respect to any Payment Date or Prepayment
Date and any Book-Entry Security, the close of business on the day prior to
such Payment Date or Prepayment Date or, with respect to any Definitive Note
or Definitive Certificate, the last day of the month preceding the month in
which such Payment Date or Prepayment Date occurs.

      "Recoveries" shall mean, with respect to any Collection Period, all
amounts received by the Servicer with respect to any Defaulted Receivable
during any Collection Period following the Collection Period in which such
Receivable became a Defaulted Receivable, net of any fees, costs and expenses
incurred by the Servicer in connection with the collection of such Receivable
and any payments required by law to be remitted to the Obligor.

      "Registered Noteholder" shall mean the Person in whose name a Note is
registered on the Note Register on the applicable Record Date.

      "Registration Statement" shall mean Registration Statement No.
333-122759 filed by the Depositor with the Securities and Exchange Commission
as of the applicable effective date as to each part of the Registration
Statement pursuant to Rule 430B(f)(2).

      "Regular Principal Distribution Amount" shall mean, with respect to any
Payment Date, an amount equal to the excess, if any, of (a) the sum of the
aggregate principal amount of the Notes for such Payment Date (before giving
effect to any payments on that Payment Date) over (b) the Pool Balance at the
end of the related Collection Period.

      "Regulation AB" shall mean subpart 229.1100 - Asset Backed Securities
(Regulation AB), 17 C.F.R. ss.ss.229.1100-229.1123, as such may be amended
from time to time, and subject to such clarification and interpretation as
have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531
(Jan. 7, 2005)) or by the staff of the Commission, or as may be provided by
the Commission or its staff from time to time.

      "Related Agreements" shall have the meaning specified in the recitals to
the Administration Agreement.

      "Reportable Event" shall mean any event required to be reported on Form
8-K, and in any event, the following:

      (a) entry into a definitive agreement related to the Trust, the Notes or
      the Receivables, or an amendment to a Basic Document, even if the
      Depositor is not a party to such agreement (e.g., a servicing agreement
      with a servicer contemplated by Item 1108(a)(3) of Regulation AB);

                                 Appendix A-17
<PAGE>

      (b) termination of a Basic Document (other than by expiration of the
      agreement on its stated termination date or as a result of all parties
      completing their obligations under such agreement), even if the
      Depositor is not a party to such agreement (e.g., a servicing agreement
      with a servicer contemplated by Item 1108(a)(3) of Regulation AB);

      (c) with respect to the Servicer only, the occurrence of a Servicing
      Termination Event or an Event of Default;

      (d) the resignation, removal, replacement, substitution of the Indenture
      Trustee, the Owner Trustee or any Co-Trustee;

      (e) with respect to the Indenture Trustee only, a required distribution
      to holders of the Notes is not made as of the required Payment Date
      under the Indenture; and

      (f) with respect to the Servicer only, if the Servicer becomes aware of
      any bankruptcy or receivership of the Seller, the Depositor, the
      Indenture Trustee, the Owner Trustee, any enhancement or support
      provider contemplated by Item 1114(b) or 1115 of Regulation AB, or other
      material party contemplated by Item 1101(d)(1) of Regulation AB.

      "Reporting Subcontractor" shall mean with respect to the Indenture
Trustee, any Subcontractor determined by such Person pursuant to Section 10.7
to be "participating in the servicing function" within the meaning of Item
1122 of Regulation AB. References to a Reporting Subcontractor shall refer
only to the Subcontractor of such Person and shall not refer to Subcontractors
generally.

      "Representatives" shall mean Barclays Capital Inc. and Citigroup Global
Markets Inc., as representatives of the several Underwriters.

      "Repurchase Event" shall have the meaning specified in Section 7.02 of
the Receivables Purchase Agreement.

      "Required Rating" shall mean a rating on (i) short-term unsecured debt
obligations of "Prime-1" by Moody's and (ii) short-term unsecured debt
obligations of "A-1+" by Standard & Poor's; and any requirement that
short-term unsecured debt obligations have the "Required Rating" shall mean
that such short-term unsecured debt obligations have the foregoing required
ratings from each of such Rating Agencies.

      "Reserve Account" shall mean the account established and maintained as
such pursuant to Section 4.7(a) of the Sale and Servicing Agreement.

      "Reserve Account Property" shall have the meaning specified in Section
4.7(a) of the Sale and Servicing Agreement.

      "Reserve Account Excess Amount" shall mean, with respect to any Payment
Date, an amount equal to the excess, if any, of (i) the amount of cash or
other immediately available funds in the Reserve Account on such Payment Date
(prior to giving effect to any withdrawals

                                 Appendix A-18
<PAGE>

therefrom relating to such Payment Date) over (ii) the Specified Reserve
Balance with respect to such Payment Date.

      "Reserve Initial Deposit" shall mean $9,119,379.93.

      "Rule 144 A Letter" shall have the meaning specified in Section 3.4(b)
of the Trust Agreement.

      "Sale and Servicing Agreement" shall mean the Sale and Servicing
Agreement, dated as of February 1, 2006, by and among the Trust, as issuer,
the Depositor, and the Bank, as seller and servicer.

      "Schedule of Receivables" shall mean the list of Receivables attached as
Schedule A to the Receivables Purchase Agreement, the Sale and Servicing
Agreement and the Indenture (which Schedules may be in the form of microfiche,
disk or other means acceptable to the Indenture Trustee).

      "Scheduled Payment" shall mean, for any Collection Period for any
Receivable, the amount indicated in such Receivable as required to be paid by
the Obligor in such Collection Period (without giving effect to deferments of
payments pursuant to Section 3.2 of the Sale and Servicing Agreement or any
rescheduling in any insolvency or similar proceedings).

      "Secretary of State" shall mean the Secretary of State of the State of
Delaware.

      "Securities" shall mean the Notes and the Certificates, collectively.

      "Securities Act" shall mean the Securities Act of 1933, as amended.

      "Securityholders" shall mean the Noteholders and the Certificateholders,
collectively.

      "Seller" shall mean the Bank as the seller of the Receivables under the
Receivables Purchase Agreement and each successor to the Bank.

      "Servicer" shall mean the Bank as the servicer of the Receivables under
the Sale and Servicing Agreement, and each successor to the Bank (in the same
capacity) pursuant to Section 6.3 of the Sale and Servicing Agreement.

      "Servicer's Certificate" shall mean a certificate completed and executed
by the Servicer by the chairman of the board, the president, any executive
vice president, any vice president, the treasurer, any assistant treasurer,
the controller, or any assistant controller of the Servicer pursuant to
Section 3.9 of the Sale and Servicing Agreement.

      "Servicing Criteria" shall mean the "servicing criteria" set forth in
Item 1122(d) of Regulation AB.

      "Servicing Fee" shall mean, with respect to a Collection Period, the fee
payable to the Servicer for services rendered during such Collection Period,
which shall be equal to one-twelfth

                                 Appendix A-19
<PAGE>

of the Servicing Fee Rate multiplied by the Pool Balance as of the first day
of the Collection Period.

      "Servicing Fee Rate" shall mean 0.50% per annum.

      "Similar Laws" shall mean federal, state or local laws that impose
requirements similar to Section 406 of ERISA or Section 4975 of the Code.

      "Simple Interest Method" shall mean the method of allocating a fixed
level payment to principal and interest, pursuant to which the portion of such
payment that is allocated to interest is equal to the amount accrued from the
date of the preceding payment to the date of the current payment.

      "Specified Reserve Balance" shall mean for a Payment Date the greater of
(a) 0.75% of the Pool Balance as of the last day of the related Collection
Period and (b) 0.50% of the Pool Balance as of the Cut-off Date, but in any
event shall not be greater than the sum of the aggregate principal balance of
the Outstanding Notes as of the current Payment Date. The Specified Reserve
Balance may be reduced to a lesser amount as determined by the Depositor, if
each of Moody's and Standard & Poor's shall have confirmed in writing to the
Indenture Trustee that such action will not result in a withdrawal or
reduction in any of its ratings of the Notes.

      "Standard & Poor's" shall mean Standard & Poor's Ratings Services, a
division of The McGraw-Hill Companies, Inc.

      "State" shall mean any state or commonwealth of the United States of
America, or the District of Columbia.

      "Statutory Trust Statute" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Delaware Code ss. 3801 et seq., as amended.

      "Subcontractor" shall mean any vendor, subcontractor or other Person
that is not responsible for the overall servicing (as "servicing" is commonly
understood by participants in the mortgage-backed securities market) of
Receivables but performs one or more discrete functions identified in Item
1122(d) of Regulation AB with respect to the Receivables under the direction
or authority of the Indenture Trustee.

      "Successor Servicer" shall mean an institution appointed as successor
Servicer pursuant to Section 7.2 of the Sale and Servicing Agreement.

      "Supplemental Servicing Fee" shall mean the fee payable to the Servicer
for certain services rendered during the respective Collection Period,
determined pursuant to and defined in Section 3.8 of the Sale and Servicing
Agreement.

      "Total Required Payment" shall mean, with respect to any Payment Date,
the sum of the Servicing Fee and all unpaid Servicing Fees from prior
Collection Periods, the Accrued Class A Note Interest, the Accrued Class B
Note Interest and the Regular Principal Distribution Amount; provided,
however, that on any Final Scheduled Payment Date the amount required to be
paid pursuant to Section 4.6(c)(vi) of the Sale and Servicing Agreement shall
be included in the Total

                                 Appendix A-20
<PAGE>

Required Payment; provided, further, that following the occurrence and during
the continuation of an Event of Default, on any Payment Date until the Payment
Date on which the outstanding principal amount of all the Securities has been
paid in full, the Total Required Payment shall mean the sum of the fees,
expenses and indemnification of the Indenture Trustee and the Owner Trustee,
the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods,
the Accrued Class A Note Interest, the Accrued Class B Note Interest and the
amount necessary to reduce the outstanding principal amount of all the Notes
to zero.

      "Transfer Date" shall mean the Closing Date.

      "Transferor Certificate" shall have the meaning specified in Section
3.4(b) of the Trust Agreement

      "Treasury Regulations" shall mean regulations, including proposed or
temporary regulations, promulgated under the Code. References to specific
provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

      "Trust" shall mean USAA Auto Owner Trust 2006-1, a Delaware statutory
trust governed by the Trust Agreement.

      "Trust Accounts" shall have the meaning specified in Section 4.7(a) of
the Sale and Servicing Agreement.

      "Trust Agreement" shall mean the Amended and Restated Trust Agreement of
the Trust dated as of February 22, 2006, by and between the Depositor and the
Owner Trustee, as amended and/or restated from time to time.

      "Trust Indenture Act" or "TIA" shall mean the Trust Indenture Act of
1939, as amended, unless otherwise specifically provided.

      "Trust Property" shall mean, collectively, (i) the Receivables; (ii)
monies received thereunder on or after the Cut-off Date; (iii) the security
interests in the Financed Vehicles granted by Obligors pursuant to the
Receivables and any other interest of the Issuer in the Financed Vehicles;
(iv) rights to receive proceeds with respect to the Receivables from claims on
any theft, physical damage, credit life, credit disability, or other insurance
policies covering Financed Vehicles or Obligors; (v) all of the Seller's
rights to the Receivable Files; (vi) the Trust Accounts and all amounts,
securities, investments, investment property and other property deposited in
or credited to any of the foregoing, all security entitlements relating to the
foregoing and all proceeds thereof; (vii) the Receivables Purchase Agreement;
(viii) payments and proceeds with respect to the Receivables held by the
Servicer; (ix) all property (including the right to receive Liquidation
Proceeds) securing a Receivable (other than a Receivable repurchased by the
Servicer or purchased by the Seller); (x) rebates of premiums and other
amounts relating to insurance policies and other items financed under the
Receivables in effect as of the Cut-off Date; and (xi) all present and future
claims, demands, causes of action and choses in action in respect of any or
all of the foregoing and all payments on or under and all proceeds of every
kind and nature whatsoever in respect of any or all of the foregoing,
including all proceeds of the conversion thereof, voluntary or involuntary,
into cash or other liquid property,

                                 Appendix A-21
<PAGE>

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

      "Trustee Officer" shall mean, with respect to the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee and also,
with respect to a particular matter, any other officer to whom such matter is
referred because of such officer's knowledge of and familiarity with the
particular subject, in each case having direct responsibility for the
administration of the Indenture and the other Basic Documents on behalf of the
Indenture Trustee and, with respect to the Owner Trustee, any officer within
the Corporate Trust Office of the Owner Trustee with direct responsibility for
the administration of the Trust Agreement and the other Basic Documents on
behalf of the Owner Trustee.

      "UCC" shall mean the Uniform Commercial Code as in effect in any
relevant jurisdiction.

      "Underwriters" shall mean the underwriters named in Schedule I to the
Underwriting Agreement.

      "Underwriting Agreement" shall mean the Underwriting Agreement, dated
February 14, 2006 among the Seller, the Depositor and the Representatives.

      "Underwritten Securities" shall mean the Notes.

                                 Appendix A-22
<PAGE>
                                  APPENDIX B

                               Item 1119 Parties

USAA Auto Owner Trust 2006-1
USAA Acceptance, LLC
USAA Federal Savings Bank
U.S. Bank Trust National Association
JPMorgan Chase Bank, National Association

                                 Appendix B-1
<PAGE>
                                  APPENDIX C

                 Minimum Servicing Criteria to be Addressed in
                      Assessment of Compliance Statement

              The assessment of compliance to be delivered by the
 [Trustee] [Servicer] shall address, at a minimum, the criteria identified as
                  below as "Applicable Servicing Criteria":
<TABLE>
<CAPTION>
<S>                            <C>                                                   <C>
------------------------------ -------------------------------------------------- ------------------------------------
Reg AB Reference               Servicing Criteria                                    Applicable Servicing Criteria
------------------------------ -------------------------------------------------- ------------------------------------
                               General Servicing Considerations
------------------------------ -------------------------------------------------- ------------------------------------
                               Policies  and   procedures   are   instituted  to
                               monitor any  performance  or other  triggers  and
                               events  of   default  in   accordance   with  the
1122(d)(1)(i)                  transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               If any material servicing activities are
                               outsourced to third parties, policies and
                               procedures are instituted to monitor the third
                               party's performance and compliance with such
1122(d)(1)(ii)                 servicing activities.
------------------------------ -------------------------------------------------- ------------------------------------
                               Any requirements in the transaction agreements
                               to maintain a back-up servicer for the Pool
1122(d)(1)(iii)                Assets are maintained.
------------------------------ -------------------------------------------------- ------------------------------------
                               A fidelity bond and errors and omissions policy
                               is in effect on the party participating in the
                               servicing function throughout the reporting
                               period in the amount of coverage required by
                               and otherwise in accordance with the terms of
                               the
1122(d)(1)(iv)                 transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Cash Collection and Administration
------------------------------ -------------------------------------------------- ------------------------------------
                               Payments on pool assets are deposited into the
                               appropriate custodial bank accounts and related
                               bank clearing accounts no more than two
                               business days following receipt, or such other
                               number of days specified in the transaction
1122(d)(2)(i)                  agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Disbursements made via wire transfer on behalf
                               of an obligor or to an investor are made only by
1122(d)(2)(ii)                 authorized personnel.
------------------------------ -------------------------------------------------- ------------------------------------
                               Advances of funds or guarantees regarding
                               collections, cash flows or distributions, and
                               any interest or other fees charged for such
                               advances, are made, reviewed and approved as
1122(d)(2)(iii)                specified in the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               The related accounts for the transaction, such
                               as cash reserve accounts or accounts established
                               as a form of over collateralization, are
                               separately maintained (e.g., with respect to
                               commingling of cash) as set forth in the
1122(d)(2)(iv)                 transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Each custodial account is maintained at a
                               federally insured depository institution as set
                               forth in the transaction agreements. For
                               purposes of this criterion, "federally insured
                               depository institution" with respect to a
                               foreign financial institution means a foreign
                               financial institution that meets the
                               requirements of Rule 13k-1(b)(1) of the
1122(d)(2)(v)                  Securities Exchange Act.
------------------------------ -------------------------------------------------- ------------------------------------

                                 Appendix C-1
<PAGE>

------------------------------ -------------------------------------------------- ------------------------------------
                               Unissued checks are safeguarded so as to
1122(d)(2)(vi)                 prevent unauthorized access.
------------------------------ -------------------------------------------------- ------------------------------------
                               Reconciliations are prepared on a monthly basis
                               for all asset-backed securities related bank
                               accounts, including custodial accounts and
                               related bank clearing accounts. These
                               reconciliations are (A) mathematically
                               accurate; (B) prepared within 30 calendar days
                               after the bank statement cutoff date, or such
                               other number of days specified in the
                               transaction agreements; (C) reviewed and
                               approved by someone other than the person who
                               prepared the reconciliation; and (D) contain
                               explanations for reconciling items. These
                               reconciling items are resolved within 90
                               calendar days of their original identification,
                               or such other number of days specified in the
1122(d)(2)(vii)                transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Investor Remittances and Reporting
------------------------------ -------------------------------------------------- ------------------------------------
                               Reports to investors, including those to be
                               filed with the Commission, are maintained in
                               accordance with the transaction agreements and
                               applicable Commission requirements.
                               Specifically, such reports (A) are prepared in
                               accordance with timeframes and other terms set
                               forth in the transaction agreements; (B)
                               provide information calculated in accordance
                               with the terms specified in the transaction
                               agreements; (C) are filed with the Commission
                               as required by its rules and regulations; and
                               (D) agree with investors' or the trustee's
                               records as to the total unpaid principal
                               balance and number of Pool Assets serviced by
1122(d)(3)(i)                  the Servicer.
------------------------------ -------------------------------------------------- ------------------------------------
                               Amounts due to investors are allocated and
                               remitted in accordance with timeframes,
                               distribution priority and other terms set forth
1122(d)(3)(ii)                 in the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Disbursements made to an investor are posted
                               within two business days to the Servicer's
                               investor records, or such other number of days
1122(d)(3)(iii)                specified in the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Amounts remitted to investors per the investor
                               reports agree with cancelled checks, or other
1122(d)(3)(iv)                 form of payment, or custodial bank statements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Pool Asset Administration
------------------------------ -------------------------------------------------- ------------------------------------
                               Collateral or security on pool assets is
                               maintained as required by the transaction
1122(d)(4)(i)                  agreements or related pool asset documents.
------------------------------ -------------------------------------------------- ------------------------------------
                               Pool assets  and related documents are
                               safeguarded as required by the transaction
1122(d)(4)(ii)                 agreements
------------------------------ -------------------------------------------------- ------------------------------------
                               Any additions, removals or substitutions to the
                               asset pool are made, reviewed and approved in
                               accordance with any conditions or requirements
1122(d)(4)(iii)                in the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Payments on pool assets, including any payoffs,
                               made in accordance with the related pool asset
                               documents are posted to the Servicer's obligor
                               records maintained no more than two business
                               days after receipt, or such other number of days
                               specified in the transaction agreements, and
1122(d)(4)(iv)                 allocated to principal,
------------------------------ -------------------------------------------------- ------------------------------------

                                 Appendix C-2
<PAGE>

------------------------------ -------------------------------------------------- ------------------------------------
                               interest or other items (e.g., escrow) in
                               accordance with the related pool asset documents.
------------------------------ -------------------------------------------------- ------------------------------------
                               The Servicer's records regarding the pool assets
                               agree with the Servicer's records with respect
1122(d)(4)(v)                  to an obligor's unpaid principal balance.
------------------------------ -------------------------------------------------- ------------------------------------
                               Changes with respect to the terms or status of
                               an obligor's pool assets (e.g., loan
                               modifications or re-agings) are made, reviewed
                               and approved by authorized personnel in
                               accordance with the transaction agreements and
1122(d)(4)(vi)                 related pool asset documents.
------------------------------ -------------------------------------------------- ------------------------------------
                               Loss mitigation or recovery actions (e.g.,
                               forbearance plans, modifications and deeds in
                               lieu of foreclosure, foreclosures and
                               repossessions, as applicable) are initiated,
                               conducted and concluded in accordance with the
                               timeframes or other requirements established by
1122(d)(4)(vii)                the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Records documenting collection efforts are
                               maintained during the period a pool asset is
                               delinquent in accordance with the transaction
                               agreements. Such records are maintained on at
                               least a monthly basis, or such other period
                               specified in the transaction agreements, and
                               describe the entity's activities in monitoring
                               delinquent pool assets including, for example,
                               phone calls, letters and payment rescheduling
                               plans in cases where delinquency is deemed
1122(d)(4)(viii)               temporary (e.g., illness or unemployment).
------------------------------ -------------------------------------------------- ------------------------------------
                               Adjustments to interest rates or rates of return
                               for pool assets with variable rates are computed
1122(d)(4)(ix)                 based on the related pool asset documents.
------------------------------ -------------------------------------------------- ------------------------------------
                               Regarding any funds held in trust for an obligor
                               (such as escrow accounts): (A) such funds are
                               analyzed, in accordance with the obligor's pool
                               asset documents, on at least an annual basis, or
                               such other period specified in the transaction
                               agreements; (B) interest on such funds is paid,
                               or credited, to obligors in accordance with
                               applicable pool asset documents and state laws;
                               and (C) such funds are returned to the obligor
                               within 30 calendar days of full repayment of
                               the related pool assets, or such other number
1122(d)(4)(x)                  of days specified in the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Payments made on behalf of an obligor (such as
                               tax or insurance payments) are made on or
                               before the related penalty or expiration dates,
                               as indicated on the appropriate bills or
                               notices for such payments, provided that such
                               support has been received by the servicer at
                               least 30 calendar days prior to these dates, or
                               such other number of days specified in the
1122(d)(4)(xi)                 transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Any late payment penalties in connection with
                               any payment to be made on behalf of an obligor
                               are paid from the Servicer's funds and not
                               charged to the obligor, unless the late payment
1122(d)(4)(xii)                was due to the obligor's error or omission.
------------------------------ -------------------------------------------------- ------------------------------------
                               Disbursements made on behalf of an obligor are
1122(d)(4)(xiii)               posted within two business days to the obligor's
------------------------------ -------------------------------------------------- ------------------------------------

                                 Appendix C-3
<PAGE>

------------------------------ -------------------------------------------------- ------------------------------------

                               records maintained by the servicer, or such
                               other number of days specified in the
                               transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Delinquencies, charge-offs and uncollectible
                               accounts are recognized and recorded in
1122(d)(4)(xiv)                accordance with the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
                               Any external enhancement or other support,
                               identified in Item 1114(a)(1) through (3) or
                               Item 1115 of Regulation AB, is maintained as
1122(d)(4)(xv)                 set forth in the transaction agreements.
------------------------------ -------------------------------------------------- ------------------------------------
</TABLE>

                                     [JPMORGAN   CHASE  BANK,   NATIONAL
                                     ASSOCIATION]   [USAA FEDERAL SAVINGS BANK]

                                     By:________________________________
                                     Name:
                                     Title:

                                     Date:    _________________________

                                 Appendix C-4

<PAGE>

                                  APPENDIX D

                       Form of Performance Certification

                                 CERTIFICATION

         Re:      USAA Auto Owner Trust 2006-1

         The undersigned [Indenture Trustee] [Reporting Subcontractor] hereby
certifies to the [ ] and its officers, directors and Affiliates (collectively,
the "Certification Parties") as follows, with the knowledge and intent that
the Certification Parties will rely on this Certification in connection with
the certification concerning the Trust to be signed by an officer of the
Servicer and submitted to the Securities and Exchange Commission pursuant to
the Sarbanes-Oxley Act of 2002:

         1. The [Indenture Trustee] [Reporting Subcontractor] has reviewed the
information and reports provided by it to the Depositor and the Servicer
pursuant to the Sale and Servicing Agreement with respect to the servicing
criteria assessment under Section 10.5 of the Sale and Servicing Agreement
(the "Information");

         2. Based on the [Indenture Trustee] [Reporting Subcontractor]'s
knowledge, the Information, taken as a whole, does not contain any untrue
statement of a material fact or omit to state a material fact required in the
Information and necessary to make the statements made, in the light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by the 10-K report; and

         3. The servicing criteria assessment required to be provided by the
[Indenture Trustee] [Reporting Subcontrator] pursuant to the Agreement, has
been provided to the Depositor and the Servicer. Any material instance of
noncompliance with the applicable Servicing Criteria has been disclosed in
such report.

         [4. Any assessment of compliance with servicing criteria required to
be provided by any Reporting Subcontractor of the Indenture Trustee have been
provided by such Reporting Subcontractor.]

                                 Appendix D-1
<PAGE>

         Capitalized terms not otherwise defined herein have the meanings
ascribed thereto in the Sale and Servicing Agreement dated as of February 1,
2006 among USAA Federal Savings Bank, as Seller and Servicer, USAA Auto Owner
Trust 2006-1 and USAA Acceptance, LLC.

                             [JPMORGAN CHASE BANK, NATIONAL
                             ASSOCIATION, not in its individual capacity but
                             solely as Indenture Trustee] [REPORTING
                             SUBCONTRACTOR]

                             By:________________________________
                             Name:
                             Title:

                             Date:    _________________________

                                 Appendix D-2
<PAGE>

                                  APPENDIX E

                       Form of Performance Certification

                                 CERTIFICATION

         Re:      USAA Auto Owner Trust 2006-1

         The undersigned Servicer hereby certifies to the [ ] and its
officers, directors and Affiliates (collectively, the "Certification Parties")
as follows, with the knowledge and intent that the Certification Parties will
rely on this Certification in connection with the certification concerning the
Trust to be signed by an officer of the Servicer and submitted to the
Securities and Exchange Commission pursuant to the Sarbanes-Oxley Act of 2002:

      1. I have reviewed the servicer compliance statement of the Servicer
provided in accordance with Item 1123 of Regulation AB (the "Compliance
Statement"), the report on assessment of the Servicer's compliance with the
servicing criteria set forth in Item 1122(d) of Regulation AB (the "Servicing
Criteria"), provided in accordance with Rules 13a-18 and 15d-18 under
Securities Exchange Act of 1934, as amended (the "Exchange Act") and Item 1122
of Regulation AB (the "Servicing Assessment"), the registered public
accounting firm's attestation report provided in accordance with Rules 13a-18
and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the
"Attestation Report"), and all servicing reports, officer's certificates and
other information relating to the servicing of the Receivables by the Servicer
during 200[ ] that were delivered by the Servicer to the Indenture Trustee
pursuant to the Agreement (collectively, the "Servicer Servicing
Information");

      2. Based on my knowledge, the Servicer Servicing Information, taken as a
whole, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in the light of
the circumstances under which such statements were made, not misleading with
respect to the period of time covered by the Servicer Servicing Information;

      3. Based on my knowledge, all of the Servicer Servicing Information
required to be provided by the Servicer under the Agreement has been provided
to the Indenture Trustee;

      4. I am responsible for reviewing the activities performed by the
Servicer as servicer under the Sale and Servicing Agreement dated February 1,
2006 among USAA Auto Owner Trust 2006-1, USAA Acceptance, LLC and USAA Federal
Savings Bank (the "Agreement"), and based on my knowledge and the compliance
review conducted in preparing the Compliance Statement and except as disclosed
in the Compliance Statement, the Servicing Assessment or the Attestation
Report, the Servicer has fulfilled its obligations under the Agreement in all
material respects; and

      5. The Compliance Statement required to be delivered by the Servicer
pursuant to the Agreement, and the Servicing Assessment and Attestation Report
required to be provided by the Servicer and by any Reporting Subcontractor
pursuant to the Agreement, have been provided

                                     E-1
<PAGE>

to the Indenture Trustee. Any material instances of noncompliance described in
such reports have been disclosed to the Depositor. Any material instance of
noncompliance with the Servicing Criteria has been disclosed in such reports.

         Capitalized terms not otherwise defined herein have the meanings
ascribed thereto in the Sale and Servicing Agreement dated as of February 1,
2006 among USAA Federal Savings Bank, as Seller and Servicer, USAA Auto Owner
Trust 2006-1 and USAA Acceptance, LLC.

                                          USAA FEDERAL SAVINGS BANK

                                          By:________________________________
                                          Name:
                                          Title:
                                          Date:    _________________________

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