Document:

<PAGE>

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A

                $45,500,000  1.2875% Asset-Backed Notes, Class A-1
                $65,000,000  1.4910% Asset-Backed Notes, Class A-2
                $68,000,000  2.0210% Asset-Backed Notes, Class A-3
                $64,000,000  2.7730% Asset-Backed Notes, Class A-4
                $ 7,500,000  8.5000% Asset-Backed Notes, Class B

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

                                    INDENTURE

                            Dated as of March 1, 2003

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

                               JPMORGAN CHASE BANK
                                Indenture Trustee

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

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                                Page
                                                                                                                ----
<S>          <C>                                                                                                 <C>
ARTICLE I          Definitions....................................................................................3

     SECTION 1.1.     Definitions.................................................................................3
     SECTION 1.2.     Incorporation by Reference of Trust Indenture Act...........................................3
     SECTION 1.3.     Rules of Construction.......................................................................3

ARTICLE II         The Notes......................................................................................4

     SECTION 2.1.     Form........................................................................................4
     SECTION 2.2.     Execution, Authentication and Delivery......................................................4
     SECTION 2.3.     Temporary Notes.............................................................................5
     SECTION 2.4.     Registration; Registration of Transfer and Exchange.........................................5
     SECTION 2.5.     Mutilated, Destroyed, Lost or Stolen Notes..................................................9
     SECTION 2.6.     Persons Deemed Owners.......................................................................9
     SECTION 2.7.     Access to List of Noteholders' Names and Addresses..........................................9
     SECTION 2.8.     Maintenance of Office or Agency............................................................10
     SECTION 2.9.     Payment of Principal and Interest; Defaulted Interest......................................10
     SECTION 2.10.    Cancellation...............................................................................11
     SECTION 2.11.    Release of Pledged Property................................................................11

ARTICLE III        Covenants.....................................................................................11

     SECTION 3.1.     Payment of Principal and Interest..........................................................11
     SECTION 3.2.     Maintenance of Office or Agency............................................................12
     SECTION 3.3.     Money for Payments to be Held in Trust.....................................................12
     SECTION 3.4.     Existence..................................................................................13
     SECTION 3.5.     Protection of Pledged Property.............................................................13
     SECTION 3.6.     Opinions as to Pledged Property............................................................14
     SECTION 3.7.     Performance of Obligations; Servicing of Receivables.......................................15
     SECTION 3.8.     Negative Covenants.........................................................................16
     SECTION 3.9.     Annual Statement as to Compliance..........................................................16
     SECTION 3.10.    Issuer May Consolidate, Etc. Only on Certain Terms.........................................17
     SECTION 3.11.    Successor or Transferee....................................................................19
     SECTION 3.12.    No Other Business..........................................................................19
     SECTION 3.13.    No Borrowing...............................................................................19
     SECTION 3.14.    Servicer's Obligations.....................................................................19
     SECTION 3.15.    Guarantees, Loans, Advances and Other Liabilities..........................................19
     SECTION 3.16.    Capital Expenditures.......................................................................19
     SECTION 3.17.    Compliance with Laws.......................................................................19
     SECTION 3.18.    Restricted Payments........................................................................20
     SECTION 3.19.    Notice of Events of Default................................................................20
     SECTION 3.20.    Further Instruments and Acts...............................................................20
     SECTION 3.21.    Income Tax Characterization................................................................20

                                       i
<PAGE>

ARTICLE IV         Satisfaction and Discharge....................................................................20

     SECTION 4.1.     Satisfaction and Discharge of Indenture....................................................20
     SECTION 4.2.     Application of Trust Money.................................................................21
     SECTION 4.3.     Repayment of Moneys Held by Note Paying Agent..............................................22

ARTICLE V          Remedies......................................................................................22

     SECTION 5.1.     Events of Default..........................................................................22
     SECTION 5.2.     Rights Upon Event of Default...............................................................23
     SECTION 5.3.     Collection of Indebtedness and Suits for Enforcement by Indenture Trustee..................24
     SECTION 5.4.     Remedies...................................................................................27
     SECTION 5.5.     Optional Preservation of the Pledged Property..............................................28
     SECTION 5.6.     Priorities.................................................................................28
     SECTION 5.7.     Limitation of Suits........................................................................29
     SECTION 5.8.     Unconditional Rights of Noteholders To Receive Principal and Interest......................30
     SECTION 5.9.     Restoration of Rights and Remedies.........................................................30
     SECTION 5.10.    Rights and Remedies Cumulative.............................................................30
     SECTION 5.11.    Delay or Omission Not a Waiver.............................................................31
     SECTION 5.12.    Control by Noteholders.....................................................................31
     SECTION 5.13.    Waiver of Past Defaults....................................................................31
     SECTION 5.14.    Undertaking for Costs......................................................................31
     SECTION 5.15.    Waiver of Stay or Extension Laws...........................................................32
     SECTION 5.16.    Action on Notes............................................................................32
     SECTION 5.17.    Performance and Enforcement of Certain Obligations.........................................32
     SECTION 5.18.    Subrogation................................................................................33
     SECTION 5.19.    Preference Claims; Direction of Proceedings................................................33

ARTICLE VI         The Indenture Trustee.........................................................................34

     SECTION 6.1.     Duties of Indenture Trustee................................................................34
     SECTION 6.2.     Rights of Indenture Trustee................................................................37
     SECTION 6.3.     Individual Rights of Indenture Trustee.....................................................39
     SECTION 6.4.     Indenture Trustee's Disclaimer.............................................................39
     SECTION 6.5.     Notice of Defaults.........................................................................39
     SECTION 6.6.     Reports by Indenture Trustee to Holders....................................................39
     SECTION 6.7.     Compensation and Indemnity.................................................................39
     SECTION 6.8.     Replacement of Indenture Trustee...........................................................40
     SECTION 6.9.     Successor Indenture Trustee by Merger......................................................42
     SECTION 6.10.    Appointment of Co-Trustee or Separate Trustee..............................................42
     SECTION 6.11.    Eligibility................................................................................44
     SECTION 6.12.    Preferential Collection of Claims Against Issuer...........................................44
     SECTION 6.13.    Representations and Warranties of the Indenture Trustee....................................44
     SECTION 6.14.    Valid and Binding Indenture................................................................44
     SECTION 6.15.    Waiver of Setoffs..........................................................................45

                                       ii
<PAGE>

     SECTION 6.16.    Control by the Controlling Party...........................................................45

ARTICLE VII        Noteholders' Lists and Communications.........................................................45

     SECTION 7.1.     Issuer To Furnish To Indenture Trustee Names and Addresses of Noteholders..................45
     SECTION 7.2.     Preservation of Information; Communications to Noteholders.................................45
     SECTION 7.3.     Reports by Issuer..........................................................................46
     SECTION 7.4.     Reports by Indenture Trustee...............................................................46

ARTICLE VIII       Collection of Money;  Releases................................................................46

     SECTION 8.1.     Collection of Money........................................................................46
     SECTION 8.2.     Release of Pledged Property................................................................47
     SECTION 8.3.     Opinion of Counsel.........................................................................47

ARTICLE IX         Supplemental Indentures.......................................................................47

     SECTION 9.1.     Supplemental Indentures Without Consent of Noteholders.....................................47
     SECTION 9.2.     Supplemental Indentures with Consent of Noteholders........................................48
     SECTION 9.3.     Execution of Supplemental Indentures.......................................................50
     SECTION 9.4.     Effect of Supplemental Indenture...........................................................50
     SECTION 9.5.     Conformity With Trust Indenture Act........................................................50
     SECTION 9.6.     Reference in Notes to Supplemental Indentures..............................................50

ARTICLE X          Redemption of Notes...........................................................................51

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

ARTICLE XI         Miscellaneous.................................................................................52

     SECTION 11.1.    Compliance Certificates and Opinions, etc..................................................52
     SECTION 11.2.    Form of Documents Delivered to Indenture Trustee...........................................53
     SECTION 11.3.    Acts of Noteholders........................................................................54
     SECTION 11.4.    Notices, etc., to Indenture Trustee, Issuer and Rating Agencies............................55
     SECTION 11.5.    Notices to Noteholders; Waiver.............................................................55
     SECTION 11.6.    Conflict with Trust Indenture Act..........................................................56
     SECTION 11.7.    Effect of Headings and Table of Contents...................................................56
     SECTION 11.8.    Successors and Assigns.....................................................................56
     SECTION 11.9.    Separability...............................................................................56
     SECTION 11.10.   Benefits of Indenture......................................................................56
     SECTION 11.11.   Legal Holidays.............................................................................57
     SECTION 11.12.   GOVERNING LAW..............................................................................57
     SECTION 11.13.   Counterparts...............................................................................57
     SECTION 11.14.   Recording of Indenture.....................................................................57
     SECTION 11.15.   Trust Obligation...........................................................................57
     SECTION 11.16.   No Petition................................................................................58

                                       iii
<PAGE>

     SECTION 11.17.   Inspection.................................................................................58
     SECTION 11.18.   Rights of Note Insurer as Controlling Party................................................59
     SECTION 11.19.   Effect of Policy Expiration Date...........................................................59

</TABLE>

                                       iv
<PAGE>

                              ANNEXES AND EXHIBITS

Annex A Defined Terms

Exhibit A-1 Form of Class A-1 Note
Exhibit A-2 Form of Class A-2 Note
Exhibit A-3 Form of Class A-3 Note
Exhibit A-4 Form of Class A-4 Note
Exhibit A-5 Form of Class B Note
Exhibit B   Form of Depository Agreement
Exhibit C-1 Form of "Qualified Institutional Buyer" Transferee's Certificate
Exhibit C-2 Form of "Accredited Investor" Transferee's Certificate
Exhibit C-3 Form of "Registered Certificate" Transferee's Certificate
Exhibit C-4 Form of Transferor's Certificate
Exhibit C-5 Form of Certificate as to ERISA Matters

                                        v
<PAGE>

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A

                  Reconciliation and Tie between the Indenture
                        dated as of March 1, 2003 and the
                     Trust Indenture Act of 1939, as amended

                 RECONCILIATION AND TIE BETWEEN TRUST INDENTURE
                    ACT OF 1939 AND INDENTURE PROVISIONS(1) *

     Trust Indenture Act Section                        Indenture Section
     ---------------------------                        -----------------
           (section)310(a)(1)                             (section)6.11
                (a)(2)                                         6.11
                (a)(3)                                         6.10
                (a)(4)                                    Not Applicable
                 (b)                                           6.11
                 (c)                                      Not Applicable
                311(a)                                         6.12
                 (b)                                           6.12
                312(a)                                         7.1
                 (b)                                           7.2
                 (c)                                           7.2
                313(a)                                         7.4
                 (b)                                           7.4
                 (c)                                         7.3, 7.4
                 (d)                                           7.3
              314(a)(4)                                        3.9
                 (b)                                      Not Applicable
                 (c)                                        2.11, 8.2
                 (d)                                        2.11, 8.2
                 (e)                                           11.1
                315(a)                                         6.1
                 (b)                                           6.5
                 (c)                                           6.1
                 (d)                                           6.1
                 (e)                                           5.14
        316(a) (last sentence)                            Not Applicable
              (a)(1)(A)                                        5.3
              (a)(1)(B)                                        5.13
              317(a)(1)                                        5.4
                (a)(2)                                        5.3(e)
                 (b)                                           3.3

-------------
     (1)   This reconciliation and tie shall not, for any purpose, be deemed to
be part of the within indenture.

                                       vi
<PAGE>

                318(a)                                    Not Applicable
                 (b)                                      Not Applicable
                 (c)                                      Not Applicable

                                      vii
<PAGE>

         INDENTURE dated as of March 1, 2003, between LONG BEACH ACCEPTANCE AUTO
RECEIVABLES TRUST 2003-A, a Delaware statutory trust (the "Issuer"), and
JPMORGAN CHASE BANK, a New York banking corporation, as indenture trustee (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 1.2875%
Asset-Backed Notes, Class A-1, 1.4910% Asset-Backed Notes, Class A-2, 2.0210%
Asset-Backed Notes, Class A-3, 2.7730% Asset-Backed Notes, Class A-4
(collectively the "Class A Notes") and 8.5000% Asset-Backed Notes, Class B (the
"Class B Notes" and, together with the Class A Notes, the "Notes").

         As security for the payment and performance by the Issuer of its
obligations under this Indenture and the Notes, the Issuer has agreed to assign
the Pledged Property (as defined below) as collateral to the Indenture Trustee
for the benefit of the Noteholders.

         MBIA Insurance Corporation (the "Note Insurer"), for the benefit of the
Class A Noteholders, has issued and delivered a financial guaranty insurance
policy, dated the Closing Date (with endorsements, the "Policy"), pursuant to
which the Note Insurer guarantees Insured Payments, as defined in the Insurance
Agreement.

         As an inducement to the Note Insurer to issue and deliver the Policy,
the Issuer and the Note Insurer have executed and delivered the Insurance
Agreement, dated as of March 1, 2003 (as amended from time to time, the
"Insurance Agreement"), among the Note Insurer, the Issuer, Long Beach
Acceptance Corp., a Delaware corporation, ("LBAC") and the Long Beach Acceptance
Receivables Corp. II, a Delaware corporation, as transferor, (the "Transferor").

         As an additional inducement to the Note Insurer to issue the Policy,
and as security for the performance by the Issuer of its obligations under this
Indenture and as security for the performance by the Issuer of its obligations
under this Indenture, the Issuer has agreed to assign the Pledged Property (as
defined below) as collateral to the Indenture Trustee for the benefit of the
Noteholders and the Note Insurer, as their respective interests may appear.

<PAGE>

                                 GRANTING CLAUSE

                  The Issuer hereby Grants to the Indenture Trustee for the
benefit of the Noteholders and the Note Insurer all of the Issuer's right, title
and interest in and to the following property (the "Pledged Property") now owned
or hereafter acquired:

          (i)     the Receivables listed in Schedule A hereto, all monies
                  received on the Receivables after the Cutoff Date and, with
                  respect to the Receivables which are Precomputed Receivables,
                  the related Payahead Amount, and all Liquidation Proceeds and
                  Recoveries received with respect to such Receivables;

          (ii)    the security interests in the related Financed Vehicles
                  granted by the related Obligors pursuant to the Receivables,
                  and any other interest of the Transferor in such Financed
                  Vehicles, including, without limitation, the certificates of
                  title and any other evidence of ownership with respect to such
                  Financed Vehicles;

          (iii)   any proceeds from claims on any physical damage, credit life
                  and credit accident and health insurance policies or
                  certificates or the VSI Policy, if any, relating to the
                  related Financed Vehicles or the related Obligors, including
                  any rebates and premiums;

          (iv)    property (including the right to receive future Liquidation
                  Proceeds) that secures a Receivable, and that has been
                  acquired by or on behalf of the Trust pursuant to the
                  liquidation of such Receivable;

          (v)     the Purchase Agreement, the Sale and Servicing Agreement and
                  the Guarantee, including, without limitation, a direct right
                  to cause LBAC to purchase Receivables from the Trust upon the
                  occurrence of a breach of any of the representations and
                  warranties contained in Section 3.2(b) of the Purchase
                  Agreement, or the failure of LBAC to timely comply with its
                  obligations pursuant to Section 5.5 of the Purchase Agreement;

          (vi)    refunds for the costs of extended service contracts with
                  respect to the related Financed Vehicles, refunds of unearned
                  premiums with respect to credit life and credit accident and
                  health insurance policies or certificates covering a related
                  Obligor or Financed Vehicle or his or her obligations with
                  respect to such Financed Vehicle and any recourse to Dealers
                  for any of the foregoing;

          (vii)   the Legal Files and the Receivable Files related to each
                  Receivable and any and all other documents that LBAC keeps on
                  file in accordance with its customary procedures relating to
                  the Receivables, the related Obligors or the related Financed
                  Vehicles;

          (viii)  all amounts and property from time to time held in or credited
                  to the Collection Account, the Note Account and, for the
                  benefit of the Class B Noteholders only, the Class B Reserve
                  Account;

          (ix)    all amounts and property from time to time held in or credited
                  to the Lock-Box Account, to the extent such amounts and
                  property relate to the Receivables;

                                       2
<PAGE>

          (x)     any proceeds from recourse against Dealers (other than any
                  Chargeback Obligations), including, without limitation, any
                  Dealer Title Guaranties with respect to the sale of the
                  Receivables; and

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

The foregoing Grant is made in trust to the Indenture Trustee for the benefit of
the Noteholders and the Note Insurer. The Indenture Trustee hereby 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 end that the interests of such parties, recognizing the
priorities of their respective interests may be adequately and effectively
protected.

                                    ARTICLE I

                                   Definitions

                  SECTION 1.1. Definitions. Whenever used in this Indenture,
capitalized terms used and not otherwise defined herein shall have the meanings
set forth in Annex A attached hereto.

                  SECTION 1.2. Incorporation by Reference of Trust Indenture
Act. Whenever this Indenture refers to a provision of the Trust Indenture Act of
1939, as amended (the "TIA"), such 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:

                  "Commission" means the Securities and Exchange Commission.

                  "indenture securities" means the Notes.

                  "indenture security holder" means a Noteholder.

                  "indenture to be qualified" means this Indenture.

                  "indenture trustee" or "institutional trustee" means the
Indenture Trustee.

                  "obligor" on the indenture securities means the Issuer.

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

                  SECTION 1.3. Rules of Construction. Unless the context
otherwise requires:

                  (i) a term has the meaning assigned to it;

                  (ii) an accounting term not otherwise defined has the meaning
          assigned to it in accordance with generally accepted accounting
          principles as in effect from time to time;

                  (iii) "or" is not exclusive;

                                       3
<PAGE>

                  (iv) "including" means including without limitation; and

                  (v) words in the singular include the plural and words in the
          plural include the singular.

                                   ARTICLE II

                                    The Notes

                  SECTION 2.1. Form. 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 be in
substantially the forms set forth in Exhibits A-1, A-2, A-3, A-4 and A-5,
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 of the Notes. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

                  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.

                  Each Note shall be dated the date of its authentication. The
terms of the Notes set forth in Exhibits A-1, A-2, A-3, A-4 and A-5
respectively, are part of the terms of this Indenture.

                  SECTION 2.2. Execution, Authentication and Delivery. The Notes
shall be executed on behalf of the Issuer by an authorized representative of the
Owner Trustee. The signature of any such authorized representative on the Notes
may be manual or facsimile.

                  Notes bearing the manual or facsimile signature of individuals
who were at any time authorized representatives of the Owner Trustee 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.

                  The Indenture Trustee shall, upon receipt of the Policy and
the Issuer Order, authenticate and deliver (i) Class A-1 Notes for original
issue in an aggregate principal amount of $45,500,000, (ii) Class A-2 Notes for
original issue in an aggregate principal amount of $65,000,000, (iii) Class A-3
Notes for original issue in an aggregate principal amount of $68,000,000, (iv)
Class A-4 Notes for original issue in an aggregate principal amount of
$64,000,000 and (v) Class B Notes for original issue in an aggregate principal
amount of $7,500,000. The Notes outstanding at any time may not exceed such
amounts except as provided in Section 2.5.

                  The Notes shall be issuable as registered Notes. The Class A
Notes and the Class B Notes will be issuable in minimum denominations of one
hundred thousand dollars ($100,000) and integral multiples of one thousand
dollars ($1,000) in excess thereof.

                                       4
<PAGE>

                  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 or facsimile 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.

                  SECTION 2.3. Temporary Notes. 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 which are
printed, lithographed, typewritten, mimeographed or otherwise produced, 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 such Notes may determine, as evidenced by their execution of such
Notes.

                  If temporary Notes are issued, the Issuer will 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 Definitive
Notes.

                  SECTION 2.4. 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
and exchanges of Notes. The Indenture Trustee shall be "Note Registrar" for the
purpose of registering Notes and transfers and exchanges 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, the Issuer will 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, and the Indenture Trustee
shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to
conclusively rely upon a certificate executed on behalf of the Note Registrar by
an authorized signatory thereof as to the names and addresses of the Noteholders
of the Notes and the principal amounts and number of such Notes.

                  No transfer of a Class B Note shall be made unless (I) (a)
such transfer (i) is made pursuant to an effective registration statement under
the Securities Act and any applicable state securities laws or (ii) is exempt
from the registration requirements under the Securities Act and such state
securities laws or (b) the Note Registrar is notified by such transferee that,
with respect to the Class B Notes, such Class B Note will be registered in the
name of the Clearing Agency or its nominee and shall be held by such transferee
in book-entry form through the Clearing Agency, and (II) such transfer is to a
Person that satisfies the requirements of paragraph

                                       5
<PAGE>

(a)(2)(i) or (a)(2)(ii) of Rule 3a-7 as then in effect or any successor rule
("Rule 3a-7") under the Investment Company Act. Each prospective purchaser of a
Class B Note that is a Non-Registered Note not held in book-entry form shall
deliver a completed and duly executed Transferee's Certificate (in the form of
Exhibit C-1 for "qualified institutional buyers" or Exhibit C-2 for "accredited
investors"), and each prospective purchaser of a Class B Note that is a
Registered Note not held in book-entry form shall deliver a completed and duly
executed Transferee's Certificate in the form of Exhibit C-3, to the Indenture
Trustee and to the Transferor for inspection prior to effecting any requested
transfer. Each prospective purchaser of a beneficial interest in a Class B Note
held in book-entry form shall be deemed to make the representations set forth in
one of the aforementioned exhibits as applicable. Each prospective transferor of
a Class B Note that is a Non-Registered Note not held in book-entry form (other
than with respect to the initial purchase of any such Class B Note by Greenwich
Capital Markets, Inc. or any affiliate thereof) shall deliver a completed and
duly executed Transferor's Certificate in the form of Exhibit C-4 to the
Indenture Trustee for inspection prior to effecting any requested transfer. The
Issuer and the Indenture Trustee may rely conclusively upon the information
contained in any such Transferee's Certificate and Transferor's Certificate in
the absence of knowledge to the contrary. In connection with any transfer (other
than the transfer of any Class B Note that is or has become a Registered Note on
or before such transfer or any transfer of a Class B Note held in book-entry
form), the Indenture Trustee may (except in the case of (x) the initial purchase
of any such Class B Note by Greenwich Capital Markets, Inc. or any affiliate
thereof, (y) a transfer to a "qualified institutional buyer" who delivers a
Transferee's Certificate in the form of Exhibit C-1 or (z) a transfer to an
institutional "accredited investor" who delivers a Transferee's Certificate in
the form of Exhibit C-2)) require an Opinion of Counsel to the effect that such
transfer may be effected without registration under the Securities Act, which
Opinion of Counsel, if so required, shall be addressed to the Issuer and the
Indenture Trustee and shall be secured at the expense of the Holder. The
Indenture Trustee may rely upon the representation of any transferee made to the
Indenture Trustee, and upon such Opinion of Counsel, and shall be fully
protected in so doing. Any Note Owners shall be deemed to have agreed to these
restrictions on transfer.

                  No transfer of a Note shall be made to any Person unless the
Indenture Trustee has received a certificate (substantially in the form of
Exhibit C-5 hereto) from such transferee to the effect that such transferee (a)
is not a Plan, and is not acting on behalf of or investing the assets of a Plan
or (b) is acquiring a Class A Note and is entitled to exemptive relief pursuant
to a Department of Labor prohibited transaction class exemption with respect to
its acquisition and continued holding of such Class A Note. The preparation and
delivery of the certificate referred to above shall not be an expense of the
Indenture Trustee or the Transferor but shall be borne by the transferee. Each
transferee of a beneficial ownership interest in a book-entry Note shall be
deemed to make one of the foregoing representations.

                  Under no circumstances may an institutional "accredited
investor", as defined under Regulation D of the Securities Act, take delivery in
the form of a beneficial interest in a book-entry Class B Note if such purchaser
is not a "qualified institutional buyer" as defined under Rule 144A under the
Securities Act.

                  (b) With respect to the Notes held in book-entry form, the
Notes shall be registered in the name of a nominee designated by the Clearing
Agency (and may be aggregated

                                       6
<PAGE>

as to denominations with other Notes held by the Clearing Agency). With respect
to Notes held in book-entry form:

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

                  (2) the rights of Note Owners will be exercised only through
          the Clearing Agency and will 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 Depository Agreement;

                  (3) whenever this Indenture or any of the Basic Documents
          requires or permits actions to be taken based upon instructions or
          directions of Holders of Notes evidencing a specified percentage of
          the Note Balance, the Clearing Agency will 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 in the Notes and has delivered such instructions
          to the Indenture Trustee; and

                  (4) without the consent of the Issuer and the Indenture
          Trustee, no such Note may be transferred by the Clearing Agency except
          to a successor Clearing Agency that agrees to hold such Class B Note
          for the account of the Class B Note Owners or except upon the election
          of the Class B Note Owner thereof or a subsequent transferee to hold
          such Note in physical form.

     Neither the Indenture Trustee nor the Note Registrar shall have any
responsibility to monitor or restrict the transfer of beneficial ownership in
any Note an interest in which is transferable through the facilities of the
Clearing Agency.

     If (i)(A) the Issuer advises the Indenture Trustee in writing that the
Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Notes as described in the Depository
Agreement and (B) the Issuer is unable to locate a qualified successor with
respect to which (unless a Note Insurer Default has occurred and is continuing)
the Note Insurer has provided its prior written consent, (ii) the Issuer at its
option advises the Indenture Trustee in writing that it elects to terminate the
book-entry system through the Clearing Agency, or (iii) after the occurrence of
an Event of Default, the Note Insurer (or, if a Note Insurer Default has
occurred and is continuing, the Majorityholders) advise the Indenture Trustee
and the Clearing Agency through the Clearing Agency Participants in writing that
the continuation of a book-entry system through the Clearing Agency with respect
to such class is no longer in the best interests of the related Note Owners,
then the Indenture Trustee shall notify all such Note Owners, through the
Clearing Agency, and the Note Insurer of the occurrence of any such event and of
the availability of Definitive Notes to such Note Owners requesting the same.
Upon surrender to the Indenture Trustee of the related Notes by the Clearing
Agency accompanied by registration instructions from the Clearing Agency, the
Issuer shall issue

                                       7
<PAGE>

definitive Notes and deliver such definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar nor
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, the Indenture Trustee
shall recognize the Holders of the Definitive Notes as Noteholders hereunder.
The Indenture Trustee shall not be liable if the Transferor is unable to locate
a qualified successor Clearing Agency.

                  (c) The Class B Notes, until such time, if at all, as they
become Registered Notes, shall bear legends stating that they have not been
registered under the Securities Act and are subject to the restrictions on
transfer described in Section 2.4(a). By purchasing a Class B Note, each
purchaser shall be deemed to have agreed to such restrictions on transfer.

                  (d) In order to preserve the exemption for resales and
transfers provided by Rule 144A under the Securities Act, the Issuer shall
provide to any Holder of a Non-Registered Note and any prospective purchaser
designated by such Holder, upon request of such Holder or such prospective
purchaser, such information required by Rule 144A as will enable the resale of
such Non-Registered Note to be made pursuant to Rule 144A. The Indenture Trustee
shall cooperate with the Issuer in providing the Issuer such information
regarding the Non-Registered Notes, the Receivables and other matters regarding
the Class B Notes as the Issuer shall reasonably request to meet its obligations
under the preceding sentence.

                  (e) Upon surrender for registration of transfer of any Note at
the Corporate Trust Office, the Indenture Trustee shall have the Issuer execute,
and the Indenture Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes in authorized
denominations of a like aggregate principal amount.

                  (f) At the option of a Noteholder, such Holder's Notes may be
exchanged for other Notes in authorized denominations of a like aggregate
principal amount, upon surrender of the Notes to be exchanged at any such office
or agency. Whenever any Notes are so surrendered for exchange, the Indenture
Trustee shall have the Issuer execute, and the Indenture Trustee shall
authenticate and deliver the Notes that the Noteholder making the exchange is
entitled to receive. Every Note presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in
form satisfactory to the Issuer, the Indenture Trustee and the Note Registrar
duly executed by the Holder thereof or his attorney duly authorized in writing.

                  (g) 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.

                  (h) 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.

                                       8
<PAGE>

                  (i) The preceding provisions of this section notwithstanding,
the Issuer shall not be required to make, and the Note Registrar shall not
register transfers or exchanges of Notes selected for redemption or of any Note
for a period of 15 days preceding the due date for any payment with respect to
the Note.

                  SECTION 2.5. Mutilated, Destroyed, Lost or Stolen Notes. If
(a) any mutilated Note shall be surrendered to the Note Registrar, or if the
Note Registrar shall receive evidence to its satisfaction of the destruction,
loss, or theft of any Note and (b) there shall be delivered to the Note
Registrar, the Indenture Trustee and the Note Insurer such security or indemnity
as may be required by them to save each of them harmless, then in the absence of
notice that such Note shall have been acquired by a bona fide purchaser, the
Issuer shall execute, and the Indenture Trustee shall authenticate and deliver,
in exchange for or in lieu of any such mutilated, destroyed, lost or stolen
Note, a new Note of like tenor and denomination. In connection with the issuance
of any new Note under this Section 2.5, the Indenture Trustee and the Note
Registrar may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Note issued pursuant to this Section 2.5 shall constitute valid obligations of
the Issuer, evidencing the same debt and entitled to the same benefits of this
Indenture, as if originally issued, whether or not the lost, stolen, or
destroyed Note shall be found at any time.

                  SECTION 2.6. Persons Deemed Owners. Prior to due presentment
for registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Note Insurer and any agent of Issuer, the Indenture Trustee and the Note Insurer
may treat the Person in whose name any Note is registered (as of the Record
Date) 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
Note Insurer, the Indenture Trustee nor any agent of the Issuer or the Indenture
Trustee shall be affected by notice to the contrary.

                  SECTION 2.7. Access to List of Noteholders' Names and
Addresses. The Indenture Trustee shall furnish or cause to be furnished to the
Servicer or the Note Insurer, at the expense of the Issuer, within 15 days after
receipt by the Indenture Trustee of a request therefor from the Servicer or the
Note Insurer, as the case may be, in writing, a list of the names and addresses
of the Noteholders as of the most recent Record Date. If three or more Class A
Noteholders or Class B Noteholders, as applicable, or one or more Class A
Noteholders or Class B Noteholders, as applicable, evidencing not less than 25%
of the Class A Note Balance or the Class B Note Balance, as applicable, apply in
writing to the Indenture Trustee, and such application states that the
applicants desire to communicate with other Noteholders with respect to their
rights under this Indenture or under the Notes and such application shall be
accompanied by a copy of the communication that such applicants propose to
transmit, then the Indenture Trustee shall, within five Business Days after the
receipt for such application, afford such applicants access during normal
business hours to the current list of Noteholders. Each Holder, by receiving and
holding a Note, shall be deemed to have agreed to hold none of the Issuer, the
Servicer, the Note Insurer, the Note Registrar or the Indenture Trustee
accountable by reason of the disclosure of its name and address, regardless of
the source from which such information was derived.

                                       9
<PAGE>

                  SECTION 2.8. Maintenance of Office or Agency. The Indenture
Trustee shall maintain in the Borough of Manhattan, the City of New York, an
office or offices or agency or agencies where Notes may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Indenture Trustee in respect of the Notes and this Indenture may be served.
The Indenture Trustee initially designates its office located at 4 New York
Plaza, 6th Floor, New York, New York 10004, as its office for such purposes. The
Indenture Trustee shall give prompt written notice to the Issuer and to
Noteholders of any change in the location of the Note Register or any such
office or agency.

                  SECTION 2.9. Payment of Principal and Interest; Defaulted
Interest.

                  (a) The Notes shall accrue interest as provided in the forms
of the Notes set forth in Exhibits A-1, A-2, A-3, A-4 and A-5, respectively, and
such interest shall be due and payable on each Payment Date, as specified
therein. Any installment of interest or principal, if any, payable on any Note
which is punctually paid or duly provided for by the Issuer on the applicable
Payment Date shall be paid as set forth in Section 5.6 of the Sale and Servicing
Agreement.

                  (b) In furtherance of and in limitation of the foregoing, (i)
each Class A Noteholder, by its acceptance of a Class A Note, specifically
acknowledges that it has no right to or interest in any monies at any time held
in the Class B Reserve Account, and (ii) each Class B Noteholder, by its
acceptance of a Class B Note, specifically acknowledges that it has no right to
or interest in any monies at any time held pursuant to the Spread Account
Agreement prior to the release of such monies pursuant to Section 5.6(d)(i) of
the Sale and Servicing Agreement, such monies being held in trust for the
benefit of the Class A Noteholders and the Note Insurer.

                  (c) The principal of each Note shall be payable in
installments on each Payment Date as provided in the forms of the Notes.
Notwithstanding the foregoing, the entire unpaid Note Balance 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 Controlling Party
has declared the Notes to be immediately due and payable in the manner provided
in Section 5.2. In such an event, all principal payments on each Class of Notes
shall be made pro rata to the Noteholders of each such Class entitled thereto.
Upon written notice from the Issuer, 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 will be paid. Such notice
shall be mailed or transmitted by facsimile prior to such final Payment Date and
shall specify that such final installment will 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 redemptions of Notes shall be mailed to Noteholders as provided in Section
10.2.

                  (d) If the Issuer defaults in a payment of interest on the
Notes, and such default is waived by the Controlling Party, the Issuer shall pay
the Class A-1 Interest Carryover Shortfall, the Class A-2 Interest Carryover
Shortfall, the Class A-3 Interest Carryover Shortfall, the Class A-4 Interest
Carryover Shortfall and the Class B Interest Carryover Shortfall to the related
Noteholders, as applicable, on the immediately following Payment Date.

                                       10
<PAGE>

                  (e) Promptly following the date on which all principal of and
interest on the Class A Notes has been paid in full and the Class A Notes have
been surrendered to the Indenture Trustee, the Indenture Trustee shall, if the
Note Insurer has paid any amount in respect of the Class A Notes under the
Policy or otherwise which has not been reimbursed to it, deliver such
surrendered Class A Notes to the Note Insurer.

                  SECTION 2.10. Cancellation. Subject to Section 2.9(d), all
Notes surrendered for payment, registration of transfer, exchange or redemption
shall, if surrendered to any Person other than the Indenture Trustee, be
delivered to the Indenture Trustee and shall be promptly canceled by the
Indenture Trustee. Subject to Section 2.9(d), 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 canceled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes canceled
as provided in this Section, except as expressly permitted by this Indenture.
Subject to Section 2.9(d), all canceled 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 timely direct by an Issuer
Order that such Notes be destroyed or returned to it; provided that such Notes
have not been previously disposed of by the Indenture Trustee prior to its
receipt of such Issuer Order.

                  SECTION 2.11. Release of Pledged Property. The Indenture
Trustee shall, on or after the Termination Date, release and cause the Trust
Collateral Agent to release any remaining portion of the Pledged Property from
the lien created by this Indenture and deposit in the Collection Account any
funds then on deposit in any of the other Accounts. The Indenture Trustee shall
release property from the lien created by this Indenture pursuant to this
Section 2.11 only upon receipt of an Issuer Request and, if required by the TIA,
Independent Certificates in accordance with Section 314(c) and 314(d)(1) of the
TIA.

                                   ARTICLE III

                                    Covenants

                  SECTION 3.1. Payment of Principal and Interest. The Issuer
will duly and punctually pay the principal of and interest on the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting the
foregoing, the Issuer will cause to be distributed on each Payment Date (a) all
amounts on deposit in the Note Account deposited therein pursuant to the Sale
and Servicing Agreement for the benefit of the Class A-1 Notes, to the Class A-1
Noteholders, (ii) for the benefit of the Class A-2 Notes, to the Class A-2
Noteholders, (iii) for the benefit of the Class A-3 Notes, to the Class A-3
Noteholders and (iv) for the benefit of the Class A-4 Notes, to the Class A-4
Noteholders and (b) all amounts on deposit in the Note Account for the benefit
of the Class B Notes including, without limitation, the Senior Strip and all
amounts released or withdrawn from the Class B Reserve Account pursuant to the
Sale and Servicing Agreement to the Class B Noteholders, or once the Class B
Note Balance is reduced to zero and all interest due and payable on the Class B
Notes has been paid in full, to the Certificateholder. 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.

                                       11
<PAGE>

                  SECTION 3.2. Maintenance of Office or Agency. The Issuer will
maintain in the Borough of Manhattan, the City of New York, an office or agency
where Notes may be 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 for the foregoing purposes. The Issuer will 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. On or
before each Payment Date and Redemption Date, the Issuer shall deposit or cause
to be deposited in the Note Account from 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.

                  The Issuer will cause each Note Paying Agent other than the
Indenture Trustee to execute and deliver to the Indenture Trustee and the Note
Insurer 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, that such Note
Paying Agent will:

                  (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 the Notes if at any time it 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 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.

                                       12
<PAGE>

                  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 a 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.

                  Subject to applicable laws with respect to the 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 years after such amount has become due and payable shall be
discharged from such trust and be paid to the Issuer on Issuer Request with the
consent of the Note Insurer (unless a Note Insurer Default shall have occurred
and be continuing) and shall be deposited by the Indenture Trustee in the
Collection Account; and the Holder 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 if such money or any portion
thereof had been previously deposited by the Note Insurer or the Trust
Collateral Agent with the Indenture Trustee for the payment of principal or
interest on the Class A Notes, to the extent any amounts are owing to the Note
Insurer, such amounts shall be paid promptly to the Note Insurer upon the
Indenture Trustee's receipt of a written request by the Note Insurer to such
effect; and provided, further, that the Indenture Trustee or such Note Paying
Agent, before being required to make any such repayment, shall at the expense 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 New York, 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
will be repaid to the Issuer. The Indenture Trustee shall also adopt and employ,
at the expense of the Issuer, any other reasonable means of notification of such
repayment (including, but not limited to, mailing notice of such repayment to
Holders whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in moneys 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 Holder).

                  SECTION 3.4. Existence. Except as otherwise permitted by the
provisions of Section 3.10, the Issuer will 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 will keep in full effect its existence, rights and
franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Pledged Property and each other
instrument or agreement included in the Trust Assets.

                  SECTION 3.5. Protection of Pledged Property. The Issuer
intends the security interest Granted pursuant to this Indenture in favor of the
Indenture Trustee for the benefit of the Note Insurer and the Noteholders to be
prior to all other liens in respect of the Trust Assets, and

                                       13
<PAGE>

the Issuer shall take all actions necessary to obtain and maintain, in favor of
the Indenture Trustee, for the benefit of the Note Insurer and the Noteholders,
a first lien on and a first priority, perfected security interest in the Pledged
Property. The Issuer will from time to time prepare (or shall cause to be
prepared), execute and deliver all such supplements and amendments hereto and
all such financing statements, continuation statements, instruments of further
assurance and other instruments, and will take such other action necessary or
advisable to:

                  (i) provide further assurance with respect to the Grant and/or
          Grant more effectively all or any portion of the Pledged Property or
          maintain the Pledged Property free and clear of all prior liens;

                  (ii) maintain or preserve the lien and security interest (and
          the priority thereof) in favor of the Indenture Trustee for the
          benefit of the Noteholders and the Note Insurer created by this
          Indenture or carry out more effectively the purposes hereof;

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

                  (iv) enforce any of the Pledged Property;

                  (v) preserve and defend title to the Pledged Property and the
          rights of the Indenture Trustee in such Pledged Property against the
          claims of all persons and parties; and

                  (vi) pay all taxes or assessments levied or assessed upon the
          Pledged Property when due.

The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required by the Indenture Trustee pursuant to this Section.

                  SECTION 3.6. Opinions as to Pledged Property.

                  (a) On the Closing Date, the Issuer shall furnish to the
Indenture Trustee and the Note Insurer 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 execution and filing
of any financing statements and continuation statements, as are necessary to
perfect and make effective the first priority lien and security interest in
favor of the Indenture Trustee, for the benefit of the Noteholders and the Note
Insurer, 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
make such lien and security interest effective.

                  (b) Within 120 days after the beginning of each calendar year,
beginning with the calendar year beginning January 1, 2004, the Issuer shall
furnish to the Indenture Trustee and the Note Insurer 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 execution and filing of any financing statements and
continuation statements as are

                                       14
<PAGE>

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 execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be required
to maintain the lien and security interest of this Indenture until January 30 in
the following calendar year.

                  SECTION 3.7. Performance of Obligations; Servicing of
Receivables. (a) The Issuer will not take any action and will 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 Pledged Property or that would result in
the amendment, hypothecation, subordination, termination or discharge of, or
impair the validity or effectiveness of, any such instrument or agreement,
except as ordered by any bankruptcy or other court or as expressly provided in
this Indenture, the Basic Documents or such other instrument or agreement.

                  (b) The Issuer may contract with other Persons acceptable to
the Note Insurer (so long as no Note Insurer Default shall have occurred and be
continuing) to assist it in performing its duties under this Indenture, and any
performance of such duties by a Person identified to the Indenture Trustee and
the Note Insurer 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 to assist the Issuer in performing its duties under this Indenture.

                  (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in this Indenture, the Basic Documents and
in the instruments and agreements included in the Pledged Property, including,
but not limited to, preparing (or causing to prepared) and filing (or causing to
be filed) all UCC financing statements and continuation statements required to
be filed 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 or the Note Insurer (or if
a Note Insurer Default has occurred and is continuing, the Majorityholders).

                  (d) If a responsible officer of the Owner Trustee shall have
actual knowledge of the occurrence of a Servicer Termination Event under the
Sale and Servicing Agreement, the Issuer shall promptly notify the Indenture
Trustee, the Note Insurer and the Rating Agencies thereof in accordance with
Section 11.4, and shall specify in such notice the action, if any, the Issuer is
taking in respect of such default. If a Servicer Termination Event 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) The Issuer agrees that it will not waive timely
performance or observance by the Servicer or the Transferor of their respective
duties under the Basic Documents (x) without the prior consent of the Note
Insurer (unless a Note Insurer Default shall have occurred and be continuing) or
(y) if the effect thereof would adversely affect the Holders of the Notes.

                                       15
<PAGE>

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

                  (i) except as expressly permitted by this Indenture or the
          Basic Documents, sell, transfer, exchange or otherwise dispose of any
          of the properties or assets of the Issuer, including those included in
          the Pledged Property, unless directed to do so by the Controlling
          Party;

                  (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 any part of the Pledged
          Property;

                  (iii) (A) permit the validity or effectiveness of this
          Indenture to be impaired, or permit the lien in favor of the Indenture
          Trustee created by 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 Pledged
          Property 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 a Financed Vehicle and
          arising solely as a result of an action or omission of the related
          Obligor), (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 Pledged Property or
          (D) amend, modify or fail to comply with the provisions of the Basic
          Documents without the prior written consent of the Controlling Party;

                  (iv) engage in any business or activity other than as
          permitted by the Trust Agreement;

                  (v) incur or assume any indebtedness or guarantee any
          indebtedness of any Person, except for such indebtedness incurred
          pursuant to Section 3.10; or

                  (vi) dissolve or liquidate in whole or in part or merge or
          consolidate with any other Person, other than in compliance with
          Section 3.10.

                  SECTION 3.9. Annual Statement as to Compliance. The Issuer
will deliver to the Indenture Trustee and the Note Insurer, within 120 days
after the end of each fiscal year of the Issuer (commencing with the fiscal year
ended December 31, 2003), and otherwise in compliance with the requirements of
Section 314(a)(4) of the TIA, 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 performance under this Indenture has been made under such
          Authorized Officer's supervision; and

                                       16
<PAGE>

                  (ii) to the best of such Authorized Officer's knowledge, based
          on such review, the Issuer has complied with all conditions and
          covenants under this Indenture throughout such year, or, if there has
          been a default in the compliance of 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 supplemental hereto,
          executed and delivered to the Indenture Trustee, in form satisfactory
          to the Indenture Trustee and the Note Insurer (so long as no Note
          Insurer Default shall have occurred and be continuing), 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 and the
          Note Insurer (so long as no Note Insurer Default shall have occurred
          and be continuing)) to the effect that such transaction will not have
          any material adverse tax consequence to the Trust, the Note Insurer,
          any Noteholder or the Certificateholder;

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

                  (vi) the Issuer shall have delivered to the Indenture Trustee
          and the Note Insurer 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); and

                  (vii) so long as no Note Insurer Default shall have occurred
          and be continuing, the Issuer shall have given the Note Insurer
          written notice of such conveyance or transfer at least twenty (20)
          Business Days prior to the consummation of such action and shall have
          received the prior written approval of the Note Insurer of such
          conveyance or transfer and the Issuer or the Person (if other than the
          Issuer) formed by or surviving such conveyance or transfer has a net
          worth, immediately after such conveyance or transfer, that is (a)
          greater than zero and (b) not less than the net worth of the Issuer
          immediately prior to giving effect to such conveyance or transfer.

                                       17
<PAGE>

                  (b) The Issuer shall not convey or transfer all or
substantially all of its properties or assets, including those included in the
Pledged Property, 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 assume, by an indenture
          supplemental hereto, executed and delivered to the Indenture Trustee,
          in form satisfactory to the Indenture Trustee, and the Note Insurer
          (so long as no Note Insurer Default shall have occurred and be
          continuing), 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 and each of the Basic
          Documents on the part of the Issuer to be performed or observed, all
          as provided herein, (C) expressly agree 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 Holders
          of the Notes, and (D) unless otherwise provided in such supplemental
          indenture, expressly agree 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;

                  (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 and the
          Note Insurer (so long as no Note Insurer Default shall have occurred
          and be continuing)) to the effect that such transaction will not have
          any material adverse tax consequence to the Trust, the Note Insurer,
          any Noteholder or the Certificateholder;

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

                  (vi) the Issuer shall have delivered to the Indenture Trustee
          and the Note Insurer an Officers' 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; and

                  (vii) so long as no Note Insurer Default shall have occurred
          and be continuing, the Issuer shall have given the Note Insurer
          written notice of such conveyance or transfer at least twenty (20)
          Business Days prior to the consummation of such action and shall have
          received the prior written approval of the Note Insurer of such
          consolidation or merger and the Issuer or the Person (if other than
          the Issuer) formed by or surviving such consolidation or merger has a
          net worth, immediately after such consolidation or merger, that is (a)
          greater than zero and (b) not less than the net worth of the Issuer
          immediately prior to giving effect to such consolidation or merger.

                                       18
<PAGE>

                  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), Long Beach Acceptance
Auto Receivables Trust 2003-A will 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 Long Beach Acceptance Auto Receivables Trust
2003-A is to be so released.

                  SECTION 3.12. No Other Business. The Issuer shall not engage
in any business other than financing, purchasing, owning, selling and managing
the Receivables in the manner contemplated by this Indenture and the Basic
Documents and activities incidental thereto. After the Closing Date, the Issuer
shall not fund the acquisition of any additional Receivables.

                  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 (i) the Notes, (ii) obligations owing from time to time
to the Note Insurer under the Insurance Agreement and (iii) any other
Indebtedness permitted by or arising under the Basic Documents. The proceeds of
the Notes shall be used exclusively to fund the Issuer's acquisition of the
Receivables and the other assets specified in the Sale and Servicing Agreement,
to fund the Spread Account and the Class B Reserve Account and to pay the
Issuer's organizational, transactional and start-up expenses.

                  SECTION 3.14. Servicer's Obligations. The Issuer shall cause
the Servicer to comply with Sections 4.9, 4.10, 4.11 and 5.7 of the Sale and
Servicing Agreement.

                  SECTION 3.15. Guarantees, Loans, Advances and Other
Liabilities. Except as contemplated by the Sale and Servicing Agreement or this
Indenture, 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 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. Compliance with Laws. The Issuer shall comply
with the requirements of all applicable laws, the non-compliance with which
would, individually or in the aggregate, materially and adversely affect the
ability of the Issuer to perform its obligations under the Notes, this Indenture
or any Basic Document.

                                       19
<PAGE>

                  SECTION 3.18. Restricted Payments. The Issuer shall not,
directly or indirectly, (i) pay any dividend or make any payment (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, (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, payments to
the Servicer, the Owner Trustee, the Trust Collateral Agent, the Back-up
Servicer, the Custodian, the Indenture Trustee, the Note Insurer, the
Noteholders and the Certificateholder as permitted by, and to the extent funds
are available for such purpose under, the Sale and Servicing Agreement, the
Spread Account Agreement or Trust Agreement. The Issuer will not, directly or
indirectly, make payments to or payments from the Collection Account except in
accordance with this Indenture and the Basic Documents.

                  SECTION 3.19. Notice of Events of Default. Upon a responsible
officer of the Owner Trustee having actual knowledge or receipt of written
notice thereof, the Issuer agrees to give the Indenture Trustee, the Trust
Collateral Agent, the Note Insurer and the Rating Agencies prompt written notice
of each Event of Default hereunder and each default on the part of the Servicer
or the Transferor of its obligations under the Sale and Servicing Agreement.

                  SECTION 3.20. Further Instruments and Acts. Upon request of
the Indenture Trustee or the Note Insurer, the Issuer will 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 3.21. Income Tax Characterization. For purposes of
federal income, state and local income and franchise and any other income taxes,
the Issuer will treat, and each Noteholder by its acceptance of a Note will be
deemed to have agreed to treat the Notes as indebtedness and hereby instructs
the Indenture Trustee to treat the Notes as indebtedness for all applicable tax
reporting purposes.

                                   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, 3.13, 3.20 and 3.21, (v) the rights, obligations 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 4.2) and (vi) the rights of Noteholders as beneficiaries hereof
with respect to the 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

                                       20
<PAGE>

                        (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 2.5
                  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 and the Policy has
                  expired and been returned to the Note Insurer for
                  cancellation; or

                        (2) all Notes not theretofore delivered to the Indenture
                  Trustee for cancellation

                        (i) have become due and payable,

                        (ii) will become due and payable on the Class A-1 Final
                  Scheduled Payment Date, the Class A-2 Final Scheduled Payment
                  Date, the Class A-3 Final Scheduled Payment Date, the Class
                  A-4 Final Scheduled Payment Date or the Class B Final
                  Scheduled Payment Date, as applicable, within one year, or

                        (iii) are to be called for redemption within one year
                  under arrangements satisfactory to the Indenture Trustee for
                  the giving of notice of redemption by the Indenture Trustee in
                  the name, and at the expense, of the Issuer,

                  and the Issuer, in the case of (i), (ii) or (iii) above, 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 to pay and
                  discharge the entire indebtedness on such Notes not
                  theretofore delivered to the Indenture Trustee for
                  cancellation when due on the Class A-1 Final Scheduled Payment
                  Date, Class A-2 Final Scheduled Payment Date, Class A-3 Final
                  Scheduled Payment Date, Class A-4 Final Scheduled Payment Date
                  or Class B Final Scheduled Payment Date, as applicable or
                  Redemption Date (if Notes shall have been called for
                  redemption pursuant to Section 10.1(a)), as the case may be;

                        (B) the Issuer has paid or caused to be paid all its
                  obligations to the Note Insurer, the Noteholders and the
                  Indenture Trustee; and

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

                  SECTION 4.2. Application of Trust Money. All moneys deposited
with the Indenture Trustee pursuant to Section 4.1 hereof 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 Holders of the particular Notes for
the payment or redemption of which such moneys have been deposited with

                                       21
<PAGE>

the Indenture Trustee, of all sums due and to become due thereon for principal
and interest; but such moneys 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 Moneys Held by Note Paying Agent. In
connection with the satisfaction and discharge of this Indenture with respect to
the Notes, all moneys 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 moneys.

                                    ARTICLE V

                                    Remedies

                  SECTION 5.1. Events of Default. "Event of Default", wherever
used herein, means 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 Note Interest when the same
          becomes due and payable, and such default shall continue for a period
          of five (5) days (solely for purposes of this clause, a payment on the
          Class A Notes funded by the Note Insurer or the Collateral Agent
          pursuant to the Spread Account Agreement shall be deemed to be a
          payment made by the Issuer and a payment on the Class B Notes funded
          by amounts drawn or released from the Class B Reserve Account shall be
          deemed to be a payment by the Issuer); or

                  (ii) default in the payment of the Class A Principal Payment
          Amount or the Class B Principal Payment Amount, as applicable, on the
          Class A-1 Final Scheduled Payment Date, the Class A-2 Final Scheduled
          Payment Date, the Class A-3 Final Scheduled Payment Date, the Class
          A-4 Final Scheduled Payment Date or the Class B Final Scheduled
          Payment Date, as the case may be (solely for purposes of this clause,
          a payment on the Class A Notes funded by the Note Insurer or the
          Collateral Agent pursuant to the Spread Account Agreement, shall be
          deemed to be a payment made by the Issuer and a payment on the Class B
          Notes funded by amounts drawn or released from the Class B Reserve
          Account shall be deemed to be a payment by the Issuer); or

                  (iii) so long as a Note Insurer Default shall not have
          occurred and be continuing, an Insurance Agreement Indenture Cross
          Default shall have occurred; provided, however, that the occurrence of
          an Insurance Agreement Indenture Cross Default may not form the basis
          of an Event of Default unless the Note Insurer shall, upon prior
          written notice to the Rating Agencies, have delivered to the Issuer
          and the Indenture Trustee and not rescinded a written notice
          specifying that such Insurance Agreement Indenture Cross Default
          constitutes an Event of Default under this Indenture; or

                                       22
<PAGE>

                  (iv) a 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 specifically dealt with), or any
          representation or warranty of the Issuer made in this Indenture or in
          any certificate or other writing delivered under or in connection with
          this Indenture proving to have been incorrect in any material respect
          when made, and such default continuing or not being cured, or the
          circumstances or conditions for which the representation or warranty
          was incorrect not having been eliminated or otherwise cured for a
          period of thirty (30) days after the date on which written notice of
          such default or incorrect representation or warranty, requiring the
          same to be remedied, shall have been given to the Issuer and the
          Indenture Trustee by the Note Insurer (or if a Note Insurer Default
          has occurred and is continuing, by the Noteholders evidencing not less
          than 25% of the Class A Note Balance) or after the Policy Expiration
          Date, by the Class B Noteholders, evidencing not less than 25% of the
          Class B Note Balance; or

                  (v) so long as a Note Insurer Default shall have occurred and
          be continuing, 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 Pledged Property 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 Pledged
          Property, 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

                  (vi) so long as a Note Insurer Default shall have occurred and
          be continuing, 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 Pledged Property, 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 action by the Issuer in furtherance of any of the foregoing.

                  SECTION 5.2. Rights Upon Event of Default. (a) If a Note
Insurer Default shall not have occurred and be continuing and an Event of
Default shall have occurred and be continuing, the Notes shall become
immediately due and payable at par, together with accrued interest thereon. If
an Event of Default shall have occurred and be continuing, the Controlling Party
may exercise any of the remedies specified in Section 5.4(a). In the event of
any acceleration of any Class A Notes by operation of this Section 5.2, the
Indenture Trustee shall continue to be entitled to make claims under the Policy
pursuant to the Sale and Servicing Agreement for Insured Payments on the Class A
Notes. Payments under the Policy following acceleration of any Class A Notes
shall be applied by the Indenture Trustee:

                  First: to Class A Noteholders for amounts due and unpaid on
          the Class A Notes for interest, ratably, without preference or
          priority of any kind, according to the amounts due and payable on the
          Class A Notes for interest; and

                                       23
<PAGE>

                  Second: to Class A Noteholders for amounts due and unpaid on
          the Class A Notes for principal, ratably, without preference or
          priority of any kind, according to the amounts due and payable on the
          Class A Notes for principal.

                  (b) In the event any Class A Notes are accelerated due to an
Event of Default, the Note Insurer shall have the right (in addition to its
obligation to pay Insured Payments on the Class A Notes in accordance with the
Policy), but not the obligation, to make payments under the Policy or otherwise
of interest and principal due on such Class A Notes, in whole or in part, on any
date or dates following such acceleration as the Note Insurer, in its sole
discretion, shall elect.

                  (c) If a Note Insurer Default shall have occurred and be
continuing and an Event of Default shall have occurred and be continuing, the
Indenture Trustee in its discretion may, or if so requested in writing by the
Majorityholders shall, declare by written notice to the Issuer that the Notes
become, whereupon they shall become, immediately due and payable at par, in
accordance with the priorities set forth in Section 5.6, together with accrued
interest thereon.

                  (d) If a Note Insurer Default shall have occurred and be
continuing, then at any time after such declaration of acceleration of maturity
has been made and before a judgment or decree for payment of the money due has
been obtained by the Indenture Trustee as hereinafter in this Article V;
provided, the Majorityholders, 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

                        (B) all sums paid or advanced by the Indenture Trustee
                    hereunder and the reasonable compensation, expenses,
                    disbursements 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 5.13.

                  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) default
is made in the payment of any interest on any Note when the same becomes due and
payable, and such default continues for a period of five days, or (ii) default
is made 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 will pay to the
Indenture Trustee, for the benefit of the Holders of the Notes, 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

                                       24
<PAGE>

of interest, at the applicable Note Rate 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 and counsel.

                  (b) Each of the Indenture Trustee and the Note Insurer hereby
irrevocably and unconditionally appoints the Controlling Party as the true and
lawful attorney-in-fact of the Indenture Trustee or the Note Insurer, as
applicable, for so long as neither the Indenture Trustee nor the Note Insurer is
the Controlling Party, with full power of substitution, to execute, acknowledge
and deliver any notice, document, certificate, paper, pleading or instrument and
to do in the name of the Controlling Party as well as in the name, place and
stead of the Indenture Trustee and the Note Insurer such acts, things and deeds
for or on behalf of and in the name of either the Indenture Trustee or the Note
Insurer under this Indenture (including specifically under Section 5.4) and
under the Basic Documents which either the Indenture Trustee and the Note
Insurer could or might do or which may be necessary, desirable or convenient in
such Controlling Party's sole discretion to effect the purposes contemplated
hereunder and under the Basic Documents and, without limitation, following the
occurrence of an Event of Default, exercise full right, power and authority to
take, or defer from taking, any and all acts with respect to the administration,
maintenance or disposition of the Pledged Property.

                  (c) If an Event of Default occurs and is continuing, the
Indenture Trustee may in its discretion but with the consent of the Note
Insurer, so long as no Note Insurer Default is then continuing, and shall, at
the direction of the Controlling Party, proceed to protect and enforce its
rights and the rights of the Noteholders by such appropriate Proceedings as the
Indenture Trustee or the Controlling Party shall deem 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) Intentionally Omitted.

                  (e) 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 Trust Assets, 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 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, 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,

                                       25
<PAGE>

          and for reimbursement of all expenses and liabilities incurred, and
          all advances made, by the Indenture Trustee and each predecessor
          Indenture Trustee, except as a result of negligence, bad faith or
          willful misconduct) 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 moneys or other property
          payable or deliverable on any such claims and to distribute 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 made, by the Indenture Trustee and each
predecessor Indenture Trustee except as a result of negligence or bad faith.

                  (f) 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 Holder thereof 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.

                  (g) All rights of action and of asserting claims under this
Indenture, the Spread Account Agreement, any other Basic Document 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 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 and attorneys, shall be for the ratable benefit of the
Holders of the Notes.

                  (h) In any proceedings brought by the Indenture Trustee (and
also any proceedings involving the interpretation of any provision of this
Indenture, the Spread Account Agreement or any other Basic Document), the
Indenture Trustee shall be held to represent all the Holders of the Notes, and
it shall not be necessary to make any Noteholder a party to any such
proceedings.

                                       26
<PAGE>

                  SECTION 5.4. Remedies. (a) If an Event of Default shall have
occurred and be continuing, the Controlling Party may 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 moneys adjudged
          due;

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

                  (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, the Note Insurer and the
          Holders of the Notes; and

                  (iv) direct the Trust Collateral Agent to sell the Pledged
          Property 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, that:

                        (A) if the Indenture Trustee is the Controlling Party,
                  the Indenture Trustee may not, nor direct the Trust Collateral
                  Agent to, sell or otherwise liquidate the Pledged Property
                  following an Event of Default unless:

                              (I) such Event of Default is of the type described
                        in Section 5.1(i) or (ii), or

                              (II) either

                                  (x) 100% of the Noteholders consent thereto,

                                  (y) the proceeds of such sale or liquidation
                              are sufficient to discharge in full all amounts
                              then due and unpaid upon such Notes for principal
                              and interest, or

                                  (z) the Indenture Trustee determines that the
                              Trust Assets will not continue to provide
                              sufficient funds for the payment of principal of
                              and interest on the Notes as they would have
                              become due if the Notes had not been declared due
                              and payable, and the Indenture Trustee provides
                              prior written notice to the Rating Agencies and
                              obtains the consent of Holders of 66-2/3% of the
                              outstanding Class A Note Balance.

                  In determining such sufficiency or insufficiency with respect
to clause (y) and (z), the Indenture Trustee may, but need not, obtain and
conclusively rely upon an opinion of an Independent investment banking or
accounting firm of national reputation, which opinion shall not be at the
expense of the Indenture Trustee, as to the feasibility of such proposed action
and as to the sufficiency of the Pledged Property for such purpose.

                                       27
<PAGE>

                  SECTION 5.5. Optional Preservation of the Pledged Property. If
the Indenture Trustee is the Controlling Party and 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 may, but need not, elect to direct the Trust Collateral
Agent to maintain possession of the Pledged Property. 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
direct the Trust Collateral Agent to maintain possession of the Pledged
Property. In determining whether to direct the Trust Collateral Agent to
maintain possession of the Pledged Property, the Indenture Trustee may, but need
not, obtain and conclusively rely upon an opinion of an Independent investment
banking or accounting firm of national reputation, which opinion shall not be at
the expense of the Indenture Trustee, as to the feasibility of such proposed
action and as to the sufficiency of the Pledged Property for such purpose.

                  SECTION 5.6. Priorities.

                  (a) If the Indenture Trustee collects any money or property
pursuant to this Article V (excluding any payments made under the Policy), or if
the Trust Collateral Agent delivers any money or property in respect of
liquidation of the Pledged Property to the Indenture Trustee pursuant to Section
5.4(a)(iv), such money or property, as applicable, shall be applied by the
Indenture Trustee on the related Payment Date in the following order of
priority:

                  First: amounts due and owing and required to be distributed to
          the Servicer (provided there is no Servicer Termination Event), the
          Note Insurer (with respect to the Premium only), the Indenture
          Trustee, the Custodian, the Back Up Servicer and, with respect to the
          Senior Strip, to the Class B Noteholders per application pursuant to
          clause Sixth, with any remainder of the Senior Strip to be deposited
          in the Class B Reserve Account or, if the Class B Note Balance has
          been reduced to zero, to LBAC, as the case may be, respectively,
          pursuant to priorities (i) and (ii) of Section 5.6(c) of the Sale and
          Servicing Agreement and not previously distributed, in the order of
          such priorities and without preference or priority of any kind within
          such priorities;

                  Second: to Class A-1 Noteholders, the Class A-2 Noteholders,
          the Class A-3 Noteholders and the Class A-4 Noteholders for amounts
          due and unpaid on the Class A-1 Notes, the Class A-2 Notes, the Class
          A-3 Notes and the Class A-4 Notes, for interest, ratably, without
          preference or priority of any kind, according to the amounts due and
          payable on the Class A-1 Notes, the Class A-2 Notes, the Class A-3
          Notes and the Class A-4 Notes for interest;

                  Third: to Class A-1 Noteholders, the Class A-2 Noteholders,
          the Class A-3 Noteholders and the Class A-4 Noteholders for amounts
          due and unpaid on the Class A-1, Class A-2, Class A-3 and Class A-4
          Notes for principal, pro rata (based on the then outstanding Class A-1
          Note Balance, Class A-2 Note Balance, Class A-3 Note Balance and Class
          A-4 Note Balance);

                                       28
<PAGE>

                  Fourth: amounts due and owing and required to be distributed
          to the Note Insurer pursuant to priority (v) of Section 5.6(c) of the
          Sale and Servicing Agreement and not previously distributed;

                  Fifth: to the Trust Collateral Agent, the Back-up Servicer,
          the Indenture Trustee and the Custodian, respectively, amounts due and
          owing and required to be distributed to such entities (including,
          without limitation amounts due under Section 6.7) pursuant to priority
          (v) of Section 5.6(c) of the Sale and Servicing Agreement and not
          previously distributed;

                  Sixth: to the Class B Noteholders, the amount of interest due
          and unpaid on the Class B Notes.

                  Seventh: to the Collateral Agent, for deposit in the Spread
          Account, any amounts remaining after application pursuant to the
          priorities above, for application in accordance with the provisions of
          the Spread Account Agreement;

                  Eighth: to the Trust Collateral Agent, for deposit in the
          Class B Reserve Account, any funds released from the Spread Account;

                  Ninth: to the Class B Noteholders, to the extent amounts are
          released from the Class B Reserve Account, the amount due and unpaid
          on the Class B Notes for principal; and

                  Tenth: to the Certificateholder, any remaining amounts
          released from the Class B Reserve Account after application pursuant
          to the priorities above.

                  (b) The Indenture Trustee may fix a record date and payment
date for any payment to Noteholders pursuant to this Section 5.6. At least 15
days before such record date the Issuer shall mail to each Noteholder and the
Indenture Trustee a notice that states the record date, the payment date and the
amount to be paid.

                  SECTION 5.7. Limitation of Suits.

                  No Class A Noteholder or Class B 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:

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

                  (ii) the Class A Noteholders evidencing not less than 25% of
          the Class A Note Balance and the Class B Noteholders evidencing not
          less than 25% of the Class B Note Balance 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;

                  (iii) such Holder or Holders have offered to the Indenture
          Trustee indemnity reasonably satisfactory to it against the costs,
          expenses and liabilities to be incurred in complying with such
          request;

                                       29
<PAGE>

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

                  (v) no direction inconsistent with such written request has
          been given to the Indenture Trustee during such 60-day period by the
          Majorityholders; and

                  (vi) a Note Insurer Default shall have occurred and be
          continuing.

                  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 representing less than a majority of the outstanding Class A Note Balance
and the Class B Note Balance, the Indenture Trustee shall take direction from
the group representing the greater percentage of the outstanding Class A Note
Balance and the Class B Note Balance, and if the groups represent equal
interests, the Indenture Trustee, in its sole discretion may determine what
action, if any, shall be taken, notwithstanding any other provisions of this
Indenture.

                  SECTION 5.8. Unconditional Rights of Noteholders To Receive
Principal and Interest. Subject to the provisions of this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest, if any, on such Note on or
after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date), to
the extent that funds are available for distribution to each such Holder on such
due dates, and the Controlling Party may institute suit for the enforcement of
any such payment, and such right shall not be impaired without the consent of
such Holder.

                  SECTION 5.9. Restoration of Rights and Remedies. If the
Controlling Party 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 5.10. Rights and Remedies Cumulative. No right or
remedy herein conferred upon or reserved to the Controlling Party 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.

                                       30
<PAGE>

                  SECTION 5.11. Delay or Omission Not a Waiver. No delay or
omission of the Indenture Trustee, the Controlling Party or any Holder of any
Note 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 an acquiescence therein. Every right and remedy
given by this Article V or by law to the Indenture Trustee, the Note Insurer or
to the Noteholders may be exercised from time to time, and as often as may be
deemed expedient, by the Indenture Trustee, the Note Insurer or by the
Noteholders, as the case may be.

                  SECTION 5.12. Control by Noteholders. If the Indenture Trustee
is the Controlling Party, Majorityholders shall have the right 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:

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

                  (ii) if the conditions set forth in Section 5.5 have been
          satisfied and the Indenture Trustee elects to retain the Pledged
          Property pursuant to such Section, then any direction to the Indenture
          Trustee by Noteholders representing less than 100% of the outstanding
          Note Balance of the Notes to sell or liquidate the Pledged Property
          shall be of no force and effect; and

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

provided, however, that, subject to Article VI, the Indenture Trustee need not
take any action that it determines might involve it in liability or might
materially adversely affect the rights of any Noteholders not consenting to such
action.

                  SECTION 5.13. Waiver of Past Defaults. Prior to the
declaration of the acceleration of the maturity of the Notes as provided in
Section 5.4, the Note Insurer (provided no Note Insurer Default shall have
occurred and be continuing) or the Majorityholders (if a Note Insurer Default
shall have occurred and be continuing), may waive any past Default or Event of
Default and its consequences except a Default (a) in payment of principal of or
interest on any of the Notes or (b) in respect of a covenant or provision hereof
which cannot be modified or amended without the consent of the Holder of each
Note. In the case of any such waiver, the Issuer, the Indenture Trustee and the
Holders of the Notes 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 5.14. Undertaking for Costs. All parties to this
Indenture agree, and each Holder of any Note by such Holder'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

                                       31
<PAGE>

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 shall not apply to (a) any suit
instituted by the Indenture Trustee, (b) any suit instituted by any Noteholders,
or groups of Noteholders, in each case holding in the aggregate more than 10% of
the outstanding Note Balance of each of the Class A Notes and the Class B Notes
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 (or, in the case of redemption, on
or after the Redemption Date).

                  SECTION 5.15. Waiver of Stay or Extension Laws. The Issuer
covenants (to the extent that it may lawfully do so) that it will 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
will 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 5.16. 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 Pledged
Property or upon any of the assets of the Issuer.

                  SECTION 5.17. Performance and Enforcement of Certain
Obligations. (a) Promptly following a request from the Indenture Trustee upon
the direction of the Servicer to do so and at the Issuer's expense, the Issuer
agrees to take all such lawful action as the Indenture Trustee may request to
compel or secure the performance and observance by the Transferor and the
Servicer, as applicable, of each of their obligations to the Issuer under or in
connection with the Sale and Servicing Agreement in accordance with the terms
thereof, 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 to the extent and in the manner directed by the Indenture
Trustee, including the transmission of notices of default on the part of the
Transferor or the Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the
Transferor or the Servicer of each of their obligations under the Sale and
Servicing Agreement.

                  (b) If the Indenture Trustee is the Controlling Party and if
an Event of Default has occurred and is continuing, the Indenture Trustee may,
and, at the written direction of the Holders of 66-2/3% of the outstanding Note
Balance of each of the Class A Notes and the Class B Notes shall, subject to
Article VI, exercise all rights, remedies, powers, privileges and claims of the
Issuer against the Transferor or the Servicer under or in connection with the
Sale and

                                       32
<PAGE>

Servicing Agreement, including the right or power to take any action to compel
or secure performance or observance by the Transferor or the Servicer of each of
their obligations to the Issuer thereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Sale and Servicing
Agreement, and any right of the Issuer to take such action shall be suspended.

                  SECTION 5.18. Subrogation.

                  The Note Insurer shall, to the extent it makes any payment
with respect to the Class A Notes, become subrogated to the rights of the
recipients of such payments to the extent of such payments. Subject to and
conditioned upon any payment with respect to the Class A Notes by or on behalf
of the Note Insurer, each Class A Noteholder shall be deemed, without further
action, to have directed the Indenture Trustee to assign to the Note Insurer all
rights to the payment of interest or principal with respect to the Class A Notes
which are then due for payment to the extent of all payments made by the Note
Insurer and the Note Insurer may exercise any option, vote, right, power or the
like with respect to the Class A Notes to the extent that it has made payment
pursuant to the Policy. Notwithstanding the foregoing, the order of priority of
payments to be made pursuant to Section 5.6(c) of the Sale and Servicing
Agreement shall not be modified by this clause. To evidence such subrogation,
the Note Registrar shall note the Note Insurer's rights as subrogee upon the
register of Class A Noteholders upon receipt from the Note Insurer of proof of
payment by the Note Insurer of any Class A Interest Payment Amount or Class A
Principal Payment Amount.

                  SECTION 5.19. Preference Claims; Direction of Proceedings.

                  (a) In the event that the Indenture Trustee has received a
certified copy of an order of the appropriate court that any Insured Payment
paid on a Class A Note has been avoided in whole or in part as a preference
payment under applicable bankruptcy law, the Indenture Trustee shall so notify
the Note Insurer, shall comply with the provisions of the Policy to obtain
payment by the Note Insurer of such avoided payment, and shall, at the time it
provides notice to the Note Insurer, notify Holders of the Class A Notes by mail
that, in the event that any Class A Noteholder's payment is so recoverable, such
Class A Noteholder will be entitled to payment pursuant to the terms of the
Policy. Pursuant to the terms of the Policy, the Note Insurer will make such
payment on behalf of the Class A Noteholder to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order (as defined in
the Policy) and not to the Indenture Trustee or any Class A Noteholder directly
(unless such Class A Noteholder has previously paid such payment to the
receiver, conservator, debtor-in-possession or trustee in bankruptcy, in which
case the Note Insurer will make such payment to the Indenture Trustee for
payment, in accordance with the instructions to be provided by the Note Insurer,
to such Class A Noteholder upon proof of such payment reasonably satisfactory to
the Note Insurer).

                  (b) Each Notice of Claim shall provide that the Indenture
Trustee, on its behalf and on behalf of the Class A Noteholders, thereby
appoints the Note Insurer as agent and attorney-in-fact for the Indenture
Trustee and each Class A Noteholder in any legal proceeding with respect to the
Class A Notes. The Indenture Trustee shall promptly notify the Note Insurer of
any proceeding or the institution of any action (of which a Responsible Officer
of the Indenture Trustee has actual knowledge) seeking the avoidance as a
preferential transfer under applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (a "Preference

                                       33
<PAGE>

Claim") of any payment made with respect to the Class A Notes. Each Holder of
Class A Notes, by its purchase of Class A Notes, and the Indenture Trustee
hereby agree that so long as a Note Insurer Default shall not have occurred and
be continuing, the Note Insurer may at any time during the continuation of any
proceeding relating to a Preference Claim direct all matters relating to such
Preference Claim including, without limitation, (i) the direction of any appeal
of any order relating to any Preference Claim and (ii) the posting of any
surety, supersedeas or performance bond pending any such appeal at the expense
of the Note Insurer, but subject to reimbursement as provided in the Insurance
Agreement. In addition, and without limitation of the foregoing, the Note
Insurer shall be subrogated to, and each Class A Noteholder and the Indenture
Trustee hereby delegate and assign, to the fullest extent permitted by law, the
rights of the Indenture Trustee and each Class A Noteholder in the conduct of
any proceeding with respect to a Preference Claim, including, without
limitation, all rights of any party to an adversary proceeding action with
respect to any court order issued in connection with any such Preference Claim.

                                   ARTICLE VI

                              The Indenture Trustee

                  SECTION 6.1. Duties of Indenture Trustee. (a) The Indenture
Trustee, both prior to the occurrence of an Event of Default and after an Event
of Default shall have been cured or waived, shall undertake to perform such
duties and only such duties as are specifically set forth in this Indenture. If
an Event of Default shall have occurred and shall not have been cured or waived,
the Indenture Trustee may, and at the direction of the Note Insurer (or, if a
Note Insurer Default shall have occurred and is continuing, the Noteholders),
shall exercise such of the rights and powers vested in it by this Indenture and
shall 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 its own
affairs.

                  (b) The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture, shall
examine them to determine whether they conform to the requirements of this
Indenture; provided, however, that the Indenture Trustee shall not be
responsible for the accuracy or content of any such resolution, certificate,
statement, opinion, report, document, order or other instrument. If any such
instrument is found not to conform in any material respect to the requirements
of this Indenture, the Indenture Trustee shall notify the Note Insurer and the
Noteholders of such instrument in the event that the Indenture Trustee, after so
requesting, does not receive a satisfactorily corrected instrument.

                  (c) The Indenture Trustee shall take and maintain custody of
the Schedule of Receivables included as Schedule A to the Sale and Servicing
Agreement and shall retain copies of all Servicer's Certificates prepared
thereunder.

                  (d) No provision of this Indenture shall be construed to
relieve the Indenture Trustee from liability for its own negligent action, its
own negligent failure to act, or its own bad faith; provided, however, that:

                                       34
<PAGE>

                  (i) Prior to the occurrence of an Event of Default and after
          the curing or waiving of all such Events of Default that may have
          occurred, the duties and obligations of the Indenture Trustee shall be
          determined solely by the express provisions of this Indenture, the
          Indenture Trustee shall not be liable except for the performance of
          such duties and obligations as shall be specifically set forth in this
          Indenture, no implied covenants or obligations shall be read into this
          Indenture against the Indenture Trustee and, in the absence of bad
          faith on the part of the Indenture Trustee, the Indenture Trustee may
          conclusively rely on the truth of the statements and the correctness
          of the opinions expressed in any certificates or opinions furnished to
          the Indenture Trustee and conforming to the requirements of this
          Indenture;

                  (ii) The Indenture Trustee shall not be liable for an error of
          judgment made in good faith by a Responsible Officer, unless it shall
          be proved that the Indenture Trustee shall have been negligent in
          ascertaining the pertinent facts;

                  (iii) The Indenture Trustee shall not be liable with respect
         to any action taken, suffered, or omitted to be taken in good faith in
         accordance with this Indenture or at the direction of the Note Insurer
         or, after a Note Insurer Default, the Class A Noteholders evidencing
         not less than 25% of the Class A Note Balance, or, after the Policy
         Expiration Date, by the Class B Noteholders, evidencing not less than
         25% of the Class B Note Balance relating to the time, method, and place
         of conducting any proceeding for any remedy available to the Indenture
         Trustee, or exercising any trust or power conferred upon the Indenture
         Trustee, under this Indenture;

                  (iv) The Indenture Trustee shall not be charged with knowledge
          of any Event of Default, unless a Responsible Officer of the Indenture
          Trustee receives written notice of such Event of Default from the
          Servicer or the Transferor, as the case may be, the Note Insurer or,
          after a Note Insurer Default, the Class A Noteholders evidencing not
          less than 25% of the Class A Note Balance or, after the Policy
          Expiration Date, by the Class B Noteholders evidencing not less than
          25% of the Class B Note Balance (such notice shall constitute actual
          knowledge of an Event of Default by the Indenture Trustee); and

                  (v) The Indenture Trustee shall not be liable for any action
          taken, suffered or omitted by it in good faith and reasonably believed
          by it to be authorized or within the discretion or rights or powers
          conferred upon it by this Indenture.

                  (e) The Indenture Trustee may, but shall not be required 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, unless it shall have been provided with indemnity against such
risk or liability in form and substance satisfactory to the Indenture Trustee,
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, in its capacity as
Back-up Servicer, shall be the successor to, and be vested with the rights,
duties, powers, and privileges of, the Servicer in accordance with the terms of
the Sale and Servicing Agreement.

                                       35
<PAGE>

                  (f) Except for actions expressly authorized by this Indenture,
the Indenture Trustee shall take no action reasonably likely to impair the
security interests created or existing under any Receivable or Financed Vehicle
or to impair the value of any Receivable or Financed Vehicle.

                  (g) All information obtained by the Indenture Trustee
regarding the Obligors and the Receivables, whether upon the exercise of its
rights under this Indenture or otherwise, shall be maintained by the Indenture
Trustee in confidence and shall not be disclosed to any other Person, all in
accordance with the Federal Financial Privacy Law; provided that, nothing herein
shall prevent the Indenture Trustee from delivering copies of such information
whether or not constituting Confidential Information, and disclosing other
information, whether or not Confidential Information, to (i) its directors,
officers, employees, agents and professional consultants to the extent necessary
to carry on the Indenture Trustee's business in the ordinary course, (ii) any
Noteholder or the Note Insurer to the extent that such Noteholder or the Note
Insurer is entitled to such information under this Indenture, but not otherwise,
(iii) any governmental authority which specifically requests (or as to which
applicable regulations require) such information, (iv) any nationally recognized
rating agency in connection with the rating of the Notes by such agency, or (v)
any other Person to which such delivery or disclosure may be necessary or
appropriate, (a) in compliance with any applicable law, rule, regulation or
order, (b) in response to any subpoena or other legal process, (c) in connection
with any litigation to which the Indenture Trustee is a party, (d) in order to
enforce the rights of the Noteholders and the Note Insurer under the Trust
established hereunder, or (e) otherwise, in accordance with the Federal
Financial Privacy Law; provided, that, prior to any such disclosure, the
Indenture Trustee shall inform each such party (other than any Noteholder, the
Note Insurer or any other party to the Basic Documents) that receives
Confidential Information of the foregoing requirements and shall use its
commercially reasonable best efforts to cause such party to comply with such
requirements.

                  (h) 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.

                  (i) 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 the provisions of the
TIA.

                  (j) The Indenture Trustee shall, and hereby agrees that it
will, perform all of the obligations and duties required of it under the Sale
and Servicing Agreement.

                  (k) The Indenture Trustee shall, and hereby agrees that it
will, hold the Policy in trust, and will hold any proceeds of any claim on the
Policy in trust, solely for the use and benefit of the Class A Noteholders.

                  (l) Without limiting the generality of this Section 6.1, the
Indenture Trustee shall have no duty (i) to see to any recording, filing or
depositing of this Indenture or any agreement referred to herein or any
financing statement evidencing a security interest in the Financed Vehicles, or
to see to the maintenance of any such recording or filing or depositing or to
any recording, refiling or redepositing of any thereof, (ii) to see to any
insurance of the

                                       36
<PAGE>

Financed Vehicles or Obligors or to effect or maintain any such insurance, (iii)
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 Pledged Property, (iv) to confirm or verify the
contents of any reports or certificates delivered to the Indenture Trustee
pursuant to this Indenture or the Sale and Servicing Agreement believed by the
Indenture Trustee to be genuine and to have been signed or presented by the
proper party or parties, or (v) to inspect the Financed Vehicles at any time or
ascertain or inquire as to the performance or observance of any of the Issuer's,
the Transferor's or the Servicer's representations, warranties or covenants or
the Servicer's duties and obligations as Servicer and as custodian of the
Receivable Files under the Sale and Servicing Agreement.

                  (m) In no event shall JPMorgan Chase Bank, in any of its
capacities hereunder, be deemed to have assumed any duties of the Owner Trustee
under the Delaware Statutory Trust Act, common law, or the Trust Agreement.

                  (n) The Indenture Trustee shall not be required to give any
bond or surety in respect of the powers granted to it under this Indenture.

                  SECTION 6.2. Rights of Indenture Trustee. Except as otherwise
provided in Section 6.1(b):

                  (i) The Indenture Trustee may rely and shall be protected in
          acting or refraining from acting upon any resolution, Officer's
          Certificate, Servicer's Certificate, certificate of auditors, or any
          other Opinion of Counsel, certificate, statement, instrument, opinion,
          report, notice, request, consent, order, appraisal, bond, or other
          paper or document believed by it to be genuine and to have been signed
          or presented by the proper party or parties.

                  (ii) The Indenture Trustee may consult with counsel, and any
          written advice or Opinion of Counsel shall be full and complete
          authorization and protection in respect of any action taken or
          suffered or omitted by it under this Indenture in good faith and in
          accordance with such written advice or Opinion of Counsel.

                  (iii) 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 under this
          Indenture or in relation to this Indenture, at the request, order or
          direction of any of the Noteholders or the Note Insurer pursuant to
          the provisions of this Indenture, unless such Noteholders or the Note
          Insurer shall have offered to the Indenture Trustee reasonable
          security or indemnity in form and substance reasonably satisfactory to
          the Indenture Trustee against the costs, expenses, and liabilities
          that may be incurred therein or thereby; nothing contained in this
          Indenture, however, shall relieve the Indenture Trustee of the
          obligations, upon the occurrence of an Event of Default (that shall
          not have been cured or waived), to exercise such of the rights and
          powers vested in it by this Indenture, and to 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 its own affairs.

                                       37
<PAGE>

                  (iv) The Indenture Trustee shall not be bound to make any
          investigation into the facts or matters stated in any resolution,
          certificate, statement, instrument, opinion, report, notice, request,
          consent, order, approval, bond, or other paper or document, unless
          requested in writing to do so by the Note Insurer (if no Note Insurer
          Default shall have occurred or be continuing), the Issuer or by the
          Class A Noteholders evidencing not less than 25% of the Note Balance
          or, after the Policy Expiration Date, by the Class B Noteholders
          evidencing not less than 25% of the Class B Note Balance; provided,
          however, that, if the payment within a reasonable time to the
          Indenture Trustee of the costs, expenses, or liabilities likely to be
          incurred by it in the making of such investigation shall be, in the
          opinion of the Indenture Trustee, not assured to the Indenture Trustee
          by the security afforded to it by the terms of this Indenture, the
          Indenture Trustee may require indemnity in form and substance
          satisfactory to it against such cost, expense, or liability as a
          condition to so proceeding. The reasonable expense of every such
          examination shall be paid by the Person making such request or, if
          paid by the Indenture Trustee, shall be reimbursed by the Person
          making such request upon demand.

                  (v) The Indenture Trustee may execute any of the trusts or
          powers hereunder or perform any duties under this Indenture either
          directly or by or through agents or attorneys or a custodian. The
          Indenture Trustee shall not be responsible for any misconduct or
          negligence of any such agent or custodian appointed with due care by
          it hereunder, or of any agent or custodian of the Servicer in its
          capacity as Servicer or custodian or otherwise.

                  (vi) The Indenture Trustee shall have no duty of independent
          inquiry, and the Indenture Trustee may rely upon the representations
          and warranties and covenants of the Transferor and the Servicer
          contained in the Basic Documents with respect to the Receivables and
          the Receivable Files.

                  (vii) The Indenture Trustee may rely, as to factual matters
          relating to the Transferor or the Servicer, on an Officer's
          Certificate of the Transferor or Servicer, respectively.

                  (viii) The Indenture Trustee shall not be required to take any
          action or refrain from taking any action under this Indenture, or any
          related documents referred to herein, nor shall any provision of this
          Indenture, or any such related document be deemed to impose a duty on
          the Indenture Trustee to take action, if the Indenture Trustee shall
          have been advised by counsel that such action is contrary to (i) the
          terms of this Indenture, (ii) any such related document or (iii) law.

                                       38
<PAGE>

                  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-Note Paying Agent may do the
same with like rights.

                  SECTION 6.4. Indenture Trustee's Disclaimer. The recitals
contained herein shall be taken as the statements of the Issuer and the
Indenture Trustee does not assume any responsibility for the correctness
thereof. The Indenture Trustee shall not make any representations as to the
validity or sufficiency of this Indenture, the Notes, or of any Receivable or
related document. The Indenture Trustee shall not at any time have any
responsibility or liability for or with respect to the validity or adequacy of
this Indenture, the Trust Assets or the Notes; it shall not be accountable for
the Issuer's use of the proceeds from the Notes; and it shall not be responsible
for any statement of the Issuer in the Indenture or in any document issued in
connection with the sale of the Notes or in the Notes; provided, however, that
the foregoing shall not relieve the Indenture Trustee of its obligation to
perform its duties under this Indenture. Except with respect to a claim based on
the failure of the Indenture Trustee to perform its duties under this Indenture
or based on the Indenture Trustee's negligence or willful misconduct, no
recourse shall be had for any claim based on any provision of this Indenture,
the Notes, or any Receivable or assignment thereof against the Indenture Trustee
in its individual capacity, the Indenture Trustee shall not have any personal
obligation, liability, or duty whatsoever to any Noteholder or any other Person
with respect to any such claim, and any such claim shall be asserted solely
against the Issuer or any indemnitor who shall furnish indemnity as provided in
this Indenture. The Indenture Trustee shall not be accountable for the use or
application by the Issuer of any of the Notes or of the proceeds of such Notes,
or for the use or application of any funds paid to the Servicer in respect of
the Receivables.

                  SECTION 6.5. Notice of Defaults. If an Event of Default or a
Servicing Termination Event under the Sale and Servicing Agreement occurs and is
continuing and if it is either known by, or written notice of the existence
thereof has been delivered to, a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall mail to each Noteholder notice of the Event of
Default or Servicer Termination Event within ninety (90) days after such
knowledge or notice occurs. Except in the case of a Default in payment of
principal of or interest on any Note (including payments pursuant to the
mandatory redemption provisions of such Note), the Indenture Trustee may
withhold the notice if and so long as a committee of two or more of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of Noteholders.

                  SECTION 6.6. Reports by Indenture Trustee to Holders. The
Indenture Trustee shall deliver to each Noteholder such information as may be
reasonably required to enable such Holder to prepare its federal and state
income tax returns.

                  SECTION 6.7. Compensation and Indemnity. (a) Pursuant to
Section 5.6(c) of the Sale and Servicing Agreement, the Issuer shall pay to the
Indenture Trustee from time to time compensation for its services The Indenture
Trustee, in its capacities, as Indenture Trustee, Trust Collateral Agent,
Back-up Servicer and Custodian, shall be entitled to receive the Indenture
Trustee's Fee, the Back-up Servicer's Fee and the Custodian's Fee on each
Payment Date. The Indenture Trustee's compensation shall not be limited by any
law on compensation of

                                       39
<PAGE>

a trustee of an express trust. Pursuant to Section 5.6(c) of the Sale and
Servicing Agreement, the Issuer shall reimburse the Indenture Trustee and the
Trust Collateral Agent 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 and disbursements of the Indenture Trustee's, the Back-up Servicer's,
the Custodian's, the Collateral Agent's and the Trust Collateral Agent's agents,
counsel, accountants and experts. The Issuer shall cause the Servicer to
indemnify the Indenture Trustee, the Trust Collateral Agent, the Back-up
Servicer, the Custodian, the Collateral Agent and their respective officers,
directors, employees and agents against any and all loss, liability or expense
(including attorneys' fees and expenses) incurred by each of them in connection
with the acceptance or the administration of this trust and the performance of
its duties under the Basic Documents. The Indenture Trustee, the Trust
Collateral Agent, the Custodian, the Collateral Agent or the Back-up Servicer
shall notify the Issuer and the Servicer promptly of any claim for which it may
seek indemnity. Failure by the Indenture Trustee, the Back-up Servicer, the
Custodian, the Collateral Agent or the Trust Collateral Agent to so notify the
Issuer and the Servicer shall not relieve the Issuer of its obligations
hereunder or the Servicer of its obligations under Article XII of the Sale and
Servicing Agreement. The Issuer shall cause the Servicer to defend any such
claim, the Indenture Trustee, Trust Collateral Agent, the Custodian, the
Collateral Agent or the Back-up Servicer may have separate counsel and the
Issuer shall cause the Servicer to pay the fees and expenses of such counsel.
Neither the Issuer nor the Servicer need reimburse any expense or indemnify
against any loss, liability or expense incurred by the Indenture Trustee, the
Back-up Servicer, the Custodian, the Collateral Agent or Trust Collateral Agent
through the Indenture Trustee's, the Back-up Servicer's, the Custodian's, the
Collateral Agent's or Trust Collateral Agent's own willful misconduct,
negligence or bad faith.

                  (b) The Issuer's payment obligations pursuant to this Section
shall survive the discharge of this Indenture or the earlier resignation or
removal of the Indenture Trustee. When the Indenture Trustee, the Trust
Collateral Agent, the Custodian or the Back-up Servicer 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. Notwithstanding anything else set
forth in this Indenture or the Basic Documents, the Indenture Trustee agrees
that the obligations of the Issuer (but not the Servicer) to the Indenture
Trustee hereunder and under the Basic Documents shall be recourse to the Pledged
Property only and specifically shall not be recourse to the assets of the
Certificateholder or any Noteholder. In addition, the Indenture Trustee agrees
that its recourse to the Issuer, the Pledged Property, the Transferor and
amounts held pursuant of the Spread Account Agreement shall be limited to the
right to receive the payments referred to in Section 5.6(c) and (d) of the Sale
and Servicing Agreement.

                  SECTION 6.8. Replacement of Indenture Trustee. The Indenture
Trustee may resign at any time by so notifying the Issuer and the Note Insurer.
To the extent that the Indenture Trustee resigns hereunder, the Trust Collateral
Agent and the Custodian shall resign under the Sale and Servicing Agreement and
the Collateral Agent shall resign under the Spread Account Agreement. The Issuer
may and, at the request of the Note Insurer (unless a Note Insurer Default shall
have occurred and be continuing) shall, remove the Indenture Trustee, if:

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

                                       40
<PAGE>

                  (ii) a court having jurisdiction in the premises in respect of
          the Indenture Trustee in an involuntary case or proceeding under
          federal or state banking or bankruptcy laws, as now or hereafter
          constituted, or any other applicable federal or state bankruptcy,
          insolvency or other similar law, shall have entered a decree or order
          granting relief or appointing a receiver, liquidator, assignee,
          custodian, trustee, conservator, sequestrator (or similar official)
          for the Indenture Trustee or for any substantial part of the Indenture
          Trustee's property, or ordering the winding-up or liquidation of the
          Indenture Trustee's affairs;

                  (iii) an involuntary case under the federal bankruptcy laws,
          as now or hereafter in effect, or another present or future federal or
          state bankruptcy, insolvency or similar law is commenced with respect
          to the Indenture Trustee and such case is not dismissed within sixty
          (60) days;

                  (iv) the Indenture Trustee commences a voluntary case under
          any federal or state banking or bankruptcy laws, as now or hereafter
          constituted, or any other applicable federal or state bankruptcy,
          insolvency or other similar law, or consents to the appointment of or
          taking possession by a receiver, liquidator, assignee, custodian,
          trustee, conservator, sequestrator (or other similar official) for the
          Indenture Trustee or for any substantial part of the Indenture
          Trustee's property, or makes any assignment for the benefit of
          creditors or fails generally to pay its debts as such debts become due
          or takes any corporate action in furtherance of any of the foregoing;

                  (v) the Trust Collateral Agent resigns or is removed in
          accordance with Section 10.8 of the Sale and Servicing Agreement;

                  (vi) the Collateral Agent resigns or is removed in accordance
          with the Spread Account Agreement;

                  (vii) the Back-up Servicer is removed in accordance with
          Section 8.5 of the Sale and Servicing Agreement; or

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

                  If the Indenture Trustee resigns or is removed or if a vacancy
exists in the office of the Indenture Trustee for any reason (the Indenture
Trustee in such event being referred to herein as the retiring Indenture
Trustee), the Issuer shall promptly appoint a successor Indenture Trustee and
Trust Collateral Agent acceptable to the Note Insurer (so long as a Note Insurer
Default shall not have occurred and be continuing). If the Issuer fails to
appoint such a successor Indenture Trustee and Trust Collateral Agent, the
Controlling Party may appoint a successor Indenture Trustee and Trust Collateral
Agent.

                  A successor Indenture Trustee shall deliver a written
acceptance of its appointment to the retiring Indenture Trustee, the Note
Insurer (provided that no Note Insurer Default shall have occurred and be
continuing) and to the Issuer. Thereupon the resignation or removal of the
retiring Indenture Trustee shall become effective, and the successor Indenture

                                       41
<PAGE>

Trustee shall have all the rights, powers and duties of the retiring Indenture
Trustee under this Indenture subject to satisfaction of the Rating Agency
Condition. The successor Indenture Trustee shall mail a notice of its succession
to Noteholders. The retiring Indenture Trustee shall promptly transfer all
property held by it as Indenture Trustee to the successor Indenture Trustee.

                  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 Note Insurer (so long as no Note
Insurer Default has occurred and is continuing) or the Majorityholders (if a
Note Insurer Default has occurred and is continuing) 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 may petition any court of competent jurisdiction for the removal
of the Indenture Trustee and the appointment of a successor Indenture Trustee.

                  Any resignation or removal of the Indenture Trustee and
appointment of a successor Indenture Trustee pursuant to any of the provisions
of this Section shall not become effective until acceptance of appointment by
the successor Indenture Trustee pursuant to this Section and payment of all fees
and expenses owed to the retiring Indenture Trustee.

                  Notwithstanding the replacement of the Indenture Trustee
pursuant to this Section, the Issuer's obligations under Section 6.7 shall
continue for the benefit of the retiring Indenture Trustee.

                  SECTION 6.9. Successor Indenture Trustee by Merger. 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 without any further act shall be the successor Indenture Trustee.
The Indenture Trustee shall provide the Rating Agencies with written notice of
any such transaction and shall mail notice of such merger or consolidation to
the Rating Agencies.

                  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 Indenture 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; and in all such cases such certificates
shall have the full force which it is anywhere in the Notes or in this Indenture
provided that the certificate of the Indenture Trustee shall have.

                  SECTION 6.10. Appointment of Co-Trustee or Separate 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 Trust may at the time be located, the Indenture Trustee
with the consent of the Note Insurer (so long as a Note Insurer Default shall
not have occurred and be continuing) shall have the power and may execute and
deliver all instruments 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 Trust, or any part hereof, and,
subject to the other provisions of this Section, such powers, duties,

                                       42
<PAGE>

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 Indenture 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 hereof.

                  (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 Indenture Trustee and such separate
          trustee or co-trustee jointly (it being understood that such separate
          trustee or co-trustee is not 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
          Trust 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, including acts
          or omissions of predecessor or successor Indenture Trustees; 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, dissolve, become insolvent, 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 Indenture
Trustee.

                  (e) Any and all amounts relating to the fees and expenses of
the co-trustee or separate trustee will be borne by the Pledged Property.

                                       43
<PAGE>

                  SECTION 6.11. Eligibility. The Indenture Trustee shall at all
times satisfy the requirements of Section 310(a) of the TIA. The Indenture
Trustee under this Indenture shall at all times be organized and doing business
under the laws of the United States of America or any state thereof; authorized
under such laws to exercise corporate trust powers; having a combined capital
and surplus of at least $50,000,000 and subject to supervision or examination by
Federal or State authorities satisfactory to the Note Insurer; and having a
rating, both with respect to long-term and short-term unsecured obligations, of
not less than investment grade by each Rating Agency. If such corporation shall
publish reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section 6.11, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth
in its most recent report of condition so published. In case at any time the
Indenture Trustee shall cease to be eligible in accordance with the provisions
of this Section 6.11, the Indenture Trustee shall resign immediately in the
manner and with the effect specified in Section 6.8. The Indenture Trustee shall
comply with Section 310(b) of the TIA, including the optional provision
permitted by the second sentence of Section 310(b)(9) of the TIA; provided,
however, that there shall be excluded from the operation of Section 310(b)(1) of
the TIA any indenture or indentures under which other securities of the Issuer
are outstanding if the requirements for such exclusion set forth in 310(b)(1) of
the TIA are met.

                  SECTION 6.12. Preferential Collection of Claims Against
Issuer. The Indenture Trustee shall comply with Section 311(a) of the TIA,
excluding any creditor relationship listed in Section 311(b) of the TIA. A
Trustee who has resigned or been removed shall be subject to TIA (section)311(a)
to the extent indicated

                  SECTION 6.13. Representations and Warranties of the Indenture
Trustee. The Indenture Trustee represents and warrants to the Issuer and the
Note Insurer as follows:

                  (a) Due Organization. The Indenture Trustee is a New York
banking corporation in good standing under the laws of the State of New York and
is duly authorized and licensed under applicable law to conduct its business as
presently conducted.

                  (b) Corporate Power. The Indenture Trustee has all requisite
right, power and authority to execute and deliver this Indenture and to perform
all of its duties as Indenture Trustee hereunder.

                  (c) Due Authorization. The execution and delivery by the
Indenture Trustee of this Indenture and the other Basic Documents to which it is
a party, and the performance by the Indenture Trustee of its duties hereunder
and thereunder, have been duly authorized by all necessary corporate proceedings
and no further approvals or filings, including any governmental approvals, are
required for the valid execution and delivery by the Indenture Trustee, or the
performance by the Indenture Trustee, of this Indenture and such other Basic
Documents.

                  SECTION 6.14. Valid and Binding Indenture. The Indenture
Trustee has duly executed and delivered this Indenture and each other Basic
Document to which it is a party, and each of this Indenture and each such other
Basic Document constitutes the legal, valid and binding obligation of the
Indenture Trustee, enforceable against the Indenture Trustee in accordance with
its terms, except as (i) such enforceability may be limited by bankruptcy,

                                       44
<PAGE>

insolvency, reorganization and similar laws relating to or affecting the
enforcement of creditors' rights generally and (ii) the availability of
equitable remedies may be limited by equitable principles of general
applicability.

                  SECTION 6.15. Waiver of Setoffs. The Indenture Trustee hereby
expressly waives any and all rights of setoff that the Indenture Trustee may
otherwise at any time have under applicable law with respect to any Account and
agrees that amounts in the Accounts shall at all times be held and applied
solely in accordance with the provisions hereof.

                  SECTION 6.16. Control by the Controlling Party. The Indenture
Trustee shall comply with notices and instructions given by the Issuer only if
accompanied by the written consent of the Controlling Party, except that if any
Event of Default shall have occurred and be continuing, the Indenture Trustee
shall act upon and comply with notices and instructions given by the Controlling
Party alone in the place and stead of the Issuer.

                                   ARTICLE VII

                      Noteholders' Lists and Communications

SECTION 7.1. Issuer To Furnish To Indenture Trustee Names and Addresses of
Noteholders. The Issuer will furnish or cause to be furnished to the Indenture
Trustee (a) not more than five days after the earlier of (i) each Record Date
and (ii) three months after the last Record Date, a list, in such form as the
Indenture Trustee may reasonably require, of the names and addresses of the
Holders as of such Record Date, (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
10 days prior to the time such list is furnished; provided, however, that so
long as the Indenture Trustee is the Note Registrar, no such list shall be
required to be furnished. The Indenture Trustee or, if the Indenture Trustee is
not the Note Registrar, the Issuer shall furnish to the Note Insurer in writing
on an annual basis on each June 30 and at such other times as the Note Insurer
may request a copy of the list.

                  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 Holders contained
in the most recent list furnished to the Indenture Trustee as provided in
Section 7.1 and the names and addresses of Holders 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 Section 312(b) of
the TIA, with other Noteholders with respect to their rights under this
Indenture or under the Notes.

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

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                  SECTION 7.3. Reports by Issuer.

                  (a) The Issuer shall:

                  (i) file with the Indenture Trustee, within 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) which 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 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

                  (iii) supply to the Indenture Trustee (and the Indenture
          Trustee shall transmit by mail to all Class A Noteholders described in
          Section 313(c) of the TIA) 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) as may be required 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 end on December 31 of each year.

                  SECTION 7.4. Reports by Indenture Trustee. If required by
Section 313(a) of the TIA, within 60 days after the end of each year, commencing
with the year ended December 31, 2003, the Indenture Trustee shall mail to each
Class A Noteholder as required by Section 313(c) of the TIA a brief report dated
a of such date that complies with Section 313(a) of the TIA. The Indenture
Trustee shall also comply with Section 313(b) of the TIA.

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

                                  ARTICLE VIII

                          Collection of Money; 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, or cause the Trust Collateral Agent to
apply all money received by it, as provided in this Indenture and the Sale and
Servicing Agreement. Except as otherwise expressly provided in this Indenture or
in the Sale and Servicing Agreement, if any default occurs in the

                                       46
<PAGE>

making of any payment or performance under any agreement or instrument that is
part of the Pledged Property, 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. Release of Pledged Property (a) Subject to the
payment of its fees and expenses and other amounts 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,
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 bound to
ascertain the Indenture Trustee's authority, inquire into the satisfaction of
any conditions precedent or see to the application of any moneys.

                  (b) The Indenture Trustee shall, at such time as there are no
Notes outstanding, all amounts owing to the Note Insurer under the Basic
Documents have been paid and all sums due the Indenture Trustee pursuant to
Section 6.7 have been paid, release the Pledged Property from the lien of this
Indenture and release to the Issuer or any other Person entitled thereto any
funds then on deposit in the Accounts. The Indenture Trustee shall release
property from the lien of this Indenture pursuant to this Section 8.2(b) only
upon receipt of an Issuer Request accompanied by an Officer's Certificate and an
Opinion of Counsel and (if required by the TIA) Independent Certificates in
accordance with Section 314(c) and Section 314(d)(1) of the TIA.

                  SECTION 8.3. Opinion of Counsel. The Indenture Trustee shall
receive at least seven days' notice when requested by the Issuer to take any
action pursuant to Section 8.2(a), accompanied by copies of any instruments
involved, and the Indenture Trustee shall also require 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 Pledged Property. 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. Without the consent of the Holders of any Notes but with the prior
written consent of the Note Insurer (unless a Note Insurer Default shall have
occurred and be continuing) and with prior notice to the Rating Agencies by the
Issuer, as evidenced to the Indenture Trustee, 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

                                       47
<PAGE>

provisions of the TIA 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 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 Holders of the Notes, 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 which 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 in any supplemental
          indenture; provided that such action shall not adversely affect in any
          material respect the interests of the Holders of the Notes, as
          evidenced by satisfaction of the Rating Agency Condition with respect
          to such supplemental indenture; or

                  (vi) to evidence and provide for the acceptance of the
          appointment hereunder by a successor Indenture 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.

                  (vii) to modify, eliminate or add to the provisions of this
          Indenture to such extent as shall be necessary to effect 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.

                  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.

                  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, with the prior
written consent of the Note Insurer (or, if a Note Insurer Default shall have
occurred and be continuing, with the consent of the Majorityholders), 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 the rights of the Holders of
the Notes under this Indenture; provided, however, that, subject to the express
rights of the Note Insurer under the Basic Documents, no such

                                       48
<PAGE>

supplemental indenture shall, without the consent of the Holder of each
outstanding Note affected thereby:

                  (i) change the date of payment of any installment of principal
          of or interest on any Note, or reduce the principal amount thereof,
          the Note Rate thereon or the Redemption Price with respect thereto,
          change the provision of this Indenture relating to the application of
          collections on, or the proceeds of the sale of, the Pledged Property
          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;

                  (ii) 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 Redemption
          Date);

                  (iii) reduce the percentage of the outstanding Note Balance of
          the Notes, the consent of the Holders of which is required for any
          such supplemental indenture, or the consent of the Holders of which is
          required for any waiver of compliance with certain provisions of this
          Indenture or certain defaults hereunder and their consequences
          provided for in this Indenture;

                  (iv) reduce the percentage of the outstanding Note Balance of
          the Notes required to direct the Indenture Trustee to direct the
          Issuer to sell or liquidate the Pledged Property pursuant to Section
          5.4;

                  (v) modify any provision of this Section except to increase
          any percentage specified herein or to provide that certain additional
          provisions of this Indenture or the Basic Documents cannot be modified
          or waived without the consent of the Holder of each Outstanding Note
          affected thereby;

                  (vi) 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 mandatory redemption of the Notes contained
          herein; or

                  (vii) 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
          Pledged Property or, except as otherwise permitted or contemplated
          herein or in any of the Basic Documents, terminate the lien of this
          Indenture on any property at any time subject hereto or deprive the
          Holder of any Note of the security provided by the lien of this
          Indenture.

                  The Indenture Trustee may determine whether or not any Notes
would be affected by any supplemental indenture and any such determination shall
be conclusive upon the Holders 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.

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<PAGE>

                  It shall not be necessary for any Act of Noteholders under
this Section 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, the Indenture
Trustee shall mail to the Holders 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 amendments or modifications
thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and 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. 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.

                  SECTION 9.4. Effect of Supplemental Indenture. Upon the
execution of any supplemental indenture pursuant to the provisions hereof, this
Indenture shall be and 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 Holders of the Notes
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 TIA as then in
effect so long as this Indenture shall then be qualified under the TIA.

                  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.

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<PAGE>

                                    ARTICLE X

                               Redemption of Notes

                  SECTION 10.1. Redemption. (a) The Notes are subject to
redemption in whole, but not in part, by the Certificateholder on any Payment
Date occurring on or after the date on which the outstanding Pool Balance is
less than or equal to 10% of the Original Pool Balance, at a price equal to the
Redemption Price. If the Notes are to be redeemed pursuant to this Section
10.1(a), the Certificateholder will be required to furnish notice of such
election to the Indenture Trustee not later than the end of the Collection
Period for the related Payment Date and deposit with the Indenture Trustee in
the Note Account the Redemption Price of the Notes to be redeemed, plus any
amounts owed to the Note Insurer under the Insurance Agreement and all amounts
owed to the Indenture Trustee under this Indenture; whereupon all such Notes
shall be due and payable on the Redemption Date upon the furnishing of a notice
complying with Section 10.2 to each Holder of Notes. The Indenture Trustee shall
furnish the Note Insurer and the Rating Agencies notice of such redemption.

                  SECTION 10.2. Form of Redemption Notice. Notice of redemption
under Section 10.1(a) shall be given by the Indenture Trustee by facsimile or by
first-class mail, postage prepaid, transmitted or mailed prior to the applicable
Redemption Date to each Holder of Notes, as of the close of business on the
Record Date preceding the applicable Redemption Date, at such Holder's address
appearing in the Note Register.

                  All notices of redemption shall state:

                  (i) the Redemption Date;

                  (ii) the Redemption Price;

                  (iii) that the Record Date otherwise applicable to such
          Redemption Date is not applicable and that payments shall be made only
          upon presentation and surrender of such Notes and the place where such
          Notes are to be surrendered for payment of the Redemption Price (which
          shall be the office or agency of the Issuer to be maintained as
          provided in Section 3.2); and

                  (iv) that interest on the Notes shall cease to accrue on the
          Redemption Date.

                  Notice of redemption 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 redemption, or any defect therein, to any Holder of any Note shall not
impair or affect the validity of the redemption of any other Note.

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

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<PAGE>

                                   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 and to the Note Insurer (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, 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 and (iii) (if required by the TIA) an
Independent Certificate from a firm of certified public accountants.

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

                  (i) 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;

                  (ii) 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;

                  (iii) 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

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

                  (b) Prior to the deposit of any Pledged Property 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 and the
Note Insurer an Officer's Certificate certifying or stating the opinion of each
person signing such certificate as to the fair value (within 90 days of such
deposit) to the Issuer of the Pledged Property or other property or securities
to be so deposited.

                  (i) Whenever the Issuer is required to furnish to the
          Indenture Trustee and the Note Insurer 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 and the Note Insurer 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

                                       52
<PAGE>

          to clause (i) above and this clause (ii), is 10% or more of the
          outstanding Note Balance of the Notes, 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 1% of the outstanding
          Note Balance of the Notes.

                  (ii) Other than with respect to the release of any Purchased
          Receivables or Liquidated Receivables or any Receivable that has been
          paid in full by or on behalf of the related Obligor, whenever any
          property or securities are to be released from the lien of this
          Indenture, the Issuer shall also furnish to the Indenture Trustee and
          the Note Insurer 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.

                  (iii) Whenever the Issuer is required to furnish to the
          Indenture Trustee and the Note Insurer 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 and the Note Insurer an Independent
          Certificate as to the same matters if the fair value of the property
          or securities and of all other property other than Purchased
          Receivables and Defaulted Receivables, 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 10% or more of the
          outstanding Note Balance of the Notes, 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 1% of the then
          outstanding Note Balance of the Notes.

                  (iv) Notwithstanding Section 2.11 or any other provision of
          this Section, the Issuer may (A) collect, liquidate, sell or otherwise
          dispose of Receivables as and to the extent permitted or required by
          the Basic Documents and (B) make cash payments out of the Accounts as
          and to the extent permitted or required by the Basic Documents.

                  SECTION 11.2. Form of Documents Delivered to Indenture
Trustee. 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.

                  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 his or her 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

                                       53
<PAGE>

opinion of, or representations by, an officer or officers of the Servicer, the
Transferor or the Issuer, stating that the information with respect to such
factual matters is in the possession of the Servicer, the Transferor or the
Issuer, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.

                  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.

                  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.

                  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.

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

                  (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 Holder of any Notes shall bind the Holder
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.

                                       54
<PAGE>

                  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 to be made upon, given or furnished to or filed with:

                  (a) The Indenture Trustee by any Noteholder or by the Issuer
shall be sufficient for every purpose hereunder if personally delivered,
delivered by overnight courier or mailed certified mail, return receipt
requested and shall be deemed to have been duly given upon receipt to the
Indenture Trustee at its Corporate Trust Office, or

                  (b) The Issuer by the Indenture Trustee or by any Noteholder
shall be sufficient for every purpose hereunder if personally delivered,
delivered by overnight courier or mailed certified mail, return receipt
requested and shall deemed to have been duly given upon receipt to the Issuer
addressed to: Long Beach Acceptance Auto Receivables Trust 2003-A, in care of
Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration
(Telecopy: (302) 651-8882), or at any other address previously furnished in
writing to the Indenture Trustee by Issuer. The Issuer shall promptly transmit
any notice received by it from the Noteholders to the Indenture Trustee.

                  (c) The Note Insurer by the Issuer or the Indenture Trustee
shall be sufficient for any purpose hereunder if in writing and mailed by
registered mail or personally delivered or telexed or telecopied to the
recipient as follows:

                  To the Note Insurer:     MBIA Insurance Corporation
                                           113 King Street
                                           Armonk, NY 10504
                                           Attention: Insured Portfolio
                                           Management Asset-Backed (IPM-AB)
                                           Re: Long Beach Acceptance Auto
                                               Receivables Trust 2003-A
                                           Facsimile No.: (914) 765-3810
                                           Confirmation: (914) 273-4545

                  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, delivered by overnight courier or mailed certified mail,
return receipt requested to (i) in the case of Moody's, at the following
address: Moody's Investors Service, Inc., 99 Church Street, New York, New York
10004 and (ii) in the case of S&P, at the following address: Standard & Poor's
Ratings Services, 55 Water Street, 40th Floor, New York, New York 10041,
Attention of Asset-Backed Surveillance Department; or as to each of the
foregoing, at such other address as shall be designated by written notice to the
other parties.

                  SECTION 11.5. Notices to Noteholders; Waiver. 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

                                       55
<PAGE>

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.

                  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.

                  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.

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

                  The provisions of TIA (section)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.

                  SECTION 11.7. 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 11.8. 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 of the Indenture Trustee.

                  SECTION 11.9. 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 11.10. Benefits of Indenture. The Note Insurer and its
successors and assigns shall be third-party beneficiaries to the provisions of
this Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Note Insurer Default shall have
occurred and be continuing. 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,

                                       56
<PAGE>

and the Noteholders, and any other party secured hereunder, and any other person
with an ownership interest in any part of the Pledged Property, any benefit or
any legal or equitable right, remedy or claim under this Indenture. The Note
Insurer may disclaim any of its rights and powers under this Indenture (in which
case the Indenture Trustee may exercise such right or power hereunder), but not
its duties and obligations under the Policy, upon delivery of a written notice
to the Indenture Trustee.

                  SECTION 11.11. 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 an which nominally due, and no interest shall
accrue for the period from and after any such nominal date.

                  SECTION 11.12. GOVERNING LAW. THIS INDENTURE SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                  SECTION 11.13. 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 11.14. 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 may be counsel to the Indenture Trustee or any other counsel
reasonably acceptable to the Indenture Trustee and the Note Insurer) 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 or the Trust Collateral Agent
under this Indenture or the Sale and Servicing Agreement, or the Collateral
Agent under the Spread Account Agreement.

                  SECTION 11.15. Trust Obligation.

                  (a) No recourse may be taken, directly or indirectly, with
respect to the obligations of the Issuer, the Transferor, the Servicer, the
Owner Trustee, the Trust Collateral Agent 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 Issuer, the Transferor, the
Servicer, the Indenture Trustee, the Trust Collateral Agent or the Owner Trustee
in its individual capacity, (ii) any owner of a beneficial interest in the
Issuer or (iii) any partner, owner, beneficiary, agent, officer, director,
employee or agent of the Transferor, the Servicer, the Indenture Trustee, the
Trust Collateral Agent or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Owner Trustee, the Trust Collateral Agent or the Indenture Trustee or of any
successor or assign of the Transferor, the Servicer, the Indenture Trustee, the
Trust Collateral Agent or the Owner Trustee in its individual capacity, except
in each case as any such Person may have expressly agreed (it being understood
that the Indenture Trustee, the Trust Collateral Agent and the Owner Trustee
have no such obligations in their individual capacity) and except that any such
partner, owner or

                                       57
<PAGE>

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 the Trust Agreement.

                  (b) It is expressly understood and agreed by the parties
hereto that (a) this Agreement is executed and delivered by WTC, not
individually or personally but solely as Owner Trustee of the Issuer in the
exercise of the powers and authority conferred and vested in it, (b) each of the
representations, undertakings and agreements herein made on the part of the
Issuer is made and intended not as personal representations, undertakings and
agreements by WTC but is made and intended for the purpose for binding only the
Issuer, (c) nothing herein contained shall be construed as creating any
liability on WTC, individually or personally, to perform any covenant either
expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or
under the parties hereto and (d) under no circumstances shall WTC be personally
liable for the payment of any indebtedness or expenses of the Issuer or be
liable for the breach or failure of any obligation, representation, warranty or
covenant made or undertaken by the Issuer under this Agreement or any other
related document.

                  (c) Notwithstanding anything contained herein to the contrary,
this Agreement has been executed and delivered by JPMorgan Chase, not in its
individual capacity but solely as Indenture Trustee and in no event shall
JPMorgan Chase 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.

                  SECTION 11.16. No Petition. The Indenture Trustee, by entering
into this Indenture, and each Noteholder, by accepting a Note, hereby covenant
and agree that they will not prior to the date that is one year and one day
after the payment in full of all outstanding Notes institute against the
Transferor or the Issuer, or join in any institution against the Transferor or
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 Basic Documents.

                  SECTION 11.17. Inspection. The Issuer agrees that, on
reasonable prior notice, it will permit any representative of the Indenture
Trustee or of the Note Insurer, 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. Notwithstanding anything herein to the
contrary, the foregoing shall not be construed to prohibit (i) disclosure of any
and all information that is or becomes publicly known, (ii) disclosure of any
and all information (A) if required to do so by any applicable statute, law,
rule or regulation, (B) to any government agency or regulatory body having or
claiming authority to regulate or oversee any respects of the Indenture
Trustee's business or that of its affiliates, (C) pursuant to any subpoena,
civil

                                       58
<PAGE>

investigative demand or similar demand or request of any court, regulatory
authority, arbitrator or arbitration to which the Indenture Trustee or an
affiliate or an officer, director, employer or shareholder thereof is a party,
(D) in any preliminary or final offering circular, registration statement or
contract or other document pertaining to the transactions contemplated by the
Indenture approved in advance by the Servicer or the Issuer or (E) to any
independent or internal auditor, agent, employee or attorney of the Indenture
Trustee having a need to know the same, provided that the Indenture Trustee
advises such recipient of the confidential nature of the information being
disclosed, or (iii) any other disclosure authorized by the Servicer or the
Issuer.

                  SECTION 11.18. Rights of Note Insurer as Controlling Party. So
long as no Note Insurer Default has occurred and is continuing, except as
otherwise specifically provided herein, whenever Noteholder action, consent or
approval is required under this Indenture, such action, consent or approval
shall be deemed to have been taken or given on behalf of, and shall be binding
upon, all Noteholders if the Note Insurer agrees to take such action or give
such consent or approval. If a Note Insurer Default has occurred and is
continuing, any provision, including this Section 11.17, which gives the Note
Insurer any rights as Controlling Party shall be inoperative during the period
of such Note Insurer Default and such rights shall instead vest in the Indenture
Trustee acting at the direction of the Majorityholders.

                  SECTION 11.19. Effect of Policy Expiration Date.
Notwithstanding anything to the contrary set forth herein, all references to any
right of the Note Insurer to direct, appoint, consent to, accept, approve of,
take or omit to take any action under this Indenture or any other Basic Document
shall be inapplicable at all times after the Policy Expiration Date, and (i) if
such reference provides for another party or parties to take or omit to take any
such action following a Note Insurer Default, such party or parties shall also
be entitled to take or omit to take such action following the Policy Expiration
Date and (ii) if such reference does not provide for another party or parties to
take or omit to take any such action following a Note Insurer Default, then the
Indenture Trustee acting at the direction of the Majorityholders shall have the
right to take or omit to take such action following the Policy Expiration Date.
In addition, any other provision of this Indenture or any other Basic Document
which is operative based in whole or in part on whether a Note Insurer Default
has or has not occurred shall, at all times on or after the Policy Expiration
Date, be deemed to refer to whether or not the Policy Expiration Date has
occurred.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       59
<PAGE>

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

                                 LONG BEACH ACCEPTANCE AUTO
                                 RECEIVABLES TRUST 2003-A,

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

                                 By:
                                    --------------------------------------------
                                 Name:
                                 Title:

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

                                 By:
                                    --------------------------------------------
                                 Name:
                                 Title:

<PAGE>

                                                                         ANNEX A

                                  DEFINED TERMS

<PAGE>
                                                                     EXHIBIT A-1

REGISTERED                                                           $45,500,000
No. RA--1--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP NO. 542391 BA 4

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.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

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.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A
                      1.2875% ASSET-BACKED NOTE, CLASS A-1

         Long Beach Acceptance Auto Receivables Trust 2003-A, 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 FORTY-FIVE MILLION, FIVE HUNDRED
THOUSAND DOLLARS payable on each Payment Date from the sources and on the terms
and conditions set forth herein and as more fully set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Class A-1
Note shall be due and payable on the March 2004 Payment Date (the "Class

<PAGE>

A-1 Final Scheduled Payment Date"). The Issuer will 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. Interest on this Note will accrue
for each Payment Date from and including the most recent Payment Date on which
interest has been paid to but excluding such Payment Date or, if no interest has
yet been paid, from and including March 13, 2003 (the "Interest Period").
Interest will be computed on the basis of a 360-day year and the actual number
of days elapsed during the related Interest Period (which for the initial
Interest Period is 33 days). 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.

         The Class A-1 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by MBIA Insurance Corporation
(the "Note Insurer"), pursuant to which the Note Insurer has unconditionally
guaranteed payment to the Class A-1 Noteholders of (i) the Interest Payment
Amount with respect to each Payment Date, (ii) the amount, if any, by which the
outstanding Class A Note Balance (after taking into account payments of
principal on such Payment Dates) exceeds the Pool Balance as of the last day of
the related Collection Period with respect to each Payment Date and (iii) the
Principal Payment Amount with respect to the Class A-1 Final Scheduled Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

         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.

                                      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:  March 13, 2003

                             LONG BEACH ACCEPTANCE AUTO
                             RECEIVABLES TRUST 2003-A

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

                             By:
                                ------------------------------------------------
                             Name:
                             Title:

                                      A-1-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  March 13, 2003                 JPMorgan Chase Bank, not in its individual
                                      capacity but solely as Indenture Trustee

                                      By:
                                         ---------------------------------------
                                                   Authorized Signatory

                                      A-1-4
<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 1.2875% Asset-Backed Notes, Class A-1 (herein called the
"Class A-1 Notes"), issued under an Indenture dated as of March 1, 2003 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee 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 Holders of the Notes.
The 1.4910% Asset-Backed Notes, Class A-2, the 2.0210% Asset-Backed Notes, Class
A-3, the 2.7730% Asset-Backed Notes, Class A-4 and the 8.5000% Asset-Backed
Notes, Class B (the "Class A-2 Notes," the "Class A-3 Notes", the "Class A-4
Notes" and the "Class B Notes", respectively, and together with the Class A-1
Notes, the "Notes") have also been issued under the Indenture. The Notes are
subject to all terms of the Indenture and the Sale and Servicing Agreement. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended.

         The 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 fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing April 15, 2003. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, Class A-2 Final Scheduled
Payment Date, Class A-3 Final Scheduled Payment Date, the Class A-4 Final
Scheduled Payment Date and the Class B Final Scheduled Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

         The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                      A-1-5
<PAGE>

         The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

         The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

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

         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 that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee 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 Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) 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.

         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 to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                      A-1-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, 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 Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders 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.

         This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents 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 Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor 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 of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder 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                              (2)
      -----------------------------        -------------------------------------
                                           Signature Guaranteed:

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

---------------------
          (2) NOTE: 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 whatsoever.

                                      A-1-8
<PAGE>
                                                                     EXHIBIT A-2

                                                                $65,000,000
REGISTERED
No. RA--2--1
                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP NO. 542391 BB 2

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.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

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.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A
                      1.4910% ASSET-BACKED NOTE, CLASS A-2

         Long Beach Acceptance Auto Receivables Trust 2003-A, 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 SIXTY FIVE MILLION DOLLARS payable on
each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-2 Note

<PAGE>

shall be due and payable on the March 2006 Payment Date (the "Class A-2 Final
Scheduled Payment Date"). The Issuer will 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. Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, if no interest has yet been
paid, from and including March 13, 2003 (the "Interest Period"). Interest will
be computed on the basis of a 360-day year consisting of twelve 30 day months
(or, with respect to the initial Payment Date, 32 days). Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof. Except as otherwise set forth in the Indenture, the rights of the Class
A-2 Noteholders to receive payments of principal on each Payment Date are
subordinated to the rights of the Class A-1 Noteholders to receive payments in
respect of principal, if any, due on such Payment Date.

         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.

         The Class A-2 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by MBIA Insurance Corporation
(the "Note Insurer"), pursuant to which the Note Insurer has unconditionally
guaranteed payment to the Class A-2 Noteholders of (i) the Interest Payment
Amount with respect to each Payment Date, (ii) the amount, if any, by which the
outstanding Class A Note Balance (after taking into account payments of
principal on such Payment Dates) exceeds the Pool Balance as of the last day of
the related Collection Period with respect to each Payment Date and (iii) the
Principal Payment Amount with respect to the Class A-2 Final Scheduled Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

         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.

                                     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:  March 13, 2003        LONG BEACH ACCEPTANCE AUTO
                             RECEIVABLES TRUST 2003-A

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

                             By:
                                ------------------------------------------------
                             Name:
                             Title:

                                     A-2-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  March 13, 2003                 JPMORGAN CHASE BANK, not in its individual
                                      capacity but solely as Indenture Trustee

                                      By:
                                         ---------------------------------------
                                                  Authorized Signatory

                                     A-2-4

<PAGE>

                                [REVERSE OF NOTE]

         This Note is one of a duly authorized issue of Notes of the
Issuer, designated as its 1.4910% Asset-Backed Notes, Class A-2 (herein called
the "Class A-2 Notes"), issued under an Indenture dated as of March 1, 2003
(such indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee 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 Holders of the Notes.
The 1.2875% Asset-Backed Notes, Class A-1, the 2.0210% Asset-Backed Notes, Class
A-3, the 2.7730% Asset-Backed Notes, Class A-4 and the 8.5000% Asset-Backed
Notes, Class B (the "Class A-1 Notes," the "Class A-3 Notes," the "Class A-4
Notes" and the "Class B Notes," respectively, and together with the Class A-2
Notes, the "Notes") have also been issued under the Indenture. The Notes are
subject to all terms of the Indenture and the Sale and Servicing Agreement. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended.

         The 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 fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing April 15, 2003. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the Class
A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment Date.

         As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

         The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                     A-2-5
<PAGE>

         The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

         The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

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

         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 that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee 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 Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) 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.

         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 to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

         The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-2-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, 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 Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders 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.

         This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

         No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents 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 Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor 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 of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder 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                                (3)
     --------------------------------       --------------------------------
                                            Signature Guaranteed:

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

----------------
     (3)    NOTE: 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 whatsoever.

                                      A-2-8
<PAGE>

                                                                     EXHIBIT A-3

REGISTERED                                                   $68,000,000
No. RA--3--1

                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP NO. 542391 BC 0

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.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

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.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A
                      2.0210% ASSET-BACKED NOTE, CLASS A-3

          Long Beach Acceptance Auto Receivables Trust 2003-A, 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 SIXTY EIGHT MILLION DOLLARS payable on
each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-3 Note

<PAGE>

shall be due and payable on the July 2007] Payment Date (the "Class A-3 Final
Scheduled Payment Date"). The Issuer will 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. Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, if no interest has yet been
paid, from and including March 13, 2003 (the "Interest Period"). Interest will
be computed on the basis of a 360-day year consisting of twelve 30 day months
(or, with respect to the initial Payment Date, 32 days). Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof. Except as otherwise set forth in the Indenture, the rights of the Class
A-3 Noteholders to receive payments of principal on each Payment Date are
subordinated to the rights of the Class A-1 Noteholders and the Class A-2
Noteholders to receive payments in respect of principal, if any, due on such
Payment Date.

          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.

          The Class A-3 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by MBIA Insurance Corporation
(the "Note Insurer"), pursuant to which the Note Insurer has unconditionally
guaranteed payment to the Class A-3 Noteholders of (i) the Interest Payment
Amount with respect to each Payment Date, (ii) the amount, if any, by which the
outstanding Class A Note Balance (after taking into account payments of
principal on such Payment Dates) exceeds the Pool Balance as of the last day of
the related Collection Period with respect to each Payment Date and (iii) the
Principal Payment Amount with respect to the Class A-3 Final Scheduled Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

          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.

                                      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:  March 13, 2003

                             LONG BEACH ACCEPTANCE AUTO
                             RECEIVABLES TRUST 2003-A

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

                             By:
                                 -----------------------------------------------
                             Name:
                             Title:

                                      A-3-3
<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  March 13, 2003                 JPMORGAN CHASE BANK, not in its individual
                                      capacity but solely as Indenture Trustee

                                      By:
                                         ---------------------------------------
                                                   Authorized Signatory

                                      A-3-4
<PAGE>

                                [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 2.0210% Asset-Backed Notes, Class A-3 (herein called the
"Class A-3 Notes"), issued under an Indenture dated as of March 1, 2003 (such
indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee 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 Holders of the Notes.
The 1.2875% Asset-Backed Notes, Class A-1, the 1.4910% Asset-Backed Notes, Class
A-2, the 2.7730% Asset-Backed Notes, Class A-4 and the 8.5000% Asset-Backed
Notes, Class B (the "Class A-1 Notes," the "Class A-2 Notes," the "Class A-4
Notes" and the "Class B Notes," respectively, and together with the Class A-3
Notes, the "Notes") have also been issued under the Indenture. The Notes are
subject to all terms of the Indenture and the Sale and Servicing Agreement. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended.

          The 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 fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing April 15, 2003. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the Class
A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment Date.

          As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

          The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                      A-3-5
<PAGE>

          The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

          The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

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

          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 that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee 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 Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) 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.

          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 to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

          The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                      A-3-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, 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 Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders 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.

          This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

          No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents 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 Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor 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 of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder 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                            (4)
      ---------------------------         --------------------------------------
                                                  Signature Guaranteed:

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

---------------
    (4)   NOTE: 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 whatsoever.

                                      A-3-8

<PAGE>

                                                                     EXHIBIT A-4

REGISTERED                                                    $64,000,000
No. RA--4--1
                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP NO. 542391 BD 8

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.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT EITHER (I) THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR
INVESTING THE ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION
3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN"
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE OR (II) A
DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION APPLIES TO THE
TRANSFEREE'S ACQUISITION AND CONTINUED HOLDING OF THIS NOTE. EACH TRANSFEREE OF
A BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

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.

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A
                      2.7730% ASSET-BACKED NOTE, CLASS A-4

          Long Beach Acceptance Auto Receivables Trust 2003-A, 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 SIXTY FOUR MILLION DOLLARS payable on
each Payment Date from the sources and on the terms and conditions set forth
herein and as more fully set forth in the Indenture; provided, however, that the
entire unpaid principal amount of this Class A-4 Note

                                      A-4-1
<PAGE>

shall be due and payable on the November 2009 Payment Date (the "Class A-4
Final Scheduled Payment Date"). The Issuer will 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; provided, however, that if the
Certificateholder does not exercise its option to redeem the Notes on the first
Payment Date on or after the date on which the outstanding Pool Balance is less
than or equal to 10% of the Original Pool Balance, the Class A-4 Note Rate shall
on such Payment Date and each Payment Date thereafter, equal 3.5230% per annum.
Interest on this Note will accrue for each Payment Date from and including the
most recent Payment Date on which interest has been paid to but excluding such
Payment Date or, if no interest has yet been paid, from and including March 13,
2003 (the "Interest Period"). Interest will be computed on the basis of a
360-day year consisting of twelve 30 day months (or, with respect to the initial
Payment Date, 32 days). Such principal of and interest on this Note shall be
paid in the manner specified on the reverse hereof. Except as otherwise set
forth in the Indenture, the rights of the Class A-4 Noteholders to receive
payments of principal on each Payment Date are subordinated to the rights of the
Class A-1 Noteholders, the Class A-2 Noteholders and the Class A-3 Noteholders
to receive payments in respect of principal, if any, due on such Payment Date.

          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.

          The Class A-4 Notes are entitled to the benefits of a financial
guaranty insurance policy (the "Policy") issued by MBIA Insurance Corporation
(the "Note Insurer"), pursuant to which the Note Insurer has unconditionally
guaranteed payment to the Class A-4 Noteholders of (i) the Interest Payment
Amount with respect to each Payment Date, (ii) the amount, if any, by which the
outstanding Class A Note Balance (after taking into account payments of
principal on such Payment Dates) exceeds the Pool Balance as of the last day of
the related Collection Period with respect to each Payment Date and (iii) the
Principal Payment Amount with respect to the Class A-4 Final Scheduled Payment
Date, all as more fully set forth in the Indenture and the Sale and Servicing
Agreement.

          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.

                                      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:  March 13, 2003

                             LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A

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

                             By:
                                --------------------------------------------
                             Name:
                             Title:

                                     A-4-3

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  March 13, 2003                 JPMORGAN CHASE BANK, not in its individual
                                      capacity but solely as Indenture Trustee

                                      By:
                                         ---------------------------------------
                                                    Authorized Signatory

                                     A-4-4

<PAGE>

                                [REVERSE OF NOTE]

                  This Note is one of a duly authorized issue of Notes of the
Issuer, designated as its 2.7730% Asset-Backed Notes, Class A-4 (herein called
the "Class A-4 Notes"), issued under an Indenture dated as of March 1, 2003
(such indenture, as supplemented or amended, is herein called the "Indenture"),
between the Issuer and JPMorgan Chase Bank, as Indenture Trustee (the "Indenture
Trustee", which term includes any successor Indenture Trustee 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 Holders of the Notes.
The 1.2875% Asset-Backed Notes, Class A-1, the 1.4910% Asset-Backed Notes, Class
A-2 Notes, the 2.0210% Asset-Backed Notes, Class A-3 Notes and the 8.5000%
Asset-Backed Notes, Class B (the "Class A-1 Notes", the "Class A-2 Notes", the
"Class A-3 Notes", and the "Class B Notes", respectively, and together with the
Class A-4 Notes, the "Notes") have also been issued under the Indenture. The
Notes are subject to all terms of the Indenture and the Sale and Servicing
Agreement. All terms used in this Note that are defined in the Indenture, as
supplemented or amended, shall have the meanings assigned to them in or pursuant
to the Indenture, as so supplemented or amended.

          The 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 fifteenth
day of each month, or, if any such date is not a Business Day, the next Business
Day, commencing April 15, 2003. The term "Payment Date," shall be deemed to
include the Class A-1 Final Scheduled Payment Date, the Class A-2 Final
Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the Class
A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment Date.

          As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

          The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                      A-4-5
<PAGE>

          The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

          The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

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

          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 that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee 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 Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) 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.

          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 to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

          The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                     A-4-6
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, 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 Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders 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.

          This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

          No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents 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 Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor 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 of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder 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                                (5)
     --------------------------------     --------------------------------------
                                                     Signature Guaranteed:

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

--------------
    (5)    NOTE: 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 whatsoever.

                                      A-4-8

<PAGE>
                                                                     EXHIBIT A-5

REGISTERED                                                   $7,500,000
No. RA--B--1
                       SEE REVERSE FOR CERTAIN DEFINITIONS

                                                           CUSIP NO. 542391 BE 6

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.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE APPLICABLE SECURITIES LAWS OF
ANY STATE. ACCORDINGLY, TRANSFER OF THIS NOTE IS SUBJECT TO CERTAIN RESTRICTIONS
SET FORTH IN SECTION 2.4 OF THE INDENTURE. BY ITS ACCEPTANCE OF THIS NOTE THE
HOLDER OF THIS NOTE IS DEEMED TO REPRESENT TO THE ISSUER AND THE INDENTURE
TRUSTEE EITHER (A) THAT IT IS A PURCHASER OF A NOTE REPRESENTED BY A DEFINITIVE
NOTE AND IS AN INSTITUTIONAL INVESTOR THAT IS AN "ACCREDITED INVESTOR" AS
DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D PROMULGATED UNDER THE
SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED INVESTOR") AND THAT IT IS ACQUIRING
THIS NOTE FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A
FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED
INVESTORS UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY) FOR
INVESTMENT AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, THE
PUBLIC DISTRIBUTION HEREOF OR (B) THAT IT IS A "QUALIFIED INSTITUTIONAL BUYER"
AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT AND IS ACQUIRING THIS NOTE FOR
ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT
FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS NOTE MAY BE MADE BY ANY PERSON UNLESS
EITHER (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE ISSUER, (II)(A)
SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE BY A PURCHASER OF A NOTE REPRESENTED
BY A DEFINITIVE NOTE TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT EXECUTES A
CERTIFICATE, SUBSTANTIALLY IN THE FORM SPECIFIED IN THE INDENTURE, TO THE EFFECT
THAT IT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACTING FOR ITS OWN

                                      A-5-1
<PAGE>

ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR
OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE
HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY), OR (B) SO LONG AS THIS NOTE
IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, SUCH
SALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE TRANSFEROR REASONABLY
BELIEVES AFTER DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A), ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS
A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE QUALIFIED INSTITUTIONAL
BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR TRANSFER IS BEING MADE
IN RELIANCE ON RULE 144A, OR (III) SUCH SALE, PLEDGE OR OTHER TRANSFER IS
OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, IN WHICH CASE (A) THE INDENTURE TRUSTEE SHALL REQUIRE THAT BOTH
THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE TRANSFEREE CERTIFY TO THE
INDENTURE TRUSTEE AND THE ISSUER IN WRITING THE FACTS SURROUNDING SUCH TRANSFER,
WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE INDENTURE
TRUSTEE AND THE ISSUER, AND (B) THE INDENTURE TRUSTEE MAY REQUIRE A WRITTEN
OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE ISSUER OR THE
INDENTURE TRUSTEE) SATISFACTORY TO THE ISSUER AND THE INDENTURE TRUSTEE TO THE
EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT. NO SALE, PLEDGE
OR OTHER TRANSFER MAY BE MADE TO ANY ONE PERSON FOR NOTES WITH A FACE AMOUNT OF
LESS THAN $100,000 AND, IN THE CASE OF ANY PERSON ACTING ON BEHALF OF ONE OR
MORE THIRD PARTIES (OTHER THAN A BANK (AS DEFINED IN SECTION 3(A)(2) OF THE
SECURITIES ACT) ACTING IN ITS FIDUCIARY CAPACITY), FOR NOTES WITH A FACE AMOUNT
OF LESS THAN $100,000, FOR EACH SUCH THIRD PARTY.

NO TRANSFER OF THIS NOTE SHALL BE PERMITTED TO BE MADE TO ANY PERSON UNLESS THE
INDENTURE TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE EFFECT
THAT THE TRANSFEREE IS NOT AND IS NOT ACTING ON BEHALF OF OR INVESTING THE
ASSETS OF (A) AN "EMPLOYEE BENEFIT PLAN" (AS DEFINED IN SECTION 3(3) OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA")) THAT IS
SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A "PLAN" (AS DEFINED IN
SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
"CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE. EACH TRANSFEREE OF A
BENEFICIAL INTEREST IN THIS NOTE SHALL BE DEEMED TO MAKE ONE OF THE FOREGOING
REPRESENTATIONS.

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.

                                      A-5-2
<PAGE>

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A
                       8.5000% ASSET-BACKED NOTE, CLASS B

          Long Beach Acceptance Auto Receivables Trust 2003-A, 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 SEVEN MILLION FIVE HUNDRED THOUSAND
DOLLARS payable on each Payment Date from the sources and on the terms and
conditions set forth herein and as more fully set forth in the Indenture;
provided, however, that the entire unpaid principal amount of this Class B Note
shall be due and payable on the November 2009 Payment Date (the "Class B Final
Scheduled Payment Date"). The Issuer will 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. Interest on this Note will accrue for each
Payment Date from and including the most recent Payment Date on which interest
has been paid to but excluding such Payment Date or, if no interest has yet been
paid, from and including March 13, 2003 (the "Interest Period"). Interest will
be computed on the basis of a 360-day year consisting of twelve 30 day months
(or, with respect to the initial Payment Date, 32 days). Such principal of and
interest on this Note shall be paid in the manner specified on the reverse
hereof. Except as otherwise set forth in the Indenture and the Sale and
Servicing Agreement with respect to application of the Senior Strip, the rights
of the Class B Noteholders to receive payments of interest and principal on each
Payment Date are subordinated to the rights of the Class A-1 Noteholders, the
Class A-2 Noteholders, the Class A-3 Noteholders and the Class A-4 Noteholders
to receive payments in respect of interest and principal, if any, due on such
Payment Date and, with respect to payments of principal, to the funding of the
Spread Account to its Requisite Amount and the funding of the Class B Reserve
Account to the Specified Class B Reserve Account Balance.

          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.

                                      A-5-3
<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:  March 13, 2003

                             LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A

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

                             By:
                                 --------------------------------------
                             Name:
                             Title:

                                      A-5-4

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  March 13, 2003                JPMORGAN CHASE BANK, not in its individual
                                     capacity but solely as Indenture Trustee

                                     By:
                                        ----------------------------------
                                              Authorized Signatory

                                      A-5-5

<PAGE>

                                [REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its 8.5000% Asset-Backed Notes, Class B (herein called the "Class
B Notes"), issued under an Indenture dated as of March 1, 2003 (such indenture,
as supplemented or amended, is herein called the "Indenture"), between the
Issuer and JPMORGAN CHASE BANK, as Indenture Trustee (the "Indenture Trustee",
which term includes any successor Indenture Trustee 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 Holders of the Notes. The 1.2875%
Asset-Backed Notes, Class A-1, the 1.4910% Asset-Backed Notes, Class A-2 Notes,
the 2.0210% Asset-Backed Notes, Class A-3 Notes and the 2.7730% Asset-Backed
Notes, Class A-4 (the "Class A-1 Notes", the "Class A-2 Notes", the "Class A-3
Notes" and the "Class A-4 Notes", respectively, and together with the Class B
Notes, the "Notes") have also been issued under the Indenture. The Notes are
subject to all terms of the Indenture and the Sale and Servicing Agreement. All
terms used in this Note that are defined in the Indenture, as supplemented or
amended, shall have the meanings assigned to them in or pursuant to the
Indenture, as so supplemented or amended.

          The 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 equal to funds released from the Class B Reserve Account, as more
fully described in the Sale and Servicing Agreement. "Payment Date" means the
fifteenth day of each month, or, if any such date is not a Business Day, the
next Business Day, commencing April 15, 2003. The term "Payment Date," shall be
deemed to include the Class A-1 Final Scheduled Payment Date, the Class A-2
Final Scheduled Payment Date, the Class A-3 Final Scheduled Payment Date, the
Class A-4 Final Scheduled Payment Date and the Class B Final Scheduled Payment
Date.

          As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note is registrable in the Note Register
upon surrender of this Note for registration of transfer at the offices or
agencies maintained by the Indenture Trustee in its capacity as Note Registrar
or by any successor Note Registrar, in the Borough of Manhattan, The City of New
York, accompanied by a written instrument of transfer in form satisfactory to
the Indenture Trustee and the Note Registrar duly executed by the Holder hereof
or such Holder's attorney duly authorized in writing, and thereupon one or more
new Notes of authorized denominations evidencing the same aggregate debt of the
Trust will be issued to the designated transferee.

          The Notes shall be issuable in minimum denominations of one hundred
thousand dollars ($100,000) and integral multiples of one thousand dollars
($1,000) in excess thereof. As provided in the Agreement and subject to certain
limitations set forth therein, Notes are exchangeable for new Notes of
authorized denominations evidencing the same aggregate denomination, as
requested by the Holder surrendering the same. No service charge will be made
for any such registration of transfer or exchange, but the Indenture Trustee may
require payment of a sum sufficient to cover any tax or governmental charges
payable in connection therewith.

                                      A-5-6
<PAGE>

          The Indenture Trustee, the Note Registrar, and any agent of the
Indenture Trustee or the Note Registrar may treat the person in whose name this
Note is registered as the owner hereof for all purposes, and neither the
Indenture Trustee, the Note Registrar, nor any such agent shall be affected by
any notice to the contrary.

          The obligations and responsibilities created by the Sale and Servicing
Agreement, the Indenture and the Trust Agreement shall terminate upon the
payment to Noteholders of all amounts required to be paid to them pursuant to
the Indenture and the Sale and Servicing Agreement, the payment of all
Reimbursement Obligations, and the expiration of any preference period with
respect thereto and the disposition of all property held as part of the Trust.
The Certificateholder may redeem the Notes on any Payment Date on or after the
outstanding Pool Balance is less than or equal to 10% of the Original Pool
Balance at a price specified in the Indenture.

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

          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 that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Indenture Trustee on the Notes or under the
Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Issuer, the Transferor, the Servicer, the Originator, the
Indenture Trustee, Trust Collateral Agent, Collateral Agent, Back-up Servicer,
Custodian or the Owner Trustee 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 Transferor, the Servicer, the
Originator, the Indenture Trustee, Trust Collateral Agent, Collateral Agent,
Back-up Servicer, Custodian or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Transferor, the Servicer, the
Originator, the Owner Trustee, Trust Collateral Agent, Collateral Agent, Back-up
Servicer, Custodian or the Indenture Trustee or of any successor or assign of
the Transferor, the Servicer, the Originator, the Indenture Trustee, Trust
Collateral Agent, Collateral Agent, Back-up Servicer, Custodian or the Owner
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee, Trust Collateral Agent,
Collateral Agent, Back-up Servicer, Custodian and the Owner Trustee have no such
obligations in their individual capacity) 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.

          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 to treat
the Notes as indebtedness for purposes of federal income, state and local income
and franchise and any other income taxes.

          The Indenture permits, with certain exceptions therein provided, the
amendment thereof and the modification of the rights and obligations of the
Transferor and the rights of the Noteholders under the Indenture at any time by
the Issuer and the Indenture Trustee with the consent of the Note Insurer but,
in certain circumstances, without the consent of the Holders of

                                      A-5-7
<PAGE>

Notes. The Indenture also contains provisions permitting the Noteholders
representing specified percentages of the outstanding Note Balance of the Notes,
on behalf of the Holders of all the Notes, 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 Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding
upon such Holder and upon all future Holders 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.

          This Note, the Sale and Servicing Agreement and the Indenture shall be
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder and thereunder shall be determined in
accordance with such laws.

          No reference herein to the Indenture or any of the other Basic
Documents and no provision of this Note or of the Indenture or any of the other
Basic Documents 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 Indenture or the Basic Documents, neither Wilmington Trust
Company in its individual capacity, any owner of a beneficial interest in the
Issuer, nor 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 of or
interest on, or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in this Note or the Indenture, it
being expressly understood that said covenants, obligations and indemnifications
have been made by the Issuer for the sole purposes of binding the interests of
the Issuer in the assets of the Issuer. The Holder of this Note by the
acceptance hereof agrees that except as expressly provided in the Indenture or
the Basic Documents, in the case of an Event of Default under the Indenture, the
Holder 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-5-8
<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                                 (6)
      --------------------------------      ------------------------------------
                                                     Signature Guaranteed:

----------------
     (6)    NOTE: 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 whatsoever.

                                      A-5-9

<PAGE>

                                                                       EXHIBIT B

                          FORM OF DEPOSITORY AGREEMENT

            Please See Tab 76 for the DTC Letter of Representations.

<PAGE>
                                                                     EXHIBIT C-1

                     FORM OF "QUALIFIED INSTITUTIONAL BUYER"
                            TRANSFEREE'S CERTIFICATE

                                     [date]

Long Beach Acceptance Auto Receivables Trust 2003-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington Delaware 19890-0001
Attention: Corporate Trust Administration

JPMorgan Chase Bank
4 New York Plaza, 6th Floor
New York, New York 10004
Attention: Capital Markets Fiduciary Services

           Re: Long Beach Acceptance Auto Receivables Trust 2003-A
               Asset-Backed Notes, Class B

Dear Sirs:

          In connection with the proposed purchase by the buyer listed below
(the "Buyer") of the above-referenced Notes (the "Notes") issued pursuant to the
Indenture dated as of March 1, 2003 (the "Indenture") between Long Beach
Acceptance Auto Receivables Trust 2003-A, as Issuer (the "Issuer"), and JPMORGAN
CHASE BANK, as indenture trustee (the "Indenture Trustee"), relating to Long
Beach Acceptance Auto Receivables Trust 2003-A Asset-Backed Notes, the Buyer
advises you as follows: (i) the Buyer is a "qualified institutional buyer" as
that term is defined in Rule 144A under the Securities Act of 1933, as amended
(the "1933 Act") and is acquiring beneficial ownership of the Notes for its own
account or for the account of not more than __ persons, each of which is a
"qualified institutional buyer"; and (ii) the Buyer satisfies the requirements
of paragraph (a)(2)(ii) of Rule 3a-7 under the Investment Company Act of 1940,
as amended (the "1940 Act"). In addition to the foregoing, you may rely on the
information provided in Annex 1 or 2, as applicable, attached hereto and
incorporated herein.

          The Buyer understands that the Notes have not been registered under
the 1933 Act or the securities laws of any state. The Buyer acknowledges that it
has independently conducted such investigation and evaluation of the merits and
the risks involved in an investment in the Notes and has received such
information (whether from the Issuer, the Transferor, the Servicer, the
transferor from which it proposes to purchase Notes, or from any other source)
as the Buyer has deemed necessary and advisable in order to make its investment
decision. The Buyer has had any questions arising from such investigation and
evaluation answered by the Issuer to the satisfaction of the Buyer. The Buyer is
a sophisticated institutional investor, having

<PAGE>

such knowledge and experience in financial and business matters generally, and
with respect to asset-backed securities and investments in "non-prime"
automobile loans specifically, that it is capable of independently evaluating
the merits and risks of investment in the Notes. In the normal course of its
business, the Buyer invests in or purchases securities similar to the Notes. The
Buyer is aware that it may be required to bear the economic risk of an
investment in the Notes for an indefinite period of time, and it is able to bear
such risk for an indefinite period.

                                     Very truly yours,

                                     [BUYER]

                                     By:
                                        ----------------------------------------
                                     Name:
                                     Title:

                                     Taxpayer ID:
                                                 -------------------------------

                                     Name in which
                                     Note is to be
                                     Registered:
                                                --------------------------------

                                     Address for Notices:
                                                         -----------------------

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

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

                                     Payment Instructions:

                                      C-1-2
<PAGE>

                                                          ANNEX 1 TO EXHIBIT C-1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

          The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

                  (a) As indicated below, the undersigned is the President,
Chief Financial Officer, Senior Vice President or other executive officer of the
Buyer.

                  (b) In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary basis $_____________(7) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

                  ___ Corporation, etc. The Buyer is a corporation (other than a
                  bank, savings and loan association or similar institution), or
                  similar business trust, partnership, or charitable
                  organization described in Section 501(c)(3) of the Internal
                  Revenue Code of 1986, as amended.

                  ___ Bank. The Buyer (a) is a national bank or banking
                  institution organized under the laws of any State, territory
                  or the District of Columbia, the business of which is
                  substantially confined to banking and is supervised by the
                  State or territorial banking commission or similar official or
                  is a foreign bank or equivalent institution, and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

                  ___ Savings and Loan. The Buyer (a) is a savings and loan
                  association, building and loan association, cooperative bank,
                  homestead association or similar institution, which is
                  supervised and examined by a State or Federal authority having
                  supervision over any such institutions or is a foreign savings
                  and loan association or equivalent institution and (b) has an
                  audited net worth of at least $25,000,000 as demonstrated in
                  its latest annual financial statements, a copy of which is
                  attached hereto.

---------------
     (7)   Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer
must own and/or invest on a discretionary basis at least $10,000,000 in
securities.

                                      C-1-3
<PAGE>

                  ___ Broker-dealer. The Buyer is a dealer registered pursuant
                  to Section 15 of the Securities Exchange Act of 1934.

                  __ Insurance Company. The Buyer is an insurance company whose
                  primary and predominant business activity is the writing of
                  insurance or the reinsuring of risks underwritten by insurance
                  companies and which is subject to supervision by the insurance
                  commissioner or a similar official or agency of a State,
                  territory or the District of Columbia.

                  ___ State or Local Plan. The Buyer is a plan established and
                  maintained by a State, its political subdivisions, or any
                  agency or instrumentality of the State or its political
                  subdivisions, for the benefit of its employees.

                  __ ERISA Plan. The Buyer is an employee benefit plan within
                  the meaning of Title I of the Employee Retirement Income
                  Security Act of 1974.

                  __ Investment Advisor. The Buyer is an investment advisor
                  registered under the Investment Advisers Act of 1940.

                  __ Small Business Investment Company. Buyer is a small
                  business investment company licensed by the U.S. Small
                  Business Administration under Section 301(c) or (d) of the
                  Small Business Investment Act of 1958.

                  __ Business Development Company. Buyer is a business
                  development company as defined in Section 202(a)(22) of the
                  Investment Advisors Act of 1940.

                  __ Trust Fund. The Buyer is a trust fund whose trustee is a
                  bank or trust company and whose participants are exclusively
                  State or Local Plans or ERISA Plans as defined above, and no
                  participant of the Buyer is an individual retirement account
                  or an H.R. 10 (Keogh) plan.

                  (c) The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

                  (d) For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not include any of
the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis
of their market value and (ii) no current information with respect to the cost
of those securities has been published. If clause (ii) in the preceding sentence
applies, the securities may be valued at market. Further, in determining such
aggregate amount, the Buyer may have included securities owned by subsidiaries
of the Buyer, but only if such subsidiaries are consolidated with the Buyer in
its financial statements prepared in accordance with generally accepted
accounting

                                      C-1-4
<PAGE>

principles and if the investments of such subsidiaries are managed under the
Buyer's direction. However, such securities were not included if the Buyer is a
majority-owned, consolidated subsidiary of another enterprise and the Buyer is
not itself a reporting company under the Securities Exchange Act of 1934.

                  (e) The Buyer acknowledges that it is familiar with Rule 144A
and understands that the transferor to it and other parties related to the Notes
are relying and will continue to rely on the statements made herein because one
or more sales to the Buyer may be in reliance on Rule 144A.

                  (f) Until the date of purchase of the Rule 144A Securities,
the Buyer will notify each of the parties to which this certification is made of
any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification as of the date of such purchase. In
addition, if the Buyer is a Bank or Savings and Loan as provided above, the
Buyer agrees that it will furnish to such parties updated annual financial
statements promptly after they become available.

                                          --------------------------------------
                                          Print Name of Buyer

                                          By:
                                             -----------------------------------
                                             Name:
                                             Title:

                                          Date:
                                                --------------------------------

                                      C-1-5

<PAGE>

                                                          ANNEX 2 TO EXHIBIT C-1

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers that are Registered Investment Companies]

          The undersigned hereby certifies as follows to the parties listed in
the "Qualified Institutional Buyer" Transferee's Certificate to which this
certification relates with respect to the Rule 144A Securities described
therein:

          (a) As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

          (b) In connection with purchases by Buyer, the Buyer is a "qualified
institutional buyer" as defined in SEC Rule 144A because (i) the Buyer is an
investment company registered under the Investment Company Act of 1940, and (ii)
as marked below, the Buyer alone, or the Buyer's Family of Investment Companies,
owned at least $100,000,000 in securities (other than the excluded securities
referred to below) as of the end of the Buyer's most recent fiscal year. For
purposes of determining the amount of securities owned by the Buyer or the
Buyer's Family of Investment Companies, the cost of such securities was used,
except (i) where the Buyer or the Buyer's Family of Investment Companies reports
its securities holdings in its financial statements on the basis of their market
value, and (ii) no current information with respect to the cost of those
securities has been published. If clause (ii) in the preceding sentence applies,
the securities may be valued at market.

          ___The Buyer owned $________________ in securities (other than the
          excluded securities referred to below) as of the end of the Buyer's
          most recent fiscal year (such amount being calculated in accordance
          with Rule 144A).

          ___The Buyer is part of a Family of Investment Companies which owned
          in the aggregate $__________ in securities (other than the excluded
          securities referred to below) as of the end of the Buyer's most recent
          fiscal year (such amount being calculated in accordance with Rule
          144A).

          (c) The term "Family of Investment Companies" as used herein means two
or more registered investment companies (or series thereof) that have the same
investment adviser or investment advisers that are affiliated (by virtue of
being majority owned subsidiaries of the same parent or because one investment
adviser is a majority owned subsidiary of the other).

          (d) The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

                                      C-1-6
<PAGE>

          (e) The Buyer is familiar with Rule 144A and understands that the
parties listed in the Qualified Institutional Buyer Transferee's Certificate to
which this certification relates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

          (f) Until the date of purchase of the Rule 144A Securities, the
undersigned will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                          --------------------------------------
                                          Print Name of Buyer or Adviser

                                          By:
                                             -----------------------------------
                                             Name:
                                             Title:

                                          IF AN ADVISER:

                                          --------------------------------------
                                          Print Name of Buyer

                                          Date:
                                                --------------------------------

                                      C-17

<PAGE>

                                                                     EXHIBIT C-2

             FORM OF "ACCREDITED INVESTOR" TRANSFEREE'S CERTIFICATE

                                     [date]

Long Beach Acceptance Auto Receivables Trust 2003-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington Delaware 19890-0001
Attention: Corporate Trust Administration

JPMORGAN CHASE BANK

4 New York Plaza, 6th Floor
New York, New York 10004
Attention: Capital Markets Fiduciary Services

           Re: Long Beach Acceptance Auto Receivables Trust 2003-A
               Asset-Backed Notes, Class B

Dear Sirs:

                  In connection with the proposed purchase by the buyer listed
below (the "Buyer") of the above referenced Notes (the "Notes") issued pursuant
to the Indenture dated as of March 1, 2003 (the "Indenture") between Long Beach
Acceptance Auto Receivables Trust 2003-A, as Issuer (the "Issuer"), and JPMORGAN
CHASE BANK, as indenture trustee (the "Indenture Trustee"), relating to the Long
Beach Acceptance Auto Receivables Trust 2003-A Asset-Backed Notes, the Buyer
confirms that:

                  (a) The Buyer understands that the Notes have not been
         registered under the Securities Act of 1933, as amended (the "1933
         Act"), and may not be sold except as permitted in the following
         sentence. The Buyer agrees, on its own behalf and on behalf of any
         accounts for which it is acting as hereinafter stated, that such Notes
         may be resold, pledged or transferred only: (i) so long as such Notes
         are eligible for resale pursuant to Rule 144A under the 1933 Act ("Rule
         144A"), to a person who the Buyer reasonably believes is a "qualified
         institutional buyer" as defined in Rule 144A (a "QIB") that purchases
         for its own account or for the account of a QIB, to whom notice is
         given that the resale, pledge or transfer is being made in reliance on
         Rule 144A, (ii) pursuant to an exemption from registration under the
         1933 Act provided by Rule 144 (if applicable) under the 1933 Act or
         (iii) to an institution that is an "Accredited Investor" as defined in
         Rule 501(a)(1), (2), (3) or (7) under the 1933 Act (an "Accredited
         Investor") that is acquiring the Notes for investment purposes and not
         for payment, in each case in accordance with any applicable securities
         laws of any state of the United States, and the Buyer will notify any
         purchaser of the Notes from it of the above resale restrictions. The
         Buyer further understands that in connection with any transfer of the
         Notes to an

                                      C-2-2
<PAGE>

         Accredited Investor by it that the Depositor or Trustee may request,
         and if so requested the Buyer will furnish, such certificates and other
         information as they may reasonably require to confirm any such transfer
         with the foregoing restrictions.

                  (b) The Buyer is an institutional investor which is an
         Accredited Investor or, if the Notes are to be purchased for one or
         more institutional accounts ("investor accounts") for which it is
         acting as fiduciary or agent (except if it is a bank as defined in
         Section 3(a)(2) of the 1933 Act, or a savings and loan association or
         other institution as described in Section 3(a)(5)(A) of the 1933 Act,
         whether acting in its individual or in a fiduciary capacity), each such
         investor account is an institutional investor and an Accredited
         Investor on a like basis. In the normal course of its business, the
         Buyer invests in or purchases securities similar to the Notes.

                  (c) The Buyer satisfies the requirements of paragraph
         (a)(2)(i) of Rule 3a-7 of the Investment Company Act of 1940.

                  (d) The Buyer acknowledges that it has independently conducted
         such investigation and evaluation of the merits and the risks involved
         in an investment in the Notes and has received such information
         (whether from the Depositor, the Servicer, the transferor from which it
         proposes to purchase Notes, or from any other source) as the Buyer has
         deemed necessary and advisable in order to make its investment
         decision. The Buyer has had any questions arising from such
         investigation and evaluation answered by the Depositor to the
         satisfaction of the Buyer. The Buyer is a sophisticated institutional
         investor, having such knowledge and experience in financial and
         business matters generally, and with respect to asset-backed securities
         and investments in "non-prime" automobile loans specifically, that it
         is capable of independently evaluating the merits and risks of
         investment in the Notes. In the normal course of its business, the
         Buyer invests in or purchases securities similar to the Notes. The
         Buyer is aware that it (or any investor account) may be required to
         bear the economic risk of an investment in the Notes for an indefinite
         period of time, and it (or such account) is able to bear such risk for
         an indefinite period.

                                             Very truly yours,

                                             [BUYER]

                                              By:
                                                 ------------------------------
                                                 Name:
                                                 Title:

                                      C-2-2

<PAGE>

                                                                     EXHIBIT C-3

               FORM OF "REGISTERED NOTE" TRANSFEREE'S CERTIFICATE

                                     [Date]

Long Beach Acceptance Auto Receivables Trust 2003-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington, Delaware 19890-0001
Attention: Corporate Trust Administration

JPMORGAN CHASE BANK
4 New York Plaza, 6th Floor
New York, New York 10004
Attention: Capital Markets Fiduciary Services

           Re: Long Beach Acceptance Auto Receivables Trust 2003-A
               Asset-Backed Notes, Class B
Dear Sirs:

         In connection with the proposed purchase by the buyer listed below (the
"Buyer") of Notes (the "Notes") issued pursuant to the Indenture dated as of
March 1, 2003 (the "Indenture") between Long Beach Acceptance Auto Receivables
Trust 2003-A, as Issuer (the "Issuer"), and JPMORGAN CHASE BANK, as indenture
trustee (the "Indenture Trustee"), relating to the Long Beach Acceptance Auto
Receivables Trust 2003-A Asset-Backed Notes, the Buyer confirms that it
satisfies the requirements set forth in paragraph (a)(2) of Rule 3a-7 of the
Investment Company Act of 1940, as amended.

                                     Very truly yours,

                                     [BUYER]

                                     By:
                                         ------------------------------------
                                     Name:
                                     Title:

                                     Taxpayer ID:
                                                  ---------------------------

                                     Name in which
                                     Note is to be
                                     Registered:
                                                 ----------------------------

                                     Address for Notices:
                                                         --------------------

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

                                     ----------------------------------------
                                     Payment Instructions:

<PAGE>

                                                                     EXHIBIT C-4

                        FORM OF TRANSFEROR'S CERTIFICATE

                                     [Date]

Long Beach Acceptance Auto Receivables Trust 2003-A
c/o Wilmington Trust Company
Rodney Square North
1100 North Market Street
Wilmington Delaware 19890-0001
Attention: Corporate Trust Administration

JPMORGAN CHASE BANK
4 New York Plaza, 6th Floor
New York, New York 10004
Attention: Capital Markets Fiduciary Services

           Re: Long Beach Acceptance Auto Receivables Trust 2003-A
               Asset-Backed Notes, Class B

Ladies and Gentlemen:

         In connection with the disposition by the transferor listed below (the
"Transferor") of the above referenced Notes issued pursuant to the Indenture
dated as of March 1, 2003 (the "Indenture") between Long Beach Acceptance Auto
Receivables Trust 2003-A, as Issuer (the "Issuer"), and JPMORGAN CHASE BANK, as
indenture trustee (the "Indenture Trustee"), relating to the Long Beach
Acceptance Auto Receivables Trust 2003-A Asset-Backed Notes, the Transferor
certifies that:

         (a) the Transferor understands that the Notes have not been registered
under the Securities Act of 1933, as amended (the "1933 Act"), and are being
disposed of by the Transferor in a transaction that is exempt from the
registration requirements of the 1933 Act; and

         (b) the Transferor has not offered or sold any Notes to, or solicited
offers to buy any Notes from, any person, or otherwise approached or negotiated
with any person with respect thereto, in a manner that would be deemed, or taken
any other action which would result in, a violation of Section 5 of the 1933
Act.

                                     Very truly yours,

                                     ----------------------------------------
                                                 Name of Transferor

                                     By:
                                         ------------------------------------
                                     Name:
                                     Title:

                                      C-4-1
<PAGE>

                                                                     EXHIBIT C-5

                    [FORM OF CERTIFICATE AS TO ERISA MATTERS]

                                     [date]

Long Beach Acceptance Auto Receivables Trust 2003-A
c/o Wilmington Trust Company, as Owner Trustee
Rodney Square North
1100 North Market Street
Wilmington, Delaware  19890-0001
Attention: Corporate Trust Administration

JPMORGAN CHASE BANK
4 New York Plaza, 6th Floor
New York, New York 10004
Attention: Global Trust Services --
           Long Beach Acceptance Auto
           Receivables Trust 2003-A

         Re: Long Beach Acceptance Auto Receivables Trust 2003-A
             Asset-Backed Notes, Class [A-1][A-2][A-3][A-4][B]

Ladies and Gentlemen:

         [NAME OF OFFICER] ____________________ hereby certifies that:

         1. That he [she] is [Title of Officer] ________________ of [Name of
Transferee] ______________________________________ (the "Transferee"), a
[savings institution] [corporation] duly organized and existing under the laws
of [the State of ________] [the United States], on behalf of which he [she]
makes this affidavit.

         2. The Transferee (i) is not, and is not acting on behalf of or
investing the assets of, (a) an employee benefit plan (as defined in Section
3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA")) that is subject to the provisions of Title I of ERISA or (b) a plan
(as defined in Section 4975(e)(1) of the Internal Revenue Code of 1986, as
amended (the "Code") that is subject to Section 4975 of the Code (each, a
"Benefit Plan") or (ii) [Class A Notes only] is entitled to exemptive relief
pursuant to a Department of Labor prohibited transaction class exemption with
respect to the Transferee's acquisition and continued holding of such Class
[A-1][A-2][A-3][A-4] Note.

         3. The Transferee hereby acknowledges that under the terms of the
Indenture, dated as of March 1, 2003 (the "Indenture"), between Long Beach
Acceptance Auto Receivables Trust 2003-A (the "Issuer") and JPMORGAN CHASE BANK,
as indenture trustee (the "Indenture Trustee"), no transfer of any Class
[A-1][A-2][A-3][A-

                                      C-5-1
<PAGE>

4][B] Note (as defined in the Indenture) shall be permitted to be made to any
person unless the Indenture Trustee has received a certificate from such
transferee to the effect that such transferee (A) is not a Benefit Plan and is
not acting on behalf of or investing the assets of any such Benefit Plan or (B)
[Class A Notes only] is entitled to exemptive relief pursuant to a Department of
Labor prohibited transaction class exemption with respect to such transferee's
acquisition and continued holding of such Note.

         4. The Class [A-1][A-2][A-3][A-4][B] Notes shall be registered in the
name of _________________ ___________________ [as nominee for the Transferee.]

                  IN WITNESS WHEREOF, the Transferee has caused this instrument
to be executed on its behalf, pursuant to authority of its Board of Directors,
by its [Title of Officer] ______________ _______________, this _____ day of
___________, _____.

                           ------------------------------
                           [name of Transferee]

                           By:
                               --------------------------
                               Name:
                               Title:

                  The undersigned hereby acknowledges that it is holding and
will hold the Class [A-1][A-2][A-3][A-4][B] Notes at the exclusive direction of
and as nominee of the Investor named above.

-------------------------------------
[name of nominee]

By:
   ----------------------------------
   Name:
   Title:

                                      C-5-2<PAGE>
                                                             [Execution Version]

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

                      AMENDED AND RESTATED TRUST AGREEMENT

                                     between

                   LONG BEACH ACCEPTANCE RECEIVABLES CORP. II

                                       and

                            WILMINGTON TRUST COMPANY
                                  Owner Trustee

                            Dated as of March 1, 2003

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

<PAGE>

<TABLE>
<CAPTION>

                                                                                                              Page
                                                                                                              ----

                                TABLE OF CONTENTS

<S>                        <C>                                                                                <C>
ARTICLE I. DEFINITIONS.........................................................................................1

     SECTION 1.1.          Capitalized Terms...................................................................1
     SECTION 1.2.          Other Definitional Provisions.......................................................2

ARTICLE II. ORGANIZATION.......................................................................................3

     SECTION 2.1.          Name................................................................................3
     SECTION 2.2.          Office..............................................................................3
     SECTION 2.3.          Purposes and Powers.................................................................3
     SECTION 2.4.          Appointment of Owner Trustee........................................................6
     SECTION 2.5.          Initial Capital Contribution to the Trust...........................................6
     SECTION 2.6.          Declaration of Trust................................................................6
     SECTION 2.7.          Title to Owner Trust Estate.........................................................6
     SECTION 2.8.          Situs of Trust......................................................................7
     SECTION 2.9.          Representations and Warranties of the Transferor....................................7
     SECTION 2.10.         Covenants of the Certificateholder..................................................9
     SECTION 2.11.         Federal Income Tax Treatment of the Trust...........................................9

ARTICLE III. CERTIFICATES AND TRANSFER OF INTEREST............................................................10

     SECTION 3.1.          Initial Ownership..................................................................10
     SECTION 3.2.          The Certificates...................................................................10
     SECTION 3.3.          Authentication of Certificates.....................................................10
     SECTION 3.4.          Registration of Certificates.......................................................10
     SECTION 3.5.          Mutilated, Destroyed, Lost or Stolen Certificates..................................12
     SECTION 3.6.          Persons Deemed Certificateholders..................................................12
     SECTION 3.7.          Transfer of Certificates...........................................................12
     SECTION 3.8.          Disposition In Whole But Not In Part...............................................14

ARTICLE IV. VOTING RIGHTS AND OTHER ACTIONS...................................................................14

     SECTION 4.1.          Prior Notice to Certificateholder with Respect to Certain Matters..................14
     SECTION 4.2.          Action by Certificateholder with Respect to Certain Matters........................15
     SECTION 4.3.          Restrictions on Certificateholder's Power..........................................15
     SECTION 4.4.          Rights of Note Insurer.............................................................15

ARTICLE V. AUTHORITY AND DUTIES OF OWNER TRUSTEE..............................................................16

     SECTION 5.1.          General Authority..................................................................16
     SECTION 5.2.          General Duties.....................................................................16
     SECTION 5.3.          Action upon Instruction............................................................17
     SECTION 5.4.          No Duties Except as Specified in this Agreement or in Instructions.................17
     SECTION 5.5.          No Action Except under Specified Documents or Instructions.........................18

                                       i
<PAGE>

     SECTION 5.6.          Restrictions.......................................................................18

ARTICLE VI. CONCERNING THE OWNER TRUSTEE......................................................................18

     SECTION 6.1.          Acceptance of Trusts and Duties....................................................18
     SECTION 6.2.          Furnishing of Documents............................................................20
     SECTION 6.3.          Representations and Warranties.....................................................20
     SECTION 6.4.          Reliance; Advice of Counsel........................................................21
     SECTION 6.5.          Not Acting in Individual Capacity..................................................21
     SECTION 6.6.          Owner Trustee Not Liable for Certificates or Receivables...........................21
     SECTION 6.7.          Owner Trustee May Own Notes........................................................22
     SECTION 6.8.          Payments from Owner Trust Estate...................................................22
     SECTION 6.9.          Doing Business in Other Jurisdictions..............................................22

ARTICLE VII. COMPENSATION OF OWNER TRUSTEE....................................................................23

     SECTION 7.1.          Owner Trustee's Fees and Expenses..................................................23
     SECTION 7.2.          Indemnification....................................................................23
     SECTION 7.3.          Payments to the Owner Trustee......................................................23
     SECTION 7.4.          Non-recourse Obligations...........................................................23

ARTICLE VIII. TERMINATION OF TRUST AGREEMENT..................................................................23

     SECTION 8.1.          Termination of Trust Agreement.....................................................23

ARTICLE IX. SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES............................................24

     SECTION 9.1.          Eligibility Requirements for Owner Trustee.........................................24
     SECTION 9.2.          Resignation or Removal of Owner Trustee............................................25
     SECTION 9.3.          Successor Owner Trustee............................................................25
     SECTION 9.4.          Merger or Consolidation of Owner Trustee...........................................26
     SECTION 9.5.          Appointment of Co-Indenture Trustee or Separate Indenture Trustee..................26

ARTICLE X. MISCELLANEOUS......................................................................................28

     SECTION 10.1.         Supplements and Amendments.........................................................28
     SECTION 10.2.         No Legal Title to Owner Trust Estate in Certificateholder..........................29
     SECTION 10.3.         Limitations on Rights of Others....................................................29
     SECTION 10.4.         Notices............................................................................29
     SECTION 10.5.         Severability.......................................................................30
     SECTION 10.6.         Separate Counterparts..............................................................30
     SECTION 10.7.         Assignments........................................................................31
     SECTION 10.8.         No Recourse........................................................................31
     SECTION 10.9.         Headings...........................................................................31
     SECTION 10.10.        GOVERNING LAW......................................................................31
     SECTION 10.11.        Servicer...........................................................................31

                                       ii
<PAGE>

     SECTION 10.12.        Limitation on Liability............................................................31
     SECTION 10.13.        No Petition........................................................................31
     SECTION 10.14.        Bankruptcy Matters.................................................................32
     SECTION 10.15.        Effect of Policy Expiration Date...................................................32

EXHIBITS

EXHIBIT A - Form of Certificate of Trust

EXHIBIT B - Form of Certificate

EXHIBIT C - Form of Transferee's Certificate for Qualified Institutional Buyers

EXHIBIT D - Form of Transferee's Certificate for Institutional Accredited Investors

EXHIBIT E - Form of Transferor's Certificate

EXHIBIT F - Form of ERISA Certificate

EXHIBIT G - Form of Flow Through Entity Certificate
</TABLE>

                                      iii

<PAGE>

                  AMENDED AND RESTATED TRUST AGREEMENT dated as of March 1, 2003
between LONG BEACH ACCEPTANCE RECEIVABLES CORP. II, a Delaware corporation (the
"Transferor"), and Wilmington Trust Company, a Delaware banking corporation,
acting hereunder not in its individual capacity but solely as Owner Trustee (in
such capacity, the "Owner Trustee").

                  WHEREAS, the Transferor and the Owner Trustee have entered
into a Trust Agreement dated as of February 1, 2003 (the "Original Trust
Agreement"); and

                  WHEREAS, the Transferor and the Owner Trustee wish to amend
and restate the Original Trust Agreement by entering into this Agreement.

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

                                    Article I

                                   Definitions

                  SECTION 1.1.Capitalized Terms. For all purposes of this
Agreement, the following terms shall have the meanings set forth below, terms
defined in the singular shall include the plural:

                  "Agreement" shall mean this Amended and Restated Trust
Agreement, as the same may be further amended and supplemented from time to
time.

                  "Certificate" means a trust certificate evidencing the entire
beneficial interest in the Trust, substantially in the form of Exhibit B
attached hereto.

                  "Certificate of Trust" shall mean the Certificate of Trust in
the form of Exhibit A to be filed for the Trust pursuant to Section 3810(a) of
the Statutory Trust Act.

                  "Certificate Register" and "Certificate Registrar" shall mean
the register mentioned and the registrar appointed pursuant to Section 3.4.

                  "Certificateholder" or "Holder" shall mean the person in whose
name a Certificate is registered on the Certificate Register.

                  "Instructing Party" shall have the meaning assigned to such
term in Section 5.3.

                  "Non-Registered Trust Certificate" means a Certificate other
than a Registered Trust Certificate.

                  "Owner Trust Estate" shall mean all right, title and interest
of the Trust in and to the property and rights assigned to the Trust pursuant to
Article II of the Sale and Servicing Agreement, all funds on deposit from time
to time in Collection Account, the Class B Reserve Account or the Note Account
and all other property of the Trust from time to time, including any

<PAGE>

rights of the Owner Trustee and the Trust pursuant to the Sale and Servicing
Agreement and the Spread Account Agreement.

                  "Registered Trust Certificate" means a Certificate that was
sold pursuant to a registration statement that has been filed and has become
effective under the Securities Act.

                  "Secretary of State" means the Secretary of State of the State
of Delaware.

                  "Statutory Trust Act" shall mean Chapter 38 of Title 12 of the
Delaware Code, 12 Del. Code (section) 3801 et. seq. as the same may be amended
from time to time.

                  "Transferee's Certificate" means a certificate in the form of
Exhibits C or D hereto.

                  "Transferor's Certificate" means a certificate in the form of
Exhibit E hereto.

                  "Treasury Regulations" means regulations, including proposed
or temporary regulations, promulgated under the Code. References herein to
specific provisions of proposed or temporary regulations shall include analogous
provisions of final Treasury Regulations or other successor Treasury
Regulations.

                  "Trust" means the trust established by this Agreement.

                  "WTC" means Wilmington Trust Company, a Delaware banking
corporation, in its individual capacity.

                  SECTION 1.2. Other Definitional Provisions.

                  (a) Capitalized terms used herein and not otherwise defined
herein have the meanings assigned to them in Annex A to the Sale and Servicing
Agreement.

                  (b) All terms defined in this Agreement shall have the defined
meanings when used in any certificate or other document made or delivered
pursuant hereto unless otherwise defined therein.

                  (c) As used in this Agreement and in any certificate or other
document made or delivered pursuant hereto or thereto, accounting terms not
defined in this Agreement or in any such certificate or other document, and
accounting terms partly defined in this Agreement or in any such 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 this Agreement or any such certificate or other document, as applicable.
To the extent that the definitions of accounting terms in this Agreement or in
any such certificate or other document are inconsistent with the meanings of
such terms under generally accepted accounting principles, the definitions
contained in this Agreement or in any such certificate or other document shall
control.

                  (d) The words "hereof," "herein," "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular

                                       2
<PAGE>

provision of this Agreement; Section and Exhibit references contained in this
Agreement are references to Sections and Exhibits in or to this Agreement unless
otherwise specified; and the term "including" shall mean "including without
limitation."

                  (e) The definitions contained in this Agreement are applicable
to the singular as well as the plural forms of such terms and to the masculine
as well as to the feminine and neuter genders of such terms.

                                   Article II

                                  Organization

                  SECTION 2.1. Name. There is hereby formed a trust to be known
as "Long Beach Acceptance Auto Receivables Trust 2003-A," in which name the
Owner Trustee may conduct the business of the Trust, make and execute contracts
and other instruments on behalf of the Trust and sue and be sued on behalf of
the Trust.

                  SECTION 2.2. Office. The principal office of the Trust, and
such additional offices as the Certificateholder may direct the Owner Trustee to
establish, shall be located at such place or places inside or outside the State
of Delaware as the Certificateholder may unanimously designate from time to
time. The Certificateholder hereby designates the office of the Owner Trustee at
Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001,
Attention: Corporate Trust Administration as the principal office of the Trust.

                  SECTION 2.3. Purposes and Powers. The Trust and the parties to
this Agreement shall be subject to the following provisions regarding the
purposes, powers and procedures of the Trust:

                  (a) The purpose of the Trust is to engage solely in the
following activities:

                  (i) to acquire the Owner Trust Estate pursuant to Article II
          of the Sale and Servicing Agreement;

                  (ii) to issue the Notes pursuant to the Indenture and the
          Certificates pursuant to this Agreement, to sell and exchange the
          Notes and to transfer the Certificate to the Transferor and to pay
          interest on and principal of the Notes and distributions on the
          Certificates;

                  (iii) with the proceeds of the sale of the Notes, to fund the
          Spread Account and the Class B Reserve Account, and to pay the balance
          to the Transferor pursuant to the Sale and Servicing Agreement;

                  (iv) to assign, grant, transfer, pledge, mortgage and convey
          the Pledged Property to the Indenture Trustee pursuant to the
          Indenture for the benefit of the Note Insurer and the Noteholders and
          to hold, manage and distribute to the Certificateholder pursuant to
          the terms of the Sale and Servicing Agreement and the Spread Account
          Agreement any portion of the Pledged Property released from the Lien
          of the Indenture;

                                       3
<PAGE>

                  (v) to enter into and perform its obligations under the Basic
          Documents to which it is a party;

                  (vi) to engage in those activities, including entering into
          agreements, that are necessary, suitable or convenient to accomplish
          the foregoing or are incidental thereto or connected therewith; and

                  (vii) subject to compliance with the Basic Documents, to
          engage in such other activities as may be required in connection with
          conservation of the Owner Trust Estate and the making of distributions
          to the Certificateholder and the Noteholders.

The Trust is hereby authorized to engage in the foregoing activities. The Trust
shall not engage in any activity other than in connection with the foregoing or
other than as required or authorized by the terms of this Agreement or the Basic
Documents.

                  (b) The Trust's only assets shall be the Owner Trust Estate.
Other than the Notes, the Trust shall not secure any indebtedness with any of
the Owner Trust Estate.

                  (c) Other than with respect to the transfer to the Trust of
the Trust Assets, the Trust shall not do any of the following: acquire any
obligations of, make loans or advances to, borrow funds from, assume or
guarantee the obligations or liabilities of, have its obligations or liabilities
guaranteed by, or hold itself out as responsible for the debts and obligations
of the Owner Trustee, the Certificateholder, LBAC, the Indenture Trustee or any
other person or entity.

                  (d) The Owner Trustee shall not manage, control, use, sell,
dispose of or otherwise deal with any part of the Owner Trust Estate except in
accordance with the specific limitations set forth in this Agreement and the
other Basic Documents to which the Trust is a party.

                  (e) The Trust shall, in all dealings with the public, identify
itself under the name of the Trust and as a separate and distinct entity from
any other Person or entity. All transactions and agreements between the Trust
and third parties shall be conducted in the name of the Trust as an entity
separate and independent from the Owner Trustee, the Indenture Trustee, the
Transferor, LBAC and the Certificateholder.

                  (f) All transactions and agreements between the Trust, on the
one hand, and any of WTC, the Owner Trustee, the Indenture Trustee, the Trust
Collateral Agent, the Custodian, the Transferor, LBAC and the Certificateholder,
on the other hand, shall reflect the separate legal existence of each entity and
will be formally documented in writing. The pricing and other material terms of
all such transactions and agreements shall be on terms substantially similar to
those that would be available on an arm's-length basis with unaffiliated third
parties.

                  (g) The Trust shall not commingle its funds and other assets
with those of any other Person or business entity and shall maintain its assets
and liabilities in such a manner that it shall not be costly or difficult to
segregate, ascertain or identify its individual assets and liabilities from
those of any other person or entity. The Owner Trustee shall hold the Owner
Trust Estate on behalf of the Trust.

                                       4
<PAGE>

                  (h) The Trust shall pay its liabilities and losses as they
become due from the Owner Trust Estate, provided, however, that none of the
Owner Trust Estate shall be used to pay the liabilities (including liability in
respect of guaranties) and losses of WTC, the Transferor, LBAC, the Indenture
Trustee, the Trust Collateral Agent, the Custodian or the Certificateholder. The
Trust has been structured to maintain capital in an amount reasonably sufficient
to meet the anticipated needs of the Trust.

                  (i) The Trust shall not share any of the same officers or
other employees with the Servicer, the Transferor, LBAC, the Indenture Trustee,
the Trust Collateral Agent, the Custodian or the Certificateholder.

                  (j) The Trust shall not, jointly with the Servicer, the
Transferor, LBAC, the Indenture Trustee, the Trust Collateral Agent, the
Custodian or the Certificateholder contract or do business with vendors or
service providers or share overhead expenses.

                  (k) The Trust shall maintain its own bank accounts, books and
records and annual financial statements prepared in accordance with generally
accepted accounting principles, separate from those of WTC, the Owner Trustee,
the Indenture Trustee, the Trust Collateral Agent, the Custodian, the
Transferor, LBAC and the Certificateholder. The foregoing will reflect that the
assets and liabilities of and all transactions and transfers of funds involving
the Trust shall be separate from those of each such other entity, and the Trust
shall pay or bear the cost of the preparation of its own financial statements
and shall not pay or bear the cost of the preparation of the financial
statements of any such other entity. Neither the accounting records nor the
financial statements of the Trust will indicate that the Owner Trust Estate is
available to pay creditors of WTC, the Indenture Trustee, the Trust Collateral
Agent, the Custodian, the Transferor, LBAC or the Certificateholder or any other
person or entity.

                  (l) The Owner Trustee shall not have the power to commence a
voluntary proceeding in bankruptcy relating to the Trust without the prior
approval of the Certificateholder and the Transferor and the delivery to the
Owner Trustee by each of the Certificateholder and the Transferor of a
certificate stating that such entity reasonably believes that the Trust is
insolvent.

                  (m) Each of the Owner Trustee and the Transferor covenants and
agrees that it will not at any time institute against any Certificateholder, or
join in any institution against any Certificateholder of any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other
proceeding under any United States of America federal or state bankruptcy or
similar law in connection with any obligations relating to the Certificates or
this Agreement. The Owner Trustee and the Transferor each covenants and agrees
that it will not, in any capacity, seek the substantive consolidation of the
assets of the Trust with any Certificateholder.

                  (n) The Certificates cannot be transferred other than pursuant
to Section 3.7.

                  (o) The Owner Trustee may, pursuant to Section 5.2 of this
Agreement, delegate certain administrative duties relating to the Trust to
specified entities (other than the Certificateholder), which will be authorized
to prepare on behalf of the Trust all documents, reports, filings, instruments,
certificates and opinions as it shall be the duty of the Trust to prepare, file
and deliver. However, the Owner Trustee may not delegate any such administrative

                                       5
<PAGE>

duties to the Certificateholder, and the Certificateholder may not perform any
of the Trust's duties or obligations.

                  (p) The Certificates shall entitle the Certificateholder only
to the benefits and distributions as are expressly set forth in this Agreement.

                  (q) The Trust and this Agreement may not be revoked or
terminated except in accordance with Section 8.1 of this Agreement and in no
event shall the Certificateholder have the ability to terminate the Trust
unilaterally.

                  (r) The Trust shall not consensually merge or consolidate with
any of WTC, the Owner Trustee, the Transferor, LBAC or the Certificateholder.

                  (s) Neither the Transferor nor the Certificateholder shall
request or instruct the Owner Trustee to take or refrain from taking any action
if such action or inaction would be contrary to any obligation of the Trust or
the Owner Trustee under this Agreement or contrary to the limited purposes of
the Trust, and the Owner Trustee shall be under no obligation to comply with any
such request or instruction if given.

                  SECTION 2.4. Appointment of Owner Trustee. The Transferor
hereby appoints the Owner Trustee as trustee of the Trust effective as of the
date hereof, to have all the rights, powers and duties set forth herein.

                  SECTION 2.5. Initial Capital Contribution to the Trust. The
Transferor hereby sells, assigns, transfers, conveys and sets over to the Owner
Trustee, as of the date hereof, the sum of $1. The Owner Trustee hereby
acknowledges receipt in trust from the Transferor, as of the date hereof, of the
foregoing contribution, which shall constitute the initial property of the
Trust. The Transferor shall pay organizational expenses of the Trust as they may
arise.

                  SECTION 2.6. Declaration of Trust. The Owner Trustee hereby
declares that it will hold the Owner Trust Estate in trust upon and subject to
the conditions set forth herein for the use and benefit of the
Certificateholder, subject to the obligations of the Trust under the Basic
Documents. It is the intention of the parties hereto that the Trust constitute a
statutory trust under the Statutory Trust Act and that this Agreement constitute
the governing instrument of such statutory trust. Effective as of the date
hereof, the Owner Trustee shall have all rights, powers and duties set forth
herein and to the extent not inconsistent herewith, in the Statutory Trust Act
with respect to accomplishing the purposes of the Trust. The Owner Trustee shall
file the Certificate of Trust with the Secretary of State.

                  The Certificateholder shall not have any personal liability
for any liability or obligation of the Trust.

                  SECTION 2.7. Title to Owner Trust Estate

                  (a) Legal title to all the Owner Trust Estate shall be vested
at all times in the Trust as a separate legal entity except where applicable law
in any jurisdiction requires title to any part of the Owner Trust Estate to be
vested in a trustee or trustees, in which case title shall be deemed to be
vested in the Owner Trustee, a co-trustee and/or a separate trustee, as the case
may be.

                                       6
<PAGE>

                  (b) The Certificateholder shall not have legal title to any
part of the Owner Trust Estate. The Certificateholder shall be entitled to
receive distributions with respect to its undivided ownership interest therein
only in accordance with the Sale and Servicing Agreement and the Spread Account
Agreement. No transfer, by operation of law or otherwise, of any right, title or
interest by the Certificateholder of its ownership interest in the Owner Trust
Estate shall operate to terminate this Agreement or the trusts hereunder or
entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Owner Trust Estate.

                  SECTION 2.8. Situs of Trust. The Trust shall be administered
in the State of Delaware.

                  SECTION 2.9. Representations and Warranties of the Transferor.
The Transferor makes the following representations and warranties on which the
Owner Trustee relies in accepting the Trust Assets in trust and issuing the
Certificates and upon which the Note Insurer relies in issuing the Policy:

                  (a) Organization and Good Standing. The Transferor is duly
          organized and validly existing as a Delaware corporation 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 is proposed to be conducted pursuant to this Agreement
          and the Basic Documents to which it is a party.

                  (b) Due Qualification. The Transferor is duly qualified to do
          business as a foreign corporation in good standing, and has obtained
          all necessary licenses and approvals, in all jurisdictions in which
          the ownership or lease of its property, the conduct of its business
          and the performance of its obligations under this Agreement and the
          Basic Documents to which it is a party requires such qualification.

                  (c) Power; Authority; Execution; Enforceability. The
          Transferor has the corporate power and authority to execute and
          deliver this Agreement and to carry out its terms; the Transferor has
          full power and authority to sell and assign the property to be
          conveyed and assigned to and deposited with the Trust and the
          Transferor has duly authorized such conveyance and assignment and
          deposit to the Trust by all necessary corporate action; and the
          execution, delivery and performance of this Agreement and the other
          Basic Documents to which it is a party has been duly authorized by the
          Transferor by all necessary corporate action. The Transferor has duly
          executed this Agreement and the other Basic Documents to which it is a
          party, and this Agreement and the other Basic Documents to which it is
          a party constitute the legal, valid and binding obligations of the
          Transferor, enforceable against the Transferor in accordance with
          their terms.

                  (d) No Consent Required. No consent, license, approval or
          authorization or registration or declaration with, any Person or with
          any governmental authority, bureau or agency is required to be
          obtained by the Transferor in connection with the execution, delivery
          or performance of this Agreement and the Basic Documents to which the
          Transferor is a party, except for such as have been obtained, effected
          or made.

                                       7
<PAGE>

                  (e) No Violation. The consummation of the transactions
          contemplated by this Agreement and the other Basic Documents and the
          fulfillment of the terms hereof and thereof do not 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 certificate of incorporation or by-laws of the Transferor, or any
          indenture, agreement or other instrument to which the Transferor is a
          party or by which it is bound; nor 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 (other than
          pursuant to the Basic Documents); nor violate any law or, to the best
          of the Transferor's knowledge, any order, rule or regulation
          applicable to the Transferor of any court or of any Federal or state
          regulatory body, administrative agency or other governmental
          instrumentality having jurisdiction over the Transferor or its
          properties.

                  (f) No Proceedings. There are no proceedings or investigations
          pending or, to its knowledge threatened against it before any court,
          regulatory body, administrative agency or other tribunal or
          governmental instrumentality having jurisdiction over it or its
          properties (A) asserting the invalidity of this Agreement or any of
          the Basic Documents to which the Transferor is a party, (B) seeking to
          prevent the issuance of the Certificates or the Notes or the
          consummation of any of the transactions contemplated by this Agreement
          or any of the Basic Documents to which the Transferor is a party, (C)
          seeking any determination or ruling that might materially and
          adversely affect its performance of its obligations under, or the
          validity or enforceability of, this Agreement or any of the Basic
          Documents to which the Transferor is a party, or (D) seeking to
          adversely affect the federal income tax or other federal, state or
          local tax attributes of the Notes or the Certificates.

                  (g) No Liens. Upon the conveyance, assignment or other
          transfer of any of the Trust Assets by the Transferor to the Trust
          pursuant to the Sale and Servicing Agreement, the Transferor will have
          conveyed to the Trust good title, free and clear of any lien,
          encumbrance or other interests of others (including without
          limitation, any claim of any creditor of the Transferor or any of its
          Affiliates) of any nature and the Trust will have the right to Grant
          and deliver the Pledged Property to the Indenture Trustee in
          accordance with the Indenture and upon the Grant and delivery of the
          Pledged Property by the Trust to the Indenture Trustee in the manner
          contemplated by the Indenture, and assuming the validity and binding
          effect of the Indenture, the Indenture Trustee will have obtained a
          valid first priority security interest therein, prior to all liens.

                  (h) Records. Immediately upon the sale or other delivery of
          any Trust Assets to the Trust pursuant to the Sale and Servicing
          Agreement, the Transferor will make any appropriate notations on its
          records to indicate that the Trust Assets have been transferred to the
          Trust pursuant to the Sale and Servicing Agreement and, to the extent
          it constitutes Pledged Property, has been pledged by the Trust to the
          Indenture Trustee to secure payment of the Notes.

                  (i) No Bankruptcy Petition. The Transferor has no present
          intent to cause a voluntary bankruptcy of the Trust.

                                       8
<PAGE>

                  (j) Separate Entity. The Transferor will hold itself out to
          the public under its own name as a separate and distinct entity and
          conduct its business so as not to mislead others as to the identity of
          the entity under which those others are concerned. Without limiting
          the generality of the foregoing, all oral and written communications,
          including without limitation, all letters, invoices, contracts,
          statements and applications will be made solely in the name of the
          Trust if they are made on behalf of the Trust and solely in the name
          of the Transferor if they are made on behalf of the Transferor.

                  (k) Financial Statements. The Transferor will disclose in all
          financial statements that the assets of the Trust are not available to
          the Transferor's creditors.

                  SECTION 2.10. Covenants of the Certificateholder. The
Certificateholder, by its acceptance of a Certificate, agrees:

                  (a) to be bound by the terms and conditions of the
Certificates of which the Certificateholder is the beneficial owner and of this
Agreement and the other Basic Documents, including any supplements or amendments
hereto and thereto and to perform the obligations of a Certificateholder as set
forth therein or herein, in all respects as if it were a signatory hereto. This
undertaking is made for the benefit of the Trust, the Owner Trustee and the Note
Insurer; and

                  (b) until one year and one day after the completion of the
events specified in Section 8.1(d), not to, for any reason, institute
proceedings for the Trust to be adjudicated a bankrupt or insolvent, or consent
to the institution of bankruptcy or insolvency proceedings against the Trust, or
file a petition seeking or consenting to reorganization or relief under any
applicable federal or state law relating to bankruptcy, or consent to the
appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other
similar official) of the Trust or a substantial part of its property, or cause
or permit the Trust to make any assignment for the benefit of its creditors, or
admit in writing its inability to pay its debts generally as they become due, or
declare or effect a moratorium on its debt or take any action in furtherance of
any such action.

                  SECTION 2.11. Federal Income Tax Treatment of the Trust.

                  (a) For so long as the Trust has a single owner for federal
income tax purposes, it will, pursuant to Treasury Regulations promulgated under
section 7701 of the Code, be disregarded as an entity distinct from the
Certificateholder for all federal income tax purposes. Accordingly, for federal
income tax purposes, the Certificateholder will be treated as (i) owning all
assets owned by the Trust, (ii) having incurred all liabilities incurred by the
Trust, and (iii) all transactions between the Trust and the Certificateholder
will be disregarded. The parties agree that, unless otherwise required by
appropriate tax authorities, the Trust will file or cause to be filed annual or
other necessary returns, reports and other forms consistent with the foregoing
characterization.

                  (b) In the event that the Trust has two or more equity owners
for federal income tax purposes, the Trust will be treated as a partnership. At
any such time that the Trust has two equity owners, this Agreement will be
amended, in accordance with Section 10.1 herein, and appropriate provisions will
be added so as to provide for treatment of the Trust as a partnership.

                                       9
<PAGE>

In no event, however, will the Trust engage in any activity which would cause
the Trust to become an association or publicly traded partnership, taxable as a
corporation for Federal income tax purposes.

                  (c) Neither the Owner Trustee nor any Certificateholder will,
under any circumstances, and at any time, make an election on IRS From 8832 or
otherwise, to classify the Trust as an association taxable as a corporation for
federal, state or any other applicable tax purpose.

                                  Article III.

                      Certificates and Transfer of Interest

                  SECTION 3.1. Initial Ownership. Upon the formation of the
Trust by the contribution by the Transferor pursuant to Section 2.5 and until
the issuance of the Certificates, the Transferor shall be the sole beneficiary
of the Trust.

                  SECTION 3.2. The Certificates. The Certificates shall be
executed on behalf of the Trust by manual or facsimile signature of an
authorized officer of the Owner Trustee. A Certificate bearing the manual or
facsimile signatures of individuals who were, at the time when such signatures
shall have been affixed, authorized to sign on behalf of the Trust, shall be
validly issued and entitled to the benefit of this Agreement, notwithstanding
that such individuals or any of them shall have ceased to be so authorized prior
to the authentication and delivery of such Certificate or did not hold such
offices at the date of authentication and delivery of such Certificate. A
transferee of a Certificate shall become a Certificateholder, and shall be
entitled to the rights and subject to the obligations of a Certificateholder
hereunder, upon due registration of such Certificate in such transferee's name
pursuant to Section 3.4.

                  SECTION 3.3. Authentication of Certificates. Concurrently with
the conveyance of the Receivables to the Trust pursuant to the Sale and
Servicing Agreement, the Owner Trustee shall cause the Certificates to be
executed on behalf of the Trust, authenticated and delivered to or upon the
written order of the Transferor, signed by its chairman of the board, its
president or any vice president, its treasurer or any assistant treasurer
without further corporate action by the Transferor, in authorized denominations.
No Certificate shall entitle its holder to any benefit under this Agreement, or
shall be valid for any purpose, unless there shall appear on such Certificate a
certificate of authentication substantially in the form set forth in Exhibit B,
executed by the Owner Trustee or WTC as the Owner Trustee's authentication
agent, by manual signature; such authentication shall constitute conclusive
evidence that such Certificate shall have been duly authenticated and delivered
hereunder. Each Certificate shall be dated the date of its authentication.

                  SECTION 3.4. Registration of Certificates

                  (a) The Certificate Registrar shall keep or cause to be kept,
at the office or agency maintained pursuant to Section 2.2, a Certificate
Register in which, subject to such reasonable regulations as it may prescribe,
the Owner Trustee shall provide for the registration of the

                                       10
<PAGE>

Certificates and of transfers and exchanges of the Certificates as herein
provided. WTC shall be the initial Certificate Registrar.

                  (b) The Certificate Registrar shall provide the Trust
Collateral Agent with the name and address of the Certificateholder on the
Closing Date. Upon any transfer of a Certificate, the Certificate Registrar
shall notify the Trust Collateral Agent of the name and address of the
transferee in writing, by facsimile, on the day of such transfer.

                  (c) Upon surrender for registration of transfer of a
Certificate at the office or agency maintained pursuant to Section 2.2, the
Owner Trustee shall execute, authenticate and deliver (or shall cause WTC as its
authenticating agent to authenticate and deliver), in the name of the designated
transferee, a new Certificate dated the date of authentication by the Owner
Trustee or any authenticating agent.

                  (d) A Certificate presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in
form satisfactory to the Owner Trustee and the Certificate Registrar duly
executed by the Certificateholder or his attorney duly authorized in writing,
with such signature guaranteed by an "eligible guarantor institution" meeting
the requirements of the Certificate Registrar, which requirements include
membership or participation in the Securities Transfer Agent's Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Certificate Registrar in addition to, or in substitution for, STAMP, all in
accordance with the Exchange Act. Each Certificate surrendered for registration
of transfer or exchange shall be canceled and subsequently disposed of by the
Owner Trustee in accordance with its customary practice.

(e) No service charge shall be made for any registration of transfer or exchange
of a Certificate, but the Owner Trustee or the Certificate Registrar may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer or exchange of such Certificate.

                  (f) In furtherance of and in limitation of the foregoing, the
Certificateholder, by acceptance of its Certificate, specifically acknowledges
that it has no right to or interest in any monies at any time held pursuant to
the Spread Account Agreement prior to the release of such monies pursuant to
Section 5.6(d) of the Sale and Servicing Agreement, such monies being held in
trust for the benefit of the Class A Noteholders and the Note Insurer.
Notwithstanding the foregoing, in the event that it is ever determined that
provisions of the Sale and Servicing Agreement and the Spread Account Agreement
shall be considered to constitute a security agreement and the Transferor and
the Certificateholder hereby grant to the Collateral Agent for the benefit of
the Class A Noteholders and the Note Insurer a first priority perfected security
interest in such amounts, to be applied as set forth in Section 3.03 of the
Spread Account Agreement. In addition the Certificateholder, by acceptance of
its Certificate, hereby appoints the Transferor as its agent to pledge a first
priority perfected security interest in the Spread Account, and any amounts held
therein from time to time to the Collateral Agent pursuant to the Spread Account
Agreement and agrees to execute and deliver such instruments of conveyance,
assignment, grant and confirmation, as well as financing statements, in each
case as the Note Insurer shall consider reasonably necessary in order to perfect
the Collateral Agent's Security Interest in the Collateral (as such terms are
defined in the Spread Account Agreement).

                                       11
<PAGE>

                  SECTION 3.5. Mutilated, Destroyed, Lost or Stolen
Certificates. If (a) any mutilated Certificate shall be surrendered to the
Certificate Registrar, or if the Certificate Registrar shall receive evidence to
its satisfaction of the destruction, loss or theft of any Certificate and (b)
there shall be delivered to the Certificate Registrar, the Owner Trustee and
(unless a Note Insurer Default shall have occurred and be continuing) the Note
Insurer, such security or indemnity as may be required by them to save each of
them harmless, then in the absence of notice that such Certificate shall have
been acquired by a bona fide purchaser, the Owner Trustee on behalf of the Trust
shall execute and the Owner Trustee, or WTC, as the Owner Trustee's
authenticating agent, shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate
of like class, tenor and denomination. In connection with the issuance of any
new Certificate under this Section, the Owner Trustee or the Certificate
Registrar may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection therewith. Any duplicate
Certificate issued pursuant to this Section shall constitute conclusive evidence
of an ownership interest in the Trust, as if originally issued, whether or not
the lost, stolen or destroyed Certificate shall be found at any time.

                  SECTION 3.6. Persons Deemed Certificateholders. Every Person
by virtue of becoming a Certificateholder in accordance with this Agreement
shall be deemed to be bound by the terms of this Agreement. Prior to due
presentation of a Certificate for registration of transfer, the Owner Trustee,
the Certificate Registrar and the Note Insurer and any agent of the Owner
Trustee, the Certificate Registrar and the Note Insurer, may treat the person in
whose name any Certificate shall be registered in the Certificate Register as
the owner of such Certificate for the purpose of receiving distributions
pursuant to the Sale and Servicing Agreement and the Spread Account Agreement
and for all other purposes whatsoever, and none of the Owner Trustee, the
Certificate Registrar or the Note Insurer nor any agent of the Owner Trustee,
the Certificate Registrar or the Note Insurer shall be bound by any notice to
the contrary.

                  SECTION 3.7. Transfer of Certificates.

                  (a) No transfer of a Certificate shall be made unless (I) such
transfer (x) is made pursuant to an effective registration statement under the
Securities Act and any applicable state securities laws or (y) is exempt from
the registration requirements under the Securities Act and such state securities
laws and (II) such transfer is to a Person that satisfies the requirements of
paragraph (a)(2)(i) or (a)(2)(ii) of Rule 3a-7 as then in effect or any
successor rule ("Rule 3a-7") under the Investment Company Act.

                  (b) Each prospective purchaser of a Non-Registered Certificate
not held in book-entry form shall deliver a completed and duly executed
Transferee's Certificate (in the form of Exhibit C hereto for "qualified
institutional buyers" as defined in Rule 144A of the Securities Act ("Rule
144A") or Exhibit D hereto for "accredited investors" as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D promulgated under the Securities Act)
to the Owner Trustee and to the Transferor for inspection prior to effecting any
requested transfer. Each prospective seller of a Non-Registered Certificate
(other than with respect to the initial transfer of any such Certificate by the
Transferor shall deliver a completed and duly executed Transferor's Certificate
(in the form of Exhibit E hereto) to the Owner Trustee for inspection prior to
effecting any requested transfer. The Transferor and the Owner Trustee may
conclusively rely upon the information

                                       12
<PAGE>

contained in any such Transferee's Certificate or Transferor's Certificate in
the absence of actual knowledge to the contrary.

                  (c) In connection with any transfer, the Owner Trustee may
(except in the case of (x) the initial transfer of any such Certificate by the
Transferor, (y) a transfer to a "qualified institutional buyer" who delivers a
Transferee's Certificate in the form of Exhibit C hereto, or (z) a transfer to a
"accredited investor" who delivers a Transferee's Certificate in the form of
Exhibit D hereto) require an opinion of counsel satisfactory to the Owner
Trustee and the Transferor to the effect that such transfer may be effected
without registration under the Securities Act, which opinion of counsel, if so
required, shall be addressed to the Transferor and the Owner Trustee and shall
be secured at the expense of the holder of a Certificate. The Owner Trustee may
conclusively rely upon the representation of any purchaser made to the Owner
Trustee, and upon such opinion of counsel, and shall be fully protected in so
doing.

                  (d) No transfer of a Certificate shall be made to any Person
unless the Owner Trustee has received a certificate (substantially in the form
of Exhibit F hereto) from such transferee to the effect that such transferee is
not a Plan, and is not acting on behalf of or investing the assets of a Plan.
The preparation and delivery of the certificate referred to above shall not be
an expense of the Trust, the Owner Trustee or the Transferor but shall be borne
by the transferee. Each transferee of a beneficial ownership interest in a
book-entry Certificate shall be deemed to represent that it is not a Plan and is
not acting on behalf of or investing the assets of a Plan.

                  (e) No transfer of a Certificate shall be made to any Person
unless the Owner Trustee and Transferor have received a certificate
(substantially in the form of Exhibit G hereto) from such transferee to the
effect that (i) such transferee is acquiring such certificate for its own behalf
and is not acting as agent or custodian for any other Person or entity in
connection with such acquisition, (ii) if the transferee is a partnership,
grantor trust or S corporation for federal income tax purposes (a "Flow Through
Entity"), any certificate (and interest in the Trust in the aggregate) owned by
such Flow Through Entity will represent less than 50% of the value of the assets
owned by such Flow Through Entity and no special allocation of income, gain,
loss, deduction or credit from such certificate will be made among the
beneficial owners of such Flow Through Entity, and (iii) the transferee is a
United States Person within the meaning of the Code.

                  (f) No transfer, pledge or encumbrance of the Certificate
shall be made to any Person unless (A) such Person is a Rated Entity, a
Bankruptcy Remote Entity or a statutory trust established under Chapter 38 of
Title 12 of the Delaware Code, 12 Del. C.(section) 3801 et seq. that is a
Bankruptcy Remote Entity, or (B) such pledge is made to GCFP pursuant to the
Credit and Security Agreement; provided, however, that in the event GCFP
forecloses on its security interest in the Certificate, the Certificate may be
registered in the name of a Person that is not a Bankruptcy Remote Entity for a
period not to exceed two (2) Business Days. The Certificate shall at all times
be registered in the name of a single holder.

                  (g) The Certificates shall bear legends stating that they have
not been registered under the Securities Act and are subject to the restrictions
on transfer described herein. By purchasing a Certificate, each purchaser shall
be deemed to have agreed to these restrictions on transfer.

                                       13
<PAGE>

                  (h) In order to preserve the exemption for resales and
transfers provided by Rule 144A, the Transferor shall provide to any Holder of a
Non-Registered Certificate and any prospective purchaser designated by such
Holder, upon request of such Holder or such prospective purchaser, such
information required by Rule 144A as will enable the resale of such
Non-Registered Certificate to be made pursuant to Rule 144A. The Owner Trustee
shall cooperate with the Transferor in providing the Transferor such information
regarding the Non-Registered Certificates, the Trust Assets and other matters
regarding the Trust as the Transferor shall reasonably request to meet its
obligations under the preceding sentence.

                  (i) Notwithstanding any provision of this Agreement to the
contrary, any transfer of Certificates that causes the total number of
beneficial owners of Certificates to exceed ninety-nine (99) shall be null and
void and the Certificate Register shall be amended to reflect such voided
transfer.

                  SECTION 3.8. Disposition In Whole But Not In Part. A
Certificate may be transferred in whole but not in part. Any attempted transfer
of the Certificate that would divide the beneficial ownership in the Trust shall
be void.

                                   Article IV.

                         Voting Rights and Other Actions

                  SECTION 4.1. Prior Notice to Certificateholder with Respect to
Certain Matters. With respect to the following matters, the Owner Trustee shall
not take action unless at least thirty (30) days before the taking of such
action, the Owner Trustee shall have notified the Certificateholder and the Note
Insurer in writing of the proposed action and the Certificateholder shall not
have notified the Owner Trustee in writing prior to the 30th day after such
notice is given that the Certificateholder has withheld consent or provided
alternative direction:

                  (a) the election by the Trust to file an amendment to the
Certificate of Trust (unless such amendment is required to be filed under the
Statutory Trust Act or unless such amendment would not materially and adversely
affect the interests of the Certificateholder);

                  (b) the amendment of the Indenture by a supplemental indenture
in circumstances where the consent of any Noteholder is required;

                  (c) the amendment of the Indenture by a supplemental indenture
in circumstances where the consent of any Noteholder is not required and such
amendment materially adversely affects the interest of the Certificateholder; or

                  (d) except pursuant to Section 13.1 of the Sale and Servicing
Agreement, the amendment, change or modification of the Sale and Servicing
Agreement, except to cure any ambiguity or defect or to amend or supplement any
provision in a manner that would not materially adversely affect the interests
of the Certificateholder.

                  The Owner Trustee shall notify the Certificateholder in
writing of any appointment of a successor Note Registrar or Trust Collateral
Agent within five Business Days after receipt of notice thereof.

                                       14
<PAGE>

                  SECTION 4.2. Action by Certificateholder with Respect to
Certain Matters. The Owner Trustee shall not have the power, except upon the
direction of the Controlling Party or, after the Class A Notes and Reimbursement
Obligations have been paid and full and the expiration of the Policy in
accordance with its terms, the Certificateholder in accordance with the Basic
Documents, to (a) remove the Servicer under the Sale and Servicing Agreement
pursuant to Section 9.1 thereof or (b) except as expressly provided in the Basic
Documents, sell the Receivables after the termination of the Indenture. The
Owner Trustee shall take the actions referred to in the preceding sentence only
upon written instructions signed by the Controlling Party or the
Certificateholder, as applicable and the furnishing of indemnification
satisfactory to the Owner Trustee by the Certificateholder. To the fullest
extent permitted by applicable law, the Owner Trustee shall not have the power
to, and shall not, commence any proceeding or other actions contemplated by
Section 2.10 (b).

                  SECTION 4.3. Restrictions on Certificateholder's Power.

                  (a) The Certificateholder shall not direct the Owner Trustee
to take or refrain from taking any action if such action or inaction would be
contrary to any obligation of the Trust or the Owner Trustee under this
Agreement or any of the Basic Documents or would be contrary to Section 2.3 nor
shall the Owner Trustee be obligated to follow any such direction, if given.

                  (b) The Certificateholder shall not have any right by virtue
or by availing itself of any provisions of this Agreement to institute any suit,
action, or proceeding in equity or at law upon or under or with respect to this
Agreement or any Basic Document, unless the Certificateholder is the Instructing
Party pursuant to Section 5.3 and unless the Certificateholder previously shall
have given to the Owner Trustee a written notice of default and of the
continuance thereof, as provided in this Agreement, and also unless
Certificateholder shall have made written request upon the Owner Trustee to
institute such action, suit or proceeding in its own name as Owner Trustee under
this Agreement and shall have offered to the Owner Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to be
incurred therein or thereby, and the Owner Trustee, for thirty (30) days after
its receipt of such notice, request, and offer of indemnity, shall have
neglected or refused to institute any such action, suit, or proceeding, and
during such 30-day period no request or waiver inconsistent with such written
request has been given to the Owner Trustee pursuant to and in compliance with
this Section or Section 5.3. For the protection and enforcement of the
provisions of this Section, the Certificateholder and the Owner Trustee shall be
entitled to such relief as can be given either at law or in equity.

                  SECTION 4.4. Rights of Note Insurer. Notwithstanding anything
to the contrary in the Basic Documents, without the prior written consent of the
Note Insurer (so long as no Note Insurer Default shall have occurred and be
continuing), the Owner Trustee shall not (i) remove the Servicer, (ii) initiate
any claim, suit or proceeding by the Trust or compromise any claim, suit or
proceeding brought by or against the Trust, other than with respect to the
enforcement of any Receivable or any rights of the Trust thereunder, (iii)
authorize the merger or consolidation of the Trust with or into any other
statutory trust or other entity (other than in accordance with Section 3.10 of
the Indenture) or (iv) amend the Certificate of Trust (except as may be required
by the Statutory Trust Act).

                                       15
<PAGE>

                                   Article V.

                      Authority and Duties of Owner Trustee

                  SECTION 5.1. General Authority.

                  (a) The Owner Trustee is authorized and directed to execute
and deliver the Basic Documents to which the Trust is named as a party and each
certificate or other document attached as an exhibit to or contemplated by the
Basic Documents to which the Trust is named as a party and any amendment
thereto, in each case, in such form as the Transferor shall approve as evidenced
conclusively by the Owner Trustee's execution thereof, and on behalf of the
Trust, to direct the Indenture Trustee to authenticate and deliver the Class A-1
Notes in the aggregate principal amount of $45,500,000, the Class A-2 Notes in
the aggregate principal amount of $65,000,000, the Class A-3 Notes in the
aggregate principal amount of $68,000,000, the Class A-4 Notes in the aggregate
principal amount of $64,000,000 and the Class B Notes in the aggregate principal
amount of $7,500,000. In addition to the foregoing, the Owner Trustee is
authorized, but shall not be obligated, to take all actions required of the
Trust pursuant to the Basic Documents. The Owner Trustee is further authorized
from time to time to take such action as the Instructing Party recommends with
respect to the Basic Documents so long as such activities are consistent with
the terms of the Basic Documents.

                  (b) The Owner Trustee shall sign on behalf of the Trust any
applicable tax returns of the Trust, unless applicable law requires a
Certificateholder to sign such documents.

                  SECTION 5.2. General Duties. It shall be the duty of the Owner
Trustee:

                  (i) to discharge (or cause to be discharged) all of its
          responsibilities pursuant to the terms of this Agreement and to
          administer the Trust in the interest of the Certificateholder, subject
          to the Basic Documents and in accordance with the provisions of this
          Agreement; and

                  (ii) to execute on behalf of the Trust any license, approval,
          authorization or registration required by any governmental authority,
          bureau or agency, as notified by the Servicer and presented to the
          Owner Trustee in final execution form, with respect to which the
          failure to maintain any such license, approval, authorization or
          registration would have an adverse effect on the validity and
          enforceability of the Indenture, the Notes or the Owner Trust Estate.

                  Notwithstanding the foregoing, the Owner Trustee shall be
deemed to have discharged its duties and responsibilities hereunder and under
the Basic Documents to the extent the Servicer has agreed in the Sale and
Servicing Agreement to perform any act or to discharge any duty of the Trust or
the Owner Trustee hereunder or under any Basic Document, and the Owner Trustee
shall not be liable for the default or failure of the Servicer to carry out its
obligations under the Sale and Servicing Agreement.

                                       16
<PAGE>

                  SECTION 5.3. Action upon Instruction.

                  (a) Subject to Article IV and the terms of the Spread Account
Agreement, the Note Insurer (so long as a Note Insurer Default shall not have
occurred and be continuing) or the Certificateholder (if a Note Insurer Default
shall have occurred and be continuing) (the "Instructing Party") shall have the
exclusive right to direct the actions of the Owner Trustee in the management of
the Trust, so long as such instructions are not inconsistent with the express
terms set forth herein or in any Basic Document. The Instructing Party shall not
instruct the Owner Trustee in a manner inconsistent with this Agreement or the
Basic Documents.

                  (b) The Owner Trustee shall not be required to take any action
hereunder or under any Basic Document if the Owner Trustee shall have reasonably
determined, or shall have been advised by counsel, that such action is likely to
result in liability on the part of the Owner Trustee or is contrary to the terms
hereof or of any Basic Document or is otherwise contrary to law.

                  (c) Whenever the Owner Trustee is unable to decide between
alternative courses of action permitted or required by the terms of this
Agreement or any Basic Document, the Owner Trustee shall promptly give notice
(in such form as shall be appropriate under the circumstances) to the
Instructing Party requesting instruction as to the course of action to be
adopted, and to the extent the Owner Trustee acts in good faith in accordance
with any written instruction of the Instructing Party received, the Owner
Trustee shall not be liable on account of such action to any Person. If the
Owner Trustee shall not have received appropriate instruction within ten days of
such notice (or within such shorter period of time as reasonably may be
specified in such notice or may be necessary under the circumstances) it may,
but shall be under no duty to, take or refrain from taking such action, not
inconsistent with this Agreement or the Basic Documents, as it shall deem to be
in the best interests of the Certificateholder, and shall have no liability to
any Person for such action or inaction.

                  (d) In the event that the Owner Trustee is unsure as to the
application of any provision of this Agreement or any Basic Document or any such
provision is ambiguous as to its application, or is, or appears to be, in
conflict with any other applicable provision, or in the event that this
Agreement permits any determination by the Owner Trustee or is silent or is
incomplete as to the course of action that the Owner Trustee is required to take
with respect to a particular set of facts, the Owner Trustee may give notice (in
such form as shall be appropriate under the circumstances) to the Instructing
Party requesting instruction and, to the extent that the Owner Trustee acts or
refrains from acting in good faith in accordance with any such instruction
received, the Owner Trustee shall not be liable, on account of such action or
inaction, to any Person. If the Owner Trustee shall not have received
appropriate instruction within 10 days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary
under the circumstances) it may, but shall be under no duty to, take or refrain
from taking such action, not inconsistent with this Agreement or the Basic
Documents, as it shall deem to be in the best interests of the
Certificateholder, and shall have no liability to any Person for such action or
inaction.

                  SECTION 5.4. No Duties Except as Specified in this Agreement
or in Instructions. The Owner Trustee shall not have any duty or obligation to
manage, make any

                                       17
<PAGE>

payment with respect to, register, record, sell, dispose of, or otherwise deal
with the Owner Trust Estate, or to otherwise take or refrain from taking any
action under, or in connection with, any document contemplated hereby to which
the Owner Trustee is a party, except as expressly provided by the terms of this
Agreement or in any document or written instruction received by the Owner
Trustee pursuant to Section 5.3; and no implied duties or obligations shall be
read into this Agreement or any Basic Document against the Owner Trustee. The
Owner Trustee shall have no responsibility for filing any financing or
continuation statement in any public office at any time or to otherwise perfect
or maintain the perfection of any security interest or lien granted to it
hereunder or to prepare or file any Commission filing for the Trust or to record
this Agreement or any Basic Document. WTC nevertheless agrees that it will, at
its own cost and expense, promptly take all action as may be necessary to
discharge any Liens on any part of the Owner Trust Estate that result from
actions by, or claims against, WTC and that are not related to the ownership or
the administration of the Owner Trust Estate.

                  SECTION 5.5. No Action Except under Specified Documents or
Instructions. The Owner Trustee shall not manage, control, use, sell, dispose of
or otherwise deal with any part of the Owner Trust Estate except (i) in
accordance with the powers granted to and the authority conferred upon the Owner
Trustee pursuant to this Agreement, (ii) in accordance with the Basic Documents
and (iii) in accordance with any document or instruction delivered to the Owner
Trustee pursuant to Section 5.3.

                  SECTION 5.6. Restrictions. The Owner Trustee shall not take
any action (a) that is inconsistent with the purposes of the Trust set forth in
Section 2.3 or (b) that, to the actual knowledge of the Owner Trustee, would
result in the Trust's becoming taxable as a corporation for Federal income tax
purposes. The Instructing Party shall not direct the Owner Trustee to take
action that would violate the provisions of this Section.

                                   Article VI.

                          Concerning the Owner Trustee

                  SECTION 6.1. Acceptance of Trusts and Duties. The Owner
Trustee accepts the trusts hereby created and agrees to perform its duties
hereunder with respect to such trusts but only upon the terms of this Agreement.
The Owner Trustee also agrees to disburse all moneys actually received by it
constituting part of the Owner Trust Estate upon the terms of the Basic
Documents and this Agreement. The Owner Trustee shall not be answerable or
accountable hereunder or under any Basic Document under any circumstances,
except (i) for its own willful misconduct, bad faith or negligence, (ii) in the
case of the inaccuracy of any representation or warranty contained in Section
6.3 expressly made by the Owner Trustee, (iii) for liabilities arising from the
failure of WTC to perform obligations expressly undertaken by it in the last
sentence of Section 5.4 hereof, (iv) for any investments issued by the Owner
Trustee or any branch or Affiliate thereof in its commercial capacity or (v) for
taxes, fees or other charges on, based on or measured by, any fees, commissions
or compensation received by the Owner Trustee. In particular, but not by way of
limitation (and subject to the exceptions set forth in the preceding sentence):

                                       18
<PAGE>

                  (a) the Owner Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer of the Owner Trustee;

                  (b) the Owner Trustee shall not be liable with respect to any
action taken or omitted to be taken by it in accordance with the instructions of
the Instructing Party, the Servicer or the Certificateholder;

                  (c) no provision of this Agreement or any Basic Document shall
require the Owner Trustee to expend or risk funds or otherwise incur any
financial liability in the performance of any of its rights or powers hereunder
or under any Basic Document if the Owner Trustee shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such
risk or liability is not reasonably assured or provided to it;

                  (d) under no circumstances shall the Owner Trustee be liable
for indebtedness evidenced by or arising under any of the Basic Documents,
including the principal of and interest on the Notes;

                  (e) the Owner Trustee shall not be responsible for or in
respect of the validity or sufficiency of this Agreement or for the due
execution hereof by the Transferor or for the form, character, genuineness,
sufficiency, value or validity of any of the Owner Trust Estate or for or in
respect of the validity or sufficiency of the Basic Documents, other than the
certificate of authentication on a Certificate, and the Owner Trustee shall in
no event assume or incur any liability, duty or obligation to the Note Insurer,
Indenture Trustee, Trust Collateral Agent, the Collateral Agent, any Noteholder
or to any Certificateholder, other than as expressly provided for herein and in
the Basic Documents;

                  (f) the Owner Trustee shall not be liable for the default or
misconduct of the Note Insurer, the Indenture Trustee, the Trust Collateral
Agent or the Servicer under any of the Basic Documents or otherwise and the
Owner Trustee shall have no obligation or liability to perform the obligations
under this Agreement or the Basic Documents that are required to be performed by
the Indenture Trustee under the Indenture or the Trust Collateral Agent or the
Servicer under the Sale and Servicing Agreement;

                  (g) the Owner Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Agreement, or to institute,
conduct or defend any litigation under this Agreement or otherwise or in
relation to this Agreement or any Basic Document, at the request, order or
direction of the Instructing Party or the Certificateholder, unless such
Instructing Party or Certificateholder has offered to the Owner Trustee security
or indemnity reasonably satisfactory to it against the costs, expenses and
liabilities that may be incurred by the Owner Trustee therein or thereby. The
right of the Owner Trustee to perform any discretionary act enumerated in this
Agreement or in any Basic Document shall not be construed as a duty, and the
Owner Trustee shall not be answerable for other than its negligence, bad faith
or willful misconduct in the performance of any such act;

                  (h) with respect to the Note Insurer or Instructing Party, the
Owner Trustee undertakes to perform or observe only such of the covenants and
obligations of the Owner Trustee as are expressly set forth in this Agreement,
and no implied covenants or obligations

                                       19
<PAGE>

with respect to the Note Insurer or Instructing Party shall be read into this
Agreement or the other Basic Documents against the Owner Trustee. The Owner
Trustee shall not be deemed to owe any fiduciary duty to the Note Insurer or
Instructing Party, and shall not be liable to any such person for the failure of
the Trust to perform its obligations to such persons other than as a result of
the gross negligence or willful misconduct of the Owner Trustee in the
performance of its express obligations under this Agreement; and

                  (i) notwithstanding anything to the contrary herein or in any
other document, the Owner Trustee shall not be required to execute, deliver or
certify on behalf of the Trust, the Servicer, the Transferor or any other Person
any filings, certificates, affidavits or other instruments required by the SEC
or required under the Sarbanes-Oxley Act of 2002. Notwithstanding any Person's
right to instruct the Owner Trustee, neither the Owner Trustee nor any agent,
employee, director or officer of the Owner Trustee shall have any obligation to
execute any certificates or other documents required by the SEC or required
pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations
promulgated thereunder, and the refusal to comply with any such instructions
shall not constitute a default or breach under this Agreement or any other
document in connection herewith.

                  SECTION 6.2. Furnishing of Documents. The Owner Trustee shall
furnish to the Certificateholder promptly upon receipt of a written request
therefor, duplicates or copies of all reports, notices, requests, demands,
certificates, financial statements and any other instruments furnished to the
Owner Trustee under the Basic Documents.

                  SECTION 6.3. Representations and Warranties. The Owner Trustee
and WTC hereby represent and warrant to the Transferor, the Certificateholder
and the Note Insurer (which shall have relied on such representations and
warranties in issuing the Policy), that:

                  (a) It is a Delaware banking corporation, duly organized and
          validly existing in good standing under the laws of the State of
          Delaware and it holds all grants, authorizations, consents, orders and
          approvals from all governmental authorities necessary under the laws
          of the State of Delaware to carry on its true business as now
          conducted. It has all requisite corporate power and authority to
          execute, deliver and perform its obligations under this Agreement.

                  (b) It has taken all corporate action necessary to authorize
          the execution and delivery by it of this Agreement, and this Agreement
          will be executed and delivered by one of its officers who is duly
          authorized to execute and deliver this Agreement on its behalf.

                  (c) Neither the execution nor the delivery by it of this
          Agreement, nor the consummation by it of the transactions contemplated
          hereby nor compliance by it with any of the terms or provisions hereof
          will contravene any Delaware state or federal law, governmental rule
          or regulation governing the banking or trust powers of the Owner
          Trustee or any judgment or order binding on it, or constitute any
          default under its charter documents or by-laws or any indenture,
          mortgage, contract, agreement or instrument to which it is a party or
          by which any of its properties may be bound, or result in the creation
          or imposition of any lien, charge or encumbrance on the Trust Assets
          resulting

                                       20
<PAGE>

          from actions by or claims against the Owner Trustee in its individual
          capacity except as expressly contemplated by this Agreement or
          Indenture.

                  (d) No consent, approval, authorization or order of, or filing
          with, any court or regulatory, supervisory or government agency or
          body is required by the Owner Trustee under Delaware law in connection
          with the execution, delivery and performance by the Owner Trustee of
          this Agreement or the consummation by the Owner Trustee of the
          transactions contemplated hereby (except for the filing of the
          Certificate of Trust with the Secretary of State).

                  (e) The Owner Trustee has no present intent to cause a
          voluntary bankruptcy of the Trust.

                  SECTION 6.4. Reliance; Advice of Counsel.

                  (a) The Owner Trustee shall incur no liability to anyone in
acting upon any signature, instrument, notice, resolution, request, consent,
order, certificate, report, opinion, bond or other document or paper believed by
it to be genuine and believed by it to be signed by the proper party or parties.
The Owner Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence
that such resolution has been duly adopted by such body and that the same is in
full force and effect. As to any fact or matter the method of the determination
of which is not specifically prescribed herein, the Owner Trustee may for all
purposes hereof rely on a certificate, signed by the president or any vice
president or by the treasurer, secretary or other authorized officers of the
relevant party, as to such fact or matter, and such certificate shall constitute
full protection to the Owner Trustee for any action taken or omitted to be taken
by it in good faith in reliance thereon.

                  (b) In the exercise or administration of the trusts hereunder
and in the performance of its duties and obligations under this Agreement or the
Basic Documents, the Owner Trustee (i) may act directly or through its agents or
attorneys pursuant to agreements entered into with any of them, and the Owner
Trustee shall not be liable for the conduct or misconduct of such agents or
attorneys if such agents or attorneys shall have been selected by the Owner
Trustee with reasonable care, and (ii) may consult with counsel, accountants and
other skilled persons to be selected with reasonable care and employed by it.
The Owner Trustee shall not be liable for anything done, suffered or omitted in
good faith by it in accordance with the written opinion or advice of any such
counsel, accountants or other such persons and according to such opinion not
contrary to this Agreement or any Basic Document.

                  SECTION 6.5. Not Acting in Individual Capacity. Except as
provided in Article II and this Article VI, in accepting the trusts hereby
created WTC acts solely as Owner Trustee hereunder and not in its individual
capacity and all Persons having any claim against the Owner Trustee by reason of
the transactions contemplated by this Agreement or any Basic Document shall look
only to the Owner Trust Estate for payment or satisfaction thereof.

                  SECTION 6.6. Owner Trustee Not Liable for Certificates or
Receivables. The recitals contained herein and in the Certificates (other than
the signature and countersignature of the Owner Trustee on the Certificates)
shall be taken as the statements of the Transferor and the

                                       21
<PAGE>

Owner Trustee assumes no responsibility for the correctness thereof. The Owner
Trustee makes no representations as to the validity or sufficiency of this
Agreement, of any Basic Document or of the Certificates (other than the
signature and countersignature of the Owner Trustee on the Certificates) or the
Notes, or of any Receivable or related documents. The Owner Trustee shall at no
time have any responsibility or liability for or with respect to the legality,
validity and enforceability of any Receivable, or the perfection and priority of
any security interest created by any Receivable in any Financed Vehicle or the
maintenance of any such perfection and priority, or for or with respect to the
sufficiency of the Owner Trust Estate or its ability to generate the payments to
be distributed to Certificateholder under this Agreement or the Noteholders
under the Indenture, including, without limitation: the existence, condition and
ownership of any Financed Vehicle; the existence and enforceability of any
insurance thereon; the existence and contents of any Receivable on any computer
or other record thereof; the validity of the assignment of any Receivable to the
Trust or of any intervening assignment; the completeness of any Receivable; the
performance or enforcement of any Receivable; the compliance by the Transferor,
the Servicer or any other Person with any warranty or representation made under
any Basic Document or in any related document or the accuracy of any such
warranty or representation or any action of the Indenture Trustee or the
Servicer or any subservicer taken in the name of the Owner Trustee.

                  SECTION 6.7. Owner Trustee May Own Notes. The Owner Trustee in
its individual capacity may become the owner or pledgee of the Notes and may
deal with the Certificateholder, the Transferor, the Indenture Trustee and the
Servicer in banking transactions with the same rights as it would have if it
were not Owner Trustee.

                  SECTION 6.8. Payments from Owner Trust Estate. All payments to
be made by the Owner Trustee under this Agreement or any of the Basic Documents
to which the Trust or the Owner Trustee is a party shall be made only from the
income and proceeds of the Owner Trust Estate and only to the extent that the
Owner Trust shall have received income or proceeds from the Owner Trust Estate
to make such payments in accordance with the terms hereof. WTC, or any successor
thereto, in its individual capacity, shall not be liable for any amounts payable
under this Agreement or any of the Basic Documents to which the Trust or the
Owner Trustee is a party.

                  SECTION 6.9. Doing Business in Other Jurisdictions.
Notwithstanding anything contained to the contrary, neither WTC or any successor
thereto, nor the Owner Trustee shall be required to take any action in any
jurisdiction other than in the State of Delaware if the taking of such action
will, even after the appointment of a co-trustee or separate trustee in
accordance with Section 9.5 hereof, (i) require the consent or approval or
authorization or order of or the giving of notice to, or the registration with
or the taking of any other action in respect of, any state or other governmental
authority or agency of any jurisdiction other than the State of Delaware; (ii)
result in any fee, tax or other governmental charge under the laws of the State
of Delaware becoming payable by WTC (or any successor thereto); or (iii) subject
WTC (or any successor thereto) to personal jurisdiction in any jurisdiction
other than the State of Delaware for causes of action arising from acts
unrelated to the consummation of the transactions by WTC (or any successor
thereto) or the Owner Trustee, as the case may be, contemplated hereby.

                                       22
<PAGE>

                                  Article VII.

                          Compensation of Owner Trustee

                  SECTION 7.1. Owner Trustee's Fees and Expenses. The Owner
Trustee shall receive as compensation for its services hereunder such fees as
have been separately agreed upon before the date hereof between LBAC and the
Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by LBAC
for its other reasonable expenses hereunder, including the reasonable
compensation, expenses and disbursements of such agents, representatives,
experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder and under the
Basic Documents.

                  SECTION 7.2. Indemnification. Each of the Owner Trustee and
WTC and its officers, directors, successors, assigns, agents and servants shall
be indemnified by the Servicer in and to the extent set forth in Section
8.2(a)(v) of the Sale and Servicing Agreement.

                  SECTION 7.3. Payments to the Owner Trustee. Any amounts paid
to the Owner Trustee pursuant to this Article VII shall be deemed not to be a
part of the Owner Trust Estate immediately after such payment.

                  SECTION 7.4. Non-recourse Obligations. Notwithstanding
anything in this Agreement or any Basic Document, the Owner Trustee agrees in
its individual capacity and in its capacity as Owner Trustee for the Trust that
all obligations of the Trust to the Owner Trustee individually or as Owner
Trustee for the Trust shall be recourse to the Owner Trust Estate only and
specifically shall not be recourse to the assets of the Certificateholder.

                                  Article VIII.

                         Termination of Trust Agreement

                  SECTION 8.1. Termination of Trust Agreement.

                  (a) This Agreement shall terminate and the Trust shall wind up
and dissolve and be of no further force or effect upon the latest of (i) the
maturity or other liquidation of the last Receivable and the subsequent
distribution of amounts in respect of such Receivables as provided in the Basic
Documents, (ii) the payment to the Certificateholder of all amounts required to
be paid to it pursuant to this Agreement and the payment to the Note Insurer of
all amounts payable or reimbursable to it pursuant to the Sale and Servicing
Agreement, (iii) the expiration of the Policy in accordance with its terms; or
(iv) payment to the Note Insurer in full of all Reimbursement Obligations;
provided, however, that the rights to indemnification under Section 7.2 and the
rights under Section 7.1 shall survive the termination of the Trust. The
Servicer shall promptly notify the Owner Trustee and the Note Insurer of any
prospective termination pursuant to this Section. The bankruptcy, liquidation,
dissolution, death or incapacity of the Certificateholder, shall not (x) operate
to terminate this Agreement or the Trust, nor (y) entitle the
Certificateholder's legal representatives or heirs to claim an accounting or to
take any action or proceeding in any court for a partition or winding up of all
or any part of the

                                       23
<PAGE>

Trust or Owner Trust Estate nor (z) otherwise affect the rights, obligations and
liabilities of the parties hereto.

                  (b) Neither the Transferor nor the Certificateholder shall be
entitled to revoke or terminate the Trust.

                  (c) Notice of any termination of the Trust, specifying the
Payment Date upon which the Certificateholder shall surrender the Certificate to
the Trust Collateral Agent for payment of the final distribution and
cancellation, shall be given by the Owner Trustee by letter to the
Certificateholder mailed within five Business Days of receipt of notice of such
termination from the Servicer given pursuant to Section 10.1(c) of the Sale and
Servicing Agreement, stating (i) the Payment Date upon or with respect to which
final payment of the Certificates shall be made upon presentation and surrender
of the Certificates at the office of the Trust Collateral Agent therein
designated, (ii) the amount of any such final payment, (iii) that the Record
Date otherwise applicable to such Payment Date is not applicable, payments being
made only upon presentation and surrender of the Certificates at the office of
the Trust Collateral Agent therein specified and (iv) interest will cease to
accrue on the Certificates. The Owner Trustee shall give such notice to the
Trust Collateral Agent at the time such notice is given to the
Certificateholder. Upon presentation and surrender of the Certificates, the
Trust Collateral Agent shall cause to be distributed to the Certificateholder
amounts distributable on such Payment Date pursuant to Section 5.6 of the Sale
and Servicing Agreement.

                  In the event that the Certificateholder shall not surrender
the Certificates for cancellation within six months after the date specified in
the above mentioned written notice, the Trust Collateral Agent shall give a
second written notice to the Certificateholder to surrender the Certificates for
cancellation and receive the final distribution with respect thereto. If within
one year after the second notice all the Certificates shall not have been
surrendered for cancellation, the Trust Collateral Agent may take appropriate
steps, or may appoint an agent to take appropriate steps, to contact the
Certificateholder concerning surrender of the Certificates, and the cost thereof
shall be paid out of the funds and other assets that shall remain subject to
this Agreement. Any funds remaining in the Trust after exhaustion of such
remedies shall be distributed, subject to applicable escheat laws, by the Trust
Collateral Agent to the Certificateholder.

                  (d) Upon the winding up of the Trust and its dissolution, the
Owner Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the
provisions of Section 3810 of the Statutory Trust Act.

                                   Article IX.

             Successor Owner Trustees and Additional Owner Trustees

                  SECTION 9.1. Eligibility Requirements for Owner Trustee. The
Owner Trustee shall at all times be a corporation or national banking
association (i) satisfying the provisions of Section 3807(a) of the Statutory
Trust Act; (ii) authorized to exercise corporate trust powers; (iii) having a
combined capital and surplus of at least $50,000,000 and subject to supervision
or examination by Federal or State authorities; and (iv) acceptable to the Note

                                       24
<PAGE>

Insurer in its sole discretion, so long as a Note Insurer Default shall not have
occurred and be continuing. If such entity shall publish reports of condition at
least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purpose of this Section, the
combined capital and surplus of such entity shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. In case at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of this Section, the Owner Trustee shall resign
immediately in the manner and with the effect specified in Section 9.2.

                  SECTION 9.2. Resignation or Removal of Owner Trustee. The
Owner Trustee may at any time resign and be discharged from the trusts hereby
created by giving sixty days' written notice thereof to the Transferor, the
Certificateholder, the Note Insurer and the Servicer. Upon receiving such notice
of resignation, the Certificateholder shall, with the prior written consent of
the Note Insurer, promptly appoint a successor Owner Trustee by written
instrument, in duplicate, one copy of which instrument shall be delivered to the
resigning Owner Trustee and one copy to the successor Owner Trustee, provided
that the Certificateholder shall have received written confirmation from each of
the Rating Agencies that the proposed appointment will not result in an
increased capital charge to the Note Insurer by either of the Rating Agencies.
If no successor Owner Trustee shall have been so appointed and have accepted
appointment within thirty (30) days after the giving of such notice of
resignation, the resigning Owner Trustee or the Note Insurer may petition any
court of competent jurisdiction for the appointment of a successor Owner
Trustee.

                  If at any time the Owner Trustee shall cease to be eligible in
accordance with the provisions of Section 9.1 and shall fail to resign after
written request therefor by the Certificateholder, or if at any time the Owner
Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be
appointed, or any public officer shall take charge or control of the Owner
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then the Certificateholder with the consent of the
Note Insurer (so long as a Note Insurer Default shall not have occurred and be
continuing) may remove the Owner Trustee. If the Certificateholder shall remove
the Owner Trustee under the authority of the immediately preceding sentence, the
Certificateholder shall, with the prior written consent of the Note Insurer,
promptly appoint a successor Owner Trustee by written instrument, in duplicate,
one copy of which instrument shall be delivered to the outgoing Owner Trustee so
removed, one copy to the Note Insurer and one copy to the successor Owner
Trustee and payment of all fees owed to the outgoing Owner Trustee.

                  Any resignation or removal of the Owner Trustee and
appointment of a successor Owner Trustee pursuant to any of the provisions of
this Section shall not become effective until acceptance of appointment by the
successor Owner Trustee pursuant to Section 9.3 and payment of all fees and
expenses owed to the outgoing Owner Trustee. The Certificateholder shall provide
notice of such resignation or removal of the Owner Trustee to each of the Rating
Agencies.

                  SECTION 9.3. Successor Owner Trustee. Any successor Owner
Trustee appointed pursuant to Section 9.2 shall execute, acknowledge and deliver
to the Transferor, the

                                       25
<PAGE>

Certificateholder, the Servicer, the Note Insurer and to its predecessor Owner
Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Owner Trustee shall
become effective and such successor Owner Trustee, without any further act, deed
or conveyance, shall become fully vested with all the rights, powers, duties and
obligations of its predecessor under this Agreement, with like effect as if
originally named as Owner Trustee. The predecessor Owner Trustee shall upon
payment of its fees and expenses deliver to the successor Owner Trustee all
documents and statements and monies held by it under this Agreement; and the
Transferor, the Certificateholder and the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably
be required for fully and certainly vesting and confirming in the successor
Owner Trustee all such rights, powers, duties and obligations.

                  No successor Owner Trustee shall accept appointment as
provided in this Section unless at the time of such acceptance such successor
Owner Trustee shall be eligible pursuant to Section 9.1.

                  Upon acceptance of appointment by a successor Owner Trustee
pursuant to this Section, (i) the Servicer shall mail notice of the successor of
such Owner Trustee to the Certificateholder, the Indenture Trustee, the
Noteholders and the Rating Agencies and (ii) the successor Owner Trustee shall
file an amendment to the Certificate of Trust with the secretary of State
identifying its name and principal place of business in the State of Delaware.
If the Servicer shall fail to mail such notice within ten (10) days after
acceptance of appointment by the successor Owner Trustee, the successor Owner
Trustee shall cause such notice to be mailed at the expense of the Servicer.

                  SECTION 9.4. Merger or Consolidation of Owner Trustee. Any
corporation into which the Owner Trustee may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Owner Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee
hereunder, provided such corporation shall be eligible pursuant to Section 9.1,
without the execution or filing of any instrument or any further act on the part
of any of the parties hereto, anything herein to the contrary notwithstanding;
provided further that the Owner Trustee (i) shall mail notice of such merger or
consolidation to the Rating Agencies and (ii) shall file an amendment to the
Certificate of Trust as required under Section 9.3, above.

                  SECTION 9.5. Appointment of Co-Indenture Trustee or Separate
Indenture Trustee. Notwithstanding any other provisions of this Agreement, at
any time, for the purpose of meeting any legal requirements of any jurisdiction
in which any part of the Owner Trust Estate or any Financed Vehicle may at the
time be located, the Servicer and the Owner Trustee acting jointly shall have
the power and shall execute and deliver all instruments to appoint one or more
Persons approved by the Owner Trustee and the Note Insurer to act as co-trustee,
jointly with the Owner Trustee, or separate trustee or separate trustees, of all
or any part of the Owner Trust Estate, and to vest in such Person, in such
capacity, such title to the Trust, or any part thereof, and, subject to the
other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Servicer and the Owner Trustee may consider necessary or
desirable. If the Servicer shall not have joined in such appointment within 15
days after the receipt by it of a request so to

                                       26
<PAGE>

do, the Owner Trustee subject, unless a Note Insurer Default shall have occurred
and be continuing, to the approval of the Note Insurer (which approval shall not
be unreasonably withheld) shall have the power to make such appointment. No
co-trustee or separate trustee under this Agreement shall be required to meet
the terms of eligibility as a successor trustee pursuant to Section 9.1 and no
notice of the appointment of any co-trustee or separate trustee shall be
required pursuant to Section 9.3.

                  Each 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 Owner Trustee shall be conferred upon and exercised
          or performed by the Owner Trustee and such separate trustee or
          co-trustee jointly (it being understood that such separate trustee or
          co-trustee is not authorized to act separately without the Owner
          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 Owner 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 Trust 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 Owner Trustee;

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

                  (iii) the Servicer and the Owner Trustee acting jointly may at
          any time accept the resignation of or remove any separate trustee or
          co-trustee.

                  Any notice, request or other writing given to the Owner
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 Agreement and
the conditions of this Article. 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 Owner
Trustee or separately, as may be provided therein, subject to all the provisions
of this Agreement, specifically including every provision of this Agreement
relating to the conduct of, affecting the liability of, or affording protection
to, the Owner Trustee. Each such instrument shall be filed with the Owner
Trustee and a copy thereof given to the Servicer and the Note Insurer.

                                       27

                  Any separate trustee or co-trustee may at any time appoint the
Owner 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 Agreement 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 Owner Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

<PAGE>

                                   Article X.

                                  Miscellaneous

                  SECTION 10.1. Supplements and Amendments.

                  (a) This Agreement may be amended by the Transferor and the
Owner Trustee, with the prior written consent of the Note Insurer (so long as a
Note Insurer Default shall not have occurred and be continuing) and with prior
written notice to the Rating Agencies, without the consent of any of the
Noteholders or the Certificateholder, (i) to cure any ambiguity or defect or
(ii) to correct, supplement or modify any provisions in this Agreement;
provided, however, that such action shall not, as evidenced by an Opinion of
Counsel which may be based upon a certificate of the Servicer, delivered to the
Owner Trustee, the Rating Agencies and the Note Insurer, adversely affect in any
material respect the interests of any Noteholder or Certificateholder.

                  (b) This Agreement may also be amended from time to time, with
the prior written consent of the Note Insurer (so long as a Note Insurer Default
shall not have occurred and be continuing) by the Transferor and the Owner
Trustee, with prior written notice to the Rating Agencies, to the extent such
amendment materially and adversely affects the interests of the Class A
Noteholders, with the consent of the Class A Noteholders evidencing not less
than 50% of the outstanding Class A Note Balance, to the extent such amendment
materially and adversely affects the interests of the Class B Noteholders, with
the consent of the Class B Noteholders evidencing not less than 50% of the
outstanding Class B Note Balance and, the consent of the Certificateholder
(which consent of any Certificateholder given pursuant to this Section or
pursuant to any other provision of this Agreement shall be conclusive and
binding on such Certificateholder and any future Certificateholder) for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions of this Agreement or of modifying in any manner the rights of
the Noteholders or the Certificateholder; provided, however, that, subject to
the express rights of the Note Insurer under the Basic Documents, no such
amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables or
distributions that shall be required to be made for the benefit of the
Noteholders or the Certificateholder or (b) reduce the aforesaid percentage of
the Class A Note Balance, the Class B Note Balance or the Certificateholders
required to consent to any such amendment, without the consent of the
Noteholders of all the outstanding Class A Notes and/or Class B Notes, as
applicable, or the Certificateholder, as the case may be.

                  Promptly after the execution of any such amendment or consent,
the Owner Trustee shall furnish written notification of the substance of such
amendment or consent to the Certificateholder, the Indenture Trustee and each of
the Rating Agencies.

                  It shall not be necessary for the consent of
Certificateholder, the Noteholders or the Indenture Trustee pursuant to this
Section 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 the
Certificateholder provided for in this Agreement or in any other Basic Document)
and of evidencing the

                                       28
<PAGE>

authorization of the execution thereof by Certificateholder shall be subject to
such reasonable requirements as the Owner Trustee may prescribe. Promptly after
the execution of any amendment to the Certificate of Trust, the Owner Trustee
shall cause the filing of such amendment with the Secretary of State.

                  Prior to the execution of any amendment to this Agreement or
the Certificate of Trust, the Owner Trustee and the Note Insurer 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
that all conditions precedent to the execution and delivery of such amendment
have been satisfied. The Owner Trustee may, but shall not be obligated to, enter
into any such amendment which affects the Owner Trustee's own rights, duties or
immunities under this Agreement or otherwise.

                  SECTION 10.2. No Legal Title to Owner Trust Estate in
Certificateholder. The Certificateholder shall not have legal title to any part
of the Owner Trust Estate. The Certificateholder shall be entitled to receive
distributions in accordance with the Sale and Servicing Agreement. No transfer,
by operation of law or otherwise, of any right, title or interest of the
Certificateholder to and in its ownership interest in the Owner Trust Estate
shall operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any part
of the Owner Trust Estate.

                  SECTION 10.3. Limitations on Rights of Others. The provisions
of this Agreement are solely for the benefit of the Owner Trustee, the
Transferor, the Certificateholder, the Servicer and, to the extent expressly
provided herein, the Note Insurer, the Indenture Trustee and the Noteholders,
and nothing in this Agreement, whether express or implied, shall be construed to
give to any other Person any legal or equitable right, remedy or claim in the
Owner Trust Estate or under or in respect of this Agreement or any covenants,
conditions or provisions contained herein.

                  SECTION 10.4. Notices.

                  (a) Unless otherwise expressly specified or permitted by the
terms hereof, all notices shall be in writing and shall be deemed given upon
receipt personally delivered, sent by facsimile transmission (with appropriate
confirmation) delivered by overnight courier or mailed first class mail or
certified mail, in each case return receipt requested, and shall be deemed to
have been duly given upon receipt:

                  (i) if to the Owner Trustee, addressed to:

                      Wilmington Trust Company
                      Rodney Square North
                      1100 North Market Street
                      Wilmington, Delaware 19890-0001
                      Attention: Corporate Trust Administration
                      (Telecopy Number: (302) 651-8882)

                                       29
<PAGE>

                  (ii) if to the Transferor, addressed to:

                       Long Beach Acceptance Receivables Corp. II
                       One Mack Centre Drive
                       Paramus, New Jersey 07652
                       Attention: General Counsel
                       (Telecopy Number: (201) 262-6868)

                  (iii) if to the Note Insurer, addressed to

                        MBIA Insurance Corporation
                        113 King Street
                        Armonk, NY 10504
                        Attention: Insured Portfolio Management
                                   Asset-Backed (IPM-AB)
                        Re: Long Beach Acceptance Auto Receivables Trust 2003-A
                        Fascimile No.: (914) 765-3810
                        Confirmation: (914) 273-4545

                  (iv) in the case of the Rating Agencies, addressed to:

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

                       and

                       Standard & Poor's Ratings Service
                       55 Water Street, 40th Floor
                       New York, New York 10041
                       Attention: Asset Backed Surveillance Department

                  (b) Any notice required or permitted to be given to a
Certificateholder shall be given by first-class mail, postage prepaid, at the
address of the Certificateholder in the register maintained by the Owner
Trustee. Any notice so mailed within the time prescribed in this Agreement shall
be conclusively presumed to have been duly given, whether or not the
Certificateholder receives such notice.

                  SECTION 10.5. Severability. Any provision of this Agreement
that is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

                  SECTION 10.6. Separate Counterparts. This Agreement may be
executed by the parties hereto in separate counterparts, each of which when so
executed and delivered shall

                                       30
<PAGE>

be an original, but all such counterparts shall together constitute but one and
the same instrument.

                  SECTION 10.7. Assignments. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective
successors and permitted assigns.

                  SECTION 10.8. No Recourse. The Certificateholder by accepting
a Certificate acknowledges that the Certificate represents a beneficial interest
in the Trust only and does not represent interests in or obligations of the
Transferor, the Servicer, the Owner Trustee, the Indenture Trustee, the Note
Insurer or any Affiliate thereof and no recourse may be had against such parties
or their assets, except as may be expressly set forth or contemplated in this
Agreement, the Certificate or the Basic Documents.

                  SECTION 10.9. Headings. The headings of the various Articles
and Sections herein are for convenience of reference only and shall not define
or limit any of the terms or provisions hereof.

                  SECTION 10.10. GOVERNING LAW. THIS AGREEMENT SHALL BE
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH
LAWS.

                  SECTION 10.11. Servicer. The Servicer is authorized to
prepare, or cause to be prepared, execute and deliver on behalf of the Trust all
such documents, reports, filings, instruments, certificates and opinions as it
shall be the duty of the Trust or Owner Trustee to prepare, file or deliver
pursuant to the Basic Documents. Upon written request, the Owner Trustee shall
execute and deliver to the Servicer a limited power of attorney appointing the
Servicer the Trust's agent and attorney-in-fact to prepare, or cause to be
prepared, execute and deliver all such documents, reports, filings, instruments,
certificates and opinions.

                  SECTION 10.12. Limitation on Liability. With respect to the
Note Insurer, the Owner Trustee undertakes to perform or observe only such of
the covenants and obligations of the Owner Trustee as are expressly set forth in
this Agreement, and no implied covenants or obligations with respect to the Note
Insurer shall be read into this Agreement or the other Basic Documents against
the Owner Trustee. The Owner Trustee shall not be deemed to owe any fiduciary
duty to the Note Insurer, and shall not be liable to any such person for the
failure of the Trust to perform its obligations to such persons other than as a
result of the gross negligence or willful misconduct of the Owner Trustee in the
performance of its express obligations under this Agreement.

                  SECTION 10.13. No Petition. The Owner Trustee (not in its
individual capacity but solely as Owner Trustee), by entering into this
Agreement, the Certificateholder, by accepting the Certificate, and the
Indenture Trustee and each Noteholder by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute
against the Transferor, or join in any institution against the Transferor of,
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under

                                       31
<PAGE>

any United States federal or state bankruptcy or similar law in connection with
any obligations relating to the Certificate, the Notes, this Agreement or any
other Basic Documents.

                  SECTION 10.14. Bankruptcy Matters. To the fullest extent
permitted by law, the Certificateholder or any party to this Agreement shall not
take any action to cause the Trust to dissolve in whole or in part or file a
voluntary petition or otherwise initiate proceedings to have the Trust
adjudicated bankrupt or insolvent, or consent to the institution of bankruptcy
or insolvency proceedings against the Trust as debtor under any applicable
federal or state law relating to bankruptcy, insolvency or other relief for
debts with respect to the Trust; or seek or consent to the appointment of any
trustee, receiver, conservator, assignee, sequestrator, custodian, liquidator
(or other similar official) of the Trust or of all or any substantial part of
the properties and assets of the Trust, or cause the Trust to make any general
assignment for the benefit or creditors of the Trust or take any action in
furtherance of any of the above actions unless the Certificateholder and the
Indenture Trustee shall have provided their written consent.

                  SECTION 10.15. Effect of Policy Expiration Date.
Notwithstanding anything to the contrary set forth herein, all references to any
right of the Note Insurer to direct, appoint, consent to, accept, approve of,
take or omit to take any action under this Agreement or any other Basic Document
shall be inapplicable at all times after the Policy Expiration Date, and if such
reference provides for another party or parties to take or omit to take any such
action following a Note Insurer Default, such party or parties shall also be
entitled to take or omit to take such action following the Policy Expiration
Date and (ii) if such reference does not provide for another party or parties to
take or omit to take any such action following a Note Insurer Default, then the
Indenture Trustee acting at the direction of the Majorityholders shall have the
right to take or omit to take any such action following the Policy Expiration
Date. In addition, any other provision of this Agreement or any other Basic
Document which is operative based in whole or in part on whether a Note Insurer
Default has or has not occurred shall, at all times on or after the Policy
Expiration Date, be deemed to refer to whether or not the Policy Expiration Date
has occurred.

                                       32
<PAGE>

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

                                    WILMINGTON TRUST COMPANY, as Owner Trustee

                                    By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                    LONG BEACH ACCEPTANCE RECEIVABLES CORP. II

                                    By:
                                        ----------------------------------------
                                        Name:
                                        Title:

                                [Trust Agreement]

<PAGE>
                                                                       EXHIBIT A

                         [FORM OF CERTIFICATE OF TRUST]

                              CERTIFICATE OF TRUST
                                       OF
               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A

                  This Certificate of Trust of LONG BEACH ACCEPTANCE AUTO
RECEIVABLES TRUST 2003-A (the "Trust") is being duly executed and filed by the
undersigned, as trustee, to form a statutory trust under the Statutory Trust Act
(12 Del. C. (section)3801 et seq.) (the "Act").

                  1. Name. The name of the statutory trust formed hereby is LONG
BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A.

                  2. Owner Trustee. The name and business address of the trustee
of the Trust in the State of Delaware is Wilmington Trust Company, Rodney Square
North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention:
Corporate Trust Administration.

                  3. Effective Date. This Certificate of Trust will be effective
upon filing.

                  IN WITNESS WHEREOF, the undersigned, being the sole trustee of
the Trust, has executed this Certificate of Trust in accordance with Section
3811(a) of the Act.

                                    WILMINGTON TRUST COMPANY, as Owner Trustee

                                    By:
                                        ----------------------------------------
                                        Name:
                                        Title:

<PAGE>

                                                                       EXHIBIT B

                              [FORM OF CERTIFICATE]

THIS CERTIFICATE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR THE APPLICABLE SECURITIES LAWS OF ANY STATE.
ACCORDINGLY, ANY TRANSFER OF THIS CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS
SET FORTH IN SECTION 3.7 OF THE TRUST AGREEMENT. BY ITS ACCEPTANCE OF THIS
CERTIFICATE THE HOLDER OF THIS CERTIFICATE IS DEEMED TO REPRESENT TO THE
TRANSFEROR AND THE OWNER TRUSTEE (I) THAT IT IS AN INSTITUTIONAL INVESTOR THAT
IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF
REGULATION D PROMULGATED UNDER THE SECURITIES ACT (AN "INSTITUTIONAL ACCREDITED
INVESTOR") AND THAT IT IS ACQUIRING THIS CERTIFICATE FOR ITS OWN ACCOUNT (AND
NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH
OTHERS ALSO ARE INSTITUTIONAL ACCREDITED INVESTORS UNLESS THE HOLDER IS A BANK
ACTING IN ITS FIDUCIARY CAPACITY) FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, THE PUBLIC DISTRIBUTION HEREOF OR (II) THAT IT
IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT AND IS ACQUIRING THIS CERTIFICATE FOR ITS OWN ACCOUNT (AND NOT
FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS
ALSO ARE QUALIFIED INSTITUTIONAL BUYERS).

NO SALE, PLEDGE OR OTHER TRANSFER OF THIS CERTIFICATE MAY BE MADE BY ANY PERSON
UNLESS EITHER (I) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO THE TRANSFEROR,
(II) SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO AN INSTITUTIONAL ACCREDITED
INVESTOR THAT EXECUTES A CERTIFICATE, SUBSTANTIALLY IN THE FORM SPECIFIED IN THE
TRUST AGREEMENT, TO THE EFFECT THAT IT IS AN INSTITUTIONAL ACCREDITED INVESTOR
ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE ACCOUNT OF OTHERS) OR AS A FIDUCIARY
OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE INSTITUTIONAL ACCREDITED INVESTORS
UNLESS THE HOLDER IS A BANK ACTING IN ITS FIDUCIARY CAPACITY), (III) SO LONG AS
THIS CERTIFICATE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT, SUCH SALE, PLEDGE OR OTHER TRANSFER IS MADE TO A PERSON WHO THE
TRANSFEROR REASONABLY BELIEVES AFTER DUE INQUIRY IS A "QUALIFIED INSTITUTIONAL
BUYER" (AS DEFINED IN RULE 144A), ACTING FOR ITS OWN ACCOUNT (AND NOT FOR THE
ACCOUNT OF OTHERS) OR AS A FIDUCIARY OR AGENT FOR OTHERS (WHICH OTHERS ALSO ARE
QUALIFIED INSTITUTIONAL BUYERS) TO WHOM NOTICE IS GIVEN THAT THE SALE, PLEDGE OR
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (IV) SUCH SALE, PLEDGE OR
OTHER TRANSFER IS OTHERWISE MADE IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, IN WHICH CASE (A) THE OWNER TRUSTEE SHALL
REQUIRE THAT BOTH THE PROSPECTIVE TRANSFEROR AND THE PROSPECTIVE TRANSFEREE
CERTIFY TO THE OWNER TRUSTEE AND THE TRANSFEROR IN WRITING THE FACTS SURROUNDING
SUCH TRANSFER,

<PAGE>

WHICH CERTIFICATION SHALL BE IN FORM AND SUBSTANCE SATISFACTORY TO THE OWNER
TRUSTEE AND THE TRANSFEROR, AND (B) THE OWNER TRUSTEE MAY REQUIRE A WRITTEN
OPINION OF COUNSEL (WHICH SHALL NOT BE AT THE EXPENSE OF THE TRUST, THE
TRANSFEROR OR THE OWNER TRUSTEE) SATISFACTORY TO THE TRANSFEROR AND THE OWNER
TRUSTEE TO THE EFFECT THAT SUCH TRANSFER WILL NOT VIOLATE THE SECURITIES ACT. NO
SALE, PLEDGE OR OTHER TRANSFER MAY BE MADE TO ANY ONE PERSON FOR CERTIFICATES
WITH A FACE AMOUNT OF LESS THAN $100,000 AND, IN THE CASE OF ANY PERSON ACTING
ON BEHALF OF ONE OR MORE THIRD PARTIES (OTHER THAN A BANK (AS DEFINED IN SECTION
3(A)(2) OF THE SECURITIES ACT) ACTING IN ITS FIDUCIARY CAPACITY), FOR
CERTIFICATES WITH A FACE AMOUNT OF LESS THAN $100,000 FOR EACH SUCH THIRD PARTY.

NO TRANSFER OF THIS CERTIFICATE SHALL BE PERMITTED TO BE MADE TO ANY PERSON
UNLESS THE OWNER TRUSTEE HAS RECEIVED A CERTIFICATE FROM SUCH TRANSFEREE TO THE
EFFECT THAT SUCH TRANSFEREE IS NOT (A) AN EMPLOYEE BENEFIT PLAN (AS DEFINED IN
SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED
("ERISA")) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR (B) A PLAN
(AS DEFINED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS
AMENDED (THE "CODE")) THAT IS SUBJECT TO SECTION 4975 OF THE CODE (EACH, A
"BENEFIT PLAN"), AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A
BENEFIT PLAN. EACH TRANSFEREE OF A BENEFICIAL OWNERSHIP INTEREST IN THIS
CERTIFICATE SHALL BE DEEMED TO REPRESENT THAT IT IS NOT A BENEFIT PLAN AND IS
NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF A BENEFIT PLAN.

NO TRANSFER OR SALE OF THIS CERTIFICATE SHALL BE PERMITTED TO BE MADE IF THE
TRANSFER OR SALE INCREASES THE NUMBER OF CERTIFICATEHOLDERS TO MORE THAN
NINETY-NINE (99).

THE HOLDER OF THIS CERTIFICATE REPRESENTS, BY VIRTUE OF ITS ACCEPTANCE HEREOF,
(I) THAT IT IS ACQUIRING THIS CERTIFICATE FOR ITS OWN BEHALF AND IS NOT ACTING
AS AGENT OR CUSTODIAN FOR ANY OTHER PERSON OR ENTITY IN CONNECTION WITH SUCH
ACQUISITION, (II) IF THE HOLDER IS A PARTNERSHIP, GRANTOR TRUST OR S CORPORATION
FOR FEDERAL INCOME TAX PURPOSES (A "FLOW-THROUGH ENTITY"), ANY CERTIFICATES
OWNED BY SUCH FLOW-THROUGH ENTITY WILL REPRESENT LESS THAN 50% OF THE VALUE OF
ALL THE ASSETS OWNED BY SUCH FLOW-THROUGH ENTITY AND NO SPECIAL ALLOCATION OF
INCOME, GAIN, LOSS, DEDUCTION OR CREDIT FROM SUCH CERTIFICATES WILL BE MADE
AMONG THE BENEFICIAL OWNERS OF SUCH FLOW-THROUGH ENTITY, AND (III) THE HOLDER IS
A UNITED STATES PERSON WITHIN THE MEANING OF THE CODE.

TRANSFER OF THIS CERTIFICATE IS SUBJECT TO CERTAIN RESTRICTIONS SET FORTH IN
SECTION 3.7 OF THE AGREEMENT.

                                       B-2
<PAGE>

               LONG BEACH ACCEPTANCE AUTO RECEIVABLES TRUST 2003-A

                   UNDER AMENDED AND RESTATED TRUST AGREEMENT

                            DATED AS OF MARCH 1, 2003

Certificate Number:

                  Wilmington Trust Company, a Delaware banking corporation, not
in its individual capacity but solely as trustee (the "Owner Trustee") under an
Amended and Restated Trust Agreement, dated as of March 1, 2003, between Long
Beach Acceptance Receivables Corp. II, a Delaware corporation (the "Transferor")
and the Owner Trustee (the "Trust Agreement"), hereby certifies that
___________________________________________ is the Holder of this Certificate
representing the entire beneficial interest in the Long Beach Acceptance Auto
Receivables Trust (the "Trust") created by the Trust Agreement. This Certificate
is issued pursuant to and is entitled to the benefits of the Trust Agreement,
and the Certificateholder by acceptance hereof agrees to be bound by the terms
of the Trust Agreement. Reference is hereby made to the Trust Agreement for a
statement of the rights and obligations of the Certificateholder hereof. The
Owner Trustee may treat the person shown on the register maintained by the Owner
Trustee pursuant to the Trust Agreement as the absolute Certificateholder hereof
for all purposes.

                  Capitalized terms used herein without definition have the
meanings ascribed to them in or by reference to the Trust Agreement.

                  The Certificateholder hereof, by its acceptance of this
Certificate, warrants and represents to, and agrees with, the Owner Trustee that
it shall not transfer this Certificate except in accordance with the Trust
Agreement.

                  The Certificateholder, by acceptance of its Certificate,
specifically acknowledges that it has no right to or interest in any monies at
any time held pursuant to the Spread Account Agreement prior to the release of
such monies pursuant to Section 5.6(d) of the Sale and Servicing Agreement, such
monies being held in trust for the benefit of the Class A Noteholders and the
Note Insurer. Notwithstanding the foregoing, in the event that it is ever
determined that provisions of the Sale and Servicing Agreement and the Spread
Account Agreement shall be considered to constitute a security agreement and the
Transferor and the Certificateholder hereby grant to the Collateral Agent for
the benefit of the Class A Noteholders and the Note Insurer a first priority
perfected security interest in such amounts, to be applied as set forth in
Section 3.03 of the Spread Account Agreement. In addition the Certificateholder,
by acceptance of its Certificate, hereby appoints the Transferor as its agent to
pledge a first priority perfected security interest in the Spread Account, and
any amounts held therein from time to time to the Collateral Agent pursuant to
the Spread Account Agreement and agrees to execute and deliver such instruments
of conveyance, assignment, grant and confirmation, as well as financing
statements, in each case as the Note Insurer shall consider reasonably necessary
in order to perfect the Collateral Agent's Security Interest in the Collateral
(as such terms are defined in the Spread Account Agreement).

                                       B-3
<PAGE>

                  This Certificate and the Trust Agreement shall in all respects
be governed by, and construed in accordance with, the laws of the State of
Delaware, without regard to conflict-of-law principles.

                                       B-4

<PAGE>

                  IN WITNESS WHEREOF, the Trust, pursuant to the Trust
Agreement, has caused this Certificate to be issued as of the date hereof.

                                        LONG BEACH ACCEPTANCE AUTO
                                        RECEIVABLES TRUST 2003-A

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

                                        By:
                                            ------------------------------------
                                            Name:
                                            Title:

Dated:  March 13, 2003

                  This is one of the Certificates referred to in the
within-mentioned Agreement.

                                       WILMINGTON TRUST COMPANY,
                                       not in its individual capacity
                                       but solely as Owner Trustee

                                       By: Wilmington Trust Company,
                                           Authenticating Agent

                                       By:
                                           -------------------------------------
                                           Name:
                                           Title:

Dated:  March 13, 2003

                                      B-5

<PAGE>

                                   ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER
OF ASSIGNEE

--------------------------------------------------------------------------------
(Please print or typewrite name and address, including postal zip code, of
assignee)

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

the within Certificate, and all rights thereunder, hereby irrevocably
constituting and appointing

_____________________________________ Attorney to transfer said Certificate on
the books of the Certificate Registrar, with full power of substitution in the
premises.

Dated:
                                                                               *
                                    ------------------------------------------

                                                                               *
                                    ------------------------------------------

* NOTICE: The signature to this assignment must correspond with the name as it
appears upon the face of the within Certificate in every particular, without
alteration, enlargement or any change whatever.

                                       B-6
<PAGE>

                                                                       EXHIBIT C

                    [FORM OF "QUALIFIED INSTITUTIONAL BUYER"
                            TRANSFEREE'S CERTIFICATE]

                                     [Date]

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

Long Beach Acceptance Receivables Corp. II
One Mack Centre Drive
Paramus, NJ 07652
Attn: President

      Re: Long Beach Acceptance Auto Receivables Trust 2003-A

Ladies and Gentlemen:

                  In connection with the proposed purchase by the buyer listed
below (the "Buyer") of the Certificates (as defined below) issued pursuant to
the Amended and Restated Trust Agreement, dated as of March 1, 2003 (the "Trust
Agreement"), between Long Beach Acceptance Receivables Corp. II, as Transferor
(the "Transferor") and Wilmington Trust Company, as trustee (the "Owner
Trustee"), relating to Long Beach Acceptance Auto Receivables Trust 2003-A (the
"Certificates"), the Buyer advises you as follows: (i) the Buyer is a "qualified
institutional buyer" as that term is defined in Rule 144A under the Securities
Act of 1933, as amended (the "1933 Act") and is acquiring beneficial ownership
of the Certificates for its own account or for the account of not more than _
persons, each of which is a "qualified institutional buyer"; and (ii) the Buyer
satisfies the requirements of paragraph (a)(2)(ii) of Rule 3a-7 under the
Investment Company Act of 1940, as amended (the "1940 Act"). In addition to the
foregoing, you may rely on the information provided in Annex 1 or 2, as
applicable, attached hereto and incorporated herein.

                  The Buyer understands that the Certificates have not been
registered under the 1933 Act or the securities laws of any state. The Buyer
acknowledges that it has independently conducted such investigation and
evaluation of the merits and the risks involved in an investment in the
Certificates and has received such information (whether from the Transferor, the
Owner Trustee, the transferor from which it proposes to purchase Certificates,
or from any other source) as the Buyer has deemed necessary and advisable in
order to make its investment decision. The Buyer has had any questions arising
from such investigation and evaluation answered by the Transferor to the
satisfaction of the Buyer. The Buyer is a sophisticated institutional investor,
having such knowledge and experience in financial and business matters
generally, and with respect to asset-backed securities and investments in
"non-prime" automobile loans specifically, that it is capable of independently
evaluating the merits and risks of investment in the

<PAGE>

Certificates. In the normal course of its business, the Buyer invests in or
purchases securities similar to the Certificates. The Buyer is aware that it may
be required to bear the economic risk of an investment in the Certificates for
an indefinite period of time, and it is able to bear such risk for an indefinite
period.

                                  Very truly yours,

                                  [BUYER]

                                  By:
                                     -------------------------------------------
                                  Name:
                                  Title:

                                  Taxpayer ID:
                                              ----------------------------------

                                  Name in which Certificate is to be Registered:

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

                                  Address for Notices:

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

                                  Payment Instructions:

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

                                       C-2

<PAGE>

                                                            ANNEX 1 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

             [For Buyers Other Than Registered Investment Companies]

                  The undersigned hereby certifies as follows to the parties
listed in the "Qualified Institutional Buyer" Transferee's Certificate to which
this certification relates with respect to the Rule 144A Securities described
therein:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer, Senior Vice President or other executive officer of the
Buyer.

                  2. In connection with purchases by the Buyer, the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because (i) the Buyer owned and/or invested
on a discretionary basis $_________________(1) in securities (except for the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year (such amount being calculated in accordance with Rule 144A) and (ii)
the Buyer satisfies the criteria in the category marked below.

[ ]       Corporation, etc. The Buyer is a corporation (other than a bank,
savings and loan association or similar institution), Massachusetts or similar
business trust, partnership, or charitable organization described in Section
501(c)(3) of the Internal Revenue Code of 1986, as amended.

[ ]       Bank. The Buyer (a) is a national bank or banking institution
organized under the laws of any State, territory or the District of Columbia,
the business of which is substantially confined to banking and is supervised by
the State or territorial banking commission or similar official or is a foreign
bank or equivalent institution, and (b) has an audited net worth of at least
$25,000,000 as demonstrated in its latest annual financial statements, a copy of
which is attached hereto.

[ ]       Savings and Loan. The Buyer (a) is a savings and loan association,
building and loan association, cooperative bank, homestead association or
similar institution, which is supervised and examined by a State or Federal
authority having supervision over any such institutions or is a foreign savings
and loan association or equivalent institution and (b) has an audited net worth
of at least $25,000,000 as demonstrated in its latest annual financial
statements, a copy of which is attached hereto.

[ ]       Broker-dealer. The Buyer is a dealer registered pursuant to Section 15
of the Securities Exchange Act of 1934.

-------------
    1     Buyer must own and/or invest on a discretionary basis at least
$100,000,000 in securities unless Buyer is a dealer, and, in that case, Buyer
must own and/or invest on a discretionary basis at least $10,000,000 in
securities.

                                       C-3
<PAGE>

[ ]       Insurance Company. The Buyer is an insurance company whose primary and
predominant business activity is the writing of insurance or the reinsuring of
risks underwritten by insurance companies and which is subject to supervision by
the insurance commissioner or a similar official or agency of a State, territory
or the District of Columbia.

[ ]       State or Local Plan. The Buyer is a plan established and maintained by
a State, its political subdivisions, or any agency or instrumentality of the
State or its political subdivisions, for the benefit of its employees.

[ ]       ERISA Plan. The Buyer is an employee benefit plan within the meaning
of TitleI of the Employee Retirement Income Security Act of 1974.

[ ]       Investment Advisor. The Buyer is an investment advisor registered
under the Investment Advisers Act of 1940.

[ ]       Small Business Investment Company. Buyer is a small business
investment company licensed by the U.S. Small Business Administration under
Section 301(c) or (d) of the Small Business Investment Act of 1958.

[ ]       Business Development Company. Buyer is a business development company
as defined in Section 202(a)(22) of the Investment Advisors Act of 1940.

[ ]       Trust Fund. The Buyer is a trust fund whose trustee is a bank or trust
company and whose participants are exclusively State or Local Plans or ERISA
Plans as defined above, and no participant of the Buyer is an individual
retirement account or an H.R. 10 (Keogh) plan.

                  3. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer, (ii) securities that
are part of an unsold allotment to or subscription by the Buyer, if the Buyer is
a dealer, (iii) bank deposit notes and certificates of deposit, (iv) loan
participations, (v) repurchase agreements, (vi) securities owned but subject to
a repurchase agreement and (vii) currency, interest rate and commodity swaps.

                  4. For purposes of determining the aggregate amount of
securities owned and/or invested on a discretionary basis by the Buyer, the
Buyer used the cost of such securities to the Buyer and did not include any of
the securities referred to in the preceding paragraph, except (i) where the
Buyer reports its securities holdings in its financial statements on the basis
of their market value, and (ii) no current information with respect to the cost
of those securities has been published. If clause (ii) in the preceding sentence
applies, the securities may be valued at market. Further, in determining such
aggregate amount, the Buyer may have included securities owned by subsidiaries
of the Buyer, but only if such subsidiaries are consolidated with the Buyer in
its financial statements prepared in accordance with generally accepted
accounting principles and if the investments of such subsidiaries are managed
under the Buyer's direction. However, such securities were not included if the
Buyer is a majority-owned, consolidated subsidiary of another enterprise and the
Buyer is not itself a reporting company under the Securities Exchange Act of
1934.

                  5. The Buyer acknowledges that it is familiar with Rule 144A
and understands that the seller to it and other parties related to the
Certificates are relying and will

                                       C-4
<PAGE>

continue to rely on the statements made herein because one or more sales to the
Buyer may be in reliance on Rule 144A.

                  6. Until the date of purchase of the Rule 144A Securities, the
Buyer will notify each of the parties to which this certification is made of any
changes in the information and conclusions herein. Until such notice is given,
the Buyer's purchase of Rule 144A Securities will constitute a reaffirmation of
this certification as of the date of such purchase. In addition, if the Buyer is
a Bank or Savings and Loan as provided above, the Buyer agrees that it will
furnish to such parties updated annual financial statements promptly after they
become available.

                                     -------------------------------------------
                                     Print Name of Buyer

                                     By:
                                        ----------------------------------------
                                     Name:
                                     Title:

                                     Date:

                                       C-5
<PAGE>

                                                            ANNEX 2 TO EXHIBIT C

            QUALIFIED INSTITUTIONAL BUYER STATUS UNDER SEC RULE 144A

              [For Buyers that are Registered Investment Companies]

                  The undersigned hereby certifies as follows to the parties
listed in the "Qualified Institutional Buyer" Transferee's Certificate to which
this certification relates with respect to the Rule 144A Securities described
therein:

                  1. As indicated below, the undersigned is the President, Chief
Financial Officer or Senior Vice President of the Buyer or, if the Buyer is a
"qualified institutional buyer" as that term is defined in Rule 144A under the
Securities Act of 1933 ("Rule 144A") because Buyer is part of a Family of
Investment Companies (as defined below), is such an officer of the Adviser.

                  2. In connection with purchases by Buyer, the Buyer is a
"qualified institutional buyer" as defined in SEC Rule 144A because (i) the
Buyer is an investment company registered under the Investment Company Act of
1940, and (ii) as marked below, the Buyer alone, or the Buyer's Family of
Investment Companies, owned at least $100,000,000 in securities (other than the
excluded securities referred to below) as of the end of the Buyer's most recent
fiscal year. For purposes of determining the amount of securities owned by the
Buyer or the Buyer's Family of Investment Companies, the cost of such securities
was used, except (i) where the Buyer or the Buyer's Family of Investment
Companies reports its securities holdings in its financial statements on the
basis of their market value, and (ii) no current information with respect to the
cost of those securities has been published. If clause (ii) in the preceding
sentence applies, the securities may be valued at market.

                  [ ]      The Buyer owned $__________ in securities (other than
                  the excluded securities referred to below) as of the end of
                  the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  [ ]      The Buyer is part of a Family of Investment Companies
                  which owned in the aggregate $__________ in securities (other
                  than the excluded securities referred to below) as of the end
                  of the Buyer's most recent fiscal year (such amount being
                  calculated in accordance with Rule 144A).

                  3. The term "Family of Investment Companies" as used herein
means two or more registered investment companies (or series thereof) that have
the same investment adviser or investment advisers that are affiliated (by
virtue of being majority owned subsidiaries of the same parent or because one
investment adviser is a majority owned subsidiary of the other).

                  4. The term "securities" as used herein does not include (i)
securities of issuers that are affiliated with the Buyer or are part of the
Buyer's Family of Investment Companies, (ii) bank deposit notes and certificates
of deposit, (iii) loan participations, (iv) repurchase agreements, (v)
securities owned but subject to a repurchase agreement and (vi) currency,
interest rate and commodity swaps.

                                       C-6
<PAGE>

                  5. The Buyer is familiar with Rule 144A and understands that
the parties listed in the Qualified Institutional Buyer Transferee's Certificate
to which this certification relates are relying and will continue to rely on the
statements made herein because one or more sales to the Buyer will be in
reliance on Rule 144A. In addition, the Buyer will only purchase for the Buyer's
own account.

                  6. Until the date of purchase of the Rule 144A Securities, the
undersigned will notify each of the parties to which this certification is made
of any changes in the information and conclusions herein. Until such notice is
given, the Buyer's purchase of Rule 144A Securities will constitute a
reaffirmation of this certification by the undersigned as of the date of such
purchase.

                                     ----------------------------------------
                                     Print Name of Buyer or Adviser

                                     By:
                                        -------------------------------------
                                     Name:
                                     Title:

                                     IF AN ADVISER:

                                     ----------------------------------------
                                     Print Name of Buyer

                                     Date:

                                       C-7
<PAGE>

                                                                       EXHIBIT D

            [FORM OF "ACCREDITED INVESTOR" TRANSFEREE'S CERTIFICATE]

                                     [Date]

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

Long Beach Acceptance Receivables Corp. II
One Mack Centre Drive
Paramus, NJ 07652
Attn: President

      Re: Long Beach Acceptance Auto Receivables Trust 2003-A

Dear Sirs:

                  In connection with the proposed purchase by the buyer listed
below (the "Buyer") of Certificates (as defined below) issued pursuant to the
Amended and Restated Trust Agreement, dated as of March 1, 2003 (the "Trust
Agreement"), between Long Beach Acceptance Receivables Corp. II, as Transferor
(the "Transferor"), and Wilmington Trust Company, as trustee (the "Owner
Trustee"), relating to Long Beach Acceptance Auto Receivables Trust 2003-A (the
"Certificates"), the Buyer confirms that:

                  1. The Buyer understands that the Certificates have not been
registered under the Securities Act of 1933, as amended (the "1933 Act"), and
may not be sold except as permitted in the following sentence. The Buyer agrees,
on its own behalf and on behalf of any accounts for which it is acting as
hereinafter stated, that such Certificates may be resold, pledged or transferred
only: (i) so long as such Certificates are eligible for resale pursuant to Rule
144A under the 1933 Act ("Rule 144A"), to a person who the Buyer reasonably
believes is a "qualified institutional buyer" as defined in Rule 144A (a "QIB")
that purchases for its own account or for the account of a QIB, to whom notice
is given that the resale, pledge or transfer is being made in reliance on Rule
144A, (ii) pursuant to an exemption from registration under the 1933 Act
provided by Rule 144 (if applicable) under the 1933 Act or (iii) to an
institution that is an "Accredited Investor" as defined in Rule 501(a)(1), (2),
(3) or (7) under the 1933 Act (an "Accredited Investor") that is acquiring the
Certificates for investment purposes and not for distribution, in each case in
accordance with any applicable securities laws of any state of the United
States, and the Buyer will notify any purchaser of the Certificates from it of
the above resale restrictions. The Buyer further understands that in connection
with any transfer of the Certificates to an Accredited Investor by it that the
Transferor or Owner Trustee may request, and if so requested the Buyer will
furnish, such certificates and other information as they may reasonably require
to confirm any such transfer with the foregoing restrictions.

<PAGE>

                  2. The Buyer is an institutional investor which is an
Accredited Investor or, if the Certificates are to be purchased for one or more
institutional accounts ("investor accounts") for which it is acting as fiduciary
or agent (except if it is a bank as defined in Section 3(a)(2) of the 1933 Act,
or a savings and loan association or other institution as described in Section
3(a)(5)(A) of the 1933 Act, whether acting in its individual or in a fiduciary
capacity), each such investor account is an institutional investor and an
Accredited Investor on a like basis. In the normal course of its business, the
Buyer invests in or purchases securities similar to the Certificates.

                  3. The Buyer satisfies the requirements of paragraph (a)(2)(i)
of Rule 3a-7 of the Investment Company Act of 1940, as amended.

                  4. The Buyer acknowledges that it has independently conducted
such investigation and evaluation of the merits and the risks involved in an
investment in the Certificates and has received such information (whether from
the Transferor, the Servicer, the transferor from which it proposes to purchase
Certificates, or from any other source) as the Buyer has deemed necessary and
advisable in order to make its investment decision. The Buyer has had any
questions arising from such investigation and evaluation answered by the
Transferor to the satisfaction of the Buyer. The Buyer is a sophisticated
institutional investor, having such knowledge and experience in financial and
business matters generally, and with respect to asset-backed securities and
investments in "non-prime" automobile loans specifically, that it is capable of
independently evaluating the merits and risks of investment in the Certificates.
In the normal course of its business, the Buyer invests in or purchases
securities similar to the Certificates. The Buyer is aware that it (or any
investor account) may be required to bear the economic risk of an investment in
the Certificates for an indefinite period of time, and it (or such account) is
able to bear such risk for an indefinite period.

                                     Very truly yours,

                                     [BUYER]

                                     By:
                                        ----------------------------------------
                                     Name:
                                     Title:

                                       D-2

<PAGE>

                                                                       EXHIBIT E

                       [FORM OF TRANSFEROR'S CERTIFICATE]

                                     [Date]

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

      Re: Long Beach Acceptance Auto Receivables Trust 2003-A

Ladies and Gentlemen:

                  In connection with the disposition by the transferor listed
below (the "Transferor") of Certificates (as defined below) issued pursuant to
the Amended and Restated Trust Agreement, dated as of March 1, 2003 (the "Trust
Agreement") between Long Beach Acceptance Receivables Corp. II, as Transferor
(the "Transferor"), and Wilmington Trust Company, as trustee (the "Owner
Trustee"), relating to Long Beach Acceptance Auto Receivables Trust 2003-A (the
"Certificates"), the Transferor certifies that:

                  (a) the Transferor understands that the Certificates have not
been registered under the Securities Act of 1933, as amended (the "1933 Act"),
and are being disposed of by the Transferor in a transaction that is exempt from
the registration requirements of the 1933 Act; and

                  (b) the Transferor has not offered or sold any Certificates
to, or solicited offers to buy any Certificates from, any person, or otherwise
approached or negotiated with any person with respect thereto, in a manner that
would be deemed, or taken any other action which would result in, a violation of
Section 5 of the 1933 Act.

                                     Very truly yours,

                                     [NAME OF TRANSFEROR]

                                     By:
                                        -------------------------------------
                                     Name:
                                     Title:

<PAGE>

                                                                       EXHIBIT F

                           [FORM OF ERISA CERTIFICATE]

                                     [Date]

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

Long Beach Acceptance Receivables Corp. II
One Mack Centre Drive
Paramus, NJ 07652
Attn: President

      Re: Long Beach Acceptance Auto Receivables Trust 2003-A

Ladies and Gentlemen:

[NAME OF OFFICER] hereby certifies that:

         1. That he [she] is [Title of Officer] ____________________ of [Name of
Transferee] ___________________________________________ (the "Transferee"), a
[savings institution] [corporation] duly organized and existing under the laws
of [the State of ________] [the United States], on behalf of which he [she]
makes this affidavit.

         2. The Transferee (1) is not, and on _______________ [insert date of
transfer of Certificate to Transferee] will not be, and on such date will not be
acting on behalf of or investing the assets of (a) an "employee benefit plan"
(as defined in Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended ("ERISA")) that is subject to the provisions of Title I of
ERISA or (b) a "plan" (as defined in Section 4975(e)(1) of the Internal Revenue
Code of 1986, as amended (the "Code")) that is subject to Section 4975 of the
Code (each, a "Benefit Plan").

         3. In connection with the proposed purchase by the Transferee of the
Certificate issued pursuant to the Trust Agreement (the "Agreement") between
Long Beach Acceptance Receivables Corp. II, as Transferor (the "Transferor"),
and Wilmington Trust Company, as trustee (the "Owner Trustee"), dated as of
March 1, 2003, the Transferee hereby acknowledges that under the terms of the
Agreement no transfer of any Certificate (as defined in the Agreement) shall be
permitted to be made to any person unless the Owner Trustee has received a
certificate from such transferee to the effect that such transferee is not a
Benefit Plan and is not acting on behalf of or investing the assets of a Benefit
Plan.

         [4. The Certificates shall be registered in the name of
_______________________ as nominee for the Transferee.]

<PAGE>

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer] _______________, this__ day of ____________.

                                     [Name of Transferee]

                                     By:
                                        -------------------------------------
                                        Name:
                                        Title:

The undersigned hereby acknowledges that it is holding and will hold the Trust
Certificates at the exclusive direction of and as nominee of the Investor named
above.

[Name of Nominee]

By:
   -------------------------------------
   Name:
   Title:

                                       F-2
<PAGE>

                                                                       EXHIBIT G

                    [FORM OF FLOW THROUGH ENTITY CERTIFICATE]

                                     [Date]

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

Long Beach Acceptance Receivables Corp. II
One Mack Centre Drive
Paramus, NJ 07652
Attn: President

      Re: Long Beach Acceptance Auto Receivables Trust 2003-A

Ladies and Gentlemen:

[NAME OF OFFICER] hereby certifies that:

         1. That he [she] is [Title of Officer] ____________ of [Name of
Transferee] _______________________________ (the "Transferee"), a [savings
institution] [corporation] duly organized and existing under the laws of [the
State of ____________] [the United States], on behalf of which he [she] makes
this affidavit.

         2. The Transferee (a) is acquiring the Certificate (as defined below)
for its own behalf and is not acting as agent or custodian for any other person
or entity in connection with such acquisition, (b) if the Transferee is a
partnership, grantor trust or S corporation for federal income tax purposes (a
"Flow Through Entity"), any Certificate owned by such Flow Through Entity will
represent less than 50% of the value of all the assets owned by such Flow
Through Entity and no special allocation of income, gain, loss, deduction or
credit from such Certificate will be made among the beneficial owners of such
Flow Through Entity, and (c) the Transferee is a United States person within the
meaning of the Internal Revenue Code of 1986, as amended.

         3. The Transferee hereby acknowledges that under the terms of the
Amended and Restated Trust Agreement (the "Agreement") between Long Beach
Acceptance Receivables Corp. II, as Transferor (the "Transferor"), and
Wilmington Trust Company, as trustee (the "Owner Trustee"), dated as of March 1,
2003 no transfer of any Certificate (as defined in the Agreement) shall be
permitted to be made to any person unless the Owner Trustee has received a
certificate from such transferee to the effect that such transferee (a) is
acquiring the Certificate for its own behalf and is not acting as agent or
custodian for any other person or entity in connection with such acquisition,
(b) if the

                                       G-2
<PAGE>

transferee is a partnership, grantor trust or S corporation for federal income
tax purposes (a "Flow Through Entity"), any Certificate owned by such Flow
Through Entity will represent less than 50% of the value of all the assets owned
by such Flow Through Entity and no special allocation of income, gain, loss,
deduction or credit from such Certificate will be made among the beneficial
owners of such Flow Through Entity, and (c) the transferee is a United States
person within the meaning of the Internal Revenue Code of 1986 as amended.

         [4. The Certificates shall be registered in the name of as nominee for
the Transferee.]

         IN WITNESS WHEREOF, the Transferee has caused this instrument to be
executed on its behalf, pursuant to authority of its Board of Directors, by its
[Title of Officer) _____________________________, this ___ day of
-----------.

                                   [NAME OF TRANSFEREE]

                                   By:
                                      ----------------------------------------
                                   Name:
                                   Title:

The undersigned hereby acknowledges that it is holding and will hold the Trust
Certificates at the exclusive direction of and as nominee of the Investor named
above.

[NAME OF NOMINEE]

By:
   ----------------------------------------
Name:
Title:

                                       G-2

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