Document:

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                                                                     EXHIBIT 4.2

                                    INDENTURE

                   NISSAN AUTO RECEIVABLES _____-_ OWNER TRUST

                                    as Issuer

                                       and

                              [__________________],
                as Indenture Trustee and Securities Intermediary

                        Dated as of [__________________]

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                 PAGE
<S>                                                                              <C>
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE ...........................   2

         SECTION 1.01.  Definitions ............................................   2
         SECTION 1.02.  Usage of Terms .........................................  10
         SECTION 1.03.  Incorporation by Reference of Trust Indenture Act ......  10

ARTICLE II THE NOTES ...........................................................  10

         SECTION 2.01.  Form ...................................................  10
         SECTION 2.02.  Execution, Authentication and Delivery .................  11
         SECTION 2.03.  Temporary Notes ........................................  13
         SECTION 2.04.  Registration; Registration of Transfer and Exchange ....  13
         SECTION 2.05.  Mutilated, Destroyed, Lost or Stolen Notes .............  14
         SECTION 2.06.  Persons Deemed Owners ..................................  15
         SECTION 2.07.  Payments of Principal and Interest .....................  15
         SECTION 2.08.  Cancellation ...........................................  15
         SECTION 2.09.  Release of Collateral ..................................  16
         SECTION 2.10.  Book-Entry Notes .......................................  16
         SECTION 2.11.  Notices to Clearing Agency .............................  17
         SECTION 2.12.  Definitive Notes .......................................  17
         SECTION 2.13.  Tax Treatment ..........................................  17

ARTICLE III COVENANTS ..........................................................  18

         SECTION 3.01.  Payment of Principal and Interest ......................  18
         SECTION 3.02.  Maintenance of Office or Agency ........................  18
         SECTION 3.03.  Money for Payments To Be Held in Trust .................  18
         SECTION 3.04.  Existence ..............................................  20
         SECTION 3.05.  Protection of Trust Estate .............................  20
         SECTION 3.06.  Opinions as to Trust Estate ............................  21
         SECTION 3.07.  Performance of Obligations; Servicing of Receivables ...  21
         SECTION 3.08.  Negative Covenants .....................................  23
         SECTION 3.09.  Annual Statement as to Compliance ......................  24
         SECTION 3.10.  Issuer May Consolidate, etc., Only on Certain Terms ....  24
         SECTION 3.11.  Successor or Transferee ................................  26
         SECTION 3.12.  No Other Business ......................................  26
         SECTION 3.13.  No Borrowing ...........................................  26
         SECTION 3.14.  Servicer's Notice Obligations ..........................  26
         SECTION 3.15.  Guarantees, Loans, Advances and Other Liabilities ......  26
         SECTION 3.16.  Capital Expenditures ...................................  27
         SECTION 3.17.  Removal of Administrator ...............................  27
         SECTION 3.18.  Restricted Payments ....................................  27
         SECTION 3.19.  Notice of Events of Default ............................  27
         SECTION 3.20.  Further Instruments and Actions ........................  27
         SECTION 3.21.  Calculation Agent ......................................  27
</TABLE>

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                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                     PAGE
<S>                                                                                  <C>
ARTICLE IV SATISFACTION AND DISCHARGE ...............................................  28

         SECTION 4.01.  Satisfaction and Discharge of Indenture .....................  28
         SECTION 4.02.  Application of Trust Money ..................................  29
         SECTION 4.03.  Repayment of Moneys Held by Paying Agent ....................  29

ARTICLE V REMEDIES ..................................................................  29

         SECTION 5.01.  Events of Default ...........................................  30
         SECTION 5.02.  Acceleration of Maturity; Rescission and Annulment ..........  31
         SECTION 5.03.  Collection of Indebtedness and Suits for Enforcement by
                        Indenture Trustee ...........................................  32
         SECTION 5.04.  Remedies; Priorities ........................................  34
         SECTION 5.05.  Optional Preservation of the Receivables ....................  35
         SECTION 5.06.  Limitation of Suits .........................................  36
         SECTION 5.07.  Unconditional Rights of Noteholders To Receive
                        Principal and Interest ......................................  37
         SECTION 5.08.  Restoration of Rights and Remedies ..........................  37
         SECTION 5.09.  Rights and Remedies Cumulative ..............................  37
         SECTION 5.10.  Delay or Omission Not a Waiver ..............................  37
         SECTION 5.11.  Control by Noteholders ......................................  37
         SECTION 5.12.  Waiver of Past Defaults .....................................  38
         SECTION 5.13.  Undertaking for Costs .......................................  38
         SECTION 5.14.  Waiver of Stay or Extension Laws ............................  39
         SECTION 5.15.  Action on Notes .............................................  39
         SECTION 5.16.  Performance and Enforcement of Certain Obligations ..........  39

ARTICLE VI THE INDENTURE TRUSTEE ....................................................  40

         SECTION 6.01.  Duties of Indenture Trustee .................................  40
         SECTION 6.02.  Rights of Indenture Trustee .................................  42
         SECTION 6.03.  Individual Rights of Indenture Trustee ......................  43
         SECTION 6.04.  Indenture Trustee's Disclaimer ..............................  43
         SECTION 6.05.  Notice of Defaults ..........................................  44
         SECTION 6.06.  Reports by Indenture Trustee to Holders .....................  44
         SECTION 6.07.  Compensation and Indemnity ..................................  44
         SECTION 6.08.  Replacement of Indenture Trustee ............................  45
         SECTION 6.09.  Successor Indenture Trustee by Merger .......................  45
         SECTION 6.10.  Appointment of Co-Indenture Trustee or Separate
                        Indenture Trustee ...........................................  46
         SECTION 6.11.  Eligibility; Disqualification ...............................  47
         SECTION 6.12.  Preferential Collection of Claims Against Issuer ............  47
         SECTION 6.13.  Acknowledgement by Indenture Trustee of its Obligations
                        Under the Sale and Servicing Agreement ......................  47
         SECTION 6.14.  Interest Rate Swap Provisions ...............................  47
</TABLE>

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                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                 PAGE
<S>                                                                              <C>
ARTICLE VII NOTEHOLDERS' LISTS AND REPORTS .....................................  49

         SECTION 7.01.  Note Registrar To Furnish Names and Addresses
                        of Noteholders .........................................  49
         SECTION 7.02.  Preservation of Information; Communications to
                        Noteholders ............................................  50
         SECTION 7.03.  Reports by Issuer ......................................  50
         SECTION 7.04.  Reports by Indenture Trustee ...........................  51

ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES ..............................  51

         SECTION 8.01.  Collection of Money ....................................  51
         SECTION 8.02.  Accounts ...............................................  51
         SECTION 8.03.  General Provisions Regarding Accounts ..................  52
         SECTION 8.04.  Release of Trust Estate ................................  54
         SECTION 8.05.  Release of Receivables Upon Purchase by the
                        Seller or the Servicer .................................  54
         SECTION 8.06.  Opinion of Counsel .....................................  54

ARTICLE IX SUPPLEMENTAL INDENTURES .............................................  55

         SECTION 9.01.  Supplemental Indentures Without Consent of
                        Noteholders ............................................  55
         SECTION 9.02.  Supplemental Indentures with Consent of
                        Noteholders ............................................  56
         SECTION 9.03.  Execution of Supplemental Indentures ...................  57
         SECTION 9.04.  Effect of Supplemental Indenture .......................  58
         SECTION 9.05.  Conformity with Trust Indenture Act ....................  58
         SECTION 9.06.  Reference in Notes to Supplemental Indentures ..........  58

ARTICLE X RELEASE ..............................................................  58

         SECTION 10.01. Optional Purchase of All Receivables ...................  58

ARTICLE XI MISCELLANEOUS .......................................................  59

         SECTION 11.01. Compliance Certificates and Opinions, etc. .............  59
         SECTION 11.02. Form of Documents Delivered to Indenture Trustee .......  60
         SECTION 11.03. Acts of Noteholders ....................................  61
         SECTION 11.04. Notices, to Indenture Trustee, Issuer and
                        Rating Agencies ........................................  61
         SECTION 11.05. Notices to Noteholders; Waiver .........................  62
         SECTION 11.06. Alternate Payment and Notice Provisions ................  62
         SECTION 11.07. Conflict with Trust Indenture Act ......................  63
         SECTION 11.08. Effect of Headings and Table of Contents ...............  63
         SECTION 11.09. Successors and Assigns .................................  63
         SECTION 11.10. Severability ...........................................  63
         SECTION 11.11. Benefits of Indenture ..................................  63
         SECTION 11.12. Governing Law ..........................................  63
         SECTION 11.13. Counterparts ...........................................  63
         SECTION 11.14. Recording of Indenture .................................  63
         SECTION 11.15. Trust Obligation .......................................  64
</TABLE>

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                                TABLE OF CONTENTS
                                   (CONTINUED)

<TABLE>
<CAPTION>
                                                                                PAGE
<S>                                                                             <C>
SECTION 11.16. No Petition .....................................................  64
SECTION 11.17. Inspection ......................................................  64
</TABLE>

EXHIBIT A-1 - Form of Class A-1 Note, Class A-2 Note, Class A-3 Note and Class B
              Note
EXHIBIT A-2 - Form of VPTN

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<PAGE>   6

                              CROSS-REFERENCE TABLE
                         (not a part of this Indenture)

<TABLE>
<CAPTION>
 TIA                                                                   Indenture
Section                                                                  Section
<S>                                                                   <C>
(Section)310(a)(1)......................................................... 6.11
      (a)(2)............................................................... 6.11
      (a)(3)......................................................... 6.10(b)(i)
      (a)(4)............................................................... N.A.
      (a)(5)............................................................... 6.11
      (b) ................................................................. 5.04
                                                                            6.08
                                                                            6.11
                                                                           11.04
      (c) ................................................................. N.A.
(Section)311(a) ........................................................... 6.12
      (b) ................................................................. 6.12
      (c) ................................................................. N.A.
(Section)312(a) ........................................................... 7.01
      (b) ................................................................. 7.01
          .............................................................. 7.01(b)
      (c) .............................................................. 7.02(c)
(Section)313(a) ........................................................... 7.04
      (b)(1)............................................................... N.A.
      (b)(2)............................................................... 7.04
      (c) ................................................................. 7.04
                                                                           11.04
      (d) ................................................................. 7.04
(Section)314(a) ..................................................... 3.09, 7.03
                                                                            7.04
                                                                           11.04
      (b) ................................................................. 3.06
                                                                            7.04
                                                                           11.14
      (c)(1) .............................................................. 6.02
                                                                         8.05(b)
                                                                            6.02
                                                                           11.01
      (c)(2)............................................................... 3.06
                                                                            3.10
                                                                            6.02
                                                                         8.05(b)
                                                                            8.06
                                                                           11.01
      (c)(3).............................................................. 11.01
      (d) ............................................................. 11.01(c)
      (e) ................................................................ 11.01
      (f) ................................................................. N.A.
(Section)315(a) ........................................................... 6.01
      (b) ................................................................. 6.05
      (c) ................................................................. N.A.
      (d) .............................................................. 6.01(c)
      (e) ................................................................. 5.13
</TABLE>

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<TABLE>
<CAPTION>
  TIA                                                                  Indenture
Section                                                                  Section
<S>                                                                    <C>
(Section)316(a)(1)(A)..................................................  6.01(c)
                                                                            5.11
      (a)(1)(B)...........................................................  5.12
      (a)(2)..............................................................  N.A.
      (b) ................................................................  5.07
                                                                         5.04(b)
      (c) ................................................................  2.06
(Section)317(a)(1) .......................................................  5.04
      (a)(2) ..........................................................  5.03(c)
                                                                         5.03(d)
                                                                            5.04
      (b) ................................................................  3.03
(Section)318(a) .......................................................... 11.07
</TABLE>

---------
N.A. means not applicable

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        INDENTURE, dated as of [__________________], between NISSAN AUTO
RECEIVABLES ____-_ OWNER TRUST, a Delaware business trust (the "Issuer"), and
[__________________], a [____________________], as trustee and not in its
individual capacity (the "Indenture Trustee").

        Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of (i) the Holders of the Issuer's [__]% Asset
Backed Notes, Class A-1 (the "Class A-1 Notes"), [__]% Asset Backed Notes, Class
A-2 (the "Class A-2 Notes"), [__]% Asset Backed Notes, Class A-3 (the "Class A-3
Notes" and, together with the Class A-1 and the Class A-2 Notes, the "Class A
Notes"), and [__]% Asset Backed Notes, Class B (the "Class B Notes" and,
together with the Class A Notes, the "Notes") and (ii) for the purposes of the
Granting Clause below, the Certificateholders:

                                 GRANTING CLAUSE

        The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as Indenture Trustee for the benefit of the Holders of the Notes and
Certificates [and the Swap Counterparty], the following:

                (i) all right, title and interest of the Issuer in and to the
        Receivables (including all related Receivable Files) and all monies due
        thereon or paid thereunder or in respect thereof (including proceeds of
        the repurchase of Receivables by the Seller pursuant to Section 3.02 of
        the Sale and Servicing Agreement or the purchase of Receivables by the
        Servicer pursuant to Section 4.06 or 9.01 of the Sale and Servicing
        Agreement) after the Cutoff Date;

                (ii) amounts on deposit in the Collection Account [and the Yield
        Supplement Account];

                (iii) the right of the Issuer in the security interests in the
        Financed Vehicles granted by the Obligors pursuant to the Receivables
        and any related property;

                (iv) the right of the Issuer in any proceeds from claims on any
        physical damage, credit life, credit disability or other insurance
        policies covering the Financed Vehicles or the Obligors;

                (v) the right of the Issuer (through the Seller and NMAC) to
        receive payments in respect of any Dealer Recourse with respect to the
        Receivables;

                (vi) the rights of the Issuer under the Sale and Servicing
        Agreement, and, through the Seller, under the Purchase Agreement and the
        Assignment;

                [(vii) the rights of the Issuer under the Yield Supplement
        Agreement;]

                (viii) the right of the Issuer to realize upon any property
        (including the right to receive future Net Liquidation Proceeds) that
        shall have secured a Receivable;

<PAGE>   9

                (ix) the right of the Issuer in rebates of premiums and other
        amounts relating to insurance policies and other items financed under
        the Receivables in effect as of the Cutoff Date;

                (x) all other assets comprising the Owner Trust Estate; and

                (xi) all proceeds of the foregoing.

        The foregoing Grant is made in trust to secure the payment of principal
of and interest on, and any other amounts owing in respect of, the Notes,
equally and ratably without prejudice, priority or distinction, and to secure
compliance with the provisions of this Indenture, and subject to the subordinate
claims thereon of the Holders of the Certificates, all as provided in this
Indenture [and payment of amounts payable to the Swap Counterparty under the
Interest Rate Swap Agreement].

        The Indenture Trustee, as Indenture Trustee on behalf of the Holders of
the Notes and for the benefit of the Certificateholders [and the Swap
Counterparty], acknowledges such Grant, accepts the trusts under this Indenture
in accordance with the provisions of this Indenture and agrees to perform its
duties required in this Indenture to the best of its ability to the end that the
interests of the Holders of the Notes may be adequately and effectively
protected and the rights of the Certificateholders [and the Swap Counterparty]
secured.

                                    ARTICLE I

                   Definitions and Incorporation by Reference

        SECTION 1.01. Definitions. Except as otherwise specified herein or if
the context may otherwise require, capitalized terms used but not otherwise
defined herein have the meanings ascribed thereto in the Trust Agreement, the
Sale and Servicing Agreement and the Securities Account Control Agreement, as
the case may be, for all purposes of this Indenture. Except as otherwise
provided in this Indenture, whenever used herein the following words and
phrases, unless the context otherwise requires, shall have the following
meanings:

        "Action" has the meaning specified in Section 11.03(a).

        "Administration Agreement" means the Administration Agreement, dated as
of [___________], among the Administrator, the Issuer and the Indenture Trustee.

        "Administrator" means NMAC or any successor Administrator under the
Administration Agreement.

        "Applicant" has the meaning specified in Section 7.01.

        "Authorized Officer" means with respect to the Issuer, any officer of
the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer identified as such on any list of Authorized Officers
delivered by the Owner Trustee to the Indenture Trustee.

                                       2
<PAGE>   10

        "Book-Entry Notes" means a beneficial interest in the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes and the Class B Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.10.

        "Business Day" means any day except a Saturday, a Sunday or a day on
which banks in New York, New York, Los Angeles, California or
[________,________] are authorized or obligated by law, regulation, executive
order or governmental decree to be closed.

        ["Calculation Agent" means the calculation agent appointed to calculate
interest rates and interest amounts on the VPTNs and to perform other duties
pursuant to Section 3.21 and shall initially be [________________].]

        "Certificates" means the Class C Certificates and the Class D
Certificates.

        "Class" means any one of the classes of the Notes.

        "Class A-1 Rate" means [____]% per annum (computed on the basis of
[actual number of days in the related Interest Period and a 360-day year] [a
360-day year consisting of twelve 30-day months]).

        "Class A-1 Notes" means the [____]% Asset Backed Notes, Class A-1,
substantially in the form attached hereto as Exhibit A-1.

        "Class A-2 Rate" means [____]% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

        "Class A-2 Notes" means the ____% Asset Backed Notes, Class A-2,
substantially in the form attached hereto as Exhibit A-1.

        "Class A-3 Rate" means [____]% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

        "Class A-3 Notes" means the ____% Asset Backed Notes, Class A-3,
substantially in the form attached hereto as Exhibit A-1.

        "Class B Rate" means [____]% per annum (computed on the basis of a
360-day year consisting of twelve 30-day months).

        "Class B Notes" means the ____% Asset Backed Notes, Class B,
substantially in the form attached hereto as Exhibit A-1.

        "Class C Certificates" means the [____]% Certificates of the Issuer,
Class C, issued under the Trust Agreement.

        "Class D Certificates" means the [____]% Certificates of the Issuer,
Class D, issued under the Trust Agreement.

                                       3
<PAGE>   11

        "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

        "Clearing Agency Participant" means a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

        "Closing Date" means __________, _____.

        "Code" means the Internal Revenue Code of 1986, as amended, and the
Treasury Regulations promulgated thereunder.

        "Collateral" means the property of the Issuer subject to the Granting
Clause hereof, the Reserve Account, all amounts held from time to time in the
Reserve Account and all investments therein.

        "Corporate Trust Office" means the principal office of the Indenture
Trustee at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Agreement is located
at [_______________]; Attention: [_______________], or at such other address as
the Indenture Trustee may designate from time to time by notice to the
Noteholders, the Issuer and the Administrator, or the principal corporate trust
office of any successor Indenture Trustee at the address designated by such
successor Indenture Trustee by notice to the Noteholders, the Issuer and the
Administrator.

        "Default" means any occurrence that is, or with notice or the lapse of
time or both would become, an Event of Default.

        "Definitive Notes" has the meaning specified in Section 2.10.

        "Event of Default" has the meaning specified in Section 5.01.

        "Exchange Act" means the Securities Exchange Act of 1934, as amended.

        "Executive Officer" means, with respect to any corporation, the Chief
Executive Officer, Chief Operating Officer, Chief Financial Officer, President,
Executive Vice President, any Vice President, the Secretary or the Treasurer of
such corporation; and with respect to any partnership, any general partner
thereof.

        ["Extended Sequential Amortization Commencement Date" means the Targeted
Scheduled Distribution Date on which two subclasses of Class A Notes which have
reached or passed their Targeted Scheduled Distribution Dates have not been paid
in full after giving effect to all payments allocable to principal on such
Targeted Scheduled Distribution Date.]

        ["Extended Sequential Amortization Period" means the period commencing
on an Extended Sequential Amortization Commencement Date and ending on the
Distribution Date on which the Class A-3 Notes and the VPTNs are paid in full.]

                                       4
<PAGE>   12

        "Grant" means mortgage, pledge, bargain, sell, warrant, alienate,
remise, release, convey, assign, transfer, create, and grant a lien upon and a
security interest in and right of set-off against, deposit, set over and confirm
pursuant to this Indenture. A Grant of the Collateral or of any other agreement
or instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and
continuing right to claim for, collect, receive and give receipt for principal
and interest payments in respect of the Collateral and all other moneys payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the granting party or otherwise, and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.

        "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the Note Register.

        "Indenture Trustee" means [_______________], a
[____________________________], as Indenture Trustee under this Indenture, or
any successor Indenture Trustee under this Indenture.

        "Independent" means, when used with respect to any specified Person,
that the Person is in fact independent of the Seller, the Servicer, the
Administrator, the Issuer or any other obligor on the Notes or any Affiliate of
any of the foregoing Persons because, among other things, such Person (a) is not
an employee, officer or director or otherwise controlled thereby or under common
control therewith, (b) does not have any direct financial interest or any
material indirect financial interest therein (whether as holder of securities
thereof or party to contract therewith or otherwise), and (c) is not and has not
within the preceding twelve months been a promoter, underwriter, trustee,
partner, director or person performing similar functions therefor or otherwise
had legal, contractual or fiduciary or other duties to act on behalf of or for
the benefit thereof.

        "Independent Certificate" means a certificate or opinion to be delivered
to the Indenture Trustee, made by an Independent appraiser or other expert
appointed by an Issuer Order and approved by the Indenture Trustee in the
exercise of reasonable care, and such opinion or certificate shall state that
the signer has read the definition of "Independent" in this Indenture and that
the signer is Independent within the meaning thereof.

        "Interest Period" means, with respect to any Distribution Date and the
Class A-1 Notes, the period from (and including) the preceding Distribution Date
to (but excluding) such Distribution Date, except that the initial Interest
Period will be from (and including) the Closing Date to (but excluding)
[___________], and, with respect to any Distribution Date and the Class A-2
Notes, the Class A-3 Notes and the Class B Notes, the period from (and
including) the 15th day of the preceding calendar month to (but excluding) the
15th day of the month in which such Distribution Date occurs, except that the
initial Interest Period will be from (and including) the Closing Date to (but
excluding) [__________].

        "Interest Rate" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate or the Class B Rate, as indicated by the context.

                                       5
<PAGE>   13

        ["Interest Rate Swap Agreement" shall mean the interest rate swap
agreement dated _________________, including all schedules and confirmations
thereto, between the Issuer and the Swap Counterparty, as the same may be
amended, supplemented, renewed, extended or replaced from time to time.]

        ["Interest Reset Date" means, with respect to the VPTNs, the first day
of the applicable Interest Period.]

        "Issuer" means Nissan Auto Receivables ____-_ Owner Trust unless and
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the Notes.

        "Issuer Order" and "Issuer Request" mean a written order or request
signed in the name of the Issuer by any one of its Authorized Officers and
delivered to the Indenture Trustee.

        ["LIBOR Determination Date" means the second London Banking Day prior to
the Interest Reset Date for the related Interest Period.]

        ["London Banking Day" means any day other than a Saturday, Sunday or any
other day on which banks in London are required or authorized to be closed.]

        "NMAC" means Nissan Motor Acceptance Corporation, in its individual
capacity and not as Servicer.

        "Note" means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a
Class B Note.

        "Note Depository Agreement" means the agreement entitled "Letter of
Representations" dated on or before the Closing Date among the Clearing Agency,
the Issuer and the Indenture Trustee with respect to certain matters relating to
the duties thereof with respect to the Book-Entry Notes.

        "Note Owner" means, with respect to a Book-Entry Note, any Person who is
the beneficial owner of such Book-Entry Note, as reflected on the books of the
Clearing Agency or on the books of a Person maintaining an account with such
Clearing Agency (directly as a Clearing Agency Participant or as an indirect
participant, in each case in accordance with the rules of such Clearing Agency).

        "Note Register" means the Register of Noteholders' information
maintained by the Note Registrar pursuant to Section 2.04.

        "Note Registrar" means the Indenture Trustee unless and until a
successor Note Registrar shall have been appointed pursuant to Section 2.04.

        "Officer's Certificate" means a certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise
complying with, the applicable requirements of Section 11.01, and delivered to
the Indenture Trustee.

                                       6
<PAGE>   14

        "Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise expressly provided in this Indenture, be an employee of
or counsel to the Issuer, the Seller or the Servicer and which counsel shall be
reasonably satisfactory to the Owner Trustee, the Indenture Trustee or the
Rating Agencies, as the case may be.

        "Outstanding" means, as of the date of determination, all Notes
theretofore authenticated and delivered under this Indenture except:

        (a) Notes theretofore canceled by the Note Registrar or delivered to the
Note Registrar for cancellation;

        (b) Notes or portions thereof the payment for which money in the
necessary amount has been theretofore deposited with the Indenture Trustee or
any Paying Agent in trust for the Holders of such Notes; and

        (c) Notes in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a
protected purchaser;

        provided, that in determining whether the Holders of the requisite
percentage of the Outstanding Amount of the Notes, or any Class of Notes, have
given any request, demand, authorization, direction, notice, consent, or waiver
hereunder or under any Basic Document, Notes owned by the Issuer, any other
obligor upon the Notes, the Seller or any Affiliate of any of the foregoing
Persons shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Indenture Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent, or waiver, only
Notes that the Indenture Trustee knows to be so owned shall be so disregarded.
Notes so owned that have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgee's right so to act with respect to such Notes and that the
pledgee is not the Issuer, any other obligor upon the Notes, the Seller or any
Affiliate of any of the foregoing Persons.

        "Outstanding Amount" means the aggregate principal amount of all Notes,
or, if indicated by the context, all Notes of any Class, Outstanding at the date
of determination.

        "Owner Trustee" means [_______________], not in its individual capacity
but solely as Owner Trustee under the Trust Agreement, or any successor Owner
Trustee under the Trust Agreement.

        "Paying Agent" means the Indenture Trustee or any other Person that
meets the eligibility standards for the Indenture Trustee specified in Section
6.11 that has been authorized by the Issuer to make payments to and
distributions from the Collection Account, including payment of principal of or
interest on the Notes on behalf of the Issuer.

        "Predecessor Note" means, with respect to any particular Note, every
previous Note evidencing all or a portion of the same debt as that evidenced by
such particular Note; and, for the purpose of this definition, any Note
authenticated and delivered under Section 2.05 in lieu of

                                       7
<PAGE>   15

a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same
debt as the mutilated, lost, destroyed or stolen Note.

        "Proceeding" means any suit in equity, action at law or other judicial
or administrative proceeding.

        "Registered Holder" means the Person in whose name a Note is registered
on the Note Register on the applicable Record Date.

        "Responsible Officer" means, with respect to the Indenture Trustee, any
officer within the Corporate Trust Office of the Indenture Trustee, including
any Vice President, Assistant Vice President, Assistant Treasurer, Assistant
Secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers and
also, with respect to a particular matter, any other officer to whom such matter
is referred because of such officer's knowledge of and familiarity with the
particular subject.

        "Sale and Servicing Agreement" means the Sale and Servicing Agreement,
dated as of [_______________], among the Issuer, [Nissan Auto Receivables
Corporation][Nissan Auto Receivables Corporation II], as Seller, and Nissan
Motor Acceptance Corporation, as Servicer, and as to which the Indenture Trustee
is a third party beneficiary of certain provisions.

        "Securities Act" means the Securities Act of 1933, as amended.

        "Securities Account Control Agreement" shall have the meaning assigned
to such term in the Sale and Servicing Agreement.

        "Seller" shall mean [Nissan Auto Receivables Corporation][Nissan Auto
Receivables Corporation II], in its capacity as seller under the Sale and
Servicing Agreement, and its successor in interest.

        "Servicer" shall mean Nissan Motor Acceptance Corporation, in its
capacity as servicer under the Sale and Servicing Agreement, and any Successor
Servicer thereunder.

        ["Spread" means with respect to any VPTN, the percentage over LIBOR as
determined at the time of issuance as set forth in such VPTN, which percentage
shall not exceed [____]%.]

        "Successor Servicer" has the meaning specified in Section 3.07.

        ["Swap Counterparty" shall mean __________, as swap counterparty under
the Interest Rate Swap Agreement, or any successor or replacement swap
counterparty from time to time under the Interest Rate Swap Agreement. Each Swap
Counterparty (or the institution guaranteeing such Swap Counterparty's
obligations) must have ratings at least equal to "[____]" by Standard & Poor's
Ratings Group and "[____]" by Moody's Investor Service, Inc. at the time of
entry into the Interest Rate Swap Agreement.]

        ["Swap Payment" means on any Distribution Date the net amount, if any,
then payable by the Issuer to the Swap Counterparty, excluding any Swap
Termination Payments.]

                                       8
<PAGE>   16

        ["Swap Receipt" means on any Distribution Date the net amount, if any,
then payable by a Swap Counterparty to the Issuer, excluding any Swap
Termination Payments.]

        ["Swap Termination Payment" means any termination payment payable by the
Issuer to the Swap Counterparty or by the Swap Counterparty to the Issuer under
the Interest Rate Swap Agreement.]

        ["Targeted Scheduled Distribution Date" means as set forth below for
each subclass of the Class A Note:

                                                             Targeted Scheduled
                Subclass                                     Distribution Date

        Class A-1 Notes                                ______________, ________

        Class A-2 Notes                                ______________, ________

        Class A-3 Notes                                ______________, ________]

        "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
this Indenture for the benefit of the Noteholders (including, without
limitation, all property and interests Granted to the Indenture Trustee pursuant
to the Granting Clause), including all proceeds thereof.

        "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as
in force on the date hereof, unless otherwise specifically provided.

        "UCC" means, unless the context otherwise requires, the Uniform
Commercial Code, as in effect in the relevant jurisdiction at the relevant time.

        ["VTPN" means the Floating Rate Asset Backed Variable Pay Term Notes
issued from time to time by the Trust pursuant to this Indenture, substantially
in the form attached hereto as Exhibit A-2.]

        ["VPTN Issuance Amount" means, for any Targeted Scheduled Distribution
Date, the amount the Issuer is able to issue pursuant to Section 2.02 of this
Indenture, not to exceed an amount equal to (i) the aggregate outstanding
principal balance of the related subclass of the Class A Notes and the aggregate
outstanding balance of all the Class A Notes which were not paid in full on
their Targeted Schedule Distribution Dates over (ii) sum of the amount on
deposit in the Accumulation Account and the amount on deposit in the Collection
Account, if any, which is allocable to the subclass or subclasses of the Class A
Notes in (i) above.]

        ["VPTN Rate" means, with respect to each VPTN, or any Distribution Date,
the rate equal to one-month LIBOR on the related LIBOR Determination Date plus a
fixed percentage spread for such VPTN determined at the time of issuance based
on market conditions; provided that such interest rate shall not exceed
one-month LIBOR plus [____%]. Interest with respect to

                                       9
<PAGE>   17

any VPTN shall be computed on the basis of actual days elapsed and a 360 day
year for all purposes of the Basic Documents.]

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

        SECTION 1.03. Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

        "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 and any other
obligor on the indenture securities.

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

                                   ARTICLE II

                                    The Notes

        SECTION 2.01. Form. The Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes[, the VPTN] and the Class B Notes, in each case together with the
Indenture Trustee's certificate of authentication, shall be in substantially the
form set forth in Exhibit A, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith,
be determined by the officers executing such Notes, as evidenced by their
execution thereof. Any portion of the text of any Note may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of the Note.

                                       10
<PAGE>   18

        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 Exhibit A are part of the terms of this Indenture.

        SECTION 2.02. Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile. Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes. The Indenture Trustee shall upon Issuer
Order authenticate and deliver the Class A-1 Notes for original issue in an
aggregate principal amount of $[_______________], the Class A-2 Notes for
original issue in an aggregate principal amount of $[_______________], the Class
A-3 Notes for original issue in an aggregate principal amount of
$[_______________], [the VPTN for original issue in an aggregate principal
amount of $[______________],] and the Class B Notes for original issue in an
aggregate principal amount of $[_______________]. The aggregate principal amount
of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class B
Notes outstanding at any time may not exceed such respective amounts except as
provided in Section 2.05. The Notes shall be issuable as registered Notes in
denominations of $1,000 and any integral multiple thereof. Each Note shall be
dated the date of its authentication.

        [On the Targeted Scheduled Distribution Date for each subclass of the
Class A Notes, a VPTN may be issued in an amount equal to the VPTN Issuance
Amount. The Issuer shall execute the VPTN, and upon receipt of the Issuer Order,
the Indenture Trustee shall cause such VPTN to be authenticated and delivered.
Each such order shall set forth:

                (i) the issuance date and Spread of the VPTN;

                (ii) the aggregate principal amount of the VPTN to be
        authenticated and delivered on such issuance date,

                (iii) the VPTN Rate for such VPTN; and

                (iv) any other terms or provisions of such VPTN which shall not
        be inconsistent with the provisions of this Indenture.

        The Indenture Trustee shall not, however, cause to be authenticated and
deliver any VPTN on a Targeted Scheduled Distribution Date unless the Issuer
has:

                (i) delivered to the Indenture Trustee an Officer's Certificate
        certifying that the following conditions have been satisfied:

                        (A) both before and after giving effect to the issuance
                of the VPTN and to the application of such proceeds and any
                amounts on deposit in the Accumulation Account and in the
                Collection Account, the aggregate principal

                                       11
<PAGE>   19

                balance of the receivables must be equal to or greater than the
                aggregate outstanding balance of the Class A Notes, the VPTNs,
                the Class B Notes and the Class C Certificates;

                        (B) an Extended Sequential Amortization Period must not
                have occurred;

                        (C) the VPTN must be rated "AAA" and "Aaa" by S&P and
                Moody's, respectively;

                        (D) the Interest Rate Swap Agreement must be in full
                force and effect with a notional amount equal to the sum of the
                principal balances of such VPTN and any other outstanding VPTNs;

                        (E) no Servicer Default shall have occurred and be
                continuing;

                        (F) no Event of Default shall have occurred and be
                continuing;

                        (G) the purchase price of the VPTN must be equal to par;
                and

                        (H) the interest rate on the VPTN must not exceed
                one-month LIBOR plus [____]%.

                (ii) delivered to the Indenture Trustee an Opinion of Counsel,
        which shall also be addressed to the purchaser of such VPTN and the
        Rating Agencies and shall be dated the related Targeted Scheduled
        Distribution Date, substantially to the effect that:

                        (A) the Issuer has been duly formed and is validly
                existing as a business trust under the Delaware Business Trust
                Act (the "Delaware Act"), and has the power and authority under
                the Trust Agreement and the Delaware Act to execute, deliver and
                perform its obligations under the Trust Agreement, the
                Indenture, the Sale and Servicing Agreement, the Administration
                Agreement, the Interest Rate Swap Agreement, the Certificates
                and the Notes;

                        (B) the Issuer has full power and authority to issue and
                sell the VPTN to be sold to the purchaser on such Targeted
                Scheduled Distribution Date, pursuant to a VPTN purchase
                agreement, and the Issuer has duly authorized such sale to the
                purchaser by all necessary action;

                        (C) registration of the VPTN under the Securities Act is
                not required in connection with the purchase and sale of the
                VPTN pursuant to the VPTN purchase agreement; and

                        (D) the issuance and sale of the VPTN has been duly
                authorized by the Trust, and the VPTN, when duly executed by the
                Trust and authenticated by the Indenture Trustee in accordance
                with the Indenture and delivered to and paid for by the
                purchaser thereof in accordance with the Indenture, will be
                validly issued and outstanding and entitled to the benefits of
                the Indenture.]

                                       12
<PAGE>   20

        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 included in Exhibit A,
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 2.03. 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 that 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 3.02, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Notes of any Class, the Issuer shall execute, and the
Indenture Trustee shall authenticate and deliver in exchange therefor, a like
principal amount of Definitive Notes of such Class 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 2.04. Registration; Registration of Transfer and Exchange.

        (a) The Note Registrar shall maintain a Note Register in which, subject
to such reasonable regulations as it may prescribe, the Note Registrar shall
provide for the registration of Notes and transfers and exchanges of Notes as
provided in this Indenture. The Indenture Trustee is hereby initially appointed
Note Registrar for the purpose of registering Notes and transfers and exchanges
of Notes as provided in this Indenture. In the event that, subsequent to the
Closing Date, the Indenture Trustee notifies the Issuer that it is unable to act
as Note Registrar, the Issuer shall appoint another bank or trust company,
having an office or agency located in the Borough of Manhattan, The City of New
York, agreeing to act in accordance with the provisions of this Indenture
applicable to it, and otherwise acceptable to the Indenture Trustee, to act as
successor Note Registrar under this Indenture.

                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 rely
upon a certificate executed on behalf of the Note Registrar by an Executive
Officer thereof as to the names and addresses of the Holders of the Notes and
the principal amounts and number of such Notes.

        (b) Upon the proper surrender for registration of transfer of any Note
at the office or agency of the Issuer to be maintained as provided in Section
3.02, the Issuer shall execute, and the Indenture Trustee shall authenticate in
the name of the designated transferee or transferees,

                                       13
<PAGE>   21

one or more new Notes of the same Class in authorized denominations of a like
aggregate principal amount.

        (c) At the option of the Holder, Notes may be exchanged for other Notes
of the same Class in any authorized denominations, of a like aggregate principal
amount, upon surrender of the Notes to be exchanged at such office or agency.
Whenever any Notes are so surrendered for exchange, the Issuer shall execute,
and the Indenture Trustee shall authenticate and the Noteholder shall obtain
from the Indenture Trustee, the Notes which 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 Indenture Trustee and the Note Registrar duly executed
by the Holder thereof or his attorney duly authorized in writing.

        (d) No service charge shall be made for any registration of transfer or
exchange of Notes, but the Indenture Trustee 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 Notes.

        (e) All Notes surrendered for registration of transfer or exchange shall
be canceled and subsequently destroyed by the Indenture Trustee.

        SECTION 2.05. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee such security or
indemnity as may be required by it to hold the Issuer and the Indenture Trustee
harmless, then, in the absence of notice to the Issuer, the Note Registrar or
the Indenture Trustee that such Note has been acquired by a protected purchaser,
the Issuer shall execute, and upon its request the Indenture Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Note, a replacement Note of the same Class. In
connection with the issuance of any new Note under this Section 2.05, the Issuer
may require payment by the Holder of such Note of a sum sufficient to cover any
tax or other governmental charge that may be imposed in relation thereto.

        If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note, a protected purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a
protected purchaser, and shall be entitled to recover upon the security or
indemnity provided therefor to the extent of any loss, damage, cost or expense
incurred by the Issuer or the Indenture Trustee in connection therewith.

        Every replacement Note issued pursuant to this Section 2.05 in
replacement of any mutilated, destroyed, lost or stolen Note shall constitute an
original additional contractual obligation of the Issuer, whether or not the
mutilated, destroyed, lost or stolen Note shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes of the same Class duly issued
hereunder.

                                       14
<PAGE>   22

        The provisions of this Section 2.05 are exclusive and shall preclude (to
the extent lawful) all other rights and remedies with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes.

        SECTION 2.06. Persons Deemed Owners. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever, and none of the Issuer, the
Indenture Trustee or any agent of the Issuer or the Indenture Trustee shall be
affected by notice to the contrary.

        SECTION 2.07. Payments of Principal and Interest.

        (a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class B Notes shall accrue interest during each Interest Period at the Class
A-1 Rate, the Class A-2 Rate, the Class A-3 Rate and the Class B Rate,
respectively, and such interest shall be payable on each related Distribution
Date as specified in the applicable Note by applying amounts available pursuant
to Section 5.06 of the Sale and Servicing Agreement and to Section 3.01 of this
Indenture. Any installment of interest or principal payable on any Note that is
punctually paid or duly provided for by the Issuer on the applicable
Distribution Date shall be paid to the Person in whose name such Note (or one or
more Predecessor Notes) is registered on the Record Date by wire transfer in
immediately available funds to the account designated by such nominee, except
for the final installment of principal payable with respect to such Note on a
Distribution Date or on the applicable Final Scheduled Distribution Date, which
shall be payable as provided below.

        (b) The principal of each Note shall be payable in installments on each
Distribution Date by applying amounts available pursuant to Section 5.06 of the
Sale and Servicing Agreement. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable, if not previously paid,
from and after the date on which the Indenture Trustee or the Holders of the
Controlling Class of Notes representing not less than a majority of the
Outstanding Amount of such Class (excluding for such purpose the outstanding
principal amount of any Notes held of record or beneficially owned by
[NARC][NARC II], NMAC or any of their Affiliates unless at such time all of the
Notes of such Class are held of record or beneficially owned by [NARC][NARC II],
NMAC or any of their Affiliates) have declared the Notes to be immediately due
and payable in the manner provided in Section 5.02 in connection with an Event
of Default. All principal payments on each Class of Notes shall be made pro rata
to the Noteholders of such Class entitled thereto. The Indenture Trustee shall
notify the Person in whose name a Note is registered at the close of business on
the Record Date preceding the Distribution Date on which the final installment
of principal of and interest on such Note will be paid. Such notice shall be
mailed or transmitted by facsimile not less than 15 nor more than 30 days prior
to such final Distribution Date, 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.

        SECTION 2.08. Cancellation. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person other
than the Indenture Trustee, be

                                       15
<PAGE>   23

delivered to the Indenture Trustee and shall be promptly canceled by the
Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee
for cancellation any Notes previously authenticated and delivered hereunder
which the Issuer may have acquired in any manner whatsoever, and all Notes so
delivered shall be promptly 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. 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 direct by an Issuer Order that they be destroyed or returned to it;
provided, that such Issuer Order is timely and the Notes have not been
previously disposed of by the Indenture Trustee.

        SECTION 2.09. Release of Collateral. Subject to Sections 8.05 and 11.01
and the terms of the Basic Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(l) or an Opinion
of Counsel in lieu of such Independent Certificates to the effect that the TIA
does not require any such Independent Certificates.

        SECTION 2.10. Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of typewritten Notes representing the Book-Entry Notes, to
be delivered to The Depository Trust Company, the initial Clearing Agency, or a
custodian therefor, by, or on behalf of, the Issuer. The Book-Entry Notes shall
be registered initially on the Note Register in the name of Cede & Co., the
nominee of the initial Clearing Agency, and no Note Owner thereof will receive a
Definitive Note representing such Note Owner's interest in such Note, except as
provided in Section 2.12. Unless and until definitive, fully registered Notes
(the "Definitive Notes") have been issued to such Note Owners pursuant to
Section 2.12:

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

        (b) the Note Registrar and the Indenture Trustee shall be entitled to
deal with the Clearing Agency for all purposes of this Indenture (including the
payment of principal of and interest on the Notes and the giving of instructions
or directions hereunder) as the authorized representative of the Note Owners;

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

        (d) the rights of Note Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law and agreements
between such Note Owners and the Clearing Agency and/or the Clearing Agency
Participants pursuant to the Note Depository Agreement. Unless and until
Definitive Notes are issued pursuant to Section 2.12, the initial Clearing
Agency will make book-entry transfers among the Clearing Agency Participants and
receive and transmit payments of principal of and interest on the Notes to such
Clearing Agency Participants; and

        (e) whenever this Indenture requires or permits actions to be taken
based upon instructions or directions of Holders of Notes evidencing a specified
percentage of the

                                       16
<PAGE>   24

Outstanding Amount of the Notes or of the Notes of any Class, the Clearing
Agency shall be deemed to represent such percentage only to the extent that it
has received instructions to such effect from Note Owners and/or Clearing Agency
Participants owning or representing, respectively, such required percentage of
the beneficial interest in the Notes and has delivered such instructions to the
Indenture Trustee.

        SECTION 2.11. Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to such Note Owners pursuant to
Section 2.12, the Indenture Trustee shall give all such notices and
communications specified herein to be given to Holders of the Notes to the
Clearing Agency and shall be deemed to have been given as of the date of
delivery to the Clearing Agency.

        SECTION 2.12. Definitive Notes. If (i) the Seller, the Owner Trustee or
the Administrator advises the Indenture Trustee in writing that the Clearing
Agency is no longer willing or able to properly discharge its responsibilities
with respect to the Book-Entry Notes and the Seller, the Owner Trustee and the
Administrator are unable to locate a qualified successor (and if the
Administrator has made such determination, the Administrator has given written
notice thereof to the Indenture Trustee), (ii) the Seller, the Indenture Trustee
or the Administrator at its option advises each other such party 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 or a Servicer Default, Note
Owners representing beneficial interests aggregating a majority of the
Outstanding Amount of the Notes of all Classes advise the Indenture Trustee and
the Clearing Agency in writing that the continuation of a book-entry system
through the Clearing Agency or a successor thereto is no longer in the best
interests of the Note Owners acting together as a single Class, then the
Clearing Agency shall notify all Note Owners and the Indenture Trustee of the
occurrence of such event and of the availability of Definitive Notes to Note
Owners requesting the same. Upon surrender to the Indenture Trustee of the
typewritten Notes representing the Book-Entry Notes by the Clearing Agency,
accompanied by registration instructions, the Issuer shall execute and the
Indenture Trustee shall authenticate the Definitive Notes in accordance with the
instructions of the Clearing Agency. None of the Issuer, the Note Registrar or
the Indenture Trustee shall be liable for any delay in delivery of such
instructions and may conclusively rely on, and shall be protected in relying on,
such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee
shall recognize the Holders of the Definitive Notes as Noteholders. The
Indenture Trustee, Issuer and Administrator shall not be liable for any
inability to locate a qualified successor Clearing Agency. From and after the
date of issuance of Definitive Notes, all notices to be given to Noteholders
will be mailed thereto at their addresses of record in the Note Register as of
the relevant Record Date. Such notices will be deemed to have been given as of
the date of mailing.

        SECTION 2.13. Tax Treatment. The Issuer has entered into this Indenture,
and the Notes will be issued, with the intention that, for federal, state and
local income, single business and franchise tax purposes, the Notes will qualify
as indebtedness of the Issuer secured by the Trust Estate or, for periods during
which there is a single beneficial owner of the Certificates, indebtedness of
the Certificateholder issued by the Trust Estate. The Issuer, by entering into
this Indenture, and each Noteholder, by its acceptance of a Note (and each Note
Owner by its

                                       17
<PAGE>   25

acceptance of an interest in the applicable Book-Entry Note), agree to treat the
Notes for federal, state and local income, single business and franchise tax
purposes as indebtedness of the Issuer.

                                   ARTICLE III

                                    Covenants

        SECTION 3.01. Payment of Principal and Interest. In accordance with the
terms of this Indenture, the Issuer will duly and punctually (i) pay the
principal of and interest, if any, on the Notes in accordance with the terms of
the Notes and (ii) cause the Servicer to direct the Indenture Trustee to release
from the Collection Account all other amounts distributable or payable from the
Owner Trust Estate under the Trust Agreement, the Sale and Servicing Agreement
and the Administration Agreement. Without limiting the foregoing and in order to
fulfill such obligations, pursuant to Sections 8.02 and 8.03 hereof, the Issuer
will cause the Servicer to direct the Indenture Trustee to apply all amounts on
deposit in the Collection Account, the Reserve Account and the Yield Supplement
Account on a Distribution Date deposited therein pursuant to the Sale and
Servicing Agreement (i) (a) for the benefit of the Class A-1 Notes, to the Class
A-1 Noteholders, (b) for the benefit of the Class A-2 Notes, to the Class A-2
Noteholders, (c) for the benefit of the Class A-3 Notes, to the Class A-3
Noteholders, and (d) for the benefit of the Class B Notes, to the Class B
Noteholders, and (ii) for the benefit of the Certificateholders, to or as
directed by the Owner Trustee or the Administrator, as set forth in Section
5.06, 5.07 and 5.08 of the Sale and Servicing Agreement. Amounts properly
withheld under the Code by any Person from a payment to any Noteholder or
Certificateholder of interest and/or principal shall be considered as having
been paid by the Issuer to such Noteholder or Certificateholder for all purposes
of this Indenture.

        SECTION 3.02. 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 [_____________] 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 3.03. Money for Payments To Be Held in Trust. As provided in
Sections 8.02 and 8.03, all payments of amounts due and payable with respect to
any Notes that are to be made from amounts withdrawn from the Collection
Account, [the Accumulation Account,] the Reserve Account or the Yield Supplement
Account pursuant to Sections 8.02 and 8.03 shall be made on behalf of the Issuer
by the Indenture Trustee or by the Paying Agent, and no amounts so withdrawn
from such accounts for payments of Notes shall be paid over to the Issuer, the
Owner Trustee or the Administrator except as provided in this Section.

        On or before each Distribution Date, the Issuer shall deposit in the
Collection Account or, in accordance with the Sale and Servicing Agreement,
cause to be deposited (including the

                                       18
<PAGE>   26

provision of instructions to the Indenture Trustee to make any required
withdrawals from the Reserve Account or the Yield Supplement Account and to
deposit such amounts in the Collection Account), an aggregate sum sufficient to
pay the amounts then becoming due under the Notes[, the Interest Rate Swap
Agreement] and the Certificates, such sum to be held in trust for the benefit of
the Persons entitled thereto, and (unless the Paying Agent is the Indenture
Trustee) shall promptly notify the Indenture Trustee of its action or failure so
to act.

        The Indenture Trustee, as Paying Agent, hereby agrees with the Issuer
that it will, and the Issuer will cause each Paying Agent other than the
Indenture Trustee, as a condition to its acceptance of its appointment as Paying
Agent, to execute and deliver to the Indenture Trustee an instrument in which
such Paying Agent shall agree with the Indenture Trustee, subject to the
provisions of this Section, that such Paying Agent will:

        (a) hold all sums held by it for the payment of amounts due with respect
to the Notes or Certificates or for release to the Issuer for payment on the
Certificates 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 or release such sums to such Persons as herein provided;

        (b) 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 or the release of
any amounts to the Issuer to be paid to the Certificateholders;

        (c) 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 Paying Agent;

        (d) immediately resign as a Paying Agent and forthwith pay to the
Indenture Trustee all sums held by it in trust for the payment of Notes (or for
release to the Issuer) if at any time it ceases to meet the standards required
to be met by a Paying Agent at the time of its appointment; and

        (e) comply with all requirements of the Code with respect to the
withholding from any payments made by it on any Notes or Certificates (or
assisting the Issuer to withhold from payment to the Certificateholders) of any
applicable withholding taxes imposed thereon and with respect to any applicable
reporting requirements in connection therewith.

        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 Paying Agent to pay to the Indenture Trustee all sums held in
trust by such 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 Paying Agent; and
upon such payment by any Paying Agent to the Indenture Trustee, such Paying
Agent shall be released from all further liability with respect to such money.

        Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed after such
amount has become due and payable and after the Indenture Trustee has taken the
steps described in this paragraph shall be discharged from

                                       19
<PAGE>   27

such trust and be paid to Children's Hospital Los Angeles upon presentation
thereto of an Issuer Request; and the Holder of such Note shall thereafter, as
an unsecured general creditor, look only to the Issuer for payment thereof, and
all liability of the Indenture Trustee or such Paying Agent with respect to such
trust money shall thereupon cease. In the event that any Noteholder shall not
surrender its Notes for retirement within six months after the date specified in
the written notice of final payment described in Section 2.07, the Indenture
Trustee will give a second written notice to the registered Noteholders that
have not surrendered their Notes for final payment and retirement. If within one
year after such second notice any Notes have not been surrendered, the Indenture
Trustee shall, at the expense and direction of the Issuer, cause to be published
once, in a newspaper published in the English language, customarily published on
each Business Day and of general circulation in The City of New York, notice
that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be paid to Children's
Hospital Los Angeles. The Indenture Trustee shall also adopt and employ, at the
expense and direction of the Issuer, any other reasonable means of notification
of such repayment specified by the Issuer or the Administrator.

        SECTION 3.04. Existence. The Issuer will keep in full effect its
existence, rights and franchises as a business 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 Collateral and each other
instrument or agreement included in the Trust Estate or the Owner Trust Estate.

        SECTION 3.05. Protection of Trust Estate. The Issuer will from time to
time 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:

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

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

        (c) enforce any of the Collateral; or

        (d) preserve and defend title to the Trust Estate and the rights of the
Indenture Trustee[, the Swap Counterparty] and the Noteholders in such Trust
Estate against the claims of all persons and parties.

        The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute any financing statement, continuation statement or
other instrument required to be executed pursuant to this Section 3.05.

                                       20
<PAGE>   28

        SECTION 3.06. Opinions as to Trust Estate.

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

        (b) As and when specified in Section 10.02(h) of the Sale and Servicing
Agreement, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the execution, recording, filing or re-recording and
refiling of this Indenture, any indentures supplemental hereto, any financing
statements and continuation statements and any other requisite documents
necessary to maintain the lien and security interest created by this Indenture
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 execution, recording, filing or re-recording and refiling of this
Indenture, any indentures supplemental hereto, any financing statements and
continuation statements and any other documents that will, in the opinion of
such counsel, be required to maintain the lien and security interest of this
Indenture until the date in the following calendar year on which such Opinion of
Counsel must again be delivered.

        SECTION 3.07. 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 Trust Estate 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
expressly provided in the Basic Documents.

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

        (c) The Issuer will punctually perform and observe all of its
obligations and agreements contained in the Basic Documents and in the
instruments and agreements included in the Trust Estate, including but not
limited to filing or causing to be filed all UCC financing statements and
continuation statements required to be filed by the terms of the Trust
Agreement, this Indenture and the Sale and Servicing Agreement in accordance
with and within the time periods provided for herein and therein.

        (d) If an Authorized Officer of the Issuer shall have knowledge of the
occurrence of a Servicer Default under the Sale and Servicing Agreement, the
Issuer shall promptly notify

                                       21
<PAGE>   29

the Indenture Trustee and the Rating Agencies thereof, and shall specify in such
notice the action, if any, the Issuer is taking with respect of such default. If
a Servicer Default shall arise from the failure of the Servicer to perform any
of its duties or obligations under the Sale and Servicing Agreement with respect
to the Receivables, the Issuer shall take all reasonable steps available to it
to remedy such failure.

        (e) As promptly as possible after the giving of notice of termination to
the Servicer of the Servicer's rights and powers pursuant to Section 8.01 of the
Sale and Servicing Agreement, the Indenture Trustee shall appoint a successor
servicer (the "Successor Servicer"), and such Successor Servicer shall accept
its appointment by a written assumption in a form acceptable to the Indenture
Trustee. In the event that a Successor Servicer has not been appointed and
accepted its appointment as set forth in Section 8.02 of the Sale and Servicing
Agreement, the Indenture Trustee without further action shall automatically be
appointed the Successor Servicer and shall thereafter be entitled to the Total
Servicing Fee. Notwithstanding the above, the Indenture Trustee shall, if it
shall be legally unable so to act, appoint or petition a court of competent
jurisdiction to appoint, and the predecessor Servicer, if no successor Servicer
has been appointed at the time the predecessor Servicer has ceased to act, may
petition a court of competent jurisdiction to appoint, any established
institution having a net worth of not less than $100,000,000 and whose regular
business shall include the servicing of automobile and/or light-duty truck
receivables, as the successor to the Servicer under the Sale and Servicing
Agreement. Upon such appointment, the Indenture Trustee will be released from
the duties and obligations of acting as Successor Servicer, such release
effective upon the effective date of the servicing agreement entered into
between the Successor Servicer and the Issuer.

        In connection with any such appointment, the Indenture Trustee may make
such arrangements for the compensation of such successor as it and such
Successor Servicer shall agree, subject to the limitations set forth below and
in the Sale and Servicing Agreement, and in accordance with Section 8.02 of the
Sale and Servicing Agreement, the Issuer shall enter into an agreement with such
Successor Servicer for the servicing of the Receivables (such agreement to be in
form and substance satisfactory to the Indenture Trustee). If the Indenture
Trustee shall succeed to the Servicer's duties as servicer of the Receivables as
provided herein, it shall do so in its individual capacity and not in its
capacity as Indenture Trustee and, accordingly, the provisions of Article VI
hereof shall be inapplicable to the Indenture Trustee in its duties as Successor
Servicer and the servicing of the Receivables. In case the Indenture Trustee
shall become the Successor Servicer, the Indenture Trustee shall be entitled to
appoint as a subservicer any one of its affiliates, provided that the Indenture
Trustee, in its capacity as Successor Servicer, shall remain fully liable for
the actions and omissions of such Affiliate.

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

        (g) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees (i) that it will not, without the
prior written consent of the Indenture Trustee and the Holders of the
Controlling Class of Notes representing a majority in Outstanding Amount of

                                       22
<PAGE>   30

such Class (excluding for such purposes the outstanding principal amount of any
Notes held of record or beneficially owned by NMAC, [NARC][NARC II] or any of
their Affiliates, unless at such time, all of the Notes of such Class are held
of record or beneficially owned by [NARC][NARC II], NMAC or any of their
Affiliates), amend, modify, waive, supplement, terminate or surrender, or agree
to any amendment, modification, waiver, supplement, termination or surrender of,
the terms of any Collateral (except to the extent otherwise provided in the Sale
and Servicing Agreement) or the Basic Documents, or waive timely performance or
observance by the Servicer or the Seller under the Sale and Servicing Agreement;
and (ii) that any such amendment shall not (A) increase or reduce in any manner
the amount of, or accelerate or delay the timing of, collections of payments on
the Receivables or distributions that are required to be made for the benefit of
the Noteholders or change the Interest Rate or the Specified Reserve Account
Balance (except as otherwise provided in the Basic Documents), in each case
without the consent of each of the "adversely affected" Noteholders, or (B)
reduce the aforesaid percentage of the Notes that is required to consent to any
such amendment, without the consent of the Holders of all the outstanding Notes.
If any such amendment, modification, supplement or waiver shall be so consented
to by the Indenture Trustee or such Holders, the Issuer agrees, promptly
following a request by the Indenture Trustee to agree to such amendment and to
execute and deliver, in its own name and at its own expense, such agreements,
instruments, consents and other documents as the Indenture Trustee may deem
necessary or appropriate in the circumstances to implement such amendment and to
cause the relevant Basic Documents, as amended, to be enforceable against the
Issuer. For the purposes of clause (ii) above, an amendment will be deemed not
to "adversely affect" a Noteholder of any Class only if each Rating Agency
confirms that such amendment will not result in a reduction or withdrawal of its
rating on such Class of Notes.

        SECTION 3.08. Negative Covenants. So long as any Notes are Outstanding,
the Issuer shall not:

        (a) except as expressly permitted by Basic Documents, sell, transfer,
exchange or otherwise dispose of any of the properties or assets of the Issuer,
including those included in the Trust Estate, unless directed to do so by the
Indenture Trustee;

        (b) 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 Trust Estate;

        (c) except as may be expressly permitted hereby, (A) permit the validity
or effectiveness of this Indenture to be impaired, or permit the lien of this
Indenture to be amended, hypothecated, subordinated, terminated or discharged,
or permit any Person to be released from any covenants or obligations with
respect to the Notes under this Indenture, (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 Trust Estate or any part thereof or any interest therein or the proceeds
thereof (other than tax liens, mechanics' liens and other liens that arise by
operation of law, in each case on any of the Financed Vehicles and arising
solely as a result of an action or omission of the related Obligor), (C) permit
the lien of this Indenture not to constitute a valid first priority (other than
with respect to any such tax,

                                       23
<PAGE>   31

mechanics' or other lien) security interest in the Trust Estate, or (D) dissolve
or liquidate in whole or in part; or

        (d) assume or incur any indebtedness other than the Notes or as
expressly contemplated by this Indenture (in connection with the obligation to
reimburse Advances from the Trust Estate, or to pay expenses from the Trust
Estate) or by the Basic Documents as in effect on the date hereof.

        SECTION 3.09. Annual Statement as to Compliance. The Issuer will cause
the Servicer to deliver to the Indenture Trustee concurrently with its delivery
thereof to the Issuer the annual statement of compliance described in Section
4.09 of the Sale and Servicing Agreement. In addition, on the same date annually
upon which such annual statement of compliance is to be delivered by the
Servicer, the Issuer shall deliver to the Indenture Trustee an Officer's
Certificate stating, as to the Authorized Officer signing such Officer's
Certificate, that:

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

        (b) 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 its
compliance with any such condition or covenant, specifying each such default
known to such Authorized Officer and the nature and status thereof.

        SECTION 3.10. Issuer May Consolidate, etc., Only on Certain Terms.

        (a) The Issuer shall not consolidate or merge with or into any other
Person, unless:

                (i) the Person (if other than the Issuer) formed by or surviving
        such consolidation or merger shall be a Person organized and existing
        under the laws of the United States of America or any State or the
        District of Columbia and shall expressly assume, by an indenture
        supplemental hereto, executed and delivered to the Indenture Trustee, in
        form satisfactory to the Indenture Trustee, the duty to make 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) no Rating Agency shall have notified the Indenture Trustee
        and the Owner Trustee that such transaction might or would result in the
        removal or reduction of the rating then assigned thereby to any Class of
        Notes;

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

                                       24
<PAGE>   32

                (v) any action that is necessary to maintain each lien and
        security interest created by the Trust Agreement, the Sale and Servicing
        Agreement or this Indenture shall have been taken; and

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

        (b) The Issuer shall not convey or transfer any of its properties or
assets, including those included in the Trust Estate, to any Person, unless:

                (i) the Person that acquires by conveyance or transfer such
        properties and assets of the Issuer 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 or the District of Columbia, (B) expressly
        assume, by an indenture supplemental hereto, executed and delivered to
        the Indenture Trustee, in form satisfactory to the Indenture Trustee,
        the duty to make due and punctual payment of the principal of and
        interest on all Notes [and all obligations under the Interest Rate Swap
        Agreement] and the performance or observance of every agreement and
        covenant of this Indenture on the part of the Issuer to be performed or
        observed, all as provided herein, (C) expressly agrees by means of such
        supplemental indenture that all right, title and interest so conveyed or
        transferred shall be subject and subordinate to the rights of Holders of
        the Notes [and the Swap Counterparty], (D) unless otherwise provided in
        such supplemental indenture, expressly agrees to indemnify, defend and
        hold harmless the Issuer, the Owner Trustee and the Indenture Trustee
        against and from any loss, liability or expense arising under or related
        to this Indenture and the Notes, and (E) expressly agrees by means of
        such supplemental indenture that such Person (or if a group of Persons,
        then one specified Person) shall make all filings that counsel
        satisfactory to such purchaser or transferee and the Indenture Trustee
        determines must be made with (1) the Commission (and any other
        appropriate Person) required by the Exchange Act or the appropriate
        authorities in any state in which the Notes have been sold pursuant to
        any qualification or exemption under the securities or "blue sky" laws
        of such state, in connection with the Notes or (2) the Internal Revenue
        Service or the relevant state or local taxing authorities of any
        jurisdiction;

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

                (iii) no Rating Agency shall have notified the Indenture Trustee
        and the Owner Trustee that such transaction might or would result in the
        removal or reduction of the rating then assigned thereby to any Class of
        Notes;

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

                                       25
<PAGE>   33

                (v) any action that is necessary to maintain each lien and
        security interest created by the Trust Agreement, the Sale and Servicing
        Agreement or this Indenture shall have been taken; and

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

        SECTION 3.11. Successor or Transferee.

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

        (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.10(b), Nissan Auto Receivables [____-_] Owner
Trust 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 and
the Certificates immediately upon the delivery of written notice to the
Indenture Trustee stating that Nissan Auto Receivables [____-_] Owner Trust is
to be so released.

        SECTION 3.12. No Other Business. Unless and until the Issuer shall have
been released from its duties and obligations hereunder, the Issuer shall not
engage in any business other than financing, purchasing, owning, selling and
managing the Receivables in the manner contemplated by the Basic Documents and
activities incidental thereto

        SECTION 3.13. No Borrowing. Unless and until the Issuer shall have been
released from its duties and obligations hereunder, the Issuer shall not issue,
incur, assume, guarantee or otherwise become liable, directly or indirectly, for
any indebtedness except for the Notes or other obligations permitted hereunder
(including the obligation to reimburse Advances or certain expenses of the
Servicer) or under another Basic Document (including indemnification expenses of
the Issuer and certain fees and expenses of the Administrator).

        SECTION 3.14. Servicer's Notice Obligations. The Issuer shall cause the
Servicer to comply with all of its duties and obligations with respect to the
preparation of reports, the delivery of Officer's Certificates and Opinions of
Counsel and the giving of instructions and notices under the Sale and Servicing
Agreement (including, but not limited to, under Sections 4.08, 4.09, 4.11, 4.13,
5.09 and Article IX thereof).

        SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities. Unless
and until the Issuer shall have been released from its duties and obligations
hereunder, 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

                                       26
<PAGE>   34

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. Unless and until the Issuer shall
have been released from its duties and obligations hereunder, 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. Removal of Administrator. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
so instructed by the Owner Trustee or the Indenture Trustee and unless each
Rating Agency shall have received 10 days' written notice thereof and shall not
have notified the Indenture Trustee, the Administrator or the Owner Trustee that
such removal might or would result in the removal or reduction of the rating
then assigned thereby to any Class of Notes or the Certificates.

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

        SECTION 3.19. Notice of Events of Default. The Issuer shall give the
Indenture Trustee and each Rating Agency prompt written notice of each Event of
Default hereunder, each default on the part of the Servicer or the Seller of its
obligations under the Sale and Servicing Agreement (including any Servicer
Defaults) and each default on the part of NMAC of its obligations under the
Purchase Agreement. The Indenture Trustee shall notify each Noteholder of record
in writing of any Event of Default promptly upon a Responsible Officer obtaining
actual knowledge thereof. Such notices will be provided in accordance with
Section 2.11.

        SECTION 3.20. Further Instruments and Actions. Upon request of the
Indenture Trustee, 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. Calculation Agent. (i) The Issuer agrees that for so long
as any of the VPTNs are Outstanding, there shall at all times be an agent
appointed to calculate LIBOR in

                                       27
<PAGE>   35

respect of each Interest Period (the "Calculation Agent"). The Issuer has
initially appointed [____________________________] as Calculation Agent for
purposes of determining LIBOR for each Interest Period. The Calculation Agent
may be removed by the Issuer at any time. If the Calculation Agent is unable or
unwilling to act as such or is removed by the Issuer, the Issuer shall promptly
appoint as a replacement Calculation Agent a lending bank which is engaged in
transactions in Eurodollar deposits in the international Eurodollar market and
which does not control or is not controlled by or under common control with the
Issuer or its Affiliates. The Calculation Agent may not resign its duties
without a successor having been duly appointed.

                (ii) The Calculation Agent shall be required to agree that, as
soon as possible after [___] (London time) on each LIBOR Determination Date, but
in no event later than [___] (London Time) on the Business Day immediately
following each LIBOR Determination Date, the Calculation Agent shall calculate
the interest rate for each VPTN for the related Interest Period and the amount
of interest payable (rounded to the nearest cent, with half a cent being rounded
upwards) on the related Distribution Date, and shall communicate such rates and
amounts to the Administrator, the Indenture Trustee and the Servicer. The
Calculation Agent shall also specify to the Administrator and the Indenture
Trustee the quotations upon which the interest rates have been calculated and in
any event the Calculation Agent shall notify the Indenture Trustee and the
Servicer before [___] (London time) on each LIBOR Determination Date that
either: (A) it has determined or is in the process of determining the interest
rates for the VPTNs and the amount of interest due on such Notes, or (ii) it has
not determined and is not in the process of determining the interest rates for
the VPTNs and the amount of interest due on such Notes, together with its
reasons therefore. The determination of the interest rates and interest amounts
by the Calculation Agent shall (in the absence of manifest error) be final and
binding upon all parties.

]

                                   ARTICLE IV

                           Satisfaction and Discharge

        SECTION 4.01. 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 3.03, 3.04, 3.05, 3.08,
3.10, 3.12 and 3.13, (v) the rights, obligations and immunities of the Indenture
Trustee hereunder (including the rights of the Indenture Trustee under Section
6.07 and the obligations of the Indenture Trustee under Sections 3.03 and 4.02),
and (vi) the rights of the Noteholders and the Certificateholders 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 (1) all Notes theretofore authenticated and delivered (other
than Notes that have been destroyed, lost or stolen and that have been replaced
or paid as provided in

                                       28
<PAGE>   36

Section 2.05 and 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 3.03) have been
delivered to the Indenture Trustee for cancellation or (2) all Notes not
theretofore delivered to the Indenture Trustee for cancellation have become due
and payable or will become due and payable within one year (either because the
Final Scheduled Distribution Date for the Class B Notes is within one year or
because the Indenture Trustee has received notice of the exercise of the option
granted pursuant to Section 9.01 of the Sale and Servicing Agreement) and the
Issuer has irrevocably deposited or caused to be irrevocably deposited with the
Indenture Trustee cash or direct obligations of or obligations guaranteed by the
United States of America (which will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to the
Indenture Trustee for cancellation when due;

        (b) the Issuer has paid or caused to be paid all other sums payable
hereunder [and under the Interest Rate Swap Agreement] by the Issuer; and

        (c) the Issuer has delivered to the Indenture Trustee an Officer's
Certificate, an Opinion of Counsel and (if required by the TIA or the Indenture
Trustee) an Independent Certificate from a firm of certified public accountants,
each meeting the applicable requirements of Section 11.01 and, subject to
Section 11.02, each stating that all conditions precedent herein provided for
relating to the satisfaction and discharge of this Indenture have been complied
with.

        SECTION 4.02. Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Section 4.01 hereof shall be held in trust and (a)
applied by it in accordance with the provisions of the Notes and this Indenture
to the payment, either directly or through any Paying Agent, as the Indenture
Trustee may determine, to the Holders of the particular Notes for the payment of
which such moneys have been deposited with the Indenture Trustee, of all sums
due and to become due thereon for principal and interest or (b) released to the
Owner Trustee for distribution to the Certificateholders or application pursuant
to the Trust Agreement or the Sale and Servicing Agreement [and for payment to
the Swap Counterparty of all sums, if any, due or to become due to the Swap
Counterparty under and in accordance with this Indenture]; 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 4.03. Repayment of Moneys Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any 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 3.03 or 4.02 and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys.

                                       29
<PAGE>   37

                                    ARTICLE V

                                    Remedies

        SECTION 5.01. 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):

        (a) default in the payment of any interest on any Class A Note when the
same becomes due and payable, and such default shall continue for a period of
five days (so long as any Class A Notes are Outstanding, each Holder of any
Class B Note or the Note Owner of any such Note by such Holder's acceptance of
such Note or beneficial interest therein, as the case may be, shall be deemed to
have consented to the delay in payment of interest on such Class of Notes and to
have waived its right to institute suit for enforcement of any such payment);

        (b) after the Class A Notes have been paid in full, default in the
payment of any interest on any Class B Note when the same becomes due and
payable, and such default shall continue for a period of five days (so long as
the Class B Notes are Outstanding);

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

        (d) 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) which shall continue or not be cured for a
period of 90 days after there shall have been given, by registered or certified
mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture
Trustee by the Holders of at least 25% of the Outstanding Amount of the Notes,
acting together as a single class, a written notice specifying such default or
incorrect representation or warranty and requiring it to be remedied and stating
that such notice is a notice of Default hereunder;

        (e) any representation or warranty of the Issuer made in this Indenture
or in any certificate or other writing delivered pursuant hereto or in
connection herewith shall prove to have been incorrect in any material respect
as of the time when the same shall have been made, and such default shall
continue or not be cured, or the circumstance or condition in respect of which
such misrepresentation or warranty was incorrect shall not have been eliminated
or otherwise cured, for a period of 30 days after there shall have been given,
by registered or certified mail, to the Issuer by the Indenture Trustee or to
the Issuer and the Indenture Trustee by the Holders of at least 25% of the
Outstanding Amount of the Notes, acting together as a single Class, a written
notice specifying such default or incorrect representation or warranty and
requiring it to be remedied and stating that such notice is a notice of Default
hereunder;

        (f) 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 Trust Estate in an involuntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or

                                       30
<PAGE>   38

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 Trust Estate, or ordering the winding-up or liquidation of the
Issuer's affairs, and such decree or order shall remain unstayed and in effect
for a period of 90 consecutive days; or

        (g) 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 Trust Estate, or the making by the Issuer of any general
assignment for the benefit of creditors, or the failure by the Issuer generally
to pay its debts as such debts become due, or the taking of any action by the
Issuer in furtherance of any of the foregoing.

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

        SECTION 5.02. Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee or the Holders of the Controlling Class of Notes representing
not less than a majority of the Outstanding Amount of such Class (excluding for
such purposes the outstanding principal amount of any Notes held of record or
beneficially owned by NMAC, [NARC][NARC II] or any of their Affiliates, unless
at such time all of the Notes of such Class are held of record or beneficially
owned by [NARC][NARC II], NMAC or any of their Affiliates) may declare all the
Notes to be immediately due and payable, by a notice in writing to the Issuer
(and to the Indenture Trustee if given by Noteholders), and upon any such
declaration the unpaid principal amount of such Notes, together with accrued and
unpaid interest thereon through the date of acceleration, shall become
immediately due and payable. [In the event of such declaration or automatic
acceleration, the Indenture Trustee shall give prompt written notice to the Swap
Counterparty.]

        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
Holders of the Controlling Class of Notes representing a majority of the
Outstanding Amount of such Class (excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by NMAC,
[NARC][NARC II] or any of their Affiliates, unless at such time all of the Notes
of such Class are held of record or beneficially owned by [NARC][NARC II], NMAC
or any of their Affiliates), by written notice to the Issuer and the Indenture
Trustee, may rescind and annul such declaration and its consequences if:

                                       31
<PAGE>   39

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

                (i) all payments of principal of and interest on the respective
        Classes of Notes and all other amounts that would then be due hereunder
        or upon such Notes [and pursuant to the Interest Rate Swap Agreement] if
        the Event of Default giving rise to such acceleration had not occurred;
        and

                (ii) 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

        (b) all Events of Default, other than the nonpayment of the principal of
the Notes that has become due solely by such acceleration, have been cured or
waived as provided in Section 5.12.

        No such rescission shall affect any subsequent default or impair any
right consequent thereto.

        SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

        (a) The Issuer covenants that if (i) default is made (A) in the payment
of any interest on any Class A Note, so long as any amounts remain unpaid with
respect to the Class A Notes, or (B) in the payment of any interest on any Class
B Note, after the Class A Notes have been paid in full, 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,
upon demand of the Indenture Trustee, pay to the Indenture Trustee, for the
benefit of the Holders of the Notes, the whole amount then due and payable on
such Class of Notes for principal and interest, with interest upon the overdue
principal and, to the extent payment at such rate of interest shall be legally
enforceable, upon overdue installments of interest at the rate borne by the
Notes and in addition thereto such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel.

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

        (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may, as more particularly provided in Section 5.04, in its discretion,
proceed to protect and enforce its rights and the rights of the Noteholders[,
the Swap Counterparty] and, incidentally thereto, the Certificateholders, by
such appropriate Proceedings as the Indenture Trustee shall deem most effective
to protect and enforce any such rights, whether for the specific enforcement of
any

                                       32
<PAGE>   40

covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy or legal or equitable
right vested in the Indenture Trustee by this Indenture or by law.

        (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, then, 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, the Indenture Trustee 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 the
        Certificates, and to file such other papers or documents as may be
        necessary or advisable in order to have the claims of the Indenture
        Trustee (including any claim for reasonable compensation to the
        Indenture Trustee and each predecessor Indenture Trustee, and their
        respective agents, attorneys and counsel, and for reimbursement of all
        expenses and liabilities incurred, and all advances made, by the
        Indenture Trustee and each predecessor Indenture Trustee, except as a
        result of negligence or bad faith)[, the Swap Counterparty] and of the
        Noteholders or the Certificateholders allowed in such Proceedings;

                (ii) unless prohibited by applicable law and regulations, to
        vote on behalf of the Holders of Notes [and the Swap Counterparty] 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[, the Swap
        Counterparty] or the Certificateholders 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[, the Swap Counterparty] or the Holders of Notes
        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 [and by the Swap Counterparty] 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 [or to
        the Swap Counterparty], to pay to the Indenture Trustee such amounts as
        shall be sufficient to cover reasonable compensation to the Indenture
        Trustee, each predecessor

                                       33
<PAGE>   41

        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.

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

        (f) All rights of action and of asserting claims under this Indenture,
or under any of the Notes, may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof in any trial or other
Proceedings relative thereto, and any such action or 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[, the Swap Counterparty] and,
incidentally thereto, for the benefit of the Certificateholders.

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

        SECTION 5.04. Remedies; Priorities.

        (a) If an Event of Default shall have occurred and be continuing and
result in the acceleration of the Notes, the Indenture Trustee shall make
payments on the Notes and to the Owner Trustee as set forth in Section 5.06(d)
of the Sale and Servicing Agreement, rather than pursuant to Section 5.06(c)
thereof.

        (b) If the Indenture Trustee, in compliance with Section 5.04(a), is
deemed to have a conflict of interest under the TIA and is required to resign as
Indenture Trustee hereunder, the Issuer shall, pursuant to Section 6.08, cause
the Servicer to appoint a successor Indenture Trustee:

                (i) so long as any amounts remain unpaid with respect to the
        Class A Notes, only the Indenture Trustee for the Class A Noteholders
        shall be entitled to exercise any remedies under this Indenture; and

                (ii) after the Class A Notes have been paid in full, only the
        Indenture Trustee for the Class B Noteholders shall be entitled to
        exercise any remedies under this Indenture.

                                       34
<PAGE>   42

        (c) In accordance with Section 5.04(b), if an Event of Default shall
have occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Section 5.05):

                (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 Trust Estate;

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

                (iv) sell the Trust Estate or any portion thereof or rights or
        interest therein, at one or more public or private sales called and
        conducted in any manner permitted by law; provided, however, that the
        Indenture Trustee may not sell or otherwise liquidate the Trust Estate
        following an Event of Default, other than an Event of Default described
        in Section 5.01(a) or (b), unless (A) the Holders of 100% of the
        Outstanding Amount of the Controlling Class of Notes consent thereto
        (but excluding for purposes of such vote all Notes held or beneficially
        owned by NMAC, [NARC][NARC II] or any of their Affiliates, unless at
        such time all of the Notes of such Class are held or beneficially owned
        by NMAC, [NARC][NARC II] and their Affiliates), or (B) the proceeds of
        such sale or liquidation distributable to the Noteholders are sufficient
        to discharge in full all amounts then due and unpaid upon such Notes for
        principal and interest, or (C) the Indenture Trustee determines that the
        Trust Estate may not continue to provide sufficient funds on an ongoing
        basis to make all payments 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 obtains the consent of Holders of a
        66 2/3% of the Outstanding Amount of the Controlling Class of Notes (but
        excluding for purposes of such vote any Notes held or beneficially owned
        by NMAC, [NARC][NARC II] and their Affiliates, unless at such time all
        of the Notes of such Class are held or beneficially owned by NMAC,
        [NARC][NARC II] or any of their Affiliates). In determining such
        sufficiency or insufficiency with respect to clause (B) and (C), the
        Indenture Trustee may, but need not, obtain and rely upon an opinion of
        an Independent investment banking or accounting firm of national
        reputation as to the feasibility of such proposed action and as to the
        sufficiency of the Trust Estate for such purpose.

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

        SECTION 5.05. Optional Preservation of the Receivables. If the Notes
have been declared to be due and payable under Section 5.02 following an Event
of Default and such

                                       35
<PAGE>   43

declaration and its consequences have not been rescinded and annulled, the
Indenture Trustee may, unless otherwise directed by the Holders of the
Controlling Class of Notes representing at least a majority of the Outstanding
Amount such Notes (excluding from such action and calculation any Notes held by
NMAC, [NARC][NARC II] or any of their Affiliates unless at such time all of the
Notes of such Class are held of record or beneficially owned by [NARC][NARC II],
NMAC or any of their Affiliates), but need not, elect to maintain possession of
the Trust Estate and direct the Issuer, Servicer and Administrator not to take
steps to liquidate the Receivables. It is the desire of the parties hereto and
the Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes, and the Indenture Trustee shall take
such desire into account when determining whether or not to maintain possession
of the Trust Estate. In determining whether to maintain possession of the Trust
Estate, the Indenture Trustee may, but need not, obtain and rely upon an opinion
of an Independent investment banking or accounting firm of national reputation
as to the feasibility of such proposed action and as to the sufficiency of the
Trust Estate for such purpose.

        SECTION 5.06. Limitation of Suits. No Holder of any Note 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 such Holder has previously given written notice to the
Indenture Trustee of a continuing Event of Default, and:

        (a) the Event of Default arises from the Servicer's failure to remit
payments when due; or

        (b) the Holders of the Controlling Class of Notes representing not less
than 25% of the Outstanding Amount of such Class (excluding for such purpose the
outstanding principal amount of any Notes held of record or beneficially owned
by [NARC][NARC II], NMAC or any of their Affiliates unless at such time all of
the Notes of such Class are held of record or beneficially owned by [NARC][NARC
II], NMAC or any of their Affiliates) 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 and have offered to the Indenture
Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in complying with such request, the Indenture Trustee for 60 days after
its receipt of such notice, request and offer of indemnity has failed to
institute such Proceedings, and no direction inconsistent with that written
request has been given to the Indenture Trustee during the 60-day period by the
holders of a majority in principal amount of those outstanding Notes (or
relevant class or classes of Notes).

        It is understood and intended that no one or more Holders of Notes 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 Holders of Notes or to obtain or to seek to obtain priority or preference
over any other Holders 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 Holders of Notes,
each representing less than a majority of the Outstanding Amount of the Notes,
the Indenture Trustee in its sole discretion may

                                       36
<PAGE>   44

determine what action, if any, shall be taken, notwithstanding any other
provisions of this Indenture.

        SECTION 5.07. Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in 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 and in this
Indenture (in each case with reference to the calculations to be made pursuant
to the Sale and Servicing Agreement) and to institute suit for the enforcement
of any such payment, and such right shall not be impaired without the consent of
such Holder, provided that each Holder or Note Owner of a Class B Note will be
deemed to have consented to any delay in the payment thereto of any interest due
thereon that is in accordance with the payment of amounts pursuant to Section
5.06 of the Sale and Servicing Agreement for so long as any Class A Note is
Outstanding.

        SECTION 5.08. Restoration of Rights and Remedies. If the Indenture
Trustee or any Noteholder has instituted any Proceeding to enforce any right or
remedy under this Indenture and such Proceeding has been discontinued or
abandoned for any reason or has been determined adversely to the Indenture
Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in
such Proceeding, be restored severally and respectively to their former
positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been
instituted.

        SECTION 5.09. Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

        SECTION 5.10. Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee or any 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 or to the Noteholders may be exercised from time to
time, and as often as may be deemed expedient, by the Indenture Trustee or by
the Noteholders, as the case may be.

        SECTION 5.11. Control by Noteholders. The Holders of the Controlling
Class of Notes representing a majority of the Outstanding Amount of such Class
(excluding for such purpose the outstanding principal amount of any Notes held
of record or beneficially owned by [NARC][NARC II], NMAC or any of their
Affiliates, unless of such time all of the Notes of such Class are held of
record or beneficially owned by [NARC][NARC II], NMAC or any of their
Affiliates), shall have the right to direct the time, method and place of
conducting any

                                       37
<PAGE>   45

Proceeding for any remedy available to the Indenture Trustee with respect to the
Notes or exercising any trust or power conferred on the Indenture Trustee;
provided that:

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

        (b) any direction to the Indenture Trustee to sell or liquidate the
Trust Estate shall be by Holders of Notes representing not less than the
applicable percentage of the Outstanding Amount of the relevant Class set forth
in Section 5.04(c)(iv); and

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

        Notwithstanding the rights of Noteholders set forth in this Section,
subject to Section 6.01, 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 5.12. Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 or the
liquidation or sale of the Trust Estate pursuant to Section 5.04, the Holders of
the Controlling Class of Notes representing a majority of the Outstanding Amount
of such Class (excluding for such purposes the outstanding principal amount of
any Notes held of record or beneficially owned by NMAC, [NARC][NARC II] or any
of their Affiliates unless at such time all of the Notes are held of record or
beneficially owned by [NARC][NARC II], NMAC or any of their Affiliates) may
waive any past Default or Event of Default and its consequences except a Default
or Event of Default in (a) the deposit of collections or other required amounts,
(b) any required payment from amounts held in Accounts in respect of amounts due
on the Notes, (c) payment of principal or interest on the Notes, or (d) an Event
of Default in respect of a covenant or provision hereof that 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.

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

        SECTION 5.13. Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note or Note Owner by such Holder's acceptance of
such Note or beneficial interest therein, as the case may be, shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the
enforcement of any right or remedy under this Indenture, or in any suit against
the Indenture Trustee for any action taken, suffered or omitted by it as
Indenture Trustee, the filing by any party litigant in such suit of an
undertaking to pay the costs of such suit, and that such court may in its
discretion assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in such suit, having due regard to the merits

                                       38
<PAGE>   46

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 Noteholder of the Controlling
Class of Notes, or a group of Noteholders of such Class, in each case holding in
the aggregate more than 10% of the Outstanding Amount of such Class, (c) any
suit instituted by any Noteholder for the enforcement of the payment of
principal of or interest on any Note on or after the respective due dates
expressed in such Note and in this Indenture.

        SECTION 5.14. Waiver of Stay or Extension Laws. The Issuer covenants (to
the extent that it may lawfully do so) that it 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 5.15. Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by
the seeking, obtaining or application of any other relief under or with respect
to this Indenture. Neither the lien of this Indenture nor any rights or remedies
of the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.04(a).

        SECTION 5.16. Performance and Enforcement of Certain Obligations.

        (a) Promptly following a request from the Indenture Trustee to do so and
at the Administrator's expense, the Issuer shall take all such lawful action as
the Indenture Trustee may request to compel or secure the performance and
observance by the Seller and the Servicer, as applicable, of each of their
obligations to the Issuer or to each other under or in connection with the Sale
and Servicing Agreement or by the Seller of its remedies under or in connection
with the Purchase Agreement, and to exercise any and all rights, remedies,
powers and privileges lawfully available to the Issuer under or in connection
with the Sale and Servicing Agreement or the Purchase Agreement to the extent
and in the manner directed by the Indenture Trustee, including the transmission
of notices of default on the part of the Seller or the Servicer thereunder and
the institution of legal or administrative actions or proceedings to compel or
secure performance by the Seller or the Servicer of each of their respective
obligations under the Sale and Servicing Agreement or the Purchase Agreement.
[In addition, promptly following a request from the Indenture Trustee to do so,
and at the Administrator's expense, the Issuer shall take all such lawful action
as the Indenture Trustee may request to compel or secure the performance and
observance by the Swap Counterparty in accordance with the Interest Rate Swap
Agreement and to exercise any and all rights, remedies, powers and privileges
lawfully available to the Issuer under or in connection with the Interest Rate
Swap Agreement to the extent and in the manner directed by the Indenture
Trustee, including the transmission of notices of default thereunder and

                                       39
<PAGE>   47

the institution of legal or administrative actions or proceedings to compel or
secure performance by the Swap Counterparty of its obligations under the
Interest Rate Swap Agreement.]

        (b) If an Event of Default has occurred and is continuing, the Indenture
Trustee may, and at the direction (which direction shall be in writing or by
telephone, confirmed in writing promptly thereafter) of the Holders of the
Controlling Class of Notes representing a majority of the Outstanding Amount of
such Class (excluding for such purposes the outstanding principal amount of any
Notes held of record or beneficially owned by NMAC, [NARC][NARC II] or any of
their Affiliates unless of such time all of the Notes of such Class are held of
record or beneficially owned by [NARC][NARC II], NMAC or any of their
Affiliates) shall, exercise all rights, remedies, powers, privileges and claims
of the Issuer against the Seller or the Servicer under or in connection with the
Sale and Servicing Agreement or the Purchase Agreement, or against the
Administrator under the Administration Agreement, including the right or power
to take any action to compel or secure performance or observance by the Seller,
the Servicer or the Administrator, of each of their obligations to the Issuer
thereunder and to give any consent, request, notice, direction, approval,
extension, or waiver thereunder and any right of the Issuer to take such action
shall be suspended. [In addition, if an Event of Default has occurred and is
continuing, the Indenture Trustee may, and at the direction (which direction
shall be in writing or by telephone, confirmed in writing promptly thereafter)
of the Holders of the Notes evidencing not less than 66-2/3% of the principal
amount of the Controlling Class of Notes shall, exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Swap Counterparty
including the right or power to take any action to compel or secure performance
or observance by the Swap Counterparty of its obligations to the Issuer under
the Interest Rate Swap Agreement and to give any consent, request, notice,
direction, approval, extension, or waiver under the Interest Rate Swap Agreement
and any right of the Issuer to take such action shall be suspended.]

                                   ARTICLE VI

                              The Indenture Trustee

        SECTION 6.01. Duties of Indenture Trustee. The Indenture Trustee, both
prior to and after the occurrence of a Servicer Default under the Sale and
Servicing Agreement, undertakes to perform such duties and only such duties as
are specifically set forth in this Indenture.

        (a) 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 on their face to the requirements
of this Indenture.

        (b) 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, its own bad faith or its own willful misfeasance; provided,
however, that:

                                       40
<PAGE>   48

                (i) 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 are specifically set forth in this Indenture,
        no implied covenants or obligations shall be read into this Indenture
        against the Indenture Trustee, the permissive right of the Indenture
        Trustee to do things enumerated in this Indenture shall not be construed
        as a duty and, in the absence of bad faith on the part of the Indenture
        Trustee, the Indenture Trustee may conclusively rely, as to the truth of
        the statements and the correctness of the opinions expressed therein,
        upon any certificates or opinions furnished to the Indenture Trustee and
        conforming on their face to the requirements of this Indenture;

                (ii) the Indenture Trustee shall not be personally liable for an
        error of judgment made in good faith by a Responsible Officer, unless it
        shall be proved that the Indenture Trustee was negligent in performing
        its duties in accordance with the terms of this Indenture; and

                (iii) the Indenture Trustee shall not be personally liable with
        respect to any action taken, suffered or omitted to be taken in good
        faith in accordance with the direction of (i) the Holders of at least a
        majority of the Outstanding Amount of the Controlling Class of Notes
        (excluding for such purposes the outstanding principal amount of any
        Notes held of record or beneficially owned by [NARC][NARC II], NMAC or
        any of their Affiliates, unless at such time all of the Notes of such
        Class are held of record or beneficially owned by [NARC], [NARC II],
        NMAC or any of their Affiliates), 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.

        (c) The Indenture Trustee shall not be required to expend or risk its
own funds or otherwise incur financial liability in the performance of any of
its duties under this Indenture, or in the exercise of any of its rights or
powers, if there shall be reasonable grounds for believing that the repayment of
such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

        (d) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables contained in the Trust, 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,
unless such disclosure is required by any applicable law or regulation or
pursuant to subpoena.

        (e) If (i) pursuant to Section 3.02 of the Sale and Servicing Agreement,
a Responsible Officer of the Indenture Trustee discovers that a representation
or warranty with respect to a Receivable was incorrect as of the time specified
with respect to such representation and warranty and such incorrectness
materially and adversely affects such Receivable, or (ii) pursuant to Section
4.06 of the Sale and Servicing Agreement, a Responsible Officer of the Indenture
Trustee discovers that a covenant of the Servicer has been breached with respect
to a Receivable that would materially and adversely affect such Receivable, the
Indenture Trustee shall give prompt written notice to the Servicer and the Owner
Trustee of such incorrectness.

                                       41
<PAGE>   49

        SECTION 6.02. Rights of Indenture Trustee.

        (a) Except as otherwise provided in Section 6.01:

                (i) the Indenture Trustee may rely and shall be protected in
        acting or refraining from acting upon any resolution, Officer's
        Certificate, certificate of an authorized signatory, certificate of
        auditors or any other 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
        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 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
        the Sale and Servicing Agreement, or to institute, conduct or defend any
        litigation under this Indenture, or in relation to this Indenture or the
        Sale and Servicing Agreement, at the request, order or direction of any
        of the Noteholders pursuant to the provisions of this Indenture or the
        Sale and Servicing Agreement, unless such Noteholders shall have offered
        to the Indenture Trustee reasonable security or indemnity against the
        costs, expenses and liabilities that may be incurred therein or thereby;

                (iv) the Indenture Trustee shall not be personally 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;

                (v) the Indenture Trustee shall not be bound to recalculate,
        reverify, or make any investigation into the facts of 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 Holders of Notes
        evidencing not less than 25% of the aggregate Outstanding Amount of the
        (1) Class A Notes, so long as any Class A Notes remain Outstanding
        (acting together as a single class) or (2) Class B Notes, after the
        Class A Notes have been paid in full, or (3) Class C Notes, after the
        Class B Notes have been paid in full; 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 is, in the opinion of the Indenture Trustee, not
        reasonably assured to the Indenture Trustee by the security afforded to
        it by the terms of this Indenture, the Indenture Trustee may require
        reasonable indemnity against such cost, expense or liability as a
        condition to so proceeding; the reasonable expense of every such
        examination shall be paid by the Administrator or, if paid by the
        Indenture Trustee, shall be reimbursed by the Administrator upon demand;
        and nothing in this clause shall derogate from the obligation of the
        Servicer to observe any applicable law prohibiting disclosure of
        information regarding the Obligors; and

                                       42
<PAGE>   50

                (vi) the Indenture Trustee may execute any of the trusts or
        powers under this Indenture or perform any duties under this Indenture
        either directly or by or through agents or attorneys or a custodian.

        (b) No Noteholder will have any right to institute any proceeding with
respect to this Indenture except upon satisfying the conditions set forth in
Section 5.06.

        SECTION 6.03. Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the Holder,
beneficial 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 Paying Agent, Note Registrar, co-registrar or co-paying agent may
do the same with like rights. However, in so doing the Indenture Trustee must
comply with Sections 6.11 and 6.12.

        SECTION 6.04. Indenture Trustee's Disclaimer. The Indenture Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Notes (other than the execution by the Indenture Trustee on behalf of the
Trust of, and the certificate of authentication on, the Notes), or of the
Certificates. The Indenture Trustee shall have no obligation to perform any of
the duties of the Servicer or the Administrator unless explicitly set forth in
this Indenture. The Indenture Trustee shall at no time have any responsibility
or liability for or with respect to the legality, validity and enforceability of
the Notes or any Receivable, any ownership interest in any Financed Vehicle, or
the maintenance of any such ownership interest, or for or with respect to the
efficacy of the Trust or its ability to generate the payments to be distributed
to Noteholders under this Indenture, including without limitation the validity
of the assignment of the Receivables to the Trust or of any intervening
assignment; the existence, condition, location and ownership of any Receivable
or Financed Vehicle; the existence and enforceability of any physical damage or
credit life or credit disability insurance; the existence and contents of any
retail installment sales contract or any computer or other record thereof; the
completeness of any retail installment sales contract; the performance or
enforcement of any retail installment sales contract; the compliance by the
Issuer with any covenant or the breach by the Issuer, Seller or Servicer of any
warranty or representation made under this Indenture or in any Basic Document or
other related document and the accuracy of any such warranty or representation
prior to the Indenture Trustee's receipt of notice or other discovery of any
noncompliance therewith or any breach thereof; the acts or omissions of the
Issuer, Seller or the Servicer; or any action by the Indenture Trustee taken at
the instruction of the Servicer, 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 willful misconduct, bad faith or negligence, no recourse shall be had
for any claim based on any provision of this Indenture, the Notes or
Certificates or assignment thereof against the institution serving as 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 Trust 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 Notes.

                                       43
<PAGE>   51

        SECTION 6.05. Notice of Defaults. If a Responsible Officer of the
Indenture Trustee knows that a Default has occurred and is continuing, the
Indenture Trustee shall mail to each Noteholder notice of such Default within 10
days of the occurrence thereof. Except in the case of a Default in payment of
principal of or interest on any Note, the Indenture Trustee may withhold such
notice if and so long as a committee of its Responsible Officers in good faith
determines that withholding the notice is in the interests of Noteholders.

        SECTION 6.06. Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver or cause to be delivered annually to each Noteholder of
record such information as may be required to enable such holder to prepare its
federal and state income tax returns. The Indenture Trustee shall also deliver
or cause to be delivered annually to each Noteholder of record a report relating
to its eligibility and qualification to continue as Indenture Trustee under this
Indenture, any amounts advanced by it under this Indenture, the amount, interest
rate and maturity date of certain indebtedness owed by the Trust to such
Indenture Trustee, in its individual capacity, the property and funds physically
held by such Indenture Trustee in its capacity as such, and any action taken by
it that materially affects the Notes and that has not been previously reported.

        SECTION 6.07. Compensation and Indemnity. The Issuer shall cause the
Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The Administrator
shall indemnify or shall cause the Servicer to indemnify the Indenture Trustee
against any and all loss, liability or expense (including reasonable attorneys'
fees) incurred by it in connection with the administration of this trust and the
performance of its duties hereunder. The Indenture Trustee shall notify the
Administrator and the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Indenture Trustee to so notify the Administrator and
the Servicer shall not relieve the Administrator or the Servicer of its
obligations hereunder. The Administrator shall defend or shall cause the
Servicer to defend any such claim, and the Indenture Trustee may have separate
counsel and the Administrator shall pay or shall cause the Servicer to pay the
fees and expenses of such counsel. Neither the Administrator nor the Servicer
need reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

        The Administrator's payment obligations to the Indenture Trustee
pursuant to this Section shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in
Section 5.01(f) or (g) 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.

                                       44
<PAGE>   52

        SECTION 6.08. Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by providing written notice of its resignation to the
Issuer. The Administrator may remove the Indenture Trustee if:

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

        (b) the Indenture Trustee is adjudged a bankrupt or insolvent;

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

        (d) the Indenture Trustee otherwise becomes legally or practically
incapable of fulfilling its duties hereunder.

        If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Servicer
shall promptly appoint a successor Indenture Trustee. No resignation or removal
of the Indenture Trustee and no appointment of a successor Indenture Trustee
shall become effective until the acceptance of appointment by the successor
Indenture Trustee pursuant to this Section 6.08.

        A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, to the Servicer and to the
Administrator. Thereupon the resignation or removal of the retiring Indenture
Trustee shall become effective, and the successor Indenture Trustee shall have
all the rights, powers and duties of the Indenture Trustee under this Indenture.
The successor Indenture Trustee shall mail a notice of its succession to
Noteholders. 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 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Administrator or the Holders of a majority in Outstanding
Amount of the Notes 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 at any time thereafter petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

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

        SECTION 6.09. 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 Person, the
resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee if such surviving Person or transferee
corporation or banking shall be otherwise qualified and eligible under Section
6.11. The

                                       45
<PAGE>   53

Indenture Trustee shall provide the Issuer, the Servicer and the Rating Agencies
reasonable prior written notice of any such transaction.

        In case at the time such successor or successors by merger, conversion
or consolidation to the Indenture Trustee shall succeed to the trusts created by
this Indenture any of the Notes shall have been authenticated but not delivered,
any such successor to the Indenture Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the
successor to the Indenture Trustee; 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-Indenture Trustee or Separate Indenture
Trustee.

        (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which
any part of the Trust Estate may at the time be located, the Indenture Trustee
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 Estate, or any part hereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the
Indenture Trustee may consider necessary or desirable. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a
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 6.08 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 such separate trustee or co-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 and/or directing 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 Estate or any portion thereof in any such
        jurisdiction) shall be exercised and performed singly by such separate
        trustee or co-trustee, but solely at the direction of the Indenture
        Trustee;

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

                                       46
<PAGE>   54

                (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 Agreement and
the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts thereupon 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, 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 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 Indenture Trustee, to the extent permitted by law, without the
appointment of a new or successor trustee.

        SECTION 6.11. Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition and it or its
parent shall have a long-term debt rating of "Baa3" or better by Moody's or
shall otherwise be acceptable to Moody's. The Indenture Trustee shall comply
with TIA Section 310(b), including the optional provision permitted by the
second sentence of TIA Section 310(b)(9); provided, however, that there shall be
excluded from the operation of TIA Section 310(b)(1) any indenture or indentures
under which other securities of the Issuer are outstanding if the requirements
for such exclusion set forth in TIA Section 310(b)(1) are met.

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

        SECTION 6.13. Acknowledgement by Indenture Trustee of its Obligations
Under the Sale and Servicing Agreement. The Indenture Trustee hereby agrees and
consents to the provisions of the Sale and Servicing Agreement applicable to it
(including, without limitation, Sections 5.06, 5.07, 5.09 thereof) and agrees to
be bound by such provisions.

[

        SECTION 6.14. Interest Rate Swap Provisions. (i) The Issuer has entered
into an Interest Rate Swap Agreement, in a form satisfactory to the Rating
Agencies, to hedge the

                                       47
<PAGE>   55

floating rate interest expense on the VPTNs. The Issuer may, from time to time,
enter into one or more replacement Interest Rate Swap Agreements in the event
that any Interest Rate Swap Agreement is terminated prior to its scheduled
expiration pursuant to an Event of Default or a Termination Event (each such
term as defined in the Interest Rate Swap Agreement). Swap Payments (other than
any Swap Termination Payments) will rank senior to interest payments on the
Class A Notes and VPTNs, and Swap Termination Payments will rank pari passu with
interest payments on the Class A Notes and the VPTNs, all as set forth in the
Sale and Servicing Agreement.

                (ii) The Indenture Trustee will be responsible for remitting
Swap Payments and any Swap Termination Payments payable to the Swap Counterparty
and for collecting Swap Receipts and any Swap Termination Payments payable to
the Issuer.

                (iii) In the event that the Swap Counterparty is required to
collateralize any Interest Rate Swap transaction pursuant to the terms of the
Interest Rate Swap Agreement, the Indenture Trustee, upon written request of the
Administrator, shall establish individual collateral accounts and will hold any
securities deposited therein in trust and will invest any cash amounts in
accordance with the provisions of the Interest Rate Swap Agreement.

                (iv) The notional amounts under the Interest Rate Swap Agreement
will be increased by the principal balance of any VPTNs issued after the Closing
Date and reduced from time to time by amounts paid as principal on the VPTNs
pursuant to the information provided each month in the Servicer Certificate. The
Administrator shall calculate and provide written notification to the Swap
Counterparty and to the Indenture Trustee of the notional amount of the Interest
Rate Swap as of each Distribution Date on or before the twelfth day of the month
of the related Distribution Date. The Administrator shall also obtain the
calculation of LIBOR from the Calculation Agent under this Agreement and shall
calculate the amount of all Swap Payments, Swap Receipts and Swap Termination
Payments payable on each Distribution Date, and shall provide written
notification of such amounts to the Swap Counterparty and to the Indenture
Trustee prior to such Distribution Date. At least five days before the effective
date of any proposed amendment or supplement to an Interest Rate Swap Agreement,
the Administrator shall provide the Rating Agencies with a copy of such
amendment or supplement. Unless the amendment or supplement clarifies any term
or provision, corrects any inconsistency, cures any ambiguity, or corrects any
typographical error in the Interest Rate Swap Agreement, an amendment or
supplement to the Interest Rate Swap Agreement will be effective only after
satisfaction of any Rating Agency condition.

                (v) Promptly following the early termination of an Interest Rate
Swap Agreement due to an Event of Default or Termination Event (as each such
term is defined in the Interest Rate Swap Agreement), the Issuer will use
reasonable efforts to cause the Issuer to enter into a replacement Interest Rate
Swap Agreement.

                (vi) The Interest Rate Swap Agreement shall provide that if the
rating of the Swap Counterparty is downgraded below a rating of "[____]" by
Standard & Poor's Ratings Group and "[____]" by Moody's Investor Service, Inc.
or is suspended or withdrawn by any such Rating Agency, within 30 days of such
downgrade, suspension or withdrawal, the Swap Counterparty must either (1) post
collateral acceptable to the Issuer in amounts sufficient to

                                       48
<PAGE>   56

secure its obligations under the Interest Rate Swap Agreement, (2) assign its
rights and obligations under the Interest Rate Swap Agreement to a replacement
counterparty acceptable to the Issuer or (3) establish other arrangements
necessary, if any, in each case so that the Rating Agencies confirm the ratings
of the Class A Notes and the VPTN that were in effect immediately prior to such
downgrade, suspension or withdrawal. If the Swap Counterparty is required to
collateralize any Interest Rate Swap transaction, the Administrator shall send
written instructions to the Indenture Trustee to establish individual collateral
accounts and to hold any securities deposited therein in trust and invest any
cash amounts therein in accordance with the provisions of the Interest Rate Swap
Agreement.

                (vii) The Administrator shall notify the Swap Counterparty of
any proposed amendment or supplement to any of the Basic Documents. If such
proposed amendment or supplement would adversely affect any of the Swap
Counterparty's rights or obligations under the Interest Rate Swap Agreement or
modify the obligations of, or impair the ability of the Issuer to fully perform
any of its obligations under the Interest Rate Swap Agreement, the Administrator
shall obtain the consent of the Swap Counterparty prior to the adoption of such
amendment of supplement, provided, the Swap Counterparty's consent to any such
amendment or supplement shall not be unreasonably withheld, and provided
further, the Swap Counterparty's consent will be deemed to have been given if
the Swap Counterparty does not object in writing within ten Business Days of
receipt of a written request for such consent.]

                                   ARTICLE VII

                         Noteholders' Lists and Reports

        SECTION 7.01. Note Registrar To Furnish Names and Addresses of
Noteholders. The Note Registrar shall furnish or cause to be furnished to the
Indenture Trustee, the Owner Trustee, the Servicer or the Administrator, within
15 days after receipt by the Note Registrar of a written request therefrom, a
list of the names and addresses of the Noteholders of any Class as of the most
recent Record Date. If three or more Noteholders of any Class, or one or more
Holders of such Class evidencing not less than 25% of the Outstanding Amount of
such Class (hereinafter referred to as "Applicants"), 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 is 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 of such application,
afford such Applicants access, during normal business hours, to the current list
of Noteholders. Such Indenture Trustee may elect not to afford the requesting
Noteholders access to the list of Noteholders if it agrees to mail the desired
communication by proxy, on behalf of and at the expense of the requesting
Noteholders, to all Noteholders of such series. Every Noteholder, by receiving
and holding a Note, agrees with the Indenture Trustee and the Issuer that none
of the Indenture Trustee, the Owner Trustee, the Issuer, the Servicer or the
Administrator shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the Noteholders under this
Indenture, regardless of the source from which such information was derived.

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<PAGE>   57

        If the Indenture Trustee shall cease to be the Note Registrar, then
thereafter the Administrator will furnish or cause to be furnished to the
Indenture Trustee not more than five days after the most recent Record Date or
at such other times as the Indenture Trustee reasonably may request in writing,
a list, in such form as the Indenture Trustee reasonably may require, of the
names and addresses of the Holders of Notes as of such Record Date.

        SECTION 7.02. 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 of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes 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 7.01 upon receipt
of a new list so furnished.

        (b) Noteholders may communicate pursuant to TIA Section 312(b) with
other Noteholders with respect to their rights under this Indenture or under the
Notes.

        (c) The Issuer, the Indenture Trustee and the Note Registrar shall have
the protection of TIA Section 3.12(c).

        SECTION 7.03. 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) that the Issuer
        may be required to file with the Commission pursuant to Section 13 or
        15(d) of the Exchange Act;

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

                (iii) supply to the Indenture Trustee (and the Indenture Trustee
        shall transmit by mail to all Noteholders described in TIA Section
        313(c)) such summaries of any information, documents and reports
        required to be filed by the Issuer pursuant to clauses (i) and (ii) of
        this Section 7.03(a) and by rules and regulations prescribed from time
        to time by the Commission.

        (b) Unless the Issuer otherwise determines, the fiscal year of the
Issuer shall end on [March 31] of each year.

                                       50
<PAGE>   58

        SECTION 7.04. Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each [_______________] beginning with
[_______________], the Indenture Trustee shall mail to each Noteholder as
required by TIA Section 313(c) a brief report dated as of such date that
complies with TIA Section 313(a). The Indenture Trustee also shall comply with
TIA Section 313(b).

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

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

        SECTION 8.01. 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. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

        SECTION 8.02. Accounts.

        (a) On or prior to the Closing Date, (i) the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Noteholders and, to the extent set forth herein, the
Certificateholders, the Collection Account as provided in Section 5.01 of the
Sale and Servicing Agreement and (ii) the Issuer will establish and maintain
with the Securities Intermediary and pledge to the Indenture Trustee for the
benefit of the Noteholders the Yield Supplement Account in the name of the
Indenture Trustee pursuant to the Yield Supplement Agreement as provided in
Section 5.08 of the Sale and Servicing Agreement and the Securities Account
Control Agreement.

        (b) On or prior to the Closing Date, the Issuer will cause the Seller
to, pursuant to the Securities Account Control Agreement, establish and maintain
with the Indenture Trustee, for the benefit of the Noteholders, the Reserve
Account as provided in Section 5.07, of the Sale and Servicing Agreement.

        (c) The Indenture Trustee shall transfer all amounts remaining on
deposit in the Collection Account on the Distribution Date on which the Notes of
all Classes have been paid in full (or substantially all of the Trust Estate is
otherwise released from the lien of this Indenture) to the Trust Collection
Account and shall take all necessary or appropriate actions to transfer all

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<PAGE>   59

of its right, title and interest in the Collection Account, all funds or
investments held therein and all proceeds thereof, whether or not on behalf of
the Securityholders, to the Owner Trustee for the benefit of the
Certificateholders, subject to the limitations set forth herein with respect to
amounts held for payment to Noteholders that do not promptly deliver a Note for
payment on such Distribution Date.

        (d) The Indenture Trustee shall transfer all amounts remaining on
deposit in the Yield Supplement Account on the Distribution Date on which the
Notes of all Classes have been paid in full (or substantially all of the Trust
Estate is otherwise released from the lien of this Indenture) to the Owner
Trustee for the benefit of the Certificateholders and shall take all necessary
or appropriate actions to transfer all of its right, title and interest in the
Yield Supplement Account, all funds or investments held therein and all proceeds
thereof, whether or not on behalf of the Securityholders, to the Owner Trustee
for the benefit of the Certificateholders, which amounts the Owner Trustee shall
deposit into the Trust Collection Account, subject to the limitations set forth
herein with respect to amounts held for payment to Noteholders that do not
promptly deliver a Note for payment on such Distribution Date.

        SECTION 8.03. General Provisions Regarding Accounts.

        (a) So long as no Default or Event of Default shall have occurred and be
continuing, all or a portion of the funds in the Collection Account shall be
invested in Eligible Investments and reinvested by the Indenture Trustee at the
written direction of the Servicer, subject to the provisions of Section 5.01 of
the Sale and Servicing Agreement. All income or other gain from investments of
moneys deposited in the Collection Account shall be deposited by the Indenture
Trustee in the Collection Account and paid to the Servicer as servicing
compensation on any Business Day on or after which such amount is deposited in
the Collection Account, and any loss resulting from such investments shall be
charged to such account. The Servicer will not direct the Indenture Trustee, and
the Issuer shall cause the Servicer not, to make any investment of any funds or
to sell any investment held in the Collection Account unless the security
interest Granted and perfected in such account will continue to be perfected in
such investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Servicer shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect.

        (b) So long as no Default or Event of Default shall have occurred and be
continuing, all or a portion of the funds in the Reserve Account and the Yield
Supplement Account shall be invested in Eligible Investments and reinvested by
the Indenture Trustee at the written direction of the Servicer, subject to the
provisions of Section 5.07 and Section 5.08, respectively, of the Sale and
Servicing Agreement and the provisions of the Securities Account Control
Agreement. All income or other gain from investments of moneys deposited in the
Reserve Account shall be paid by the Indenture Trustee to the Seller on any
Business Day on or after which such amount is deposited in the Reserve Account.
All income or other gain from investments of moneys deposited in the Yield
Supplement Account shall be deposited into the Collection Account on each
Distribution Date. Subject to the right of the Indenture Trustee to make
withdrawals therefrom, as directed by the Servicer, for the purposes and in the
amounts set forth in Section 5.06 of the Sale and Servicing Agreement, the
Reserve Account [and the Yield

                                       52
<PAGE>   60

Supplement Account] and all funds held therein shall be the property of the
Seller and not the property of the Trust, the Owner Trustee or the Indenture
Trustee. The Seller will grant to the Indenture Trustee, for the benefit of the
Noteholders and the Class C Certificateholders, a security interest in all funds
(including Eligible Investments) in the Reserve Account (including the Reserve
Account Initial Deposit) and the proceeds thereof, and the Issuer will grant to
the Indenture Trustee, for the benefit of the Noteholders, a security interest
in all funds (including Eligible Investments) in the Yield Supplement Account
and the proceeds thereof, and the Indenture Trustee shall have all of the rights
of a secured party under the UCC with respect thereto; provided that all income
from the investment of funds in the Reserve Account and the right to receive
such income are retained by the Seller and are not transferred, assigned or
otherwise conveyed hereunder; and provided, further, that amounts on deposit in
the Yield Supplement Account in excess of the Required Yield Supplement Amount
will be deposited into the Collection Account for distribution in accordance
with the terms of Section 5.06(c) of the Sale and Servicing Agreement. The
Servicer will not direct the Indenture Trustee to make any investment of any
funds or to sell any investment held in the Reserve Account or the Yield
Supplement Account unless the security interest granted and perfected in such
account will continue to be perfected in such investment or the proceeds of such
sale, in either case without any further action by any Person, and, in
connection with any direction to the Indenture Trustee to make any such
investment or sale, if requested by the Indenture Trustee, the Servicer shall
deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

        (c) Subject to Section 6.01(c), the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in the Collection Account, the
Reserve Account or the Yield Supplement Account resulting from any loss on any
Eligible Investment included therein at the direction of the Servicer, except
for losses attributable to the Indenture Trustee's failure to make payments on
such Eligible Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with the terms
thereof.

        (d) If (i) the Servicer shall have failed to give investment directions
for any funds on deposit in the Collection Account, the Reserve Account or the
Yield Supplement Account to the Indenture Trustee by 5:00 p.m. Eastern Time (or
such other time as may be agreed by the Servicer and Indenture Trustee) on any
Business Day or (ii) a Default or Event of Default shall have occurred and be
continuing with respect to the Notes but the Notes shall not have been declared
due and payable pursuant to Section 5.02 or (iii) if such Notes shall have been
declared due and payable following an Event of Default, amounts collected or
receivable from the Trust Estate are being applied in accordance with Section
5.05 as if there had not been such a declaration, then the Indenture Trustee
shall, to the fullest extent practicable, invest and reinvest funds in the
Accounts in one or more Eligible Investments specified in clauses (i), (iv) or
(vi) of the definition of Eligible Investments provided in the Sale and
Servicing Agreement. If the Indenture Trustee invests and reinvests funds in the
Reserve Account or the Yield Supplement Account pursuant to clause (ii) or
clause (iii) above, the Indenture Trustee shall issue a prohibition notice to
the securities intermediary as provided in the Securities Account Control
Agreement. If the Default or Event of Default that caused the Indenture Trustee
to assume control over the investment of funds in the Reserve Account and Yield
Supplement Account has been waived and the acceleration, if any, of the Notes
has been rescinded, the Indenture Trustee

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<PAGE>   61

shall issue a rescission of prohibition notice to the securities intermediary as
provided in the Securities Account Control Agreement.

        SECTION 8.04. Release of Trust Estate.

        (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in the same, in a manner
and under circumstances that are not inconsistent with the provisions of this
Indenture. No party relying upon an instrument executed by the Indenture Trustee
as provided in this Article VIII shall be 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 and all sums due the Indenture Trustee pursuant to Section 6.07 have
been paid [and all amounts owing under the Interest Rate Swap Agreement have
been paid], release any remaining portion of the Trust Estate that secured the
Notes [and the Interest Rate Swap Agreement] from the lien of this Indenture and
release to or to the order of the Issuer, or, in the case of the Reserve Account
or the Yield Supplement Account, to the Seller, any funds entitled thereto then
on deposit in the Collection Account, the Reserve Account and the Yield
Supplement Account, as the case may be. The Indenture Trustee shall release
property from the lien of this Indenture pursuant to this Section 8.04(b) only
upon receipt of an Issuer Request accompanied by [confirmation that all amounts
owing under the Interest Rate Swap Agreement have been paid and] an Officer's
Certificate and (if required by the TIA) Independent Certificates in accordance
with TIA Sections 314(c) and 314(d)(1) meeting the applicable requirements of
Section 11.01.

        SECTION 8.05. Release of Receivables Upon Purchase by the Seller or the
Servicer .

        (a) Upon repurchase of any Receivable by the Seller pursuant to Section
3.02 of the Sale and Servicing Agreement or any purchase of any Receivable by
the Servicer pursuant to Section 4.06 or Section 9.01 of the Sale and Servicing
Agreement, the Indenture Trustee, on behalf of the Noteholders, shall, without
further action, be deemed to release from the Lien of this Indenture such
repurchased Receivable, all monies due or to become due with respect thereto and
all proceeds thereof and the other property with respect to such Receivable, and
all security and any documents relating thereto, and the Seller or the Servicer,
as applicable, shall thereupon own each such Receivable, and all such related
security and documents, free of any further obligation to the Issuer, the
Indenture Trustee or the Noteholders with respect thereto.

        (b) The Indenture Trustee shall execute such documents and instruments
and take such other actions as shall be reasonably requested by the Seller or
the Servicer, as the case may be, to effect the release of such Receivable
pursuant hereto and the assignment of such Receivable by the Issuer pursuant to
Section 9.02 of the Sale and Servicing Agreement.

        SECTION 8.06. 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 8.04(a),

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<PAGE>   62

accompanied by copies of any instruments involved, and the Indenture Trustee
shall also require, except in connection with any action contemplated by Section
8.04(b), 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 [or adversely affect the Swap
Counterparty] 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 Trust Estate. Counsel rendering any such
opinion may rely, without independent investigation, on the accuracy and
validity of any certificate or other instrument delivered to the Indenture
Trustee in connection with any such action.

                                   ARTICLE IX

                             Supplemental Indentures

        SECTION 9.01. Supplemental Indentures Without Consent of Noteholders.

        (a) Without the consent of the Holders of any Notes [or the Swap
Counterparty] but with prior notice to the Rating Agencies, the Issuer and the
Indenture Trustee, when authorized by an Issuer Order, at any time and from time
to time, may enter into one or more indentures supplemental hereto (which shall
conform to the provisions of the 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 to better 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
        contained herein and in the Notes;

                (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 that may be
        inconsistent with any other provision herein or in any supplemental
        indenture or to make any other provisions with respect to matters or
        questions arising under this Indenture or in any supplemental indenture
        to the extent such action shall not adversely affect the interests of
        the Holders of the Notes [or adversely affect the rights or obligations
        of the Swap Counterparty under the Interest Rate Swap

                                       55
<PAGE>   63

        Agreement or modify the obligations of or impair the ability of the
        Issuer to fully perform any of its obligations under the Interest Rate
        Swap Agreement];

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

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

        (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any of the Holders of the Notes, 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 such action
shall not materially and adversely affect the interests of any Noteholder.

        SECTION 9.02. 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 and with the consent of the Holders of
the Controlling Class of Notes representing a majority of the Outstanding Amount
of such Class (excluding for such purpose the outstanding principal amount of
any Notes held of record or beneficially owned by [NARC][NARC II], NMAC or any
of their Affiliates, unless at such time all of the Notes of such Class are held
of record or beneficially owned by [NARC][NARC II], NMAC or any of their
Affiliates), by Action of such Holders delivered to the Issuer and the Indenture
Trustee, 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
no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

        (a) change the due date of any installment of principal of or interest
on any Note, or reduce the principal amount thereof, the Interest Rate thereon
or redemption price therefor, or change any place of payment where, or the coin
or currency in which, any Note or the interest thereon is payable;

        (b) 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;

                                       56
<PAGE>   64

        (c) reduce the percentage of the Outstanding Amount 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;

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

        (e) reduce the percentage of the Outstanding Amount of the Notes
required to direct the Indenture Trustee to sell or liquidate the Trust Estate
if the proceeds of that sale would be insufficient to pay the principal amount
of and accrued but unpaid interest on the Notes pursuant to Section 5.04(c)(iv);

        (f) reduce any percentage required to amend the sections of the
Indenture that specify the applicable percentage of Outstanding Amount of the
Notes necessary to amend the Indenture; or

        (g) 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 Trust Estate or,
except as otherwise permitted or contemplated herein, 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 in its discretion determine whether or not any
Notes would be adversely 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.

        It shall not be necessary for any Action of Noteholders under this
Section to approve the particular form of any proposed supplemental indenture,
but it shall be sufficient if such Action 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 9.03. Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02, shall be fully protected in relying upon, an
Opinion of Counsel from external 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.

                                       57
<PAGE>   65

        SECTION 9.04. Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance therewith
with respect to the Notes affected thereby, and the respective rights,
limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer and the 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 9.05. Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

        SECTION 9.06. Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                    ARTICLE X

                                     Release

        SECTION 10.01. Optional Purchase of All Receivables. If the Servicer or
any successor to the Servicer shall notify the Owner Trustee and the Indenture
Trustee of its intention to exercise the option granted to it in Section 9.01 of
the Sale and Servicing Agreement to repurchase the outstanding Receivables
primarily comprising the Owner Trust Estate, then the Owner Trustee and the
Indenture Trustee shall give written notice thereof to each Securityholder and
the Rating Agencies as soon as practicable after their receipt of notice from
the Servicer. Upon deposit by the Servicer or any successor to the Servicer of
the amount necessary to effect such purchase of the corpus of the Owner Trust
Estate, the Indenture Trustee shall make the final distributions to the
Noteholders and Certificateholders as set forth in Section 5.06 of the Sale and
Servicing Agreement and shall promptly transfer all of its right, title and
interest in and to any amounts or investments remaining on deposit in the
Collection Account to the Owner Trustee, and in the Reserve Account and the
Yield Supplement Account to the Seller (in any event excluding any portion
thereof necessary to make distributions to Noteholders described in Section
3.03), and release from the lien of this Indenture all of the remaining
Collateral. The Indenture Trustee shall execute, deliver and file all
agreements, certificates, instruments or other documents necessary or reasonably
requested by the Issuer in order to effect such release and the transfer to the
Issuer of the Collateral.

                                       58
<PAGE>   66

                                   ARTICLE XI

                                 Miscellaneous.

        SECTION 11.01. 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, upon written request therefor from the Indenture Trustee, furnish to the
Indenture Trustee (i) an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with, and (iii) (if required by the TIA) an Independent Certificate
from a firm of certified public accountants meeting the applicable requirements
of this Section, 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 such written request from the Indenture Trustee
need be furnished (and only such expressly required documents need be delivered
in connection therewith).

        (b) 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.

        (c) Prior to the deposit of any Collateral or other property or
securities with the Indenture Trustee that is to be made the basis for the
release of any property or securities subject to the lien of this Indenture, the
Issuer shall, in addition to any obligation imposed in Section 11.01(a) or
elsewhere in this Indenture, furnish to the Indenture Trustee an Officer's
Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days of such deposit) to the Issuer
of the Collateral or other property or securities to be so deposited.

        Whenever the Issuer is required to furnish to the Indenture Trustee an
Officer's Certificate certifying or stating the opinion of any signatory thereof
as to the matters described in this clause (c) above, the Issuer shall also
deliver to the Indenture Trustee an Independent

                                       59
<PAGE>   67

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
calendar year of the Issuer, as set forth in the certificates delivered pursuant
to this clause (c), is 10% or more of the Outstanding Amount 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 one percent of the
Outstanding Amount of the Notes.

        Whenever any property or securities are to be released from the lien of
this Indenture, the Issuer shall also furnish to the Indenture Trustee an
Officer's Certificate certifying or stating the opinion of each person signing
such certificate as to the fair value (within 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.

        Notwithstanding Section 2.09 or any other provision of this Section, the
Issuer may, without compliance with the requirements of the other provisions of
this Section, (A) collect, liquidate, sell or otherwise dispose of Receivables
and Financed Vehicles as and to the extent permitted or required by the Basic
Documents and (B) make cash payments out of the Accounts as and to the extent
permitted or required by the Basic Documents so long as the Issuer shall deliver
to the Indenture Trustee every six months, commencing [____________], an
Officer's Certificate of the Issuer stating that all such dispositions of
Collateral that occurred during the preceding six calendar months were in the
ordinary course of the Issuer's business and that the proceeds thereof were
applied in accordance with the Basic Documents.

        SECTION 11.02. 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 such officer's certificate or opinion is
based are erroneous. Any such certificate of an Authorized Officer or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Servicer, the Seller, the Issuer or the Administrator, stating that the
information with respect to such factual matters is in the possession of the
Servicer, the Seller, the Issuer or the Administrator, 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.

                                       60
<PAGE>   68

        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 11.03. 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 "Action" 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 6.01) 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 manner that the Indenture Trustee
deems sufficient.

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

        (d) Any request, demand, authorization, direction, notice, consent,
waiver or other action by the 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.

        SECTION 11.04. Notices, to Indenture Trustee, Issuer and Rating
Agencies. Any request, demand, authorization, direction, notice, consent, waiver
or Action of Noteholders or other documents provided or permitted by this
Indenture shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or Action of Noteholders is to be made upon,
given or furnished to or filed with:

        (a) the Indenture Trustee by any Noteholder or by the Issuer, it shall
be sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office, or

                                       61
<PAGE>   69

        (b) the Issuer by the Indenture Trustee or by any Noteholder, it shall
be sufficient for every purpose hereunder if in writing and mailed first-class,
postage prepaid to the Issuer addressed to: Nissan Auto Receivables [____-_]
Owner Trust, c/o [______________________], Attention: [____________], with a
copy to Nissan Motor Acceptance Corporation, 990 West 190th Street, Torrance,
California 90502, Attention: Secretary, or at any other address previously
furnished in writing to the Indenture Trustee by the Issuer or the
Administrator. The Issuer shall promptly transmit any notice received by it from
the Noteholders to the Indenture Trustee.

        Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested, to (i) in the case of
Moody's, at the following address: Moody's Investors Service, Inc., ABS
Monitoring Department, 99 Church Street, New York, New York 10007, and (ii) in
the case of Standard & Poor's, at the following address: Standard & Poor's
Ratings Services, a Division of McGraw-Hill Companies, Inc., 55 Water Street,
New York, New York 10041-0003, Attention: 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 11.05. 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 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 11.06. Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods

                                       62
<PAGE>   70

provided for in this Indenture for such payments or notices. The Issuer will
furnish to the Indenture Trustee a copy of each such agreement and the Indenture
Trustee will cause payments to be made and notices to be given in accordance
with such agreements.

        SECTION 11.07. 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 Trust
Indenture Act, such required provision shall control.

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

        SECTION 11.08. 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 11.09. Successors and Assigns. All covenants and agreements in
this Indenture and the Notes by the Issuer shall bind its successors and
assigns, whether so expressed or not. All agreements of the Indenture Trustee in
this Indenture shall bind its successors, co-trustees and agents.

        SECTION 11.10. Severability. If any one or more of the covenants,
agreements, provisions or terms of this Indenture shall be for any reason
whatsoever held invalid or unenforceable in any jurisdiction, then such
covenants, agreements, provisions or terms shall be deemed severable from the
remaining covenants, agreements, provisions or terms of this Indenture and shall
in no way affect the validity or enforceability of the other provisions of this
Indenture or of the Notes or the Certificates or the rights of the Holders
thereof.

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

        SECTION 11.12. Governing Law. This Indenture shall be governed by and
construed in accordance with the laws of the State of New York, without
reference to its conflict of law provisions (other than Section 5-1401 of the
General Obligations Law of the State of New York), 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
simultaneously in any number of counterparts, each of which shall be deemed to
be an original, and all of which shall 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

                                       63
<PAGE>   71

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) to the effect that such recording is necessary either for the
protection of the Noteholders or any other Person secured hereunder or for the
enforcement of any right or remedy granted to the Indenture Trustee under this
Indenture.

        SECTION 11.15. Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or Certificates or under this Indenture or
any certificate or other writing delivered in connection herewith or therewith,
against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) the Seller, any Certificateholder or other owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Indenture Trustee or the Owner Trustee in its
individual capacity, any Certificateholder or other owner of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual 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. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

        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 at any time file, join in any filing of, or cooperate or
encourage others to file against the Seller or the Issuer 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, the Certificates 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, 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 (at the expense of the requesting party) such books to be audited by
Independent certified public accountants, and to discuss the Issuer's affairs,
finances and accounts with the Issuer's officers, employees, and Independent
certified public accountants, all at such reasonable times and as often as may
be reasonably requested. The Indenture Trustee shall and shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

                                       64
<PAGE>   72

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

                                  NISSAN AUTO RECEIVABLES ____-_ OWNER TRUST

                                  By: [_____________________________],

                                       not in its individual capacity but
                                       solely as Owner Trustee

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

                                  [______________________________],
                                       not in its individual capacity but
                                       solely as Indenture Trustee

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

                                      S-1
<PAGE>   73

                                   EXHIBIT A-1

    (Form of Class A-1 Note, Class A-2 Note, Class A-3 Note and Class B Note)

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

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

        THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR GUARANTEED
BY, ANY GOVERNMENTAL AGENCY OR [NISSAN AUTO RECEIVABLES CORPORATION][NISSAN AUTO
RECEIVABLES CORPORATION II], NISSAN MOTOR ACCEPTANCE CORPORATION, NISSAN NORTH
AMERICA, INC., NISSAN MOTOR CO., LTD., ANY TRUSTEE OR ANY OF THEIR AFFILIATES.
THE PRINCIPAL AND INTEREST ON THIS NOTE IS PAYABLE SOLELY FROM PAYMENTS ON THE
RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE RESERVE ACCOUNT AND THE YIELD
SUPPLEMENT ACCOUNT.

                                     A-1-1
<PAGE>   74

No._____          $__________

                   NISSAN AUTO RECEIVABLES ___-___ OWNER TRUST

                CLASS [A-1][A-2][A-3] [B] ___% ASSET BACKED NOTES

        Nissan Auto Receivables Owner Trust, a business 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 ____________________,
or registered assigns, the principal sum of _______________ DOLLARS
($__________) payable on each Distribution Date in an aggregate amount, if any,
payable from the Collection Account in respect of the principal on the Class
[A-1][A-2][A-3][B] Notes pursuant to Section 3.01 of the Indenture dated as of
__________, _____ (the "Indenture"), between the Issuer and [________], a
___________________, as Indenture Trustee (the "Indenture Trustee") and Sections
5.06(c) and (d) of the Sale and Servicing Agreement dated as of [_________]
among the Issuer, [NARC][NARC II], as Seller, and NMAC, as Servicer (which
amounts shall be limited to the portion of Available Amounts specified in such
sections); provided, however, that the entire unpaid principal amount of this
Note shall be due and payable on the Distribution Date occurring in [________]
(the "Class [A-1][A-2][A-3][B] Final Scheduled Distribution Date"). Capitalized
terms used but not defined herein have the meanings ascribed thereto in the
Indenture and the Sale and Servicing Agreement, as the case may be.

        The Issuer will pay interest on this Note at the rate per annum shown
above on each Distribution Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Distribution Date (after giving effect to all payments of principal
made on the preceding Distribution Date), subject to certain limitations
contained in Section 3.01 of the Indenture. Interest on this Note will accrue
for each Distribution Date, [during the period from (and including) the
Distribution Date during the calendar month preceding such Distribution Date (or
in the case of the first Distribution Date, from (and including) the Closing
Date to (but excluding) such Distribution Date)] [during the period from (and
including) the 15th day of the preceding calendar month to (but excluding) the
15th day of the month in which such Distribution Date occurs]. Interest will be
computed on the basis specified in the Indenture for each Interest Period. 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 is 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.

                                     A-1-2
<PAGE>   75

        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.

        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:
     --------------

                                       NISSAN AUTO RECEIVABLES _____-_
                                       OWNER TRUST

                                       By:
                                           -------------------------------------
                                             not in its individual capacity but
                                             solely as Owner Trustee under the
                                             Trust Agreement,

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

                                     A-1-3
<PAGE>   76

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

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

                                       (______________________________________),
                                             not in its individual capacity but
                                             solely as Indenture Trustee,

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

                                     A-1-4
<PAGE>   77

        This Note is one of a duly authorized issue of Notes of the Issuer,
designated as [____]% Asset Backed Notes, Class [A-1][A-2][A-3][B] (herein
called the "Class [A-1][A-2][A-3][B] Notes"), all issued under the Indenture, to
which Indentures 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 Class
[A-1][A-2][A-3][B] Notes are subject to all terms of the Indenture.

        The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the
Class B Notes (collectively, 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][A-2][A-3] [B] Notes will be payable on each
Distribution Date in an amount described in the Indenture. "Distribution Date"
means the [________] day of each month, or, if any such date is not a Business
Day, the next succeeding Business Day, commencing [________].

        Notwithstanding the foregoing, the entire unpaid principal amount of the
Notes shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Holders of the
Controlling Class of Notes representing not less than a majority of the
Outstanding Amount of such Class (excluding for such purpose the outstanding
principal amount of any Notes held of record or beneficially owned by
[NARC][NARC II], NMAC or any of their Affiliates, unless at such time all of the
Notes of such Class are held of record or beneficially owned by [NARC][NARC II],
NMAC or any of their Affiliates) have declared the Notes to be immediately due
and payable in the manner provided in Section 5.02 of the Indenture or following
the exercise by the Servicer of its option to purchase the Receivables pursuant
to Section 9.01 of the Sale and Servicing Agreement and Section 10.01 of the
Indenture. In case of an Event of Default, all interest and principal payments
will be made (1) first to the holders of the Class A-1 Notes, until the
outstanding principal balance of the Class A-1 Notes has been paid in full; (2)
then to the holders of the Class A-2 Notes, the Class A-3 Notes on a pro rata
basis (x) with respect to interest, based on the respective aggregate amounts of
interest due to these classes of notes and (y) with respect to principal, based
on the respective outstanding balances of those classes of notes, until the
outstanding principal balances of those classes of notes have been paid in full;
and (3) then to the holders of Class B Notes on a pro rata basis (x) with
respect to interest, based on the respective aggregate amounts of interest due
to the Class B Notes and (y) with respect to principal, based on the respective
outstanding balances of the Class B Notes, until the outstanding principal
balances of the Class B Notes have been paid in full. In case of the optional
purchase of the Receivables, all interest and all principal payments on the
Class [A-1][A-2][A-3] [A-4] Notes shall be made pro rata to the Class
[A-1][A-2][A-3] [B] Noteholders entitled thereto.

        Payments of interest on this Note due and payable on each Distribution
Date, together with the installment of principal, if any, to the extent not in
full payment of this Note, shall be paid to the Person in whose name of such
Note (or one or more Predecessor Notes) is registered on the Record Date by wire
transfer in immediately available funds to the account designated by such
nominee, except for the final installment of principal payable with respect to
such Note on a Distribution Date or on the applicable Final Scheduled
Distribution Date, which shall be payable as provided below. Any reduction in
the principal amount of this Note (or any one or more

                                     A-1-5
<PAGE>   78

Predecessor Notes) effected by any payments made on any Distribution Date shall
be binding 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 noted hereon. If funds are expected to be available, as provided in the
Indenture, for payment in full of the then remaining unpaid principal amount of
this Note on a Distribution Date, then the Indenture Trustee, in the name of and
on behalf of the Issuer, will notify the Person who was the Registered Holder
hereof as of the Record Date preceding such Distribution Date by notice mailed
or transmitted by facsimile prior to such Distribution Date, and the amount then
due and payable shall be payable only upon presentation and surrender of this
Note at the Indenture Trustee's principal Corporate Trust Office or at the
office of the Indenture Trustee's agent appointed for such purposes located in
The City of New York.

        The Issuer shall pay interest on overdue installments of interest at the
Class [A-1][A-2][A-3][B] Rate to the extent lawful.

        [FOR CLASS B NOTES] Default in the payment of interest on this Class [B]
Note is not an Event of Default under the Indenture so long as any Class [A]
Notes are Outstanding. By acceptance of this Class [B] Note or any beneficial
interest herein, you are deemed to have consented to the delay in payment of
interest on such Class [B] Note and waived your rights to institute suit for
enforcement of any such payment to the extent described in the Indenture.

        As provided in the Indenture and subject to certain limitations set
forth therein, the transfer of this Note may be registered on the Note Register
upon surrender of this Note for registration of transfer at the office or agency
designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee as set forth in Section 2.04 of the Indenture, and thereupon
one or more new Notes of authorized denominations and in the same aggregate
principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of
this Note, but the transferor may be required to pay a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

        Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) the Seller or any owner of a beneficial interest in
the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or
employee of the Indenture Trustee or the Owner Trustee in its individual
capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee
or the Indenture Trustee or of any successor or assign of the Indenture Trustee
or the Owner Trustee in its individual capacity, except as any such Person may
have expressly agreed (it being understood that the Indenture Trustee and the
Owner Trustee have no such obligations in their individual 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.

                                     A-1-6
<PAGE>   79

        The Holder of this Note by its acceptance hereof agrees that, except as
expressly provided in 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.

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

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

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

        The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture at any
time by the Issuer and the Indenture Trustee, when authorized by an Issuer
Order, with prior notice to the Rating Agencies and with the consent of the
Holders of the Controlling Class of Notes representing a majority of the
Outstanding Amount of such Class (excluding for such purpose the outstanding
principal amount of any Notes held of record or beneficially owned by
[NARC][NARC II], NMAC or any of their Affiliates, unless at such time all of the
Notes are held of record or beneficially owned by [NARC][NARC II], NMAC or any
of their Affiliates). Section 5.12 of the Indenture also contains provisions
permitting the Holders of the Controlling Class of Notes representing a majority
of the Outstanding Amount of such Class (excluding for such purpose the
outstanding principal amount of any Notes held of record or beneficially owned
by [NARC][NARC II], NMAC or any of their Affiliates, unless at such time all of
the Notes of such Class are held of record or beneficially owned by [NARC][NARC
II], NMAC or any of their Affiliates), 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 or more
Predecessor Notes) shall be conclusive and binding upon such Holder and upon all
future Holders of this Note and of any

                                     A-1-7
<PAGE>   80

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 Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders
of the Notes issued thereunder.

        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
Holders of Notes under the Indenture.

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

        This Note and the Indenture shall be construed in accordance with the
laws of the State of New York, without reference to its conflict of law
provisions (other than Section 5-1401 of the General Obligations Law of the
State of New York), 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 and no provision of this Note or of
the Indenture shall alter or impair the obligation of the Issuer, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the times, place and rate, and in the coin or currency herein prescribed.

                                     A-1-8
<PAGE>   81

                                   ASSIGNMENT

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

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

________________________________________________________________________________
                         (name and address of assignee)

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

Dated:_____________________*/

Signature Guaranteed:
___________________________*/

        */ NOTICE: The signature to this assignment must correspond with the
name of the registered owner as it appears on the face of the within Note in
every particular, without alteration, enlargement or any change whatever. Such
signature must be guaranteed by an "eligible guarantor institution" meeting the
requirements of the Note Registrar, which requirements include membership or
participation in STAMP or such other "signature guarantee program" as may be
determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Securities Exchange Act of 1934, as amended.

                                     A-1-9
<PAGE>   82

                                   EXHIBIT A-2

                        [FORM OF VARIABLE PAY TERM NOTE]

        THIS VARIABLE PAY TERM NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER
ANY STATE SECURITIES OR BLUE SKY LAW OF ANY STATE OF THE UNITED STATES. THE
HOLDER HEREOF BY PURCHASING THIS VARIABLE PAY TERM NOTE, AGREES THAT THIS
VARIABLE PAY TERM NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE
LAWS, AND ONLY (1) PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A")
TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL
BUYER, WITHIN THE MEANING OF RULE 144A (A "QIB"), PURCHASING FOR ITS OWN ACCOUNT
OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT
THE REOFFER, RESALE, PLEDGE, OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER
THE SECURITIES ACT (IF AVAILABLE), SUBJECT TO THE RECEIPT BY THE INDENTURE
TRUSTEE AND THE VARIABLE PAY TERM NOTE REGISTRAR OF SUCH EVIDENCE ACCEPTABLE TO
THE INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN
COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS, (3) TO AN
INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING THEREOF IN RULE
501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO
ANY OTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE RECEIPT BY THE INDENTURE TRUSTEE AND THE NOTE REGISTRAR OF SUCH
OTHER EVIDENCE ACCEPTABLE TO THE INDENTURE TRUSTEE THAT SUCH REOFFER, RESALE,
PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE
LAWS, OR (4) TO THE SELLER OR ITS AFFILIATES, IN EACH CASE IN ACCORDANCE WITH
ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY
LAWS OF THE STATES OF THE UNITED STATES.

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

                                     A-2-1
<PAGE>   83

                                                                          $[   ]
No. ______                                                       CUSIP NO. [   ]

                FLOATING RATE ASSET BACKED VARIABLE PAY TERM NOTE

        NISSAN AUTO RECEIVABLES ___-___ OWNER TRUST, a business 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 [_________], or
registered assigns, the principal sum of [___________] MILLION DOLLARS payable
on each Distribution Date in an amount equal to the result obtained by
multiplying (i) a fraction, the numerator of which is [_________] (the original
face amount of this Note) and the denominator of which is [_________] (the
aggregate principal amount of the VPTN on the original issuance date of this
VPTN) by (ii) the aggregate amount, if any, payable to the VPTNs issued on the
original issuance date of this VPTN in respect of principal pursuant to the
Indenture dated as of [___________] (as from time to time amended, supplemented
or otherwise modified and in effect, the "Indenture"), between the Issuer and
_________________, as Indenture Trustee (in such capacity the "Indenture
Trustee"); provided, however, the entire unpaid principal amount of this Note
shall be due and payable on the ___________, ____ Distribution Date (the "VPTN
Final Scheduled Distribution Date") and upon the optional repurchase of the
Receivables, if any, pursuant to Section 10.01 of the Indenture. Capitalized
terms used but not defined herein are defined in Article I of the Indenture,
which also contains rules as to construction that shall be applicable herein.

        The Issuer shall pay interest on this VPTN on each Distribution Date at
a rate equal to one-month LIBOR on the related LIBOR Determination Date (as
defined in the Indenture) plus [___]%. Interest on this VPTN will accrue, in the
case of the first Distribution Date following the issuance of the VPTN, the
period from and including the issuance date to and excluding such Distribution
Date and for any other Distribution Date, the period from and including the most
recent Distribution Date to but excluding such Distribution Date. Interest will
be computed on the basis of actual days elapsed and a 360-day year. Such
principal of and interest on this VPTN shall be paid in the manner specified on
the reverse hereof. "Distribution Date" means the fifteenth day of each month,
or, if any such date is not a Business Day, the next succeeding Business Day,
commencing __________, ____.

        The principal of and interest on this VPTN 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 VPTN shall be applied first to interest due and payable on
this VPTN as provided above and then to the unpaid principal of this VPTN.

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

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

               [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.]

                                     A-2-2
<PAGE>   84

        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:  ___________, ____

                                       NISSAN AUTO RECEIVABLES ___-___
                                       OWNER TRUST

                                       By:
                                           -------------------------------------
                                             not in its individual capacity but
                                             solely as Owner Trustee under
                                             the Trust Agreement

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

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  ___________, ____

                                       [_______________________________________]
                                             not in its individual capacity but
                                             solely as Indenture Trustee

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

                                     A-2-3
<PAGE>   85

                                [REVERSE OF NOTE]

        The VPTN is one of a duly authorized issue of VPTNs of the Issuer,
designated as its Floating Rate Asset Backed Variable Pay Term Notes (the
"VPTNs") which, together with the Issuer's Class A-1 ___% Asset Backed Notes
(the "Class A-1 Notes"), Class A-2 ___% Asset Backed Notes (the "Class A-2
Notes"), Class A-3 ___% Asset Backed Notes (the "Class A-3 Notes," and together
with the Class A-1 Notes and the Class A-2 Notes, the "Class A Notes") and Class
B ___% Asset Backed Notes (the "Class B Notes" and, together with the VPTNs and
the Class A Notes, the "Notes"), are issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the
Indenture Trustee and the Noteholders. The VPTNs are subject to all the terms of
the Indenture.

        The VPTNs are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

        As described on the face thereof, the entire unpaid principal amount of
this VPTN shall be due and payable on the VPTN Final Scheduled Distribution
Date. Notwithstanding the foregoing, the entire unpaid principal amount of the
VPTNs shall be due and payable on the date on which an Event of Default shall
have occurred and be continuing and the Indenture Trustee or the Holders of the
Controlling Class of Notes representing not less than a majority of the
Outstanding Amount of such Class (excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by NMAC,
[NARC][NARC II] or any of their Affiliates, unless at such time all of the Notes
of such Class are held of record or beneficially owned by [NARC][NARC II], NMAC
or any of their Affiliates) have declared the Notes to be immediately due and
payable in the manner provided in Section 5.02 of the Indenture. All principal
payments on the VPTNs shall be made sequentially, such that no payments of
principal on a VPTN shall be payable until all earlier issued VPTNs have been
paid in full.

        Payments of interest on this VPTN on each Distribution Date, together
with the installment of principal, if any, to the extent not in full payment of
this VPTN, shall be made to the Person whose name appears as the Registered
Noteholder of the VPTN on the Note Register as of the close of business on each
Record Date either by wire transfer in immediately available funds, to the
account of such Noteholder at a bank or other entity having appropriate
facilities therefor, if such Noteholder shall have provided to the Note
Registrar appropriate written instructions at least five (5) Business Days prior
to such Distribution Date and such Noteholder's Notes in the aggregate evidence
a denomination of not less than $1,000,000, or, if not, by check mailed
first-class postage prepaid to such Person's address as it appears on the Note
Register on such Record Date. Such payments will be made without requiring that
the VPTN be submitted for notation of payment. Any reduction in the principal
amount of this VPTN effected by any payments made on any Distribution Date shall
be binding upon all future Noteholders of this VPTN and of any VPTN issued upon
the registration of transfer hereof or in exchange thereof or in lieu hereof,
whether or note noted herein. If funds are expected to be available, as provided
in the Indenture, for payment in full of the then remaining unpaid principal
amount of this VPTN on a Distribution Date, then the Indenture Trustee, in the
name of and on behalf of the Issuer, will notify the Person who was the
Registered Noteholder hereof as of the Record Date

                                     A-2-4
<PAGE>   86

preceding such Distribution Date by notice mailed or transmitted by facsimile
prior to such Distribution Date, and the amount then due and payable shall be
payable only upon presentation and surrender of this VPTN at the Indenture
Trustee's principal Corporate Trust Office or at the office of the Indenture
Trustee's agent appointed for such purposes located _______________________.

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

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

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

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

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

                                     A-2-5
<PAGE>   87

        The Issuer has entered into the Indenture and this VPTN is issued with
the intention that, for federal, State and local income, and franchise tax
purposes, the VPTNs will qualify as indebtedness of the Issuer secured by the
Indenture Trust Estate. Each Noteholder, by its acceptance of a VPTN, will be
deemed to agree to treat the VPTNs for federal, State or local income, single
business and franchise tax purposes as indebtedness of the Issuer.

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

        The Indenture permits (with certain exceptions requiring the consent of
all Noteholders adversely affected) the amendment thereof by the Issuer and the
Indenture Trustee without the consent of the Noteholders provided certain
conditions are satisfied. The Indenture also contains provisions permitting the
Noteholders of VPTNs evidencing specified percentages of the principal amount of
the Notes Outstanding or of the Controlling Class of Notes, on behalf of all
Noteholders, to waive compliance by the Issuer with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences.
Any such consent or waiver by the Noteholder of this VPTN shall be conclusive
and binding upon such Noteholder and upon all future Noteholders of this VPTN
and of any VPTN 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 VPTN.

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

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

        The VPTNs are issuable only in registered form in denominations of
$100,000 and integral multiples of $1,000 thereof as provided in the Indenture,
subject to certain limitations therein set forth.

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

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

        Anything herein to the contrary notwithstanding, except as expressly
provided in the Basic Documents, none of ______________, in its individual
capacity, _______________, in its individual capacity, any owner of a beneficial
interest in the Issuer, or any of their respective partners, beneficiaries,
agents, officers, directors, employees or successors or assigns shall be

                                     A-2-6
<PAGE>   88

personally liable for, nor shall recourse be had to any of them for, the payment
of principal or of interest on this VPTN or performance of, or omission to
perform, any of the covenants, obligations or indemnifications contained in the
Indenture. The Noteholder of this VPTN, by its acceptance hereof, agrees that,
except as expressly provided in the Basic Documents, in the case of an Event of
Default under the Indenture, the Noteholder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however,
that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities,
obligations and undertakings contained in the Indenture or in this VPTN.

                                     A-2-7
<PAGE>   89

                                   ASSIGNMENT

Social Security Number 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 VPTN and all rights thereunder, and hereby irrevocably constitutes
and appoints _______________, attorney, to transfer said VPTN on the books kept
for registration thereof, with full power of substitution in the premises.

Dated:                                                                        */
      ------------                     ---------------------------------------
                                       Signature Guaranteed

                                                                              */

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

                                     A-2-8<PAGE>   1
                                                                     EXHIBIT 4.3

                          SALE AND SERVICING AGREEMENT

                                      among

                  NISSAN AUTO RECEIVABLES ______-_ OWNER TRUST
                                   as Issuer,

 [NISSAN AUTO RECEIVABLES CORPORATION][NISSAN AUTO RECEIVABLES CORPORATION II],
                                   as Seller,

                                       and

                      NISSAN MOTOR ACCEPTANCE CORPORATION,
                                   as Servicer

                              Dated as of [_______]

<PAGE>   2

                                TABLE OF CONTENTS

                                    ARTICLE I

                                   DEFINITIONS

<TABLE>
<CAPTION>
<S>             <C>                                                                    <C>
SECTION 1.01    Definitions..............................................................1
SECTION 1.02    Usage of Terms..........................................................21

                                   ARTICLE II

                           CONVEYANCE OF RECEIVABLES

SECTION 2.01    Conveyance of Receivables...............................................21
SECTION 2.02    Custody of Receivables Files............................................22
SECTION 2.03    Acceptance by Issuer....................................................23

                                  ARTICLE III

                                THE RECEIVABLES

SECTION 3.01    Representations and Warranties of the Seller with Respect to
                the Receivables.........................................................23
SECTION 3.02    Repurchase upon Breach..................................................26
SECTION 3.03    Duties of Servicer as Custodian.........................................27
SECTION 3.04    Instructions; Authority To Act..........................................28
SECTION 3.05    Custodian's Indemnification.............................................28
SECTION 3.06    Effective Period and Termination........................................28

                                   ARTICLE IV

                  ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01    Duties of Servicer......................................................29
SECTION 4.02    Collection of Receivable Payments.......................................30
SECTION 4.03    Realization upon Receivables............................................30
SECTION 4.04    Maintenance of Security Interests in Financed Vehicles..................30
SECTION 4.05    Covenants of Servicer...................................................31
SECTION 4.06    Purchase of Receivables upon Breach.....................................31
SECTION 4.07    Servicing Fee and Expenses..............................................32
SECTION 4.08    Servicer's Certificate..................................................32
SECTION 4.09    Annual Statement as to Compliance; Notice of Default....................32
SECTION 4.10    Annual Independent Certified Public Accountants' Report.................33
SECTION 4.11    Access to Certain Documentation and Information
                Regarding Receivables...................................................33
SECTION 4.12    Appointment of Subservicer..............................................34
SECTION 4.13    Amendments to Schedule of Receivables...................................34
</TABLE>

                                       i
<PAGE>   3

<TABLE>
<CAPTION>
<S>             <C>                                                                    <C>
SECTION 4.14    Acknowledgement by Servicer of its Obligations
                under the Indenture.....................................................34

                                   ARTICLE V

         DISTRIBUTIONS; ACCOUNTS; STATEMENTS TO THE CERTIFICATEHOLDERS
                              AND THE NOTEHOLDERS

SECTION 5.01    Establishment of Accounts...............................................34
SECTION 5.02    Collections.............................................................37
SECTION 5.03    Application of Collections..............................................38
SECTION 5.04    Advances................................................................38
SECTION 5.05    Additional Deposits.....................................................39
SECTION 5.06    Payments and Distributions..............................................39
SECTION 5.07    Reserve Account.........................................................44
SECTION 5.08    Yield Supplement Account................................................46
SECTION 5.09    Statements to Certificateholders and Noteholders........................47
SECTION 5.10    Net Deposits............................................................49

                                   ARTICLE VI

                                   THE SELLER

SECTION 6.01    Representations of Seller...............................................49
SECTION 6.02    Additional Covenants of the Seller......................................50
SECTION 6.03    Liability of Seller; Indemnities........................................52
SECTION 6.04    Merger or Consolidation of, or Assumption of the Obligations
                of, Seller..............................................................53
SECTION 6.05    Limitation on Liability of Seller and Others............................54
SECTION 6.06    Seller May Own Certificates or Notes....................................54

                                  ARTICLE VII

                                  THE SERVICER

SECTION 7.01    Representations of Servicer.............................................55
SECTION 7.02    Indemnities of Servicer.................................................56
SECTION 7.03    Merger or Consolidation of, or Assumption of the Obligations of,
                Servicer................................................................57
SECTION 7.04    Limitation on Liability of Servicer and Others..........................58
SECTION 7.05    NMAC Not To Resign as Servicer..........................................58

                                  ARTICLE VIII

                                    DEFAULT

SECTION 8.01    Servicer Default........................................................59
SECTION 8.02    Appointment of Successor................................................60
</TABLE>

                                       ii
<PAGE>   4

<TABLE>
<CAPTION>
<S>             <C>                                                                    <C>
SECTION 8.03    Repayment of Advances...................................................61
SECTION 8.04    Notification............................................................61
SECTION 8.05    Waiver of Past Defaults.................................................61

                                ARTICLE IX

                    TERMINATION; RELEASE OF RECEIVABLES

SECTION 9.01    Optional Purchase of All Receivables....................................62
SECTION 9.02    Release of Receivables..................................................62
SECTION 9.03    Termination.............................................................63

                                 ARTICLE X

                               MISCELLANEOUS

SECTION 10.01   Amendment...............................................................63
SECTION 10.02   Protection of Title to Trust............................................65
SECTION 10.03   Notices.................................................................67
SECTION 10.04   Assignment by the Seller or the Servicer................................67
SECTION 10.05   Limitations on Rights of Others.........................................67
SECTION 10.06   Severability............................................................67
SECTION 10.07   Separate Counterparts...................................................68
SECTION 10.08   Headings................................................................68
SECTION 10.09   Governing Law...........................................................68
SECTION 10.10   Assignment by Issuer....................................................68
SECTION 10.11   Nonpetition Covenants...................................................68
SECTION 10.12   Limitation of Liability of Owner Trustee and Indenture Trustee..........68

SCHEDULE A      Schedule of Receivables
SCHEDULE B      Location of the Receivable Files
EXHIBIT A       Form of Yield Supplement Agreement
</TABLE>

                                      iii

<PAGE>   5

        SALE AND SERVICING AGREEMENT, dated as of [_______], among NISSAN AUTO
RECEIVABLES _____-_ OWNER TRUST, a Delaware business trust (the "Issuer"),
[NISSAN AUTO RECEIVABLES CORPORATION][NISSAN AUTO RECEIVABLES CORPORATION II], a
Delaware corporation, and NISSAN MOTOR ACCEPTANCE CORPORATION, a California
corporation. Capitalized terms used herein without definition shall have the
respective meanings assigned to such terms in Article I.

        WHEREAS, the Issuer desires to purchase a portfolio of receivables
arising in connection with retail installment sales contracts secured by new,
near-new or used automobiles and light-duty trucks generated by NMAC in the
ordinary course of business and sold to the Seller;

        WHEREAS, the Seller is willing to sell such receivables to the Issuer;
and

        WHEREAS, the Servicer is willing to service such receivables.

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

                                    ARTICLE I

                                   Definitions

        SECTION 1.01 Definitions. Except as otherwise provided in this
Agreement, whenever used herein, the following words and phrases, unless the
context otherwise requires, shall have the following respective meanings:

        "Accounts" means the Collection Account, the Yield Supplement Account
and the Reserve Account.

        ["Accumulation Account" is an account created pursuant to Section
5.01(e).]

        "Administration Agreement" means the Administration Agreement, dated as
of [_______], among the Administrator, the Issuer and the Indenture Trustee.

        "Administrative Purchase Payment" for any Administrative Receivable as
of the last day of any Collection Period, means the sum of the Principal Balance
thereof as of the beginning of such Collection Period plus interest accrued
thereon through the due date for the Obligor's payment in such Collection Period
at the related APR, after giving effect to the receipt of monies collected (from
whatever source other than the Advances) on such Administrative Receivable, if
any, during such Collection Period.

        "Administrative Receivable" means a Receivable purchased as of the close
of business on the last day of a Collection Period by the Servicer pursuant to
Section 4.06 or Section 9.01.

        "Administrator" means NMAC, or any successor Administrator under the
Administration Agreement.

                                       1
<PAGE>   6

        "Advance" means the amount, as of the last day of a Collection Period,
that the Servicer is required to advance on the respective Receivable pursuant
to Section 5.04.

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

        "Aggregate Certificateholders' Interest Distributable Amount" means,
with respect to any Distribution Date, the sum of the Certificateholders'
Interest Distributable Amount for all Classes of Certificates for such
Distribution Date.

        "Aggregate Noteholders' Interest Distributable Amount" means, with
respect to any Distribution Date, the sum of the Noteholders' Interest
Distributable Amount for all Classes of Notes with respect to such Distribution
Date.

        "Agreement" means this Sale and Servicing Agreement among Nissan Auto
Receivables [___-___] Owner Trust, as Issuer, [NARC][NARC II], as Seller, and
NMAC, as Servicer.

        "AICPA" shall have the meaning assigned to such term in Section 4.10.

        "Allocable Principal" means, for any Distribution Date, an amount equal
to the excess, if any, of (i) the sum of the Outstanding Amount of the Notes and
the Certificate Balance as of the close of business on the immediately preceding
Distribution Date over (ii) the Pool Balance as of the end of the related
Collection Period.

        "Amount Financed" with respect to any Receivable, means the amount
advanced under the Receivable toward the purchase price of the related Financed
Vehicle and any related costs, including but not limited to accessories,
insurance premiums, service and warranty contracts and other items customarily
financed as part of retail automobile and light-duty truck installment sale
contracts.

        "Annual Percentage Rate" or "APR" of a Receivable means the annual rate
of finance charges stated in such Receivable.

        "Annual USAP Report" shall have the meaning specified in Section 4.10.

        "Assignment" shall have the meaning assigned to such term in the
Purchase Agreement.

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

        "Available Interest" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables allocable to interest, (ii) without
duplication of amounts described in clause (i), Net Liquidation Proceeds to the
extent allocable to interest due on a Liquidated Receivable in accordance with

                                       2
<PAGE>   7

the Servicer's customary servicing procedures, (iii) all Advances made by the
Servicer pursuant to Section 5.04, (iv) without duplication of any amounts
described above in clauses (i) and (ii), the Administrative Purchase Payment of
each Receivable that became an Administrative Receivable during the related
Collection Period to the extent attributable to interest thereon, (v) without
duplication of any amounts described above in clauses (i) and (ii), the Warranty
Purchase Payment of each Receivable that became a Warranty Receivable during the
related Collection Period to the extent attributable to interest thereon, and
(vi) the Yield Supplement Deposit plus the sum of (x) reinvestment income on the
Yield Supplement Account and (y) the amount, if any, deposited into the
Collection Account pursuant to the second or third sentence of Section 5.08(b);
provided, however, that in calculating Available Interest, amounts to be paid to
the Servicer as reimbursement for Advances pursuant to Sections 5.06(c)(i),
5.06(c)(ii), 5.06(d)(i) and 5.06(d)(ii) on such Distribution Date shall be
excluded.

        "Available Principal" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables attributable to principal, (ii)
without duplication of amounts described in clause (i), Net Liquidation Proceeds
attributable to principal due on a Liquidated Receivable in accordance with the
Servicer's customary servicing procedures, (iii) without duplication of any
amounts described above in clauses (i) and (ii), the Administrative Purchase
Payment of each Receivable that became an Administrative Receivable during the
related Collection Period to the extent attributable to principal, and (iv)
without duplication of any amounts described above in clauses (i) and (ii), the
Warranty Purchase Payment of each Receivable that became a Warranty Receivable
during the related Collection Period to the extent attributable to principal.

        "Base Servicing Fee" means the fee payable to the Servicer on each
Distribution Date, calculated pursuant to Section 4.07, for services rendered
during the related Collection Period, which shall be equal to one-twelfth of the
Servicing Rate multiplied by the Pool Balance as of the close of business on the
last day of the immediately preceding Collection Period or, with respect to the
first Distribution Date, the Original Pool Balance.

        "Basic Documents" means the Purchase Agreement, the Trust Agreement, the
Certificate of Trust, this Agreement, the Indenture, the Administration
Agreement, the Securities Account Control Agreement, the Yield Supplement
Agreement, the Note Depository Agreement, the Certificate Depository Agreement
and the other documents and certificates delivered in connection herewith and
therewith.

         "Business Day" means any day other than a Saturday, a Sunday or a day
on which banking institutions in New York, New York, Los Angeles, California,
Wilmington, Delaware or Minneapolis, Minnesota are authorized or obligated by
law, regulation, executive order or governmental decree to remain closed.

        "Certificate Balance" means, as of any Distribution Date and for each
Class of Certificates, the Original Certificate Balance of such Class, reduced
by all amounts distributed to the Certificateholders of such Class allocable to
principal pursuant to Section 5.06(c) and/or (d) hereof (but in no event less
than zero). When the term "Certificate Balance" is not used in respect of any
Class of Certificates, then it shall mean the sum of the Certificate Balance of
the Class C Certificates and the Class D Certificates. For the purposes of
determining whether the

                                       3
<PAGE>   8

vote of the requisite percentage of Certificateholders necessary to effect any
consent, waiver, request or demand shall have been obtained, the Certificate
Balance shall be deemed to be reduced by the amount equal to the balance
(without giving effect to this provision) evidenced by any Certificate
registered in the name of the Seller, the Servicer or any Person actually known
to a Trust Officer of the Owner Trustee or the Indenture Trustee, as the case
may be, to be the Seller or the Servicer or any of their Affiliates.

        "Certificate Depository Agreement" means the agreement entitled "Letter
of Representations" dated on or before the Closing Date among the Clearing
Agency, the Trust and the Owner Trustee with respect to certain matters relating
to the duties thereof with respect to the Book-Entry Certificates.

        "Certificate Factor" means, with respect to any Class of Certificates
and any Distribution Date, a seven-digit decimal figure obtained by dividing the
Certificate Balance of such Class of Certificates as of the close of business on
the last day of the related Collection Period by the Original Certificate
Balance of such Class of Certificates.

        "Certificate of Trust" shall have the meaning assigned to such term in
the Trust Agreement.

        "Certificate Pool Factor" means, with respect to any Class of
Certificates and any Distribution Date, a seven-digit decimal figure obtained by
dividing the Certificate Balance of such Class of Certificates as of the close
of business on the last day of the related Collection Period by the Original
Pool Balance.

        "Certificate Register" means the register maintained by the Certificate
Registrar pursuant to the Trust Agreement recording the names of the
Certificateholders.

        "Certificateholders" shall have the meaning assigned to such term in the
Trust Agreement.

        "Certificateholders' Distributable Amount" means, with respect to any
Distribution Date, the sum of the Aggregate Certificateholders' Interest
Distributable Amount and the Certificateholders' Principal Distributable Amount,
if any, for the most senior Class of Certificates for such Distribution Date.

        "Certificateholders' Interest Carryover Shortfall" means, with respect
to any Distribution Date and a Class of Certificates, the excess, if any, of the
sum of the Certificateholders' Monthly Interest Distributable Amount for such
Class for the preceding Distribution Date plus any outstanding
Certificateholders' Interest Carryover Shortfall for such Class on such
preceding Distribution Date, over the amount in respect of interest that is
actually paid on the Certificates of such Class on such preceding Distribution
Date, plus, to the extent permitted by applicable law, interest on the
Certificateholders' Interest Carryover Shortfall at the related Pass-Through
Rate for such Class for the related Interest Period.

        "Certificateholders' Interest Distributable Amount" means, with respect
to any Distribution Date and a Class of Certificates, the sum of the
Certificateholders' Monthly Interest Distributable Amount for such Class plus
any outstanding Certificateholders' Interest Carryover

                                       4
<PAGE>   9

Shortfall for such Class as of the close of the immediately preceding
Distribution Date.

        "Certificateholders' Monthly Interest Distributable Amount" means, with
respect to any Distribution Date and a Class of Certificates, interest accrued
for the related Interest Period at the related Pass-Through Rate for such Class
of Certificates on the Certificate Balance of such Class on the immediately
preceding Distribution Date, after giving effect to all payments of principal to
Certificateholders of such Class on or prior to such Distribution Date (or, in
the case of the first Distribution Date, on the Original Certificate Balance of
such Class of Certificates).

        "Certificateholders' Monthly Principal Distributable Amount" means, with
respect to any Distribution Date, the Certificateholders' Percentage of the
Allocable Principal for such Distribution Date.

        "Certificateholders' Percentage" means the following: (i) for each
Distribution Date until the Distribution Date on which the principal amount of
all of the Notes has been paid in full, 0%; (ii) for the Distribution Date on
which the principal amount of all the Notes has been paid in full, the
percentage of Allocable Principal remaining after the Notes have been paid in
full; and (iii) for each Distribution Date after the Distribution Date on which
the principal amount of all of the Notes is reduced to zero, 100%.

        "Certificateholders' Principal Carryover Shortfall" means, with respect
to any Distribution Date and a Class of Certificates, the excess, if any, of the
Certificateholders' Monthly Principal Distributable Amount for such Class plus
any outstanding Certificateholders' Principal Carryover Shortfall for such Class
for the preceding Distribution Date over the amount in respect of principal that
is actually distributed to the Certificateholders on such current Distribution
Date. Certificateholders' Principal Carryover Shortfall is not used to determine
the amount of principal due on such Class on any Distribution Date, but is used
solely for reporting purposes.

         "Certificateholders' Principal Distributable Amount" means, with
respect to any Distribution Date and a Class of Certificates, the sum of (i) the
Certificateholders' Monthly Principal Distributable Amount for such Distribution
Date, and (ii) on the Final Scheduled Distribution Date for such Class of
Certificates, if any, or upon the termination of the Trust, the amount necessary
to reduce the outstanding principal amount of such Class of Certificates to
zero; provided, however, that the Certificateholders' Principal Distributable
Amount with respect to a Class of Certificates shall not exceed the Certificate
Balance of such Class of Certificates.

        "Certificates" shall have the meaning assigned to such term in the Trust
Agreement.

        "Class" means any one of the classes of Notes or Certificates, as the
case may be.

        "Class A-1 Interest Rate" means ___% per annum.

        "Class A-1 Note" means any of the [__%] Asset Backed Notes, Class A-1,
issued under the Indenture.

        "Class A-1 Noteholder" means the Person in whose name a Class A-1 Note
is registered in the Note Register.

                                       5
<PAGE>   10

        "Class A-2 Interest Rate" means ___% per annum.

        "Class A-2 Note" means any of the [__%] Asset Backed Notes, Class A-2,
issued under the Indenture.

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

        "Class A-3 Interest Rate" means ___% per annum.

        "Class A-3 Note" means any of the [__%] Asset Backed Notes, Class A-3,
issued under the Indenture.

        "Class A-3 Noteholder" means the Person in whose name a Class A-3 Note
is registered in the Note Register.

         "Class B Interest Rate" means ___% per annum.

        "Class B Note" means any of the [__%] Asset Backed Notes, Class B,
issued under the Indenture.

        "Class B Noteholder" means the Person in whose name a Class B Note is
registered in the Note Register.

        "Class C Certificateholder" means the holder of any Class C Certificate
as evidenced by the Certificate Register.

        "Class C Pass-Through Rate" means [_______]% per annum.

        "Class D Certificateholder" means the holder of any Class D Certificate
as evidenced by the Certificate Register.

        "Class D Pass-Through Rate" means [_______]% per annum.

        "Clearing Agency" means an organization registered as a "clearing
agency" pursuant to Section 17A of the Exchange Act.

        "Clearing Agency Participant" means a broker, dealer, bank, other
financial institution or other Person for whom from time to time a Clearing
Agency effects book-entry transfers and pledges of securities deposited with the
Clearing Agency.

        "Closing Date" means [_______].

        "Collection Account" means the account designated as such, established
and maintained pursuant to Section 5.01.

        "Collection Period" means, with respect to any Distribution Date, the
preceding calendar month. Any amount stated "as of the close of business of the
last day of a Collection Period" shall give effect to the following calculations
as determined as of the end of the day on such last

                                       6
<PAGE>   11

day: (i) all applications of collections, (ii) all Advances and reductions of
Outstanding Advances and (iii) all distributions.

        "Controlling Class of Certificates" means, on any date of determination,
until the Class C Certificates have been paid in full, the Class C Certificates,
and thereafter, the Class D Certificates.

        "Controlling Class of Notes" means, on any date of determination, until
the Class A Notes have been paid in full, the Class A Notes, and thereafter, the
Class B Notes.

        "Corporate Trust Office" shall have the meaning assigned to such term in
the Indenture.

        "Cutoff Date" means [_______].

        "Damages" shall have the meaning assigned to such term in Section 7.02.

        "Dealer" means the dealer who sold a Financed Vehicle and who originated
and assigned the related Receivable to NMAC under an existing agreement between
such dealer and NMAC.

        "Dealer Recourse" means, with respect to a Receivable, all recourse
rights against the Dealer which originated the Receivable, and any successor
Dealer.

        "Default" shall have the meaning assigned to such term in the Indenture.

        "Defaulted Receivable" means a Receivable (other than an Administrative
Receivable or a Warranty Receivable), which, by its terms, is delinquent 120 or
more days or, with respect to Receivables that are delinquent less than 120
days, the Servicer has (i) determined, in accordance with its customary
servicing procedures, that eventual payment in full is unlikely or (ii)
repossessed the Financed Vehicle.

        "Definitive Certificates" and "Definitive Notes" shall have the meanings
ascribed thereto in the Trust Agreement and the Indenture, respectively.

         "Determination Date" means the tenth calendar day of each calendar
month, or if such tenth day is not a Business Day, the next succeeding Business
Day.

        "Distribution Date" means, for each Collection Period, the 15th calendar
day of the following calendar month, or if the 15th day is not a Business Day,
the next succeeding Business Day, commencing [_______].

        "DTC" means The Depository Trust Company.

        "Eligible Deposit Account" means an account maintained (i) with the
Indenture Trustee or the Owner Trustee so long as the Indenture Trustee's or the
Owner Trustee's short-term unsecured debt obligations have a rating of "P-1" by
Moody's and a rating of "A-1+" by Standard & Poor's, and for any account in
which deposits in excess of 30 days are to be made, so long as the Indenture
Trustee's or the Owner Trustee's long-term unsecured debt obligations have a
rating of at least "AA-" by Standard & Poor's (such short-term and long-term (if

                                       7
<PAGE>   12

applicable) ratings being, the "Required Deposit Rating"), or (ii) in a
segregated trust account in the trust department of the Indenture Trustee or the
Owner Trustee, as the case may be. Notwithstanding anything to the contrary, as
of the Closing Date, the Indenture Trustee shall be deemed to have met the
requirements in clause (i).

        "Eligible Investments" means, at any time, any one or more of the
following obligations and securities:

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

               (ii) demand deposits, time deposits or certificates of deposit of
        any depository institution or trust company incorporated under the laws
        of the United States of America or any state thereof (or any domestic
        branch of a foreign bank) and subject to supervision and examination by
        Federal or State banking or depository institution authorities;
        provided, however, that at the time of the investment or contractual
        commitment to invest therein, the commercial paper or other short-term
        unsecured debt obligations (other than such obligations the rating of
        which is based on the credit of a Person other than such depository
        institution or trust company) thereof shall have a credit rating from
        each of the Rating Agencies in the highest investment category granted
        thereby;

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

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

               (v) bankers' acceptances issued by any depository institution or
        trust company referred to in clause (ii) above;

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

               (vii) repurchase obligations with respect to any security or
        whole loan, entered into with (a) a depository institution or trust
        company (acting as principal) described in clause (ii) above (except
        that the rating referred to in the proviso in such clause (ii) shall be
        "A-1" or higher in the case of Standard & Poor's) (such depository
        institution or trust company being referred to in this definition as a
        "financial institution"), (b) a broker/dealer (acting as principal)
        registered as a broker or dealer under Section 15 of the Exchange Act (a
        "broker/dealer"), the unsecured short-term debt obligations of which are
        rated "P-1" by Moody's and at least "A-1" by Standard & Poor's at the
        time of entering into such repurchase obligation (a "rated
        broker/dealer"), (c) an unrated broker/dealer (an

                                       8
<PAGE>   13

        "unrated broker/dealer"), acting as principal that is a wholly-owned
        subsidiary of a non-bank holding company the unsecured short-term debt
        obligations of which are rated "P-1" by Moody's and at least "A-1" by
        Standard & Poor's at the time of entering into such repurchase
        obligation (a "Rated Holding Company"), or (d) an unrated wholly-owned
        subsidiary of a direct or indirect parent Rated Holding Company, which
        guarantees such subsidiary's obligations under such repurchase agreement
        (a "Guaranteed Counterparty"); provided that the following conditions
        are satisfied:

                      (A) the aggregate amount of funds invested in repurchase
               obligations of a financial institution, a rated broker/dealer, an
               unrated broker/dealer or a Guaranteed Counterparty in respect of
               which the unsecured short-term ratings of Standard & Poor's are
               "A-1" (in the case of an unrated broker/dealer or Guaranteed
               Counterparty, such rating being that of the related Rated Holding
               Company) shall not exceed 20% of the outstanding Pool Balance
               (there being no limit on the amount of funds that may be invested
               in repurchase obligations in respect of which such Standard &
               Poor's rating is "A-1+" (in the case of an unrated broker/dealer
               or Guaranteed Counterparty, such rating being that of the related
               Rated Holding Company));

                      (B) in the case of the Reserve Account and the Yield
               Supplement Account, the rating from Standard & Poor's in respect
               of the unsecured short term debt obligations of the financial
               institution, rated broker/dealer, unrated broker/dealer or
               Guaranteed Counterparty (in the case of an unrated broker/dealer
               or Guaranteed Counterparty, such rating being that of the related
               Rated Holding Company) shall be "A-1+";

                      (C) the repurchase obligation must mature within 30 days
               of the date on which the Indenture Trustee or the Owner Trustee,
               as applicable, enters into such repurchase obligation;

                      (D) the repurchase obligation shall not be subordinated to
               any other obligation of the related financial institution, rated
               broker/dealer, unrated broker/dealer or Guaranteed Counterparty;

                      (E) the collateral subject to the repurchase obligation is
               held, in the appropriate form, by a custodial bank on behalf of
               the Indenture Trustee or the Owner Trustee, as applicable;

                      (F) the repurchase obligation shall require that the
               collateral subject thereto shall be marked to market daily;

                      (G) in the case of a repurchase obligation of a Guaranteed
               Counterparty, the following conditions shall also be satisfied:

                          (1) the Indenture Trustee or the Owner Trustee, as
                      applicable, shall have received an Opinion of Counsel to
                      the effect that the guarantee of the related Rated Holding
                      Company is a legal, valid and binding agreement of the
                      Rated Holding Company, enforceable in accordance with

                                       9
<PAGE>   14

                      its terms, subject to the effect of bankruptcy,
                      insolvency, reorganization and moratorium or other similar
                      laws affecting creditors' rights generally and to general
                      equitable principles;

                             (2) the Indenture Trustee or the Owner Trustee, as
                      applicable, shall have received (x) an incumbency
                      certificate for the signer of such guarantee, certified by
                      an officer of such Rated Holding Company, and (y) a
                      resolution, certified by an officer of the Rated Holding
                      Company, of the board of directors (or applicable
                      committee thereof) of the Rated Holding Company
                      authorizing the execution, delivery and performance of
                      such guarantee by the Rated Holding Company;

                             (3) the only conditions to the obligation of such
                      Rated Holding Company to pay on behalf of the Guaranteed
                      Counterparty shall be that the Guaranteed Counterparty
                      shall not have paid under such repurchase obligation when
                      required (it being understood that no notice to, demand on
                      or other action in respect of the Guaranteed Counterparty
                      is necessary) and that the Indenture Trustee or the Owner
                      Trustee, as applicable, shall make a demand on the Rated
                      Holding Company to make the payment due under such
                      guarantee;

                             (4) the guarantee of the Rated Holding Company
                      shall be irrevocable with respect to such repurchase
                      obligation and shall not be subordinated to any other
                      obligation of the Rated Holding Company; and

                             (5) each of the Rating Agencies has confirmed in
                      writing to the Indenture Trustee or the Owner Trustee, as
                      applicable, that it has reviewed the form of the guarantee
                      of the Rated Holding Company and has determined that the
                      issuance of such guarantee will not result in the
                      downgrade or withdrawal of the ratings assigned to the
                      Notes or the Class C Certificates; and

                     (H) the repurchase obligation shall require that the
               repurchase obligation be overcollateralized and shall provide
               that, upon any failure to maintain such overcollateralization,
               the repurchase obligation shall become due and payable, and
               unless the repurchase obligation is satisfied immediately, the
               collateral subject to the repurchase agreement shall be
               liquidated and the proceeds applied to satisfy the unsatisfied
               portion of the repurchase obligation; and

               (viii) any other investment with respect to which the Servicer
        has received written notification from the Rating Agencies that the
        acquisition of such investment as an Eligible Investment will not result
        in a withdrawal or downgrading of the ratings on the Notes or the Class
        C Certificates;

provided that, unless otherwise expressly stated herein, each of the foregoing
investments shall be denominated in U.S. dollars, shall not be purchased at a
premium, shall mature no later than the Business Day prior to the Distribution
Date immediately following the date of purchase, and

                                       10
<PAGE>   15

shall be required to be held to such maturity; and provided, further, that
notwithstanding clauses (i) through (viii) above, "Eligible Investments" shall
not include any security having an "r" subscript attached to its Standard &
Poor's rating.

        For purposes of this definition, any reference to the highest available
credit rating of an obligation shall mean the highest available credit rating
for such obligation (excluding any "+" signs associated with such rating), or
such lower credit rating (as approved in writing by each Rating Agency) as will
not result in the qualification, downgrading or withdrawal of the rating then
assigned by such Rating Agency to any of the Notes.

        "Event of Default" shall have the meaning assigned to such term in the
Indenture.

        "Exchange Act" means the Securities Exchange Act of 1934.

        "Final Scheduled Distribution Date" means, with respect to the Class A-1
Notes, the Distribution Date in [_______]; with respect to the Class A-2 Notes,
the Distribution Date in [_______]; with respect to the Class A-3 Notes, the
Distribution Date in [_______]; with respect to the Class B Notes, the
Distribution Date in [_______]; with respect to the Class C Certificates, the
Distribution Date in [_______]; and with respect to the Class D Certificates,
the Distribution Date in [_______].

        "Financed Vehicle" means a new, near-new or used automobile or
light-duty truck, together with all accessions thereto, securing an Obligor's
indebtedness under the related Receivable.

        "Holder" or "Securityholder" means the registered holder of any
Certificate or Note as evidenced by the Certificate Register (as defined in the
Trust Agreement) or Note Register (as defined in the Indenture) except that,
solely for the purposes of giving certain consents, waivers, requests or demands
pursuant to the Trust Agreement or the Indenture, the interest evidenced by any
Certificate or Note registered in the name of [NARC][NARC II] or NMAC, or any
Person actually known to a Trust Officer to be an Affiliate of [NARC][NARC II]
or NMAC, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, waiver, request or demand shall
have been obtained unless [NARC][NARC II] or NMAC are the only holders.

        "Indenture" means the Indenture dated as of [_______], between the
Issuer and the Indenture Trustee.

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

        "Initial Yield Supplement Amount" means $[_____________] [in cash] [and
receivables with an aggregate principal balance of $[__________] as of [the
Cutoff Date] or other assets (including vehicle lease contracts)].

        "Insolvency Event" means, with respect to a specified Person, (a) the
filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or all or substantially all of its property
in an involuntary case under any applicable federal or state

                                       11
<PAGE>   16

bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official for such Person or for all or substantially all of its
property, or ordering the winding-up or liquidation of such Person's affairs,
and such decree or order shall remain unstayed and in effect for a period of 90
consecutive days; or (b) the commencement by such Person 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 such Person to the entry of an
order for relief in an involuntary case under any such law, or the consent by
such Person to the appointment of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for all or substantially all of its property, or the making by
such Person of any general assignment for the benefit of creditors.

        "Interest Period" means, with respect to any Distribution Date and the
Class A-1 Notes, the period from (and including) the preceding Distribution Date
to (but excluding) such Distribution Date, except that the initial Interest
Period will be from (and including) the Closing Date to (but excluding)
[___________], and, with respect to any Distribution Date and the Class A-2
Notes, the Class A-3 Notes, the Class B Notes and the Certificates, the period
from (and including) the 15th day of the preceding calendar month to (but
excluding) the 15th day of the month in which such Distribution Date occurs,
except that the initial Interest Period will be from (and including) the Closing
Date to (but excluding) [___________].

        "Interest Rate" means the Class A-1 Interest Rate, the Class A-2
Interest Rate, the Class A-3 Interest Rate or the Class B Interest Rate.

        "Issuer" means Nissan Auto Receivables ____-_ Owner Trust.

        "Lien" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than, in the case of a Financed Vehicle, tax
liens, mechanics' liens and any liens that attach to such Financed Vehicle by
operation of law.

        "Liquidated Receivable" means a Defaulted Receivable as to which the
related Financed Vehicle has been liquidated by the Servicer.

        "Monthly Remittance Conditions" shall have the meaning assigned to such
term in Section 5.02.

        "Moody's" means Moody's Investors Service, Inc.

        "[NARC][NARC II]" means [Nissan Auto Receivables Corporation][Nissan
Auto Receivables Corporation II], a Delaware corporation.

        "Net Liquidation Proceeds" means the monies collected from whatever
source on a Liquidated Receivable, net of the sum of any amounts expended by the
Servicer for the account of the Obligor, plus any amounts required by law to be
remitted to the Obligor.

        "Nissan" means Nissan Motor Co., Ltd.

                                       12
<PAGE>   17

        "NMAC" means Nissan Motor Acceptance Corporation, in its individual
capacity and not as Servicer.

        "Nonrecoverable Advance" means any Outstanding Advance with respect to
(i) any Defaulted Receivable or (ii) any Receivable as to which the Servicer
determines that any recovery from payments made on or with respect to such
Receivable is unlikely.

        "Note" means any one of the notes issued under the Indenture.

        "Note Depository Agreement" shall have the meaning assigned to such term
in the Indenture.

        "Note Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes, as of the close of business on the
last day of the related Collection Period, by the initial Outstanding Amount of
that Class of Notes.

        "Noteholder" shall have the meaning assigned to such term in the
Indenture.

        "Noteholders' Distributable Amount" means, with respect to any
Distribution Date, the Aggregate Noteholders' Interest Distributable Amount with
respect to such Distribution Date plus the Noteholders' Principal Distributable
Amount with respect to such Distribution Date for the most senior Class of
Notes.

        "Noteholders' Interest Carryover Shortfall" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the sum of the
Noteholders' Monthly Interest Distributable Amount for such Class for the
preceding Distribution Date plus any outstanding Noteholders' Interest Carryover
Shortfall for such Class on such preceding Distribution Date, over the amount in
respect of interest that is actually paid on the Notes of such Class on such
preceding Distribution Date, plus, to the extent permitted by applicable law,
interest on the Noteholders' Interest Carryover Shortfall at the related
Interest Rate for the related Interest Period (calculated on the same basis as
interest on that Class of Notes for the same period).

        "Noteholders' Interest Distributable Amount" means, with respect to any
Distribution Date and a Class of Notes, the sum of the Noteholders' Monthly
Interest Distributable Amount for such Class plus any outstanding Noteholders'
Interest Carryover Shortfall for such Class as of the close of the immediately
preceding Distribution Date.

        "Noteholders' Monthly Interest Distributable Amount" means, with respect
to any Distribution Date and a Class of Notes, interest accrued for the related
Interest Period (calculated on the basis of, in the case of Class A-1 Notes, the
actual number of days in such Interest Period and a year assumed to consist of
360 days, and in the case of all other Classes of Notes, such Interest Period
being assumed to consist of 30 days and a year assumed to consist of 360 days)
at the related Interest Rate for such Class of Notes on the Outstanding Amount
of the Notes of such Class on the immediately preceding Distribution Date, after
giving effect to all payments of principal to Noteholders of such Class on or
prior to such Distribution Date (or, in the case of the first Distribution Date,
on the original principal amount of such Class of Notes).

                                       13
<PAGE>   18

        "Noteholders' Monthly Principal Distributable Amount" means, with
respect to any Distribution Date, the Noteholders' Percentage of the Allocable
Principal for such Distribution Date.

        "Noteholders' Percentage" means (i) for each Distribution Date until the
Distribution Date on which the aggregate principal amount of all of the Notes
has been paid in full, 100%; (ii) for the Distribution Date on which the Notes
have been paid in full, the percentage of Allocable Principal required to pay
all of the Notes in full; and (iii) thereafter, 0%.

        "Noteholders' Principal Carryover Shortfall" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the Noteholders'
Monthly Principal Distributable Amount for such Class for the preceding
Distribution Date over the amount in respect of principal that is actually paid
as principal on such Class on such current Distribution Date. Noteholders'
Principal Carryover Shortfall is not used to determine the amount of principal
due on such Class on any Distribution Date, but is used solely for reporting
purposes.

        "Noteholders' Principal Distributable Amount" means, with respect to any
Distribution Date and a Class of Notes, the sum of (i) the Noteholders' Monthly
Principal Distributable Amount for such Distribution Date, and (ii) on the Final
Scheduled Distribution Date for such Class of Notes, the amount necessary to
reduce the outstanding principal amount of such Class of Notes to zero;
provided, however, that the Noteholders' Principal Distributable Amount with
respect to a Class of Notes shall not exceed the Outstanding Amount of such
Class of Notes.

        "Note Owner" shall have the meaning assigned to such term in the
Indenture.

        "Note Pool Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes as of the close of business on the
last day of the related Collection Period by the Original Pool Balance.

        "Note Register" means the register maintained by the Indenture Trustee
pursuant to the Indenture recording the name of each Noteholder.

        "Notes" means the Class A-1 Notes, the Class A-2 Notes, the Class A-3
Notes and the Class B Notes.

        "Obligor" on a Receivable means the purchaser or co-purchasers of the
Financed Vehicle or any other Person who owes payments under the Receivable (but
excluding any Dealer in respect of Dealer Recourse).

        "Officer's Certificate" means a certificate signed by the chairman of
the board, the president, any executive vice president, any vice president, the
treasurer, any assistant treasurer or the controller of the Seller or the
Servicer, as the case may be.

        "Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise provided herein, be an employee of or counsel to the
Issuer, the Seller or the Servicer, which counsel shall be reasonably acceptable
to the Indenture Trustee, the Owner Trustee or the Rating Agencies, as the case
may be.

                                       14
<PAGE>   19

        "Optional Purchase Percentage" means 10.00%.

        "Optional Purchase Price" means an amount equal to the aggregate
Administrative Purchase Payments for the Receivables (including Receivables that
became Defaulted Receivables in the Collection Period preceding the Distribution
Date on which a purchase pursuant to Section 9.01 is effected), plus the
appraised value of any other property held by the Trust, such value to be
determined by an appraiser mutually agreed upon by the Servicer and the Trustee,
and shall succeed to all interests in and to the Trust (less liquidated
expenses); provided, however, that the Optional Purchase Price shall be equal to
or greater than the sum of (i) the Outstanding Amount of all Classes of Notes,
(ii) the Noteholders' Interest Distributable Amount for all Classes of Notes for
such Distribution Date, (iii) the Certificate Balance of the Class C
Certificates, and (iv) the Certificateholders' Interest Distributable Amount of
the Class C Certificates for such Distribution Date.

        "Original Certificate Balance" means $[_________] for the Class C
Certificates and $[_________] for the Class D Certificates.

        "Original Pool Balance" means the aggregate Principal Balance of the
Receivables on the Cutoff Date.

        "Original Principal Amount " means $[_________] for the Class A-1 Notes,
$[_________] for the Class A-2 Notes, $[_________] for the Class A-3 Notes and
$[_________] for the Class B Notes.

        "Outstanding" shall have the meaning assigned to that term in the
Indenture.

        "Outstanding Advances" means, with respect to a Receivable and the last
day of a Collection Period, the sum of all Advances made as of or prior to such
date, minus all payments or collections as of or prior to such date that are
specified in Sections 5.04(b) and 5.04(d) as applied to reimburse all unpaid
Advances with respect to such Receivable.

        "Outstanding Amount" means the aggregate principal amount of all Notes,
or, if indicated by the context, all Notes of any Class, Outstanding at the date
of determination.

        "Owner Trust Estate" means all right, title and interest of the Trust in
and to the Receivables (other than the Warranty Receivables for which the Seller
has paid the Warranty Purchase Payment in accordance with Section 3.02 and
Administrative Receivables for which the Servicer has paid the Administrative
Purchase Payment in accordance with Section 4.06), and all monies paid thereon,
and all monies accrued thereon, after the Cutoff Date; security interests in the
Financed Vehicles and any accessions thereto; funds deposited in the Collection
Account; [the Yield Supplement Account and all funds deposited in the Yield
Supplement Account;] all property (including the right to receive Net
Liquidation Proceeds) that shall have secured a Receivable and that shall have
been acquired by or on behalf of the Owner Trustee; proceeds from claims on any
physical damage, credit life or disability insurance policies covering the
Financed Vehicles or the Obligors; all right to receive payments in respect of
any Dealer Recourse with respect to the Receivables; all right, title and
interest of the Seller in and to the Purchase Agreement and the Assignment; all
right, title and interest of the Owner Trustee and the Trust pursuant to this
Agreement [, the Yield Supplement Agreement] and the

                                       15
<PAGE>   20

Administration Agreement; certain rebates of premiums and other amounts relating
to certain insurance policies and other items financed under the Receivables in
effect as of the Cutoff Date; and the proceeds of any and all of the foregoing.

        "Owner Trustee" means the Person acting as Owner Trustee under the Trust
Agreement, its successors in interest and any successor owner trustee under the
Trust Agreement.

        "Pass-Through Rate" means the Class C Pass-Through Rate or the Class D
Pass-Through Rate.

        "Paying Agent" shall have the meaning assigned to such term in the
Indenture.

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

        "Pool Balance" as of the close of business on the last day of a
Collection Period means the aggregate Principal Balance of the Receivables
(excluding Administrative Receivables, Warranty Receivables and Defaulted
Receivables) as of the close of business on such day; provided, however, that
where the Pool Balance is relevant in determining whether the requisite
percentage of Certificateholders or Noteholders (or relevant Class or Classes of
Certificates or Notes, as the case may be) necessary to effect any consent,
waiver, request or demand shall have been obtained, the Pool Balance shall be
deemed to be reduced by the amount equal to the portion of the Pool Balance
(before giving effect to this provision) represented by the interests evidenced
by any applicable Certificate or Note registered in the name of the Seller, the
Servicer or any Person actually known to a Trust Officer of the Owner Trustee or
the Indenture Trustee, as the case may be, to be an Affiliate of the Seller or
the Servicer, unless all of the Certificates or Notes, as the case may be, are
held or beneficially owned by NMAC, [NARC] [NARC II] or any of their Affiliates.

        "Pool Factor" for a particular Class of Notes or Certificates on any
Distribution Date means a seven-digit decimal figure indicating the principal
amount of such Class of Notes or the Certificate Balance of such Class of
Certificates, as the case may be, as of the close of business on the last day of
the related Collection Period as a fraction of the Original Pool Balance.

        "Prepayment" means, with respect to any Receivable, any prepayment,
whether in part or in full, in respect of such Receivable.

        "Principal Balance" of a Receivable, as of any date of determination,
means the Amount Financed minus the sum of (i) all payments on such Receivable
allocable to principal, (ii) any refunded portion of extended warranty
protection plan or service contract costs, or of physical damage, credit life or
disability insurance premiums included in the Amount Financed, (iii) any payment
of the Administrative Purchase Payment or the Warranty Purchase Payment with
respect to the Receivable allocable to principal and (iv) any Net Liquidation
Proceeds allocable to principal.

                                       16
<PAGE>   21

        "Purchase Agreement" means that certain agreement, dated as of
[______________], between NMAC and the Seller, relating to the purchase by the
Seller from NMAC of the Receivables.

        "Rating Agency" means, as of any date, any of the nationally recognized
statistical rating organizations that has been requested by the Seller or one of
its Affiliates to rate any Class of Certificates or Notes and that is rating
such Class of Certificates or Notes, as the case may be, on such date.

        "Receivable" means any retail installment sale contract that appears on
Schedule A to this Agreement (which Schedule A may be in the form of microfiche,
CD, datatape or paper) and that has not been released by the Owner Trustee from
the Trust.

        "Receivable File" means the documents specified in Section 2.02
pertaining to a particular Receivable.

        "Record Date" means, with respect to the Notes or Certificates of any
Class and each Distribution Date, the 14th day of the calendar month in which
such Distribution Date occurs, or, if Definitive Notes representing any Class of
Notes or Definitive Certificates representing any Class of Certificates have
been issued, the last day of the Collection Period preceding the related
Distribution Date. Any amount stated "as of a Record Date" or "on a Record Date"
shall give effect to (i) all applications of collections, and (ii) all
distributions to any party under this Agreement, the Indenture and the Trust
Agreement or to the related Obligor, as the case may be, in each case as
determined as of the opening of business on the related Record Date.

        "Relevant Trustee" means (i) with respect to the control over or
appropriate designation denoting ownership or control over any property
comprising a portion of the Owner Trust Estate that either is not conveyed or
pledged to the Indenture Trustee for the benefit of the Noteholders pursuant to
the Granting Clause of the Indenture or that has been released from the lien of
the Indenture, the Owner Trustee, and (ii) with respect to any property
comprising a portion of the Trust Estate (as defined in the Indenture) that has
not been released from the lien of the Indenture, the Indenture Trustee;
provided, however, that with respect to any property that is under the joint or
separate control of a co-trustee or separate trustee under the Trust Agreement
or the Indenture, respectively, "Relevant Trustee" shall refer to either or both
of the Owner Trustee and such co-trustee or separate trustee or to either or
both of the Indenture Trustee and such co-trustee or separate trustee, as the
case may be.

        "Required Deposit Rating" shall have the meaning assigned to such term
in the definition of "Eligible Deposit Account."

        "Required Rate" means, with respect to each Collection Period, the sum
of (1) the [Class B Interest Rate] [weighted average Interest Rate of the Notes
and the Class C Pass-Through Rate] and (2) the Servicing Rate.

        "Required Yield Supplement Amount" means, with respect to every
Distribution Date, an amount equal to the lesser of (i) the aggregate amount of
Yield Supplement Deposits that would become due for all future Distribution
Dates under the Yield Supplement Agreement, assuming (1) that payments on the
Receivables are made on their scheduled due dates, (2) that no

                                       17
<PAGE>   22

Receivable becomes a prepaid Receivable, and (3) a discount rate of [___]%, and
(ii) the Initial Yield Supplement Amount.

        "Reserve Account" means the account designated as such, established and
maintained pursuant to Section 5.07.

        "Reserve Account Initial Deposit" means $[_______].

        "Schedule of Receivables" means the schedule of receivables attached as
Schedule A to this Agreement, as it may be amended from time to time.

        "Scheduled Payment" on a Receivable means the payment required to be
made by the Obligor during each Collection Period that is sufficient to amortize
the related Principal Balance under the Simple Interest Method over the term of
the Receivable and to provide interest at the related APR.

        "Securities Account Control Agreement" means the Securities Account
Control Agreement, dated as of [__________], among the Seller, [___________], as
Securities Intermediary thereunder, [__________], as Indenture Trustee, and
[___________], as Owner Trustee, pursuant to which the Reserve Account and the
Yield Supplement Account will be established and maintained.

         "Securities Intermediary" shall have the meaning assigned to such term
in the Securities Account Control Agreement.

        "Securityholders" has the meaning set forth in this Section 1.01 under
the definition of "Holder."

        "Seller" means [NARC][NARC II], as the seller of the Receivables under
this Agreement, and each successor to [NARC][NARC II] (in the same capacity)
pursuant to Section 6.04.

        "Servicer" means NMAC, as the servicer of the Receivables, and each
successor to NMAC (in the same capacity) pursuant to Section 7.03 or 8.02.

        "Servicer Default" means an event specified in Section 8.01.

        "Servicer's Certificate" means a certificate completed and executed on
behalf of the Servicer by the president, any executive vice president, any vice
president, the treasurer, any assistant treasurer, the controller or any
assistant controller of the Servicer pursuant to Section 4.08.

        "Servicing Rate" means 1.00% per annum.

        "Simple Interest Method" means the method of allocating a fixed level
payment to principal and interest pursuant to which the portion of such payment
that is allocated to interest is equal to the product of the fixed rate of
interest multiplied by the unpaid principal balance

                                       18
<PAGE>   23

multiplied by the quotient obtained by calculating the period of time elapsed
since the preceding payment of interest was made and dividing such period of
time by 365 or 366, as appropriate.

        "Simple Interest Receivable" means any Receivable under which the
portion of a payment allocable to interest and the portion allocable to
principal is determined in accordance with the Simple Interest Method.

        "Specified Reserve Account Balance" means with respect to any
Distribution Date, an amount equal to $______________, provided, however, that
in the event that on any Distribution Date (i) the annualized average for the
preceding three Collection Periods (or such smaller number of Collection Periods
as have elapsed since the Cutoff Date) of the percentage equivalents of the
ratios of net losses (i.e., the net balances of all Liquidated Receivables, less
any Net Liquidation Proceeds with respect to such Liquidated Receivables from
that or prior Collection Periods) to the Pool Balance as of the first day of
each such Collection Period exceeds [ ]% or (ii) the average for the preceding
three Collection Periods (or such smaller number of Collection Periods as have
elapsed since the Cutoff Date) of the percentage equivalents of the ratios of
the number of Receivables that are delinquent 60 days or more to the outstanding
number of Receivables exceeds [ ]%, then the Specified Reserve Account Balance
for such Distribution Date (and for each succeeding Distribution Date until the
relevant averages have not exceeded the specified percentages in clauses (i) and
(ii) above for three successive Distribution Dates) shall be a dollar amount
equal to the greater of (i) $[__________] and (ii) [ ]% of the Outstanding
Amount of the Notes and the Certificate Balance as of the preceding Distribution
Date (after giving effect to payments of principal made on such Distribution
Date).

        "Standard & Poor's" means Standard & Poor's Ratings Services, a Division
of the McGraw-Hill Companies Inc.

        "Successor Servicer" means any entity appointed as a successor to the
Servicer pursuant to Section 8.02.

        "Supplemental Servicing Fee" means, with respect to any Distribution
Date, all late fees, prepayment charges and other administrative fees and
expenses or similar charges allowed by applicable law with respect to the
Receivables received by the Servicer during the related Collection Period and
any interest earned from the investment of monies in the Accounts (other than
the Yield Supplement Account) during the related Collection Period.

        "Total Servicing Fee" means the sum of the Base Servicing Fee and the
Supplemental Servicing Fee.

        "Trust" means the Issuer.

        "Trust Agreement" means the Amended and Restated Trust Agreement, dated
as of [_______], between the Seller and the Owner Trustee.

        "Trust Collection Account" shall have the meaning assigned to such term
in Section 5.01(c).

                                       19
<PAGE>   24

        "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
the Indenture for the benefit of the Noteholders (including, without limitation,
all property and interests granted to the Indenture Trustee pursuant to the
Granting Clause of the Indenture), including all proceeds thereof.

        "Trust Officer" means, in the case of the Indenture Trustee, any officer
within the Corporate Trust Office of the Indenture Trustee, including any Vice
President, Assistant Vice President, Secretary, Assistant Secretary or any other
officer of the Indenture Trustee customarily performing functions similar to
those performed by any of the above designated officers and also, with respect
to a particular matter, any other officer to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject and, with respect to the Owner Trustee, any officer in the Corporate
Trust Administration Department of the Owner Trustee with direct responsibility
for the administration of the Trust Agreement and the Basic Documents on behalf
of the Owner Trustee.

        "UCC" means the Uniform Commercial Code as in effect in the relevant
jurisdiction.

        "USAP" shall have the meaning assigned to such term in Section 4.10.

        ["VPTN Proceeds Account" is an account created pursuant to Section
5.01(f).]

        "Warranty Purchase Payment," for any Warranty Receivable as of the last
day of any Collection Period, means the sum of the Principal Balance thereof as
of the beginning of such Collection Period plus interest accrued thereon through
the due date for the Obligor's payment in such Collection Period, at the related
APR, after giving effect to the receipt of monies collected (from whatever
source other than Advances) on such Warranty Receivable, if any, during such
Collection Period.

        "Warranty Receivable" means a Receivable purchased as of the close of
business on the last day of a Collection Period by the Seller pursuant to
Section 3.02.

        "Yield Supplement Account" means the segregated trust account
established and maintained for the benefit of the Noteholders and the Class C
Certificateholders pursuant to Section 5.08(a).

        "Yield Supplement Agreement means that certain agreement, dated as of
[______________], among [NARC] [NARC II], NMAC, the Indenture Trustee and the
Trust, substantially in the form attached hereto as Exhibit A.

        "Yield Supplement Amount" means, with respect to any Distribution Date,
the aggregate amount on deposit in the Yield Supplement Account after giving
effect to the withdrawal therefrom of the related Yield Supplement Deposit and
without regard to any amounts on deposit therein in respect of interest or
investment earnings earned on the investment of amounts on deposit therein in
Eligible Investments for any period.

        "Yield Supplement Deposit" means, with respect to any Distribution Date,
the amount by which (a) the aggregate amount of interest that would have been
due during the related Collection Period on all Yield Supplemented Receivables
if such Yield Supplemented

                                       20
<PAGE>   25

Receivables bore interest at the Required Rate exceeds (b) the amount of
interest accrued on such Yield Supplemented Receivables at their respective APRs
and due during such Collection Period.

        "Yield Supplemented Receivable" means any Receivable that has an APR
less than the Required Rate.

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

                                   ARTICLE II

                            Conveyance of Receivables

        SECTION 2.01 Conveyance of Receivables.

        (a) In consideration of the premises and the agreements, provisions and
covenants herein contained and other good and valuable consideration to be
delivered to the Seller hereunder, on behalf of the Issuer, the Seller does
hereby sell, transfer, assign and otherwise convey to the Issuer, without
recourse (but subject to the Seller's obligations in this Agreement):

                      (i) all right, title and interest of the Seller in and to
        the Receivables (including all related Receivable Files) listed in
        Schedule A hereto and all monies due thereon or paid thereunder or in
        respect thereof (including proceeds of the repurchase of Receivables by
        the Seller pursuant to Section 3.02 or the purchase of Receivables by
        the Servicer pursuant to Section 4.06 or 9.01) after the Cutoff Date;

                      (ii) the right of the Seller in the security interests in
        the Financed Vehicles granted by the Obligors pursuant to the
        Receivables and any related property;

                      (iii) the right of the Seller in any proceeds from claims
        on any physical damage, credit life, credit disability or other
        insurance policies covering the Financed Vehicles or the Obligors;

                      (iv) the right of the Seller through NMAC to receive
        payments in respect of any Dealer Recourse with respect to the
        Receivables;

                      (v) the rights of the Seller under the Purchase Agreement
        and the Assignment;

                                       21
<PAGE>   26

                      (vi) the right of the Seller to realize upon any property
        (including the right to receive future Net Liquidation Proceeds) that
        shall have secured a Receivable;

                      (vii) the right of the Seller in rebates of premiums and
        other amounts relating to insurance policies and other items financed
        under the Receivables in effect as of the Cutoff Date;

                      (viii) all other assets comprising the Owner Trust Estate;
and

                      (ix) all proceeds of the foregoing.

               On the Closing Date, the Seller shall deliver to, or to the order
of, the Issuer all property conveyed pursuant to this Section 2.01(a) except for
monies received in respect of the Receivables after the Cutoff Date and before
the Closing Date which shall be deposited by NMAC (in its individual capacity or
as the Servicer) into the Collection Account no later than the first Record Date
after the Closing Date. Concurrently therewith and in exchange therefor, the
Issuer shall deliver to, or to the order of, the Seller the Notes and the
Certificates.

        (b) It is the intention of the Seller that the transfer and assignment
contemplated by this Agreement shall constitute a sale of the Receivables from
the Seller to the Issuer and the beneficial interest in and title to the
Receivables shall not be part of the Seller's estate in the event of the filing
of a bankruptcy petition by or against the Seller under any bankruptcy law. The
Seller agrees to execute and file all filings (including filings under the UCC)
necessary in any jurisdiction to provide third parties with notice of the sale
of the Receivables pursuant to this Agreement and to perfect such sale under the
UCC.

        (c) Although the parties hereto intend that the transfer and assignment
contemplated by this Agreement be a sale, if such transfer and assignment is
deemed to be other than a sale, the parties intend that all filings described in
the foregoing paragraph shall give the Issuer a first priority perfected
security interest in, to and under the Receivables, and other property conveyed
hereunder and all proceeds of any of the foregoing. This Agreement shall be
deemed to be the grant of a security interest from the Seller to the Issuer, and
the Issuer shall have all the rights, powers and privileges of a secured party
under the UCC.

        (d) In connection with the foregoing conveyance, the Servicer shall
maintain its computer system so that, from and after the time of sale of the
Receivables to the Issuer under this Agreement, the Servicer's master computer
records that refer to any Receivable indicate clearly the interest of the Issuer
in such Receivables and that such Receivable is owned by the Issuer and
controlled by the Issuer. Indication of the Issuer's ownership of a Receivable
shall be deleted from or modified on the Servicer's computer systems when, and
only when, the Receivable has been paid in full, repurchased or assigned
pursuant to this Agreement.

        (e) Ownership and control of the Receivables, as between the Issuer and
the Indenture Trustee (on behalf of the Noteholders and the Certificateholders)
shall be governed by the Indenture.

        SECTION 2.02 Custody of Receivables Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of

                                       22
<PAGE>   27

this Agreement, appoints the Servicer, and the Servicer accepts such
appointment, to act as the agent of the Issuer as custodian of the following
documents or instruments that are hereby constructively delivered to the Issuer
with respect to each Receivable:

        (a) the original of such Receivable (or a photocopy or other image
thereof that the Servicer shall keep on file in accordance with its customary
procedures) fully executed by the Obligor;

        (b) the original credit application fully executed by the related
Obligor (or a photocopy or other image thereof that the Servicer shall keep on
file in accordance with its customary procedures);

        (c) the original certificate of title (or a photocopy or other image
thereof or such documents that the Servicer shall keep on file in accordance
with its customary procedures), evidencing the security interest of the Servicer
in the related Financed Vehicle; and

        (d) any and all other documents that the Servicer shall keep on file, in
accordance with its customary procedures, relating to such Receivable, the
related Obligor or Financed Vehicle.

        SECTION 2.03 Acceptance by Issuer. The Issuer acknowledges its
acceptance pursuant to this Agreement, of all right, title and interest in and
to the Receivables conveyed by the Seller pursuant to this Agreement and
declares and shall declare from and after the date hereof that the Issuer holds
and shall hold such right, title and interest, upon the terms and conditions set
forth in this Agreement.

                                   ARTICLE III

                                 The Receivables

        SECTION 3.01 Representations and Warranties of the Seller with Respect
to the Receivables. The Seller makes the following representations and
warranties as to the Receivables on which the Issuer is deemed to have relied in
acquiring the Receivables. Such representations and warranties speak as of the
execution and delivery of this Agreement and as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables to the Issuer and
the pledge thereof to the Indenture Trustee pursuant to the Indenture.

        (a) Characteristics of Receivables. Each Receivable (i) has been
originated in the United States of America by a Dealer for the retail sale of a
Financed Vehicle in the ordinary course of such Dealer's business, has been
fully and properly executed by the parties thereto, has been purchased by the
Seller from NMAC pursuant to the Purchase Agreement, which in turn has purchased
such Receivables from such Dealer under an existing dealer agreement with NMAC,
and has been validly assigned by such Dealer to NMAC, which in turn has been
validly assigned pursuant to the Purchase Agreement by NMAC to the Seller in
accordance with its terms, (ii) created a valid, subsisting and enforceable
security interest in favor of NMAC in such Financed Vehicle, which security
interest has been validly assigned pursuant to the Purchase Agreement by NMAC to
the Seller, which in turn has been validly assigned by the Seller to the

                                       23
<PAGE>   28

Issuer in accordance with the terms hereof, (iii) contains customary and
enforceable provisions such that the rights and remedies of the holder thereof
are adequate for realization against the collateral of the benefits of the
security, (iv) provides for level monthly payments (provided that the payment in
the first or last month in the life of the Receivable may be minimally different
from the level payment) that fully amortize the Amount Financed over an original
term of no greater than [___] months, and (v) provides for interest at the
related APR.

        (b) Schedule of Receivables. The information set forth in Schedule A to
this Agreement was true and correct in all material respects as of the opening
of business on the Cutoff Date; the Receivables were selected at random from
NMAC's retail installment sale contracts (other than contracts originated in
Alabama [or Hawaii]) meeting the criteria of the Trust set forth in this
Agreement; and no selection procedures believed to be adverse to the
Securityholders were utilized in selecting the Receivables.

        (c) Compliance with Law. Each Receivable, the origination of such
Receivable, and the sale of the Financed Vehicle complied at the time it was
originated or made and at the execution of this Agreement complies in all
material respects with all requirements of applicable federal, state and local
laws, and regulations thereunder, including usury laws, the Federal
Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit
Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade
Commission Act, the Magnuson-Moss Warranty Act, the Soldiers and Sailors Civil
Relief Act of 1940, the Federal Reserve Board's Regulations B and Z, and state
adaptations of the National Consumer Credit Protection Act and of the Uniform
Consumer Credit Code, state "Lemon Laws" designed to prevent fraud in the sale
of automobiles and other consumer credit laws and equal credit opportunity and
disclosure laws.

        (d) Binding Obligation. Each Receivable represents the genuine, legal,
valid and binding payment obligation in writing of the Obligor, enforceable by
the holder thereof in accordance with its terms subject to the effect of
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors' rights generally and by general equitable principles.

        (e) Security Interest in Financed Vehicle. (i) Immediately prior to the
sale, assignment and transfer thereof to the Issuer, each Receivable was secured
by a validly perfected first priority security interest in the Financed Vehicle
in favor of NMAC as secured party or all necessary and appropriate actions shall
have been commenced that would result in the valid perfection of a first
priority security interest in the Financed Vehicle in favor of NMAC as secured
party, and (ii) as of the Cutoff Date, according to the records of NMAC, no
Financed Vehicle has been repossessed and not reinstated.

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

        (g) No Waiver. No provision of a Receivable has been waived in a manner
that is prohibited by the provisions of Section 4.01 or that would cause such
Receivable to fail to meet all of the other requirements and warranties made by
the Seller herein with respect thereto.

                                       24
<PAGE>   29

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

        (i) No Liens. To the Seller's knowledge, no liens have been filed for
work, labor or materials relating to a Financed Vehicle that shall be liens
prior to, or equal or coordinate with, the security interest in the Financed
Vehicle granted by the Receivable.

        (j) No Default. Except for payment defaults continuing for a period of
not more than 29 days as of the Cutoff Date, no default, breach, violation or
event permitting acceleration under the terms of any Receivable has occurred;
and no continuing condition that with notice or the lapse of time would
constitute a default, breach, violation or event permitting acceleration under
the terms of any Receivable has arisen (other than deferrals and waivers of late
payment charges or fees permitted hereunder).

        (k) Insurance. NMAC, in accordance with its customary procedures, has
determined at the time of origination of each Receivable that the related
Obligor has agreed to obtain physical damage insurance covering the Financed
Vehicle and the Obligor is required under the terms of the related Receivable to
maintain such insurance.

        (l) Title. It is the intention of the Seller that the transfer and
assignment herein contemplated constitute a sale of the Receivables from the
Seller to the Trust and that the beneficial interest in and title to the
Receivables not be part of the Seller's estate in the event of the filing of a
bankruptcy petition by or against the Seller under any bankruptcy law.
Immediately prior to the transfer and assignment herein contemplated, the Seller
had good and marketable title to each Receivable free and clear of all Liens,
and immediately upon the transfer thereof, the Issuer, for the benefit of the
Noteholders and the Certificateholders, shall have good and marketable title to
each Receivable, free and clear of all Liens and rights of others. Each
Receivable File contains the original certificate of title (or a photocopy or
image thereof) or evidence that an application for a certificate of title has
been filed.

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

        (n) All Filings Made. All filings (including, without limitation, UCC
filings) necessary in any jurisdiction to give the Relevant Trustee a first
priority perfected ownership interest in the Receivables have been made or have
been delivered in form suitable for filing to the Relevant Trustee.

        (o) Chattel Paper. Each Receivable constitutes "chattel paper," as such
term is defined in the UCC.

        (p) Simple Interest Receivables. All of the Receivables are Simple
Interest Receivables.

                                       25
<PAGE>   30

        (q) One Original. There is only one original executed copy of each
Receivable.

        (r) No Amendments. No Receivable has been amended such that the amount
of the Obligor's Scheduled Payments has been increased.

        (s) APR. The APR of each Receivable equals or exceeds [__%].

        (t) Maturity. As of the Cutoff Date, each Receivable had a remaining
term to maturity of not less than [____] months and not greater than [____]
months.

        (u) Balance. Each Receivable had an original Principal Balance of not
more than $[_______] and, as of the Cutoff Date, had a principal balance of not
less than $[_______] and not more than $[_______].

        (v) Delinquency. No Receivable was more than 29 days past due as of the
Cutoff Date and no Receivable has been extended by more than two months.

        (w) Bankruptcy. No Obligor was the subject of a bankruptcy proceeding
(according to the records of NMAC) as of the Cutoff Date.

        (x) Transfer. Each Receivable prohibits the sale or transfer of the
Financed Vehicle without the consent of NMAC.

        (y) New, Near-New and Used Vehicles. Each Financed Vehicle was a new,
near-new or used automobile or light-duty truck at the time the related Obligor
executed the retail installment sale contract.

        (z) Origination. Each Receivable has an origination date on or after
[_______].

        (aa) Location of Receivable Files. The Receivable Files shall be kept at
one or more of the locations listed in Schedule B hereto.

        (bb) Forced-Placed Insurance Premiums. No contract relating to any
Receivable has had forced-placed insurance premiums added to the amount
financed.

        (cc) No Fraud or Misrepresentation. To the knowledge of the Seller, no
Receivable was originated by a Dealer and sold by such Dealer to the Seller with
any conduct constituting fraud or misrepresentation on the part of such Dealer.

        (dd) No Further Amounts Owed on the Receivables. No further amounts are
owed by the Seller to any Obligor under the Receivables.

        SECTION 3.02 Repurchase upon Breach. The Seller, the Servicer or the
Issuer, as the case may be, shall inform the other parties to this Agreement and
the Indenture Trustee promptly, in writing, upon the discovery of any breach of
the Seller's representations and warranties pursuant to Section 3.01 that
materially and adversely affects the interests of the

                                       26
<PAGE>   31

Securityholders in any Receivable. Unless the breach shall have been cured by
the last day of the second Collection Period following such discovery (or, at
the Seller's election, the last day of the first Collection Period following
such discovery), the Seller shall be obligated (whether or not such breach was
known to the Seller on the Closing Date), and the Issuer shall enforce the
obligation of the Seller under this Agreement and, if necessary, the Seller
shall enforce the obligation of NMAC under the Purchase Agreement, to repurchase
any Receivable the Securityholders' interest in which was materially and
adversely affected by the breach as of such last day. A breach of the
representation in Section 3.01(a)(iv), (t) or (u) shall be deemed to affect
materially and adversely the related Receivable. In consideration of the
purchase of the Receivables, the Seller shall remit the Warranty Purchase
Payment in the manner specified in Section 5.05. For purposes of this Section
3.02, the Warranty Purchase Payment of a Receivable that is not consistent with
the Seller's warranty pursuant to Section 3.01(a)(iv) shall include such
additional amount as shall be necessary to provide the full amount of interest
as contemplated therein to the date of repurchase. The sole remedy of the Trust,
the Indenture Trustee (by operation of the assignment of the Issuer's rights
hereunder pursuant to the Indenture) or any Securityholder with respect to a
breach of the Seller's representations and warranties pursuant to Section 3.01
shall be to require the Seller to repurchase Receivables pursuant to this
Section and to enforce the obligation of NMAC to the Seller to repurchase such
Receivables pursuant to the Purchase Agreement.

        SECTION 3.03 Duties of Servicer as Custodian.

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

        (b) Maintenance of and Access to Records. The Servicer shall maintain
each Receivable File at one of its offices specified in Schedule B or at such
other office as shall be specified to the Owner Trustee and the Indenture
Trustee by written notice from the Servicer not later than 90 days after any
change in location. The Servicer shall make available to the Owner Trustee and
the Indenture Trustee or their respective duly authorized representatives,
attorneys or auditors the Receivable Files and the related accounts, records and
computer systems maintained by the Servicer at such times during normal business
hours as the Owner Trustee or the Indenture Trustee shall instruct. The Servicer
shall permit the Owner Trustee, the Indenture Trustee and

                                       27
<PAGE>   32

their respective agents at any time during normal business hours upon reasonable
prior notice to inspect, audit and make copies of and abstracts from the
Servicer's records regarding any Receivable.

        (c) Release of Documents. Upon the occurrence and during the
continuation of a Servicer Default or to the extent necessary for the Indenture
Trustee to comply with its obligations under this Agreement, the Servicer shall,
upon instruction from the Indenture Trustee, release any Receivable File to the
Indenture Trustee, the Indenture Trustee's agent or the Indenture Trustee's
designee, as the case may be, at such place or places as the Indenture Trustee
may designate, as soon as practicable.

        SECTION 3.04 Instructions; Authority To Act. The Servicer shall be
deemed to have received proper instructions with respect to the Receivable Files
upon its receipt of written instructions signed by a Trust Officer of the Owner
Trustee or the Indenture Trustee.

        SECTION 3.05 Custodian's Indemnification. The Servicer, as custodian,
shall indemnify the Issuer, the Owner Trustee and the Indenture Trustee for any
and all liabilities, obligations, losses, compensatory damages, payments, costs
or expenses of any kind whatsoever that may be imposed on, incurred by or
asserted against any of them as the result of any improper act or omission in
any way relating to the maintenance and custody by the Servicer as custodian of
the Receivable Files; provided, however, that the Servicer shall not be liable
to the Owner Trustee for any portion of any such amount resulting from the
willful misfeasance, bad faith or negligence of the Owner Trustee, and the
Servicer shall not be liable to the Indenture Trustee for any portion of any
such amount resulting from the willful misfeasance, bad faith or negligence of
the Indenture Trustee.

        SECTION 3.06 Effective Period and Termination. The Servicer's
appointment as custodian shall become effective as of the Cutoff Date, and shall
continue in full force and effect until terminated pursuant to this Section. If
NMAC shall resign as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of any Servicer shall have
been terminated under Section 8.01, the appointment of NMAC as custodian may be
terminated by the Indenture Trustee or by the Holders of Notes evidencing not
less than 25% of the Outstanding Amount of the Notes (but excluding for purposes
of such calculation and action all Notes held or beneficially owned by NMAC,
[NARC][NARC II] or any of their Affiliates unless all of the Notes are held or
beneficially owned by NMAC, [NARC][NARC II] or any of their Affiliates) or, with
the consent of Holders of the Notes evidencing not less than 25% of the
Outstanding Amount of the Notes, by the Owner Trustee or by the
Certificateholders evidencing not less than 25% of the Certificate Balance (but
excluding for purposes of such calculation and action all Certificates, held or
beneficially owned by NMAC, [NARC][NARC II] or any of their Affiliates unless
all of the Certificates are held or beneficially owned by NMAC, [NARC][NARC II]
or any of their Affiliates), in the same manner as the Indenture Trustee or such
Holders may terminate the rights and obligations of the Servicer under Section
8.01. The Indenture Trustee or, with the consent of the Indenture Trustee, the
Issuer may terminate the Servicer's appointment as custodian, with cause, at any
time upon written notification to the Servicer, and without cause upon 30 days'
prior written notification to the Servicer. As soon as practicable after any
termination of such appointment, the Servicer shall deliver the Receivable

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<PAGE>   33

Files and the related accounts and records maintained by the Servicer to the
Relevant Trustee or the agent thereof at such place or places as the Relevant
Trustee may reasonably designate.

                                   ARTICLE IV

                   Administration and Servicing of Receivables

        SECTION 4.01 Duties of Servicer.

        (a) The Servicer shall manage, service, administer and make collections
on the Receivables with reasonable care, using that degree of skill and
attention that the Servicer exercises with respect to all comparable receivables
that it services for itself or others. Except with respect to Defaulted
Receivables, Administrative Receivables or Warranty Receivables, the Servicer
shall not change the amount of or reschedule the due date of any Scheduled
Payment, change the APR of, or extend any Receivable except as provided herein
or change any material term of a Receivable; provided, however, that:

               (1) if a default, breach, violation, delinquency or event
        permitting acceleration under the terms of any Receivable shall have
        occurred or, in the judgment of the Servicer, is imminent, the Servicer
        may (A) extend such Receivable for credit related reasons that would be
        acceptable to the Servicer with respect to comparable new, near-new or
        used automobile or light-duty truck receivables that it services for
        itself, but only if (i) the final scheduled payment date of such
        Receivable as extended would not be later than the last day of the
        Collection Period preceding the Final Scheduled Distribution Date for
        the Class C Certificates, and (ii) the rescheduling or extension would
        not modify the terms of such Receivable in a manner which would
        constitute a cancellation of such Receivable and the creation of a new
        receivable for federal income tax purposes; or (B) reduce an Obligor's
        monthly payment amount in the event of a prepayment resulting from
        refunds of credit life and disability insurance premiums and service
        contracts and make similar adjustments in an Obligor's payment terms to
        the extent required by law; or

               (2) if at the end of the scheduled term of any Receivable, the
        outstanding principal amount thereof is such that the final payment to
        be made by the related Obligor is larger than the regularly scheduled
        payment of principal and interest made by such Obligor, the Servicer may
        permit such Obligor to pay such remaining principal amount in more than
        one payment of principal and interest, provided that the last such
        payment shall be due on or prior to the last day of the Collection
        Period preceding the Final Scheduled Distribution Date for the Class C
        Certificates; and

               (3) the Servicer may in its discretion waive any late payment
        charge or any other fees that may be collected in the ordinary course of
        servicing a Receivable.

        (b) The Servicer's duties shall include collection and posting of all
payments, responding to inquiries of Obligors on the Receivables, investigating
delinquencies, sending remittance advises to Obligors, reporting tax information
to Obligors, accounting for collections, furnishing monthly and annual
statements to the Owner Trustee and the Indenture Trustee with respect to
distributions and making Advances pursuant to Section 5.04.

                                       29
<PAGE>   34

        (c) Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the Trust,
the Owner Trustee, the Indenture Trustee and the Securityholders or any of them,
any and all instruments of satisfaction or cancellation, or partial or full
release or discharge, and all other comparable instruments, with respect to the
Receivables or to the Financed Vehicles securing the Receivables. If the
Servicer shall commence a legal proceeding to enforce a Receivable, the Issuer
(in the case of a Receivable other than an Administrative Receivable or a
Warranty Receivable) shall thereupon be deemed to have automatically assigned,
solely for the purpose of collection, such Receivable to the Servicer. If in any
enforcement suit or legal proceeding it shall be held that the Servicer may not
enforce a Receivable on the ground that it shall not be a real party in interest
or a holder entitled to enforce such Receivable, the Issuer shall, at the
Servicer's expense and direction, take steps to enforce the Receivable,
including bringing suit in its name or the name of the Indenture Trustee or the
Securityholders. The Issuer shall furnish the Servicer with any powers of
attorney and other documents reasonably necessary or appropriate to enable the
Servicer to carry out its servicing and administrative duties hereunder.

        (d) The Servicer, at its expense, shall obtain on behalf of the Trust
all licenses, including those required under the Pennsylvania Motor Vehicle
Sales Finance Act and the Maryland Financial Institutions Article, required by
the laws of any jurisdiction to be held by the Trust in connection with
ownership of the Receivables, and shall make all filings and pay all fees as may
be required in connection therewith during the term hereof. Nothing in the
foregoing or in any other section of this Agreement shall be construed to
prevent the Servicer from implementing new programs, whether on an intermediate,
pilot or permanent basis, or on a regional or nationwide basis, or from
modifying its standards, policies and procedures as long as, in each case, the
Servicer does or would implement such programs or modify its standards, policies
and procedures in respect of comparable assets serviced for itself in the
ordinary course of business.

        SECTION 4.02 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and when the same shall become due and shall
follow such collection procedures as it follows with respect to all comparable
receivables that it services for itself or others.

        SECTION 4.03 Realization upon Receivables. On behalf of the Trust, the
Servicer shall use commercially reasonable efforts, consistent with its
customary servicing procedures, to repossess or otherwise convert the ownership
of the Financed Vehicle securing any Receivable as to which the Servicer shall
have determined eventual payment in full is unlikely. The Servicer shall follow
such customary and usual practices and procedures as it shall deem necessary or
advisable in its servicing of comparable receivables, which may include
reasonable efforts to realize upon any Dealer Recourse and selling the related
Financed Vehicle at public or private sale. The foregoing shall be subject to
the provision that, in any case in which the Financed Vehicle shall have
suffered damage, the Servicer shall not expend funds in connection with the
repair or the repossession of such Financed Vehicle unless it shall determine in
its discretion that such repair and/or repossession will increase the Net
Liquidation Proceeds.

        SECTION 4.04 Maintenance of Security Interests in Financed Vehicles. The
Servicer shall, in accordance with its customary servicing procedures, take such
steps as are necessary to

                                       30
<PAGE>   35

maintain perfection of the security interest created by each Receivable in the
related Financed Vehicle. The Servicer is hereby authorized to take such steps
as are necessary to re-perfect such security interest on behalf of the Issuer
and the Indenture Trustee in the event of the relocation of a Financed Vehicle
or for any other reason. If the assignment of a Receivable to the Trust is
insufficient, without a notation on the related Financed Vehicle's certificate
of title, to grant to the Trust a first priority perfected security interest in
the related Financed Vehicle, the Servicer hereby agrees to serve as the agent
of the Trust for the purpose of perfecting the security interest of the Trust in
such Financed Vehicle and agrees that the Servicer's listing as the secured
party on the certificate of title is in this capacity as agent of the Trust.

        SECTION 4.05 Covenants of Servicer.

               (a) The Servicer shall not release the Financed Vehicle securing
any Receivable from the security interest granted by such Receivable in whole or
in part except in the event of payment in full by or on behalf of the Obligor
thereunder or repossession.

               (b) The Servicer shall not do anything to impair the rights of
the Securityholders in the Receivables.

               (c) Except with respect to Defaulted Receivables, Administrative
Receivables or Warranty Receivables, the Servicer shall not alter the APR of any
Receivable or forgive payments on a Receivable. Except as provided in Section
4.01, the Servicer shall not modify the number of payments under a Receivable,
increase the amount financed under a Receivable or extend the due date for any
payment on a Receivable.

               (d) If the Servicer shall determine not to make an Advance
related to delinquency or non-payment of any Receivable pursuant to Section 5.04
because it determines that such Advance would not be recoverable from subsequent
collections on such Receivable, such Receivable shall be designated by the
Servicer to be a Defaulted Receivable, provided that such Receivable otherwise
meets the definition of a Defaulted Receivable.

        SECTION 4.06 Purchase of Receivables upon Breach. The Servicer or the
Issuer shall inform the other party and the Indenture Trustee promptly, in
writing, upon the discovery of any breach by the Servicer of its obligations
under the second sentence of Section 4.01 or under Section 4.02, 4.04 or 4.05
that would materially and adversely affect any Receivable. Unless the breach
shall have been cured by the last day of the second Collection Period following
such discovery (or, at the Servicer's election, the last day of the first
Collection Period following discovery), the Servicer shall (whether or not such
breach was known to the Servicer on the Closing Date) purchase any Receivable
materially and adversely affected by such breach as of such last day. In
consideration of such Receivable, the Servicer shall remit the Administrative
Purchase Payment (as reduced by any Outstanding Advances with respect to such
Receivable) in the manner specified in Section 5.05. For the purposes of this
Section 4.06, the Administrative Purchase Payment shall consist in part of a
release by the Servicer of all rights of reimbursement with respect to
Outstanding Advances with respect to the purchased Receivable. The sole remedy
of the Indenture Trustee, the Owner Trustee, the Trust or the Securityholders
against the Servicer with respect to a breach by the Servicer of its obligations
under the second sentence of

                                       31
<PAGE>   36

Section 4.01 or under Section 4.02, 4.04 or 4.05 shall be to require the
Servicer to purchase Receivables pursuant to this Section 4.06.

        SECTION 4.07 Servicing Fee and Expenses. As compensation for the
performance of its obligations hereunder, the Servicer shall be entitled to
receive on each Distribution Date the Total Servicing Fee. Except to the extent
otherwise provided herein, the Servicer shall be required to pay all expenses
incurred by it in connection with its activities under this Agreement (including
fees and disbursements of the Indenture Trustee and independent accountants,
taxes imposed on the Servicer, expenses incurred in connection with
distributions and reports to Securityholders and all other fees and expenses not
expressly stated under this Agreement to be for the account of the
Securityholders).

        SECTION 4.08 Servicer's Certificate.

        (a) On or before the tenth day of each month (or, if such tenth day is
not a Business Day, then on the next succeeding Business Day), the Servicer
shall deliver to the Owner Trustee, each Paying Agent, [the Swap Counterparty]
and the Indenture Trustee with a copy to each Rating Agency, a Servicer's
Certificate containing all information necessary to make the distributions
pursuant to Sections 5.06, 5.07 and 5.08 (including the amount of the aggregate
collections on the Receivables; the aggregate Advances to be made by the
Servicer, if any, the aggregate Administrative Purchase Payments for any
Administrative Receivables to be purchased by the Servicer, and the aggregate
Warranty Purchase Payments for any Warranty Receivables to be purchased by the
Seller) for the Collection Period preceding the date of such Servicer's
Certificate, all information necessary for the Owner Trustee to send statements
to the Certificateholders and the Indenture Trustee to send statements to the
Noteholders pursuant to the Trust Agreement or Indenture, as the case may be.
Each of the Owner Trustee and the Indenture Trustee may conclusively rely on the
information in any Servicer's Certificate and shall have no duty to confirm or
verify the contents thereof.

        (b) Concurrently with delivery of the Servicer's Certificate in each
month, the Servicer shall deliver to the underwriters of the Class A Notes, the
Class B Notes, the Class C Certificates and, if any Class D Certificate is held
by a Person other than the Seller or any Affiliate of the Seller, to such Class
D Certificateholder, the Note Factor for each Class of Notes, the Certificate
Factor for each Class of Certificates, and the Pool Factor for each Class of
Notes and Certificates, in each case as of the close of business on the
Distribution Date occurring in such month.

        SECTION 4.09 Annual Statement as to Compliance; Notice of Default. (a)
The Servicer shall deliver to the Owner Trustee, the Indenture Trustee and each
of the Rating Agencies, on or before June 30 of each year, beginning June 30,
_____, an Officers' Certificate with respect to the prior twelve months ended on
March 31 of such calendar year (or with respect to the initial Officer's
Certificate, the period from the date of the initial issuance of the Securities
to March 31, ______), stating that (i) a review of the activities of the
Servicer during the preceding 12-month (or shorter) period and of its
performance under this Agreement has been made under such officer's supervision
and (ii) to the best of such officer's knowledge, based on such review, the
Servicer has fulfilled all its obligations under this Agreement throughout such
twelve-month (or shorter) period, or, if there has been a default in the
fulfillment of any such

                                       32
<PAGE>   37

obligation, specifying each such default known to such officer and the nature
and status thereof. A copy of such Officer's Certificate may be obtained by any
Certificateholder or Noteholder by a request in writing to the Owner Trustee or
the Indenture Trustee addressed as set forth in Section 10.03 hereof.

        (a) The Servicer shall deliver to the Owner Trustee, the Indenture
Trustee and each Rating Agency, promptly after having obtained knowledge
thereof, but in no event later than five Business Days thereafter, written
notice in an Officer's Certificate of any event that with the giving of notice
or lapse of time, or both, would become a Servicer Default under Section 8.01.
The Seller shall deliver to the Owner Trustee, the Indenture Trustee and to each
such Rating Agency, promptly after having obtained knowledge thereof, but in no
event later than five Business Days thereafter, written notice in an Officer's
Certificate of any event that with the giving of notice or lapse of time, or
both, would become an Event of Default under Section 8.01(a)(ii) or would result
in any lowering of the ratings described in Section 5.02(a)(ii)(A).

        SECTION 4.10 Annual Independent Certified Public Accountants' Report.
The Servicer shall cause a firm of independent certified public accountants, who
may also render other services to the Servicer, the Seller or their Affiliates,
to deliver to the Owner Trustee, the Indenture Trustee and each of the Rating
Agencies, on or before June 30 of each year, beginning June 30, ______, with
respect to the prior 12 months ended on March 31 of such year (or with respect
to the initial reports, the period from the date of the initial issuance of the
Securities to March ______) the following reports: (a) a report that such firm
has audited the consolidated financial statements of the Servicer in accordance
with generally accepted auditing standards, that such firm is independent of the
Servicer within the meaning of the Code of Professional Ethics of the American
Institute of Certified Public Accountants ("AICPA"), and expressing such firm's
opinion thereon; and (b) a report indicating that such firm has examined, in
accordance with standards established by AICPA, management's assertion about the
Servicer's compliance with the minimum servicing standards identified in the
Mortgage Bankers Association of America's Uniform Single Attestation Program for
Mortgage Bankers ("USAP") as such standards relate to automobile and light-duty
truck loans serviced for others, and expressing such firm's opinion on such
management assertion (the "Annual USAP Report"). Upon the request of any
Certificateholder or Note Owner, the Owner Trustee or the Indenture Trustee, as
the case may be, shall promptly provide such Certificateholder or Note Owner
with a copy of such Annual USAP Report. For all purposes of this Agreement, the
Owner Trustee and the Indenture Trustee may rely on the representation of any
Person that it is a Certificateholder or a Note Owner, as the case may be.

        SECTION 4.11 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Owner Trustee and the Indenture
Trustee access to the Receivable Files in such cases where the Securityholders
shall be required by applicable statutes or regulations to review such
documentation. In each case, such access shall be afforded without charge, but
only upon reasonable request and during the normal business hours at the
respective offices of the Servicer. Nothing in this Section shall affect the
obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors and the failure of the Servicer to provide
access to information as a result of such obligation shall not constitute a
breach of this Section.

                                       33
<PAGE>   38

        SECTION 4.12 Appointment of Subservicer. So long as NMAC acts as the
Servicer, the Servicer may at any time without notice or consent subcontract
substantially all its duties under this Agreement to any corporation more than
50% of the voting stock of which is owned, directly or indirectly, by Nissan.
The Servicer may at any time perform specific duties as servicer under this
Agreement through other subcontractors; provided, however, that no such
delegation or subcontracting shall relieve the Servicer of its responsibilities
with respect to such duties as to which the Servicer shall remain primarily
responsible with respect thereto.

        SECTION 4.13 Amendments to Schedule of Receivables. If the Servicer,
during any Collection Period, assigns to a Receivable an account number that
differs from the original account number identifying such Receivable on the
Schedule of Receivables, the Servicer shall deliver to the Owner Trustee and the
Indenture Trustee, on or before the Distribution Date relating to such
Collection Period, an amendment to the Schedule of Receivables reporting the
newly assigned account number, together with the old account number of each such
Receivable. The first such delivery of amendments to the Schedule of Receivables
shall include monthly amendments reporting account numbers appearing on the
Schedule of Receivables with the new account numbers assigned to such
Receivables during any prior Collection Period.

        SECTION 4.14 Acknowledgement by Servicer of its Obligations under the
Indenture. The Servicer hereby agrees and consents to the provisions of the
Indenture applicable to it (including, without limitation, Sections 8.03(a) and
8.03(b) thereof) and agrees to be bound by such provisions.

                                    ARTICLE V
                            Distributions; Accounts;
                   Statements to the Certificateholders and the Noteholders

        SECTION 5.01 Establishment of Accounts.

        (a) The Servicer, on behalf of the Owner Trustee and the Indenture
Trustee, shall establish the Collection Account in the name of the Indenture
Trustee for the benefit of the Securityholders. The Collection Account shall be
a segregated trust account initially established with the Indenture Trustee and
maintained with the Indenture Trustee as long as (i) the deposits of the
Indenture Trustee have the Required Deposit Rating or (ii) the Collection
Account is maintained in a segregated trust account in the trust department of
the Indenture Trustee; provided, however, that all amounts held in the
Collection Account shall, to the extent permitted by applicable laws, rules and
regulations and as directed by the Servicer, be invested by the Indenture
Trustee in Eligible Investments; otherwise, such amounts shall be maintained in
cash; provided that if (x) the Servicer shall have failed to give investment
directions for any funds on deposit in the Collection Account to the Indenture
Trustee by 5:00 p.m. Eastern Time (or such other time as may be agreed by the
Servicer and the Indenture Trustee) on any Business Day, or (y) a Default or
Event of Default shall have occurred and be continuing with respect to the Notes
but the Notes shall not have been declared due and payable pursuant to the
Indenture, or (z) if the Notes shall have been declared due and payable
following an Event of Default, amounts collected or receivable from the Trust
Estate are being applied in accordance with Section 5.05 of the Indenture as if
there had not been such a declaration, then the Indenture Trustee shall, to the
fullest extent practicable, invest and reinvest funds in the Collection Account
in one or more

                                       34
<PAGE>   39

Eligible Investments specified in clauses (i), (iv) or (vi) of the definition of
Eligible Investments. All such Eligible Investments shall mature not later than
the Business Day preceding the next Distribution Date, in such manner that such
amounts invested shall be available to make the required distributions on the
Distribution Date. The Servicer will not direct the Indenture Trustee, and the
Issuer shall cause the Servicer not, to make any investment of any funds or to
sell any investment held in the Collection Account unless the security interest
granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Servicer shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect. Should the
short-term unsecured debt obligations of the Indenture Trustee no longer have
the Required Deposit Rating then, unless the Collection Account is maintained in
segregated trust accounts in the trust department of the Indenture Trustee, the
Servicer shall, with the Indenture Trustee's assistance as necessary and within
ten Business Days of receipt of notice from the Indenture Trustee that the
Indenture Trustee no longer has the Required Deposit Rating, cause the
Collection Account (i) to be moved to segregated trust accounts in a bank or
trust company, the short-term unsecured debt obligations of which shall have the
Required Deposit Rating or (ii) to be moved to the trust department of the
Indenture Trustee.

        (b) Earnings on investment of funds in the Collection Account shall be
paid to the Servicer as servicing compensation, and any losses and investment
expenses shall be charged against the funds on deposit in the Collection
Account.

        (c) Subject to the foregoing, the Servicer, on behalf of the Owner
Trustee and the Indenture Trustee, shall establish and maintain the Collection
Account as an Eligible Deposit Account in the name of and under the exclusive
control of the Indenture Trustee, bearing a designation clearly indicating that
the funds deposited therein are held for the benefit of the Securityholders. The
Indenture Trustee shall transfer all amounts remaining on deposit in the
Collection Account on the Distribution Date on which the Notes of all Classes
have been paid in full (or substantially all of the Trust Estate is otherwise
released from the lien of the Indenture) to another Eligible Deposit Account
established pursuant to the Trust Agreement for the benefit of the
Certificateholders (the "Trust Collection Account"), and to take all necessary
or appropriate actions to transfer all of its right, title and interest in the
Collection Account, all funds or investments held therein and all proceeds
thereof, whether or not on behalf of the Securityholders, to the Owner Trustee
for the benefit of the Certificateholders, subject to the limitations set forth
in the Indenture with respect to amounts held for payment to Noteholders that do
not promptly deliver a Note for payment on such Distribution Date. After the
transfer to the Trust Collection Account described in the immediately preceding
sentence, references in this Agreement to "Collection Account" shall be deemed
to be references to the "Trust Collection Account."

        (d) With respect to the Collection Account and all property held
therein, the Owner Trustee agrees, by its acceptance hereof that, on the terms
and conditions set forth in the Indenture, for so long as Notes of any Class
remain outstanding, the Indenture Trustee shall possess all right, title and
interest therein (excluding interest or investment income thereon payable to the
Servicer or the Seller, as the case may be), and the Accounts shall be under the

                                       35
<PAGE>   40

sole dominion and control of the Indenture Trustee for the benefit of the
Noteholders and the Certificateholders, as the case may be, as set forth in the
Indenture. The parties hereto agree that the Issuer, the Owner Trustee and the
Holders of the Class D Certificates have no right, title or interest in the
Reserve Account or any amounts on deposit therein at any time. The parties
hereto agree that the Servicer shall have the power, revocable by the Indenture
Trustee or by the Owner Trustee with the consent of the Indenture Trustee, to
instruct the Indenture Trustee to make withdrawals and payments from the
Collection Account for the purpose of permitting the Servicer, Indenture Trustee
or the Owner Trustee to carry out its respective duties hereunder or under the
Indenture or the Trust Agreement, as the case may be.

               Notwithstanding the foregoing, the Servicer shall be entitled to
withhold, or to be reimbursed from amounts otherwise payable into or on deposit
in the Collection Account, as the case may be, amounts previously deposited in
the Collection Account but later determined to have resulted from mistaken
deposits or posting.

        [(e) The Servicer shall, prior to the Closing Date, establish and
maintain a segregated trust account in the name of the Indenture Trustee, which
shall be designated as the "Accumulation Account." The Accumulation Account
shall be held in trust for the benefit of the Noteholders. The Accumulation
Account shall be under the sole dominion and control of the Indenture Trustee;
provided that the Servicer may make deposits to and direct the Indenture Trustee
in writing to make withdrawals from the Accumulation Account in accordance with
the Basic Documents. All monies deposited from time to time in the Accumulation
Account shall be held by the Indenture Trustee as part of the Trust Property and
all deposits to and withdrawals from the Accumulation Account shall be made only
upon the terms and conditions of the Basic Documents.

               All amounts held in the Accumulation Account shall, to the extent
permitted by applicable law, rules and regulations, be invested, as directed in
writing by the Servicer, by the bank or trust company then maintaining the
Accumulation Account in Eligible Investments that mature not later than the
Business Day immediately prior to the Distribution Date for the Collection
Period to which such amounts relate and such Eligible Investments shall be held
to maturity. All interest and other income on funds on deposit in the
Accumulation Account shall be withdrawn and deposited in the Collection Account
for distribution on each Distribution Date.

        (f) The Servicer shall, prior to the Closing Date, establish and
maintain a segregated trust account in the name of the Indenture Trustee, which
shall be designated as the "VPTN Proceeds Account." The VPTN Proceeds Account
shall be held in trust for the benefit of the holders of the subclass of the
Class A Notes to be paid on its Targeted Scheduled Distribution Date from the
proceeds of issuance after the Closing Date of VPTNs deposited to such account
from time to time. The VPTN Proceeds Account shall be under the sole dominion
and control of the Indenture Trustee; provided that the Servicer may make
deposits to and direct the Indenture Trustee in writing to make withdrawals from
the VPTN Proceeds Account in accordance with the Basic Documents. All monies
deposited from time to time in the VPTN Proceeds Account shall be held by the
Indenture Trustee as part of the Trust Property and all deposits to and
withdrawals from the VPTN Proceeds Account shall be made only upon the terms and
conditions of the Basic Documents.]

                                       36
<PAGE>   41

        SECTION 5.02 Collections. (a) Except as otherwise provided in this
Agreement, the Servicer shall remit daily to the Collection Account all payments
received by or on behalf of the Obligors on or in respect of the Receivables
(excluding payments on the Warranty Receivables or the Administrative
Receivables) and all Net Liquidation Proceeds not later than the first Business
Day after receipt thereof. For purposes of this Article V, the phrase "payments
received by or on behalf of the Obligors" shall mean payments made by Persons
other than the Servicer. Notwithstanding the foregoing, for so long as (i) NMAC
is the Servicer, (ii) (A) NMAC's short-term unsecured debt obligations are rated
at least "P-1" by Moody's and NMAC's short-term unsecured debt obligations (or,
if NMAC is the Servicer and the Servicer then has no short-term rating from
Standard & Poor's, Nissan Capital of America, Inc.'s short-term unsecured debt
obligations) are rated "A-1" by Standard & Poor's (so long as Moody's and
Standard & Poor's are Rating Agencies), or (B) certain arrangements are made
that are acceptable to the Rating Agencies, and (iii) no Event of Default or
Servicer Default shall have occurred and be continuing (unless waived by the
appropriate Securityholders), except that the requirement in clause (ii) shall
not apply if only the Class C Certificates are outstanding and the Class C
Certificates do not have an investment grade rating, (collectively, the "Monthly
Remittance Conditions"); the Servicer shall not be required to remit such
collections to the Collection Account on the foregoing daily basis but shall be
entitled to retain such collections, without segregation from its other funds,
until the Business Day before each Distribution Date at which time the Servicer
shall remit all such collections in respect of the related Collection Period to
the Collection Account in immediately available funds. Commencing with the first
day of the first Collection Period that begins at least two Business Days after
the day on which any Monthly Remittance Condition ceases to be satisfied and for
so long as any Monthly Remittance Condition is not satisfied, all collections
then held by the Servicer shall be immediately deposited into the Collection
Account and all future collections on or in respect of the Receivables (other
than payments on Warranty Receivables and the Administrative Receivables) and
all Net Liquidation Proceeds shall be remitted by the Servicer to the Collection
Account on a daily basis not later than the first Business Day after receipt
thereof.

        (b) The Indenture Trustee or the Owner Trustee shall not be deemed to
have knowledge of any event or circumstances under clause (iii) of the
definition of the Monthly Remittance Condition unless the Indenture Trustee or
the Owner Trustee has received notice of such event or circumstance from the
Seller or the Servicer in an Officer's Certificate or from the Holders of Notes
or Certificates evidencing not less than 25% in principal amount of the
Outstanding Amount of the Notes and the aggregate balance of the Certificates,
acting together as a single class, or a Trust Officer of the Indenture Trustee
or the Owner Trustee with knowledge hereof or familiarity herewith has actual
knowledge of such event or circumstances.

        (c) The Servicer shall give the Owner Trustee, the Indenture Trustee and
each Rating Agency written notice of the failure of any Monthly Remittance
Condition (and any subsequent curing of a failed Monthly Remittance Condition)
as soon as practical after the occurrence thereof but in no event later than 10
Business Days after obtaining knowledge thereof (it being understood that if the
Monthly Remittance Condition is not satisfied as of the Closing Date, no such
notice shall be required in connection therewith).

        (d) Notwithstanding the foregoing, if a Monthly Remittance Condition is
not satisfied, the Servicer may utilize an alternative remittance schedule
(which may include the

                                       37
<PAGE>   42

remittance schedule utilized by the Servicer before the Monthly Remittance
Condition became unsatisfied), if the Servicer provides to the Owner Trustee and
the Indenture Trustee written confirmation from each Rating Agency that such
alternative remittance schedule will not result in the downgrading or withdrawal
by such Rating Agency of the ratings then assigned to any Class of Notes or the
Class C Certificates.

        SECTION 5.03 Application of Collections. As of the Business Day
immediately preceding the related Distribution Date, all collections for the
related Collection Period with respect to each Receivable shall be applied by
the Servicer as follows:

        (a) First, to interest accrued to date on such Receivable;

        (b) Second, to principal until the Principal Balance of such Receivable
is brought current;

        (c) Third, to reduce the unpaid late charges (if any) as provided in
such Receivable; and

        (d) Fourth, to prepay principal on such Receivable.

        SECTION 5.04 Advances.

        (a) The Servicer shall make a payment with respect to each Receivable
(other than an Administrative Receivable, a Warranty Receivable or a Liquidated
Receivable) (each, an "Advance") equal to the excess if any, of (x) the product
of the Principal Balance of such Receivable as of the first day of the related
Collection Period and one-twelfth of its APR (calculated on the basis of a
360-day year comprised of twelve 30-day months), over (y) the interest actually
received by the Servicer with respect to such Receivable from the Obligor or
from payments of the Administrative Purchase Payment or the Warranty Purchase
Payment, as the case may be, during such Collection Period. The Servicer will
not be obligated to make an Advance in respect of a Receivable (other than an
Advance in respect of an interest shortfall arising from the Prepayment of a
Receivable) to the extent that the Servicer, in its sole discretion, shall
determine that the Advance constitutes a Nonrecoverable Advance. With respect to
each Receivable, the Advance shall increase the Outstanding Advances. No
Advances will be made with respect to the Principal Balance of the Receivables.
The Servicer shall deposit all such Advances into the Collection Account in
immediately available funds no later than 5:00 p.m., New York City time, on the
Business Day immediately preceding the related Distribution Date. To the extent
that the amount set forth in clause (y) above with respect to a Receivable is
greater than the amount set forth in clause (x) above with respect thereto, such
amount shall be distributed to the Servicer pursuant to Section 5.06; provided,
however, that, notwithstanding anything else herein, the Servicer shall not be
reimbursed for any amounts representing an Advance, or any portion thereof, made
in respect of an interest shortfall arising from the Prepayment of a Receivable.

        (b) The Servicer shall be entitled to reimbursement for Outstanding
Advances, without interest, with respect to a Receivable from the following
sources with respect to such Receivable pursuant to Section 5.06(c)(i) or
Section 5.06(d)(i): (i) subsequent payments made

                                       38
<PAGE>   43

by or on behalf of the related Obligor, (ii) Net Liquidation Proceeds, and (iii)
the Warranty Purchase Payments.

        (c) To the extent that the Servicer has determined that any Outstanding
Advance is a Nonrecoverable Advance, the Servicer may provide to the Owner
Trustee and the Indenture Trustee an Officer's Certificate setting forth the
amount of such Nonrecoverable Advance, and on the related Distribution Date, the
Relevant Trustee shall remit to the Servicer from funds on deposit in the
Collection Account an amount equal to the amount of such Nonrecoverable Advance
pursuant to Section 5.06(c)(ii) or Section 5.06(d)(ii).

        (d) Notwithstanding anything to the contrary in this Agreement, for so
long as NMAC is the Servicer, in lieu of causing the Servicer first to deposit
and then the Relevant Trustee to remit to the Servicer the amounts described in
clauses (i) through (iii) in Section 5.04(b) reimbursable in respect on
Outstanding Advances, or the amounts described in Section 5.04(c) applicable in
respect of Nonrecoverable Advances, the Servicer may deduct such amounts from
deposits otherwise to be made into the Collection Account.

        (e) Notwithstanding the provisions of Section 5.04(a), no Successor
Servicer, including the Indenture Trustee, shall be obligated to make Advances
unless it has expressly agreed to do so in writing.

        SECTION 5.05 Additional Deposits. (a) The following additional deposits
shall be made to the Collection Account: (i) the Seller shall remit the
aggregate Warranty Purchase Payments with respect to Warranty Receivables
pursuant to Section 3.02; (ii) the Servicer shall remit (A) the aggregate
Advances pursuant to Section 5.04(a), (B) the aggregate Administrative Purchase
Payments with respect to Administrative Receivables pursuant to Section 4.06,
and (C) the amount required upon any optional purchase of the Receivables by the
Servicer, or any Successor Servicer, pursuant to Section 9.01; and (iii) the
Indenture Trustee shall transfer (A) the Yield Supplement Deposit from the Yield
Supplement Account to the Collection Account pursuant to Section 5.08, plus
reinvestment income on the Yield Supplement Account (in assuring the
availability therein of the related Available Interest), and (B) the amounts
described in Sections 5.06 and 5.07 from the Reserve Account to the Collection
Account pursuant to Section 5.07.

        (b) All deposits required to be made pursuant to this Section 5.05 by
the Seller or the Servicer, as the case may be, may be made in the form of a
single deposit and shall be made in immediately available funds, no later than
5:00 P.M., New York City time, on the Business Day immediately preceding the
related Distribution Date. At the direction of the Servicer, the Relevant
Trustee shall invest such amounts in Eligible Investments maturing not later
than 12:00 P.M. New York City Time, on the related Distribution Date.

        SECTION 5.06 Payments and Distributions.

        (a) The rights of the Certificateholders to receive distributions in
respect of the Certificates shall be and hereby are subordinated to the rights
of the Noteholders to receive distributions in respect of the Notes to the
extent provided in this Section 5.06.

                                       39
<PAGE>   44

        (b) On each Determination Date, the Servicer shall calculate the
Available Interest, the Available Principal, the Allocable Principal, the Yield
Supplement Deposit, the Noteholders' Distributable Amount, the
Certificateholders' Distributable Amount, the amount to be distributed to
Noteholders and Certificateholders of each Class pursuant to Section 5.06(c) or
(d), and all other distributions, deposits and withdrawals to be made on the
related Distribution Date.

        (c) Subject to Section 5.06(d), on each Distribution Date, the Relevant
Trustee shall make the following payments and distributions from the Collection
Account (after payment of the Supplemental Servicing Fee to the extent not
previously retained by the Servicer) in the following order of priority and in
the amounts set forth in the Servicer's Certificate for such Distribution Date;
provided, however, that such payments and distributions shall be made only from
those funds deposited in the Collection Account for the related Collection
Period:

               (i) to the Servicer, from amounts on deposit in the Collection
        Account, any payments in respect of Advances required to be reimbursed
        and to the extent set forth in Section 5.04(b);

               (ii) to the Servicer, from amounts on deposit in the Collection
        Account, any payments in respect of Nonrecoverable Advances required to
        be reimbursed and to the extent set forth in Section 5.04(c);

               (iii) to the Servicer, from Available Amounts, the Base Servicing
        Fee (including any unpaid Base Servicing Fees from one or more prior
        Collection Periods);

               (iv) on a pro rata basis (based on the amounts distributable
        pursuant to this clause to each such Class), to the Class A-1
        Noteholders, the Noteholders' Interest Distributable Amount for such
        Class, to the Class A-2 Noteholders, the Noteholders' Interest
        Distributable Amount for such Class, and to the Class A-3 Noteholders,
        the Noteholders' Interest Distributable Amount for such Class; such
        amounts to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clause (iii) above);

               (v) to the Class B Noteholders, the Noteholders' Interest
        Distributable Amount for such Class; such amounts to be paid from
        Available Amounts (after giving effect to any reduction in Available
        Amounts described in clauses (iii) and (iv) above);

               (vi) to the Class A-1 Noteholders, an amount equal to the
        Noteholders' Principal Distributable Amount for such Class, such amount
        to be paid from Available Amounts (after giving effect to any reduction
        in Available Amounts described in clauses (iii) through (v) above),
        until the principal amount of the Class A-1 Notes is reduced to zero;

               (vii) on the Distribution Date on which the Class A-1 Notes have
        been paid in full and on each Distribution Date thereafter, to the Class
        A-2 Noteholders, an amount equal to the Noteholders' Principal
        Distributable Amount for such Class, such amount to be paid from
        Available Amounts (after giving effect to any reduction in

                                       40
<PAGE>   45

        Available Amounts described in clauses (iii) through (vi) above), until
        the principal amount of the Class A-2 Notes is reduced to zero;

               (viii) on the Distribution Date on which the Class A-2 Notes have
        been paid in full and on each Distribution Date thereafter, to the Class
        A-3 Noteholders, an amount equal to the Noteholders' Principal
        Distributable Amount for such Class, such amount to be paid from
        Available Amounts (after giving effect to any reduction in Available
        Amounts described in clauses (iii) through (vii) above), until the
        principal amount of the Class A-3 Notes is reduced to zero;

               (ix) on the Distribution Date on which the Class A-3 Notes have
        been paid in full and on each Distribution Date thereafter, to the Class
        B Noteholders, an amount equal to the Noteholders' Principal
        Distributable Amount for such Class, such amount to be paid from
        Available Amounts (after giving effect to any reduction in Available
        Amounts described in clauses (iii) through (viii) above), until the
        principal amount of the Class B Notes is reduced to zero;

               (x) to the Class C Certificateholders, an amount equal to the
        Certificateholders' Interest Distributable Amount for such Class, such
        amount to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clauses (iii) through (ix)
        above);

               (xi) on each Distribution Date after the Class B Notes have been
        paid in full, to the Class C Certificateholders, an amount equal to the
        Certificateholders' Principal Distributable Amount for such Class, such
        amount to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clauses (iii) through (x)
        above), until the principal amount of the Class C Certificates is
        reduced to zero;

               (xii) to the Reserve Account, the amount, if any, necessary to
        cause the balance of funds therein to equal the Specified Reserve
        Account Balance with respect to such Distribution Date, such amounts to
        be paid from Available Amounts (after giving effect to any reduction in
        Available Amounts described in clauses (iii) through (xi) above);

               (xiii) to the Class D Certificateholders, an amount equal to the
        Certificateholders' Interest Distributable Amount for such Class, such
        amounts to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clauses (iii) through (xii)
        above);

               (xiv) after the Class C Certificates have been paid in full, to
        the Class D Certificateholders, an amount equal to the
        Certificateholders' Principal Distributable Amount for such Class, such
        amount to be paid from Available Amounts (after giving effect to the
        reduction in Available Amounts described in clauses (iii) through (xiii)
        above); and

               (xv) any Available Amounts remaining after giving effect to the
        foregoing, to the Seller.

                                       41
<PAGE>   46

        (d) Notwithstanding the provisions of Section 5.06(c), after the
occurrence of an Event of Default that results in the acceleration of any Notes,
on each Distribution Date, the Relevant Trustee shall make the following
payments and distributions from the Collection Account (after payment of the
Supplemental Servicing Fee to the extent not previously retained by the
Servicer) in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Distribution Date; provided, however, that such
payments and distributions shall be made only from those funds deposited in the
Collection Account for the related Collection Period:

               (i) to the Servicer, from amounts on deposit in the Collection
        Account, any payments in respect of Advances required to be reimbursed
        and to the extent set forth in Section 5.04(b);

               (ii) to the Servicer, from amounts on deposit in the Collection
        Account, any payments in respect of Nonrecoverable Advances required to
        be reimbursed and to the extent set forth in Section 5.04(c);

               (iii) to the Servicer, from Available Amounts, the Base Servicing
        Fee (including any unpaid Base Servicing Fees from one or more prior
        Collection Periods);

               (iv) to the Class A-1 Noteholders, the Noteholders' Interest
        Distributable Amount for such Class after giving effect to any reduction
        in Available Amounts described in clause (iii) above;

               (v) to the Class A-1 Noteholders, until the total amount paid to
        such Noteholders in respect of principal from the Closing Date is equal
        to the Original Principal Amount for such Class of Notes, such amounts
        to be paid from Available Amounts (after giving effect to any reduction
        in Available Amounts described in clauses (iii) and (iv) above;

               (vi) on the Distribution Date on which the Class A-1 Notes have
        been paid in full and on each Distribution Date thereafter, on a pro
        rata basis (based on the amounts distributable pursuant to this clause
        to each such Class), to the Class A-2 Noteholders, the Noteholders'
        Interest Distributable Amount for such Class, and to the Class A-3
        Noteholders, the Noteholders' Interest Distributable Amount for such
        Class; such amounts to be paid from Available Amounts (after giving
        effect to any reduction in Available Amounts described in clauses (iii)
        through (v) above);

               (vii) to the Class A-2 Noteholders and the Class A-3 Noteholders,
        on a pro rata basis (based on the Outstanding Amount of each Class),
        until the total amount paid to such Noteholders in respect of principal
        from the Closing Date is equal to the Original Principal Amount for such
        Class of Notes, such amounts to be paid from Available Amounts (after
        giving effect to any reduction in Available Amounts described in clauses
        (iii) through (vi) above);

               (viii) to the Class B Noteholders, the Noteholders' Interest
        Distributable Amount for such Class; such amounts to be paid from
        Available Amounts (after giving

                                       42
<PAGE>   47

        effect to any reduction in Available Amounts described in clauses (iii)
        through (vii) above);

               (ix) on each Distribution Date after the Class A Notes have been
        paid in full, to the Class B Noteholders, until the total amount paid to
        the Class B Noteholders in respect of principal from the Closing Date is
        equal to the Original Principal Amount for the Class B Notes, such
        amount to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clauses (iii) through (viii)
        above);

               (x) to the Class C Certificateholders, an amount equal to the
        Certificateholders' Interest Distributable Amount for such Class, such
        amount to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clauses (iii) through (ix)
        above);

               (xi) on each Distribution Date after the Class B Notes have been
        paid in full, to the Class C Certificateholders, until the total amount
        paid to the Class C Certificateholders in respect of principal from the
        Closing Date is equal to the Original Certificate Balance of the Class C
        Certificates, such amount to be paid from Available Amounts (after
        giving effect to any reduction in Available Amounts described in clauses
        (iii) through (x) above);

               (xii) to the Class D Certificateholders, an amount equal to the
        Certificateholders' Interest Distributable Amount for such Class, such
        amounts to be paid from Available Amounts (after giving effect to any
        reduction in Available Amounts described in clauses (iii) through (xi)
        above);

               (xiii) after the Class C Certificates have been paid in full, to
        the Class D Certificateholders, an amount equal to the
        Certificateholders' Principal Distributable Amount for such Class, such
        amount to be paid from Available Amounts (after giving effect to the
        reduction in Available Amounts described in clauses (iii) through (xii)
        above); and

               (xiv) any Available Amounts remaining after giving effect to the
        foregoing, to the Seller.

        (e) For purposes of determining whether an Event of Default pursuant to
Section 5.01(c) of the Indenture has occurred, the amount of principal required
to be paid to the Holders of any Class of Notes on any Distribution Date is the
amount available to be paid thereto pursuant to Section 5.06(c); provided,
however, that (i) the Class A-1 Notes are required to be paid in full on or
before the Final Scheduled Distribution Date for such Class, meaning that the
Class A-1 Noteholders are entitled to have received on or before such date
payments in respect of principal in an aggregate amount equal to the Original
Principal Amount for such Class, together with all interest accrued thereon
through such date; (ii) the Class A-2 Notes are required to be paid in full on
or before the Final Scheduled Distribution Date for such Class, meaning that the
Class A-2 Noteholders are entitled to have received on or before such date
payments in respect of principal in an aggregate amount equal to the Original
Principal Amount for such

                                       43
<PAGE>   48

Class, together with all interest accrued thereon through such date; (iii) the
Class A-3 Notes are required to be paid in full on or before the Final Scheduled
Distribution Date for such Class, meaning that the Class A-3 Noteholders are
entitled to have received on or before such date payments in respect of
principal in an aggregate amount equal to the Original Principal Amount for such
Class, together with all interest accrued thereon through such date; and (iv)
the Class B Notes are required to be paid in full on or before the Final
Scheduled Distribution Date for such Class, meaning that the Class B Noteholders
are entitled to have received on or before such date payments in respect of
principal in an aggregate amount equal to the Original Principal Amount for such
Class, together with all interest accrued thereon through such date.

        (f) Except with respect to the final payment upon retirement of a Note
or Certificate, the Servicer shall on each Distribution Date instruct the
Relevant Trustee to pay or distribute to each Securityholder of record on the
related Record Date by check mailed to such Securityholder at the address of
such Holder appearing in the Certificate Register or Note Register, as the case
may be, (or, if DTC, its nominee or a Clearing Agency is the relevant Holder, by
wire transfer of immediately available funds or pursuant to other arrangements),
the amount to be paid or distributed to such Securityholder pursuant to such
Holder's Note or Certificate. With respect to the final payment upon retirement
of a Note or Certificate, the Servicer shall on the relevant final Distribution
Date instruct the Relevant Trustee to pay or distribute the amounts due thereon
only upon delivery for cancellation of the certificate representing such Note or
Certificate in accordance with the Indenture or the Trust Agreement, as the case
may be.

        SECTION 5.07 Reserve Account.

        (a) In order to assure that certain amounts will be available to make
required payments to Noteholders, the Seller will, pursuant to the Securities
Account Control Agreement, establish and maintain with the Securities
Intermediary a segregated trust account (the "Reserve Account") in the name of
the Indenture Trustee which will include the money and other property deposited
and held therein pursuant to Sections 5.06(c), 5.06(d) and this Section 5.07. On
or prior to the Closing Date, the Seller shall deposit an amount equal to the
Reserve Account Initial Deposit into the Reserve Account. As and to the extent
set forth in Section 5.06(c) or (d), the Relevant Trustee will deposit Available
Amounts into the Reserve Account on each Distribution Date as provided in the
Servicer's Certificate, until the amount on deposit therein equals the Specified
Reserve Account Balance. On each Distribution Date, to the extent that amounts
in the Collection Account and/or Available Amounts, as the case may be, are
insufficient to fully fund the payments and distributions described in clauses
(i) through (x) of Section 5.06(c) or clauses (i) through (xi) of Section
5.06(d), the Relevant Trustee will withdraw amounts then on deposit in the
Reserve Account, up to the amounts of any such deficiencies, and deposit such
amounts into the Collection Account for application pursuant to such clauses. On
each Distribution Date, as provided in the Servicer's Certificate, the Relevant
Trustee will release to the Seller any amounts remaining on deposit in the
Reserve Account in excess of the Specified Reserve Account Balance. Upon the
payment in full of the Notes under the Indenture, as directed in writing by the
Servicer, the Relevant Trustee will release to the Seller any amounts remaining
on deposit in the Reserve Account, and all rights to the Reserve Account and all
other collateral registered or held therein shall revert to the Seller in
accordance with the Securities Account Control Agreement. Upon any such
distribution to the Seller, the Issuer, Owner Trustee,

                                       44
<PAGE>   49

Certificateholders, Indenture Trustee and Noteholders will have no further
rights in, or claims to, such amounts.

        (b) All amounts held in the Reserve Account shall be invested by the
Relevant Trustee, as directed in writing by the Servicer, in Eligible
Investments; provided that if (x) the Servicer shall have failed to give
investment directions for any funds on deposit in the Reserve Account to the
Indenture Trustee by 5:00 p.m. Eastern Time (or such other time as may be agreed
by the Servicer and the Indenture Trustee) on any Business Day, or (y) a Default
or Event of Default shall have occurred and be continuing with respect to the
Notes but the Notes shall not have been declared due and payable pursuant to the
Indenture, or (z) the Notes shall have been declared due and payable following
an Event of Default, but amounts collected or receivable from the Trust Estate
are being applied pursuant to Section 5.05 of the Indenture as if there had not
been such a declaration, then the Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Reserve Account in one or more
Eligible Investments specified in clauses (i), (iv) or (vi) of the definition of
Eligible Investments. All such Eligible Investments shall mature not later than
the Business Day preceding the next Distribution Date, in such manner that such
amounts invested shall be available to make the required deposits on the
Distribution Date; provided that if permitted by the Rating Agencies, monies on
deposit therein may be invested in Eligible Investments that mature later than
the Business Day preceding the next Distribution Date. The Servicer will not
direct the Relevant Trustee to make any investment of any funds or to sell any
investment held in the Reserve Account unless the security interest granted and
perfected in such account will continue to be perfected in such investment or
the proceeds of such sale, in either case without any further action by any
Person, and, in connection with any direction to the Relevant Trustee to make
any such investment or sale, if requested by the Relevant Trustee, the Servicer
shall deliver to the Relevant Trustee an Opinion of Counsel, acceptable to the
Relevant Trustee, to such effect. Earnings, if any, on investment of funds in
the Reserve Account shall be paid to the Seller, and losses and any investment
expenses shall be charged against the funds on deposit therein. The Relevant
Trustee shall incur no liability for the selection of investments or for losses
thereon absent its own negligence or willful misfeasance. The Relevant Trustee
shall have no liability in respect of losses incurred as a result of the
liquidation of any investment prior to its stated maturity date or the failure
of the Servicer to provide timely written investment directions.

        (c) Subject to the right of the Relevant Trustee to make withdrawals
therefrom, as directed by the Servicer, for the purposes and in the amounts set
forth in Section 5.06, the Reserve Account and all funds held therein shall be
the property of the Seller and not the property of the Issuer, the Owner Trustee
or the Indenture Trustee. The Issuer, the Owner Trustee, the Seller and the
Indenture Trustee will treat the Reserve Account, all funds therein and all net
investment income with respect thereto as assets of the Seller for federal
income tax and all other purposes.

        (d) The Seller hereby grants to the Relevant Trustee for the benefit of
the Noteholders and the Class C Certificateholders a security interest in all
funds (including Eligible Investments) in the Reserve Account (including the
Reserve Account Initial Deposit) and the proceeds thereof to secure the payment
of interest on and principal of the Notes, and the Relevant Trustee shall have
all of the rights of a secured party under the UCC with respect thereto;
provided that all income from the investment of funds in the Reserve Account and
the

                                       45
<PAGE>   50

right to receive such income are retained by the Seller and are not transferred,
assigned or otherwise conveyed hereunder. If for any reason the Reserve Account
is no longer an Eligible Deposit Account, the Relevant Trustee shall promptly
cause the Reserve Account to be moved to another institution or otherwise
changed so that the Reserve Account becomes an Eligible Deposit Account.

        (e) Neither the Owner Trustee nor the Indenture Trustee shall enter into
any subordination or intercreditor agreement with respect to the Reserve
Account.

        SECTION 5.08  Yield Supplement Account.

        (a) In order to assure that sufficient amounts to make required
distributions of interest to Noteholders and the Class C Certificateholders will
be available, the Owner Trustee will, pursuant to the Securities Account Control
Agreement and the Yield Supplement Agreement, establish and maintain with the
Securities Intermediary a segregated trust account (the "Yield Supplement
Account") in the name of the Indenture Trustee which will include the money and
other property deposited and held therein pursuant to the Yield Supplement
Agreement and this Section 5.08.

        (b) On or prior to the Closing Date, the Seller shall [[make a capital
contribution to the Trust by depositing an amount equal to $___________]
[deposit an amount equal to $_________] [in cash] into the Yield Supplement
Account][, transfer retail installment sales contracts with an aggregate
principal balance, as of the Cut-Off Date, of $_________ to the Trust] [and
transfer receivables or other assets (including vehicle lease contracts) in an
amount, collectively, equal to $__________ to the Trust] ([the][collectively,]
"Initial Yield Supplement Amount"). [On each Distribution Date, the Servicer
will deposit payments received with respect to the retail installment sales
contracts referred to above into the Yield Supplement Account.] [On each
Distribution Date, the Servicer will deposit payments received with respect to
those receivables or other assets referred to above into the Yield Supplement
Account.] On each Distribution Date, to the extent amounts then on deposit in
the Yield Supplement Account are sufficient therefor, the Relevant Trustee will
withdraw amounts then on deposit in the Yield Supplement Account in an amount
equal to the Yield Supplement Deposit with respect to such Distribution Date and
deposit such amounts into the Collection Account for application pursuant to
Section 5.06. On each Distribution Date, if the amount on deposit in the Yield
Supplement Account (after giving effect to all deposits thereto or withdrawals
therefrom on such Distribution Date) is greater than the Required Yield
Supplement Amount, the Relevant Trustee will deposit such excess into the
Collection Account for distribution by the Relevant Trustee in accordance with
the terms of Section 5.06(c). Upon payment in full of the Notes under the
Indenture, as directed in writing by the Servicer, the Indenture Trustee will
release any amounts remaining on deposit in the Yield Supplement Account and all
other Collateral registered or held therein to the Owner Trustee for the benefit
of the Certificateholders, which amounts the Owner Trustee shall deposit into
the Trust Collection Account.

        (c) All amounts held in the Yield Supplement Account shall be invested
by the Relevant Trustee, as directed in writing by the Servicer, in Eligible
Investments ; provided that if (x) the Servicer shall have failed to give
investment directions for any funds on deposit in the

                                       46
<PAGE>   51

Yield Supplement Account to the Indenture Trustee by 5:00 p.m. Eastern Time (or
such other time as may be agreed by the Servicer and the Indenture Trustee) on
any Business Day, or (y) a Default or Event of Default shall have occurred and
be continuing with respect to the Notes but the Notes shall not have been
declared due and payable pursuant to the Indenture, or (z) the Notes shall have
been declared due and payable following an Event of Default, but amounts
collected or receivable from the Trust Estate are being applied pursuant to
Section 5.05 of the Indenture as if there had not been such a declaration, then
the Indenture Trustee shall, to the fullest extent practicable, invest and
reinvest funds in the Yield Supplement Account in one or more Eligible
Investments specified in clauses (i), (iv) or (vi) of the definition of Eligible
Investments. All such Eligible Investments shall mature not later than the
Business Day preceding the next Distribution Date, in such manner that such
amounts invested shall be available to make the required deposits on the
Distribution Date; provided that if permitted by the Rating Agencies, monies on
deposit therein may be invested in Eligible Investments that mature later than
the Business Day preceding the next Distribution Date. The Servicer will not
direct the Relevant Trustee to make any investment of any funds or to sell any
investment held in the Yield Supplement Account unless the security interest
granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Relevant
Trustee to make any such investment or sale, if requested by the Relevant
Trustee, the Servicer shall deliver to the Relevant Trustee an Opinion of
Counsel, acceptable to the Relevant Trustee, to such effect. Earnings, if any,
on investment of funds in the Yield Supplement Account shall be deposited in the
Collection Account on each Distribution Date, and losses and any investment
expenses shall be charged against the funds on deposit therein. The Relevant
Trustee shall incur no liability for the selection of investments or for losses
thereon absent its own negligence or willful misfeasance. The Relevant Trustee
shall have no liability in respect of losses incurred as a result of the
liquidation of any investment prior to its stated maturity date or the failure
of the Servicer to provide timely written investment directions.

        (d) [The Trust, the Owner Trustee, the Seller and the Indenture Trustee
will treat the Yield Supplement Account, all funds therein and all net
investment income with respect thereto as assets of the Trust for federal income
tax and all other purposes.]

        (e) Pursuant to the Yield Supplement Agreement and the Securities
Account Control Agreement, the Trust will grant to the Indenture Trustee, for
the benefit of the Noteholders and the Class C Certificateholders, a security
interest in all funds (including Eligible Investments) in the Yield Supplement
Account (including the Initial Yield Supplement Amount) and the proceeds thereof
to secure the payment of interest on the Notes, and the Indenture Trustee shall
have all of the rights of a secured party under the UCC with respect thereto. If
for any reason the Yield Supplement Account is no longer an Eligible Deposit
Account, the Relevant Trustee shall promptly cause the Yield Supplement Account
to be moved to another institution or otherwise changed so that the Yield
Supplement Account becomes an Eligible Deposit Account.

        (f) Neither the Owner Trustee nor the Indenture Trustee shall enter into
any subordination or intercreditor agreement with respect to the Yield
Supplement Account.

        SECTION 5.09 Statements to Certificateholders and Noteholders.

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<PAGE>   52

        (a) On each Distribution Date, the Indenture Trustee shall include with
each distribution to each Noteholder and the Owner Trustee shall include with
each distribution to each Certificateholder a statement (which statement shall
also be provided to each Rating Agency) based on information in the Servicer's
Certificate furnished pursuant to Section 4.08, setting forth for the Collection
Period relating to such Distribution Date the following information:

               (i) the amount of the payment allocable to the principal amount
        of each Class of Notes and to the Certificate Balance of each Class of
        Certificates;

               (ii) the amount of the payment allocable to interest on or with
        respect to each Class of Notes and Certificates;

               (iii) the amount of the distribution allocable to the Yield
        Supplement Deposit, if any plus reinvestment income, if any, on the
        Yield Supplement Account;

               (iv) the Pool Balance as of the close of business on the last day
        of the related Collection Period;

               (v) the amount of the Base Servicing Fee paid to the Servicer
        with respect to the related Collection Period, the amount of any unpaid
        Base Servicing Fees and the change in such amount from that of the prior
        Distribution Date;

               (vi) the Interest Rate or the Pass-Through Rate for the Interest
        Period relating to the succeeding Distribution Date for any Class of
        Notes or the Certificates with variable or adjustable rates;

               (vii) the Noteholders' Interest Carryover Shortfall, the
        Noteholders' Principal Carryover Shortfall, the Certificateholders'
        Interest Carryover Shortfall, the Certificateholders' Principal
        Carryover Shortfall, if any, with respect to each Class of Notes and the
        Certificates, and the change in such amounts from the preceding
        Distribution Date;

               (viii) the Outstanding Amount, the Note Factor and the Note Pool
        Factor with respect to each Class of Notes, and the aggregate
        Certificate Balance, the Certificate Balance, the Certificate Factor and
        the Certificate Pool Factor with respect to each Class of Certificates,
        in each case after giving effect to all payments in respect of principal
        on such Distribution Date;

               (ix) the amount of Advances made in respect of the Receivables
        during the related Collection Period and the amount of unreimbursed
        Advances on such Distribution Date;

               (x) the balance of the Reserve Account and the Yield Supplement
        Account on such Distribution Date, after giving effect to changes
        thereto on such Distribution Date and the amount of such changes;

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<PAGE>   53

               (xi) the amount of defaults and net losses on the Receivables for
        the related Collection Period; and

               (xii) the number of delinquencies on the Receivables as a
        percentage of the number of Receivables.

        (b) Copies of such statements may be obtained by the Certificateholders
or the Note Owners from the Owner Trustee or the Indenture Trustee, as the case
may be, by a request in writing. The Owner Trustee or the Indenture Trustee, as
the case may be, shall provide such copies promptly after such requests.

        SECTION 5.10 Net Deposits. So long as NMAC is the Servicer, the Servicer
(in whatever capacity) may make the remittances pursuant to Sections 5.02 and
5.05 above net of amounts to be distributed to the Servicer (in whatever
capacity) pursuant to Section 5.06. Accounts between the Seller and the Servicer
will be adjusted accordingly. Nonetheless, the Servicer shall account for all of
the above described remittances and distributions (except for the Supplemental
Servicing Fee to the extent that the Servicer is entitled to retain such
amounts) in the Servicer's Certificate as if the amounts were deposited and/or
transferred separately.

                                   ARTICLE VI

                                   The Seller

        SECTION 6.01 Representations of Seller. The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date, and shall survive the sale of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

        (a) Organization and Good Standing. The Seller has been duly organized
and is validly existing as a corporation in good standing under the laws of the
State of Delaware, with corporate power and authority to own its properties and
to conduct its business as such properties are currently owned and such business
is presently conducted, and had at all relevant times, and has, corporate power,
authority and legal right to acquire and own the Receivables. The location of
the Seller's chief executive office and principal place of business is Torrance,
California.

        (b) Due Qualification. The Seller 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 property
or the conduct of its business shall require such qualifications and where the
failure to so qualify would have a material adverse effect on the ability of the
Seller to perform its obligations under this Agreement.

        (c) Power and Authority. The Seller has the corporate power and
authority to execute and deliver this Agreement and to carry out its terms. The
Seller has full power and authority to sell and assign the property to be sold
and assigned to and deposited as part of the Owner Trust Estate and has duly
authorized such sale and assignment to the Trust by all necessary corporate
action; and the execution, delivery and performance of this Agreement has been
duly authorized by the Seller by all necessary corporate action.

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<PAGE>   54

        (d) Valid Sale; Binding Obligations. This Agreement evidences a valid
sale, transfer and assignment of the Receivables, enforceable against creditors
of and purchasers from the Seller (other than a good faith purchaser for value
in the ordinary course of business who takes actual possession of one or more
Receivables); and this Agreement is a legal, valid and binding obligation of the
Seller enforceable in accordance with its terms, subject to the effect of
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting creditors' rights generally and by general equitable principles.

        (e) No Violation. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, nor constitute (with
or without notice or lapse of time) a default under, the certificate of
incorporation or by-laws of the Seller, or any indenture, agreement or other
instrument to which the Seller is a party or by which it shall be 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 the Basic Documents); nor violate any law or, to the best of the
Seller's knowledge, any order, rule or regulation applicable to the Seller of
any court or of any federal or state regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Seller or its
properties; which breach, default, conflict, Lien or violation in any case would
have a material adverse effect on the ability of the Seller to perform its
obligations under this Agreement.

        (f) No Proceedings. There are no proceedings or investigations pending,
or, to the best of the Seller's knowledge, threatened, before any court,
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Seller or its properties: (i) asserting the
invalidity of this Agreement, the Trust Agreement, the Indenture, the Securities
Account Control Agreement, the Yield Supplement Agreement, the Certificates or
the Notes; (ii) seeking to prevent the issuance of the Certificates or the Notes
or the consummation of any of the transactions contemplated by this Agreement,
the Trust Agreement, the Indenture, the Securities Account Control Agreement or
the Yield Supplement Agreement; (iii) seeking any determination or ruling that
would materially and adversely affect the performance by the Seller of its
obligations under, or the validity or enforceability of, this Agreement, the
Trust Agreement, the Indenture, the Securities Account Control Agreement, the
Yield Supplement Agreement, the Certificates or the Notes; or (iv) relating to
the Seller and that would adversely affect the federal or any state income tax
attributes of the Issuer, the Certificates or the Notes.

        SECTION 6.02  Additional Covenants of the Seller.

        (a) The Seller agrees with the Certificateholders, the Note Owners and
each Rating Agency that the Seller shall not issue any securities or deposit
assets into a trust that issues any securities, the issuance of which could
reasonably be expected to materially and adversely affect the rating of any
Class of Notes or the Class C Certificates unless it shall have first obtained
the written consent of each Rating Agency to the effect that such issuance will
not materially adversely affect such rating; provided that, the issuance of
another series of certificates or notes pursuant to agreements with terms
substantially similar to the terms of the Basic Documents shall not be deemed to
materially and adversely affect the ratings on the Certificates or the Notes.
The Seller shall provide a copy of any such consent to the Owner Trustee and the
Indenture Trustee.

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<PAGE>   55

        (b) The Seller shall not do any of the following (without the prior
written consent of each Rating Agency (other than Moody's) (which consent shall
be to the effect that the acts set forth below shall not affect materially
adversely the rating on any Class of Notes or the Class C Certificates) and,
upon the Seller's receipt of such written consent from each Rating Agency (other
than Moody's), the Owner Trustee and the Indenture Trustee shall, without any
exercise of its own discretion, also provide its written consent to the Seller
(promptly after the occurrence of any of the following, the Seller shall provide
notice of such occurrence to Moody's, so long as Moody's is then rating any
outstanding Notes or Certificates)):

               (1) engage in any business or activity other than those set forth
        in Article Three of the Seller's Certificate of Incorporation, as
        amended;

               (2) incur any indebtedness, or assume or guaranty any
        indebtedness of any other entity, other than (A) any indebtedness
        incurred in connection with the issuance of any certificates or notes
        (as defined in the Seller's Certificate of Incorporation), provided that
        any such future indebtedness incurred in connection with the issuance of
        any certificates or notes must be rated at least with the same ratings
        given the outstanding certificates or notes secured or supported by
        assets acquired by the Seller from NMAC by each nationally recognized
        statistical rating organization that has rated such outstanding
        certificates or notes or, prior to the issuing of such future
        indebtedness incurred in connection with such certificates or notes, the
        Seller shall have received confirmation from each nationally recognized
        statistical rating organization that has rated such outstanding
        certificates or notes that the ratings of such outstanding certificates
        or notes will not be adversely affected by the issuance of such future
        indebtedness; and (B) (i) any indebtedness to NMAC or any of its
        Affiliates incurred in connection with the acquisition of receivables,
        which indebtedness shall be fully subordinated (and which shall provide
        for payment only after payment in respect of all outstanding rated debt)
        and nonrecourse against any assets of the Seller other than the assets
        pledged to secure such indebtedness, (ii) such indebtedness does not
        constitute a claim against the Seller in the event the assets pledged to
        secure such indebtedness are insufficient to pay such indebtedness,
        (iii) holders of such indebtedness agree that they have no rights in any
        assets of the Seller other than the assets pledged to secure such
        indebtedness, and (iv) to the extent that any holder of such
        indebtedness is deemed to have any interest in any assets of the Seller
        other than the assets pledged to secure such indebtedness, holders of
        such indebtedness agree that their interest is subordinate to claims or
        rights of holders of other indebtedness issued by the Seller, and that
        such agreement constitutes a subordination agreement for purposes of
        Section 510(a) of the Bankruptcy Code;

               (3) dissolve or liquidate, in whole or in part, consolidate or
        merge with or into any other entity or convey or transfer its properties
        and assets substantially as an entirety to any entity, unless:

                   (i) the entity (if other than the Seller) formed or surviving
               the consolidation or merger or which acquires the properties and
               assets of the Seller is organized and existing under the laws of
               the State of Delaware, expressly assumes the due and punctual
               payment of all obligations of the Seller, including those
               obligations of the Seller under this Agreement and the Basic
               Documents, and has

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<PAGE>   56

               a Certificate of Incorporation containing provisions identical to
               the provisions of Article Three, Article Four and Article Fifteen
               of the Seller's Certificate of Incorporation, as amended; and

                      (ii) immediately after giving effect to the transaction,
               no default or event of default has occurred and is continuing
               under any indebtedness of the Seller or any agreements relating
               to such indebtedness; and

                      (iii) the entity (if other than the Seller) formed or
               surviving the consolidation or merger or which acquires the
               properties and assets of the Seller agrees that (i) it shall
               maintain its funds or assets as identifiable and not commingle
               its funds or assets with those of any direct or ultimate parent
               of such entity and pay from its assets all obligations and
               indebtedness of any kind incurred by it, (ii) it shall maintain
               bank accounts, corporate records and books of account separate
               from those of any direct or ultimate parent of such entity and
               (iii) the business affairs of such entity will be managed by or
               under the direction of its board of directors and it will conduct
               its business from an office space separate from any direct or
               ultimate parent of such entity; and

                      (iv) each nationally recognized statistical rating
               organization that has rated any issue of certificates or notes
               secured or supported by assets acquired by the Seller from NMAC
               shall confirm in writing that the rating of such certificates or
               notes shall not be adversely affected by such consolidation or
               merger;

               (4) without the affirmative vote of 100% of the members of the
        board of directors of the Seller, institute proceedings to be
        adjudicated bankrupt or insolvent, or consent to the institution of
        bankruptcy or insolvency proceedings against it, or file a petition
        seeking or consent 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 corporation or all or substantially
        all of its property, or make any assignment for the benefit of
        creditors.

               (5) cease to have an "Independent Director," as defined in the
        Seller's charter;

               (6) without the affirmative vote of at least one "Independent
        Director," as defined in the Seller's charter, enter into any
        transactions with the Servicer not in the ordinary course of business;
        or

               (7) modify any provision of Article Three, Article Four or
        Article Fifteen of the Seller's Certificate of Incorporation, as
        amended, in any material respect.

        SECTION 6.03 Liability of Seller; Indemnities. The Seller shall be
liable in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

        (a) The Seller shall indemnify, defend and hold harmless the Trust, the
Owner Trustee, the Indenture Trustee from and against any taxes that may at any
time be asserted

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<PAGE>   57

against any such Person with respect to, as of the date hereof, the sale of the
Receivables to the Trust or the issuance and original sale of the Notes and the
Certificates, including any sales, gross receipts, general corporation, tangible
personal property, privilege or license taxes (but, in the case of the Trust,
not including any taxes asserted with respect to ownership of the Receivables or
federal or other income taxes arising out of the transactions contemplated by
this Agreement and the Basic Documents) and costs and expenses in defending
against the same.

        (b) The Seller shall indemnify, defend and hold harmless the Owner
Trustee and the Indenture Trustee, the Trust, the Certificateholders and the
Noteholders from and against any loss, liability or expense incurred by reason
of (i) the Seller's willful misfeasance, bad faith or negligence in the
performance of its duties under this Agreement, or by reason of reckless
disregard of its obligations and duties under this Agreement and (ii) the
Seller's or the Issuer's violation of federal or state securities laws in
connection with the registration or the sale of the Certificates and the Notes.

               Indemnification under this Section 6.03 shall survive the
termination of this Agreement and shall include reasonable fees and expenses of
counsel and expenses of litigation. If the Seller shall have made any indemnity
payment to any Person entitled thereto pursuant to this Section 6.03 and such
Person thereafter shall collect any of such amounts from others, such Person
shall promptly repay such amounts to the Seller, without interest (except to the
extent the recipient collects interest from others).

               Promptly after receipt by a party indemnified under this Section
6.03 (for purposes of this paragraph, an "Indemnified Party") of notice of the
commencement of any action, such Indemnified Party will, if a claim is to be
made in respect thereof against the Seller under this Section 6.03, notify the
Seller of the commencement thereof. If any such action is brought against any
Indemnified Party under this Section 6.03 and it notifies the Seller of the
commencement thereof, the Seller will assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Party (who may, unless there is, as
evidenced by an Opinion of Counsel to the Indemnified Party stating that there
is a conflict of interest, be counsel to the Seller), and the Seller will not be
liable to such Indemnified Party under this Section 6.03 for any legal or other
expenses subsequently incurred by such Indemnified Party in connection with the
defense thereof, other than reasonable costs of investigation. The obligations
set forth in this Section 6.03 shall survive the termination of this Agreement
or the resignation or removal of the Owner Trustee or the Indenture Trustee and
shall include reasonable fees and expenses of counsel and expenses of
litigation. If the Seller shall have made any indemnity payments pursuant to
this Section 6.03 and the Person to or on behalf of whom such payments are made
thereafter collects any of such amounts from others, such Person shall promptly
repay such amounts to the Seller, without interest (except to the extent
received by such Person).

        SECTION 6.04 Merger or Consolidation of, or Assumption of the
Obligations of, Seller. Subject to Section 6.02, any Person (i) into which the
Seller may be merged or consolidated, (ii) resulting from any merger, conversion
or consolidation to which the Seller shall be a party, (iii) succeeding to the
business of the Seller or (iv) that is a corporation more than 50% of the voting
stock of which is owned directly or indirectly by Nissan, which Person in any of
the foregoing cases executes an agreement of assumption to perform every
obligation of the Seller under this Agreement, will be the successor to the
Seller under this Agreement without the

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<PAGE>   58

execution or filing of any document or any further act on the part of any of the
parties to this Agreement; provided, however, that (x) immediately after giving
effect to such transaction, no representation or warranty made pursuant to
Section 6.01 shall have been breached and no Servicer Default, and no event
that, after notice or lapse of time, or both, would become a Servicer Default,
shall have occurred and be continuing, (y) the Seller shall have delivered to
the Owner Trustee and the Indenture Trustee an Officer's Certificate stating
that such consolidation, merger or succession and such agreement or assumption
comply with this Section 6.04 and that all conditions precedent, if any,
provided for in this Agreement relating to such transaction have been complied
with and (z) the Seller shall have delivered to the Owner Trustee and the
Indenture Trustee an Opinion of Counsel either (A) stating that, in the opinion
of such counsel, based on customary qualifications and assumptions, all
financing statements and continuation statements and amendments thereto have
been executed and filed that are necessary fully to perfect the interest of the
Issuer and the Indenture Trustee, respectively, in the Receivables, and reciting
the details of such filings, or (B) stating that, in the opinion of such
counsel, no such action shall be necessary to preserve and protect such
interest. The Seller shall provide notice of any merger, consolidation or
succession pursuant to this Section 6.04 to each Rating Agency. Notwithstanding
anything herein to the contrary, the execution of the foregoing agreement of
assumption and compliance with clauses (x), (y) and (z) above shall be
conditions to the consummation of the transactions referred to in clauses (i),
(ii), (iii) or (iv) above.

        SECTION 6.05 Limitation on Liability of Seller and Others.

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

        (b) The Seller shall not be under any obligation to appear in, prosecute
or defend any legal action that shall not be incidental to its obligations under
this Agreement, and that in its opinion may cause it to incur any expense or
liability; provided, however, that the Servicer may undertake any reasonable
action that it may deem necessary or desirable in respect of this Agreement and
the rights and duties of the parties to this Agreement and the interests of the
Certificateholders and the Noteholders under this Agreement. In such event, the
legal expenses and costs of such action and any liability resulting therefrom
shall be expenses, costs and liabilities of the Servicer, and the Servicer will
not be entitled to be reimbursed therefor.

        SECTION 6.06 Seller May Own Certificates or Notes. The Seller and any
Affiliate of the Seller may in its individual or any other capacity become the
owner or pledgee of Certificates or Notes with the same rights as it would have
if it were not the Seller or an Affiliate thereof, except as otherwise provided
in the Basic Documents. Certificates or Notes so owned by or pledged to the
Seller or such controlling or commonly controlled Person shall have an equal and

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<PAGE>   59

proportionate benefit under the provisions of this Agreement, without
preference, priority or distinction as among all of the Certificates or the
Notes, as the case may be, except as otherwise expressly provided in the Basic
Documents.

                                   ARTICLE VII

                                  The Servicer

        SECTION 7.01 Representations of Servicer. The Servicer makes the
following representations on which the Issuer is deemed to have relied in
acquiring the Receivables. The representations speak as of the execution and
delivery of this Agreement and as of the Closing Date and shall survive the sale
of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

        (a) Organization and Good Standing. The Servicer is duly organized and
is validly existing as a corporation in good standing under the laws of the
state of its incorporation, with corporate power and authority to own its
properties and to conduct its business as such properties are currently owned
and such business is presently conducted, and had at all relevant times, and
has, corporate power, authority and legal right to acquire, own, sell and
service the Receivables and to hold the Receivable Files as custodian on behalf
of the Trust and the Indenture Trustee. The location of the Servicer's chief
executive office and principal place of business is Torrance, California.

        (b) Due Qualification. The Servicer 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 property
or the conduct of its business relating to the servicing of the Receivables as
required by this Agreement shall require such qualifications and where the
failure to so qualify would have a material adverse effect on the ability of the
Servicer to perform its obligations under this Agreement.

        (c) Power and Authority. The Servicer has the power and authority to
execute and deliver this Agreement and to carry out its terms; and the
execution, delivery and performance of this Agreement have been duly authorized
by the Servicer by all necessary corporate action.

        (d) Binding Obligation. This Agreement constitutes a legal, valid and
binding obligation of the Servicer enforceable in accordance with its terms,
subject to the effect of bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting creditors' rights generally and by general
equitable principles.

        (e) No Violation. The consummation of the transactions contemplated by
this Agreement and the fulfillment of the terms hereof do not conflict with,
result in any breach of any of the terms and provisions of, nor constitute (with
or without notice or lapse of time) a default under, the articles of
incorporation or by-laws of the Servicer, or any indenture, agreement or other
instrument to which the Servicer is a party or by which it shall be 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 the Basic Documents); nor violate any law or any order, rule or
regulation applicable to the Servicer of any court or of any federal

                                       55
<PAGE>   60

or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Servicer or its properties; which
breach, default, conflict, Lien or violation in any case would have a material
adverse effect on the ability of the Seller to perform its obligations under
this Agreement.

        (f) No Proceedings. There are no proceedings or investigations pending,
or, to the best of the Servicer's knowledge, threatened, before any court,
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Servicer or its properties: (i) asserting the
invalidity of this Agreement, the Trust Agreement, the Indenture, the
Certificates or the Notes; (ii) seeking to prevent the issuance of the
Certificates or the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Trust Agreement or the Indenture; (iii)
seeking any determination or ruling that would materially and adversely affect
the performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Trust Agreement, the Indenture, the
Certificates or the Notes ; or (iv) relating to the Servicer and that would
adversely affect the federal or any state income tax attributes of the
Certificates or the Notes.

        SECTION 7.02 Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement:

               (a) The Servicer shall defend, indemnify and hold harmless the
Owner Trustee, the Indenture Trustee, the Trust, the Certificateholders and the
Noteholders from and against any and all costs, expenses, losses, damages,
claims and liabilities (collectively, "Damages") arising out of or resulting
from the use, ownership or operation by the Servicer or any of its Affiliates
(other than the Trust) of a Financed Vehicle.

               (b) The Servicer shall indemnify, defend and hold harmless the
Owner Trustee, the Indenture Trustee, the Trust, the Certificateholders and the
Noteholders from and against any and all Damages to the extent that such Damage
arose out of, or was imposed upon, the Owner Trustee, the Indenture Trustee, the
Trust, the Certificateholders or the Noteholders through the negligence, willful
misfeasance or bad faith of the Servicer in the performance of its duties under
this Agreement or by reason of reckless disregard of its obligations and duties
under this Agreement.

               (c) The Servicer shall indemnify, defend and hold harmless the
Owner Trustee and the Indenture Trustee from and against all Damages arising out
of or incurred in connection with the acceptance or performance of the trusts
and duties herein contained, except to the extent that such Damage: (i) shall be
due to the willful misfeasance, bad faith, or negligence (except for errors in
judgment) of the Owner Trustee or the Indenture Trustee, as the case may be;
(ii) relates to any tax other than the taxes with respect to which the Seller
shall be required to indemnify the Owner Trustee or the Indenture Trustee; (iii)
shall arise from the breach by the Owner Trustee or the Indenture Trustee of any
of their respective representations or warranties set forth in the Basic
Documents; (iv) shall be one as to which the Seller is required to indemnify the
Owner Trustee or the Indenture Trustee and as to which such Person has received
payment of indemnity from the Seller; or (v) shall arise out of or be incurred
in connection with the performance by the Indenture Trustee of the duties of
Successor Servicer hereunder.

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<PAGE>   61

               Promptly after receipt by a party indemnified under this Section
7.02 (for purposes of this paragraph, an "Indemnified Party") of notice of the
commencement of any action, such Indemnified Party will, if a claim in respect
thereof is to be made against the Servicer under this Section 7.02, notify the
Servicer of the commencement thereof. If any such action is brought against any
Indemnified Party under this Section 7.02 and it notifies the Servicer of the
commencement thereof, the Servicer will assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Party (who may, unless there is, as
evidenced by an Opinion of Counsel to the Indemnified Party stating that there
is a conflict of interest, be counsel to the Servicer), and the Servicer will
not be liable to such Indemnified Party under this Section 7.02 for any legal or
other expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof, other than reasonable costs of investigation. The
obligations set forth in this Section 7.02 shall survive the termination of this
Agreement or the resignation or removal of the Servicer, the Owner Trustee or
the Indenture Trustee and shall include reasonable fees and expenses of counsel
and expenses of litigation. If the Servicer shall have made any indemnity
payments pursuant to this Section 7.02 and the Person to or on behalf of whom
such payments are made thereafter collects any of such amounts from others, such
Person shall promptly repay such amounts to the Servicer, without interest
(except to the extent received by such Person).

               Indemnification under this Section 7.02 by NMAC (or any successor
thereto pursuant to Section 7.03) as Servicer, with respect to the period such
Person was the Servicer, shall survive the termination of such Person as
Servicer or a resignation by such Person as Servicer as well as the termination
of this Agreement and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Servicer shall have made any indemnity payments
pursuant to this Section 7.02 and the recipient thereafter collects any of such
amounts from others, the recipient shall promptly repay such amounts to the
Servicer, without interest (except to the extent the recipient collects interest
from others).

        SECTION 7.03 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer. Any Person (i) into which the Servicer may be merged
or consolidated, (ii) resulting from any merger, conversion or consolidation to
which the Servicer shall be a party, (iii) succeeding to the business of the
Servicer, or (iv) so long as NMAC acts as Servicer, that is a corporation more
than 50% of the voting stock of which is owned directly or indirectly by Nissan,
which Person in any of the foregoing cases executes an agreement of assumption
to perform every obligation of the Servicer under this Agreement, will be the
successor to the Servicer under this Agreement without the execution or filing
of any paper or any further act on the part of any of the parties to this
Agreement; provided, however, that (x) immediately after giving effect to such
transaction, no Servicer Default, and no event which, after notice or lapse of
time, or both, would become a Servicer Default, shall have occurred and be
continuing, (y) the Servicer shall have delivered to the Owner Trustee and the
Indenture Trustee an Officer's Certificate stating that such consolidation,
merger or succession and such agreement of assumption comply with this Section
7.03 and that all conditions precedent provided for in this Agreement relating
to such transaction have been complied with and (z) the Servicer shall have
delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel
either (A) stating that, in the opinion of such counsel, based on customary
qualifications and assumptions, all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Issuer

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<PAGE>   62

and the Indenture Trustee in the Receivables, and reciting the details of such
filings, or (B) stating that, in the opinion of such counsel, no such action
shall be necessary to perfect such interest. The Servicer shall provide notice
of any merger, consolidation or succession pursuant to this Section 7.03 to each
Rating Agency. Notwithstanding anything herein to the contrary, the execution of
the foregoing agreement of assumption and compliance with clauses (x), (y) and
(z) above shall be conditions to the consummation of the transactions referred
to in clauses (i), (ii), (iii) or (iv) above.

        SECTION 7.04 Limitation on Liability of Servicer and Others.

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

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

        SECTION 7.05 NMAC Not To Resign as Servicer. Subject to the provisions
of Section 7.03, NMAC shall not resign from the obligations and duties hereby
imposed on it as Servicer under this Agreement except upon determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of NMAC shall be communicated to the Owner Trustee and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in writing, shall be confirmed in writing at the earliest practicable
time) and any such determination shall be evidenced by an Opinion of Counsel to
such effect delivered to the Owner Trustee and the Indenture Trustee
concurrently with or promptly after such notice. No such resignation shall
become effective until the Indenture Trustee or a Successor Servicer shall (i)
have taken the actions required by Section 8.01 of this Agreement to effect the
termination of the responsibilities and rights of the predecessor Servicer under
this Agreement, including the transfer to the Successor Servicer for
administration by it of all cash amounts that shall at the time be held by the
predecessor Servicer for deposit, or shall thereafter be received with respect
to a Receivable and the delivery of the Receivable Files, and the related
accounts and records

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<PAGE>   63

maintained by the Servicer, (ii) have assumed the responsibilities and
obligations of NMAC as Servicer under this Agreement in accordance with Section
8.02 of this Agreement (other than the initial Servicer's obligation to make
Advances), and (iii) become the Administrator under the Administration Agreement
in accordance with Section 8 of such Agreement.

                                  ARTICLE VIII

                                     Default

        SECTION 8.01 Servicer Default. If any one of the following events (a
"Servicer Default") shall occur and be continuing:

        (a) any failure by the Servicer (or the Seller, so long as NMAC is the
Servicer) to deliver to the Relevant Trustee for deposit in any of the Accounts
any required payment or to direct the Relevant Trustee to make any required
distributions therefrom, which failure continues unremedied for a period of
three Business Days after (i) receipt by the Servicer (or the Seller, so long as
NMAC is the Servicer) of written notice of such failure given by the Owner
Trustee or the Indenture Trustee, (ii) receipt by the Servicer (or the Seller,
so long as NMAC is the Servicer), the Owner Trustee or the Indenture Trustee of
written notice of such failure given by the Holders of Notes or Certificates
evidencing not less than 25% of the sum of the Outstanding Amount or Holders of
Certificates evidencing not less than 25% of the Certificate Balance, or (iii)
discovery of such failure by any officer of the Servicer;

        (b) any failure by the Servicer (or the Seller, as long as NMAC is the
Servicer) to duly observe or perform in any material respect any other covenants
or agreements of the Servicer (or the Seller, as long as NMAC is the Servicer)
set forth in this Agreement (including its obligation to purchase Receivables
pursuant to Section 4.06), which failure shall materially and adversely affect
the rights of the Certificateholders or the Noteholders and shall continue
unremedied for a period of 90 days after giving of written notice of the failure
to (i) the Servicer (or the Seller, as long as NMAC is the Servicer) by the
Owner Trustee or the Indenture Trustee, or (ii) the Servicer (or the Seller, as
long as NMAC is the Servicer) and the Owner Trustee or the Indenture Trustee by
the Holders of Notes or Certificates evidencing not less than 25% of the sum of
the Outstanding Amount or Holders of Certificates evidencing not less than 25%
of the Certificate Balance; or

        (c) the occurrence of an Insolvency Event with respect to the Servicer;

then, and in each and every case, so long as the Servicer Default shall not have
been remedied, either the Indenture Trustee or the Holders of Notes evidencing a
majority of the Outstanding Amount of the Notes (but excluding for purposes of
such calculation and action all Notes held or beneficially owned by NMAC,
[NARC][NARC II] or any of their Affiliates unless all of the Notes are held or
beneficially owned by NMAC, [NARC][NARC II] or any of their Affiliates), acting
together as a single Class, by notice then given in writing to the Servicer (and
to the Indenture Trustee and the Owner Trustee if given by the Noteholders) may
terminate all of the rights and obligations (other than the obligations set
forth in Section 7.02 hereof) of the Servicer under this Agreement. On or after
the receipt by the Servicer of such written notice, all authority and power of
the Servicer under this Agreement, whether with respect to the Notes, the

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<PAGE>   64

Certificates or the Receivables or otherwise, shall, without further action,
pass to and be vested in the Indenture Trustee or such Successor Servicer as may
be appointed under Section 8.02; and, without limitation, the Indenture Trustee
and the Owner Trustee are hereby authorized and empowered to execute and
deliver, for the benefit of the predecessor Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do or accomplish
all other acts or things necessary or appropriate to effect the purposes of such
notice of termination, whether to complete the transfer and endorsement of the
Receivables and related documents, or otherwise. The predecessor Servicer shall
cooperate with the Successor Servicer and the Owner Trustee in effecting the
termination of the responsibilities and rights of the predecessor Servicer under
this Agreement, including, without limitation, the transfer to the Successor
Servicer for administration by it of all cash amounts that shall at the time be
held by the predecessor Servicer for deposit, or have been deposited by the
predecessor Servicer, in the Accounts or thereafter received with respect to the
Receivables that shall at that time be held by the predecessor Servicer and the
delivery of the Receivables Files and the related accounts and records
maintained by the predecessor Servicer. All reasonable costs and expenses
(including attorneys' fees) incurred in connection with transferring the
Receivable Files to the Successor Servicer and amending this Agreement to
reflect such succession as Servicer pursuant to this Section 8.01 shall be paid
by the predecessor Servicer upon presentation of reasonable documentation of
such costs and expenses. Notwithstanding the foregoing, in the event the
predecessor Servicer is the Indenture Trustee, the original Servicer hereunder
shall reimburse the Indenture Trustee for all reasonable costs and expenses as
described in the immediately preceding sentence. Upon receipt of notice of the
occurrence of a Servicer Default, the Indenture Trustee shall give notice
thereof to the Rating Agencies.

        SECTION 8.02 Appointment of Successor.

        (a) Upon the Servicer's receipt of notice of termination pursuant to
Section 8.01 or the Servicer's resignation in accordance with the terms of this
Agreement, the predecessor Servicer shall continue to perform its functions as
Servicer under this Agreement, in the case of termination, only until the date
specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the earlier of (i) the date 45 days from the delivery to the
Owner Trustee and the Indenture Trustee of written notice of such resignation
(or written confirmation of such notice) in accordance with the terms of this
Agreement and (ii) the date upon which the predecessor Servicer shall become
unable to act as Servicer, as specified in the notice of resignation and
accompanying Opinion of Counsel. In the event of the Servicer's resignation or
termination hereunder, the Indenture Trustee shall appoint a Successor Servicer,
and the Successor Servicer shall accept its appointment (including its
appointment as Administrator under the Administration Agreement as set forth in
Section 8.02(b)) by a written assumption in form acceptable to the Owner Trustee
and the Indenture Trustee. If a Successor Servicer has not been appointed at the
time when the predecessor Servicer has ceased to act as Servicer in accordance
with this Section 8.02, the Indenture Trustee without further action shall
automatically be appointed the Successor Servicer and the Indenture Trustee
shall be entitled to the Total Servicing Fee. Notwithstanding the above, the
Indenture Trustee shall, if it shall be legally unable so to act, appoint or
petition a court of competent jurisdiction to appoint, and the predecessor
Servicer, if no successor Servicer has been appointed at the time the
predecessor Servicer has ceased to act, may petition a court of competent
jurisdiction to appoint any

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established institution having a net worth of not less than $100,000,000 and
whose regular business shall include the servicing of automobile and/or
light-duty truck receivables, as the successor to the Servicer under this
Agreement.

        (b) Upon appointment, the Successor Servicer (including the Indenture
Trustee acting as Successor Servicer) shall (i) be the successor in all respects
to the predecessor Servicer and shall be subject to all the responsibilities,
duties and liabilities arising thereafter relating thereto placed on the
predecessor Servicer (except the initial Servicer's obligation to make Advances)
and shall be entitled, subject to the arrangements referred to in paragraph (c)
below, to the servicing fee and all the rights granted to the predecessor
Servicer by the terms and provisions of this Agreement and (ii) become the
Administrator under the Administration Agreement in accordance with Section 8 of
such Agreement.

        (c) In connection with such appointment, the Issuer may make such
arrangements for the compensation of such Successor Servicer out of payments on
Receivables as it and such Successor Servicer shall agree; provided, however,
that no such compensation shall be in excess of that permitted the predecessor
Servicer under this Agreement. The Issuer, the Indenture Trustee and such
Successor Servicer shall take such action, consistent with this Agreement, as
shall be necessary to effectuate any such succession.

        SECTION 8.03 Repayment of Advances. If the Servicer shall resign or be
terminated, the Servicer shall continue to be entitled to receive, to the extent
of available funds, reimbursement for Outstanding Advances pursuant to Sections
5.03 and 5.04 with respect to all Advances previously made thereby.

        SECTION 8.04 Notification . Upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article VIII, the Owner Trustee
shall give prompt written notice thereof to the Certificateholders, and the
Indenture Trustee shall give prompt written notice thereof to Noteholders[, the
Swap Counterparty] and the Rating Agencies.

        SECTION 8.05 Waiver of Past Defaults. The Holders of Notes evidencing a
majority of the Outstanding Amount of the Controlling Class of Notes, or, in the
case of any Servicer Default which does not adversely affect the Indenture
Trustee or the Noteholders, the Holders of Certificates evidencing a majority of
the Certificate Balance of the Controlling Class of Certificates, in each case
excluding for purposes of such calculation and action all Securities held or
beneficially owned by NMAC, [NARC][NARC II] or any of their Affiliates (unless
all of the Notes of such Class or the Certificates of such Class, as the case
may be, are held by NMAC, [NARC][NARC II] and their Affiliates), may, on behalf
of all the Noteholders and the Certificateholders, waive in writing any default
by the Servicer in the performance of its obligations hereunder and its
consequences, except a default in making any required deposits to or payments
from the Collection Account in accordance with this Agreement. Upon any such
waiver of a past default, such default shall cease to exist, and any Servicer
Default arising therefrom shall be deemed to have been remedied for every
purpose of this Agreement. No such waiver shall extend to any subsequent or
other default or impair any right consequent thereto.

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                                   ARTICLE IX

                       Termination; Release of Receivables

        SECTION 9.01  Optional Purchase of All Receivables.

        (a) On each Distribution Date following the last day of a Collection
Period as of which the Pool Balance shall be less than or equal to the Optional
Purchase Percentage multiplied by the Original Pool Balance, the Servicer or any
successor to the Servicer shall have the option to purchase the corpus of the
Owner Trust Estate (whether or not such assets then comprise all or a portion of
the Trust Estate) for an amount equal to the Optional Purchase Price. To
exercise such option, the Servicer or any successor to the Servicer shall notify
the Owner Trustee and the Indenture Trustee of its intention to do so in
writing, no later than the tenth day of the month preceding the month in which
the Distribution Date as of which such purchase is to be effected and shall, on
or before the Distribution Date on which such purchase is to occur, deposit
pursuant to Section 5.05 in the Collection Account an amount equal to the
Optional Purchase Price, and shall succeed to all interests in and to the Trust
Estate and the Owner Trust Estate; provided, however, that the Servicer shall
not effect any such purchase so long as the rating of NMAC by Moody's, or if
NMAC shall then be unrated by Moody's, then the rating of Nissan Capital of
America, Inc., is less than "Bal" by Moody's, unless the Owner Trustee and the
Indenture Trustee shall have received an Opinion of Counsel to the effect that
such purchase shall not constitute a fraudulent conveyance, subject to such
assumptions as to factual matters as may be contained therein. Amounts so
deposited will be paid and distributed as set forth in Section 5.06 of this
Agreement. Upon such deposit of the amount necessary to purchase the corpus of
the Owner Trust Estate, the Servicer shall for all purposes of this Agreement be
deemed to have released all claims for reimbursement of Outstanding Advances
made in respect of the Receivables.

        (b) Notice of any such purchase of the Owner Trust Estate shall be given
by the Owner Trustee and the Indenture Trustee to each Securityholder as soon as
practicable after their receipt of notice thereof from the Servicer.

        (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes, the
Certificateholders will succeed to the rights of the Noteholders hereunder other
than under Section 5.06 and the Issuer will succeed to the rights of the
Indenture Trustee provided for in this Agreement.

        SECTION 9.02 Release of Receivables.

        (a) Upon repurchase of any Receivable by the Seller pursuant to Section
3.02 or by the Servicer pursuant to Section 4.06 or Section 9.01, the Issuer,
and the Indenture Trustee on behalf of the Noteholders, shall, without further
action, be deemed to transfer, assign, set-over and otherwise convey to the
Seller or the Servicer, as the case may be, all right, title and interest of the
Issuer in, to and under such repurchased Receivable, all monies due or to become
due with respect thereto and all proceeds thereof and the other property
conveyed to the Issuer hereunder pursuant to Section 2.01 with respect to such
Receivable, and all security and any documents relating thereto, such assignment
being an assignment outright and not for security; and the

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Seller or the Servicer, as applicable, shall thereupon own each such Receivable,
and all such related security and documents, free of any further obligation to
the Issuer, the Owner Trustee, the Certificateholders, the Indenture Trustee or
the Noteholders with respect thereto.

        (b) The Issuer and Indenture Trustee shall execute such documents and
instruments of transfer and assignment and take such other actions as shall be
reasonably requested by the Seller or the Servicer, as the case may be, to
effect the conveyance of such Receivable pursuant to Sections 3.02, 4.06 and
9.02.

        (c) If in any enforcement suit or legal proceeding it is held that the
Seller or the Servicer may not enforce a repurchased Receivable on the ground
that it is not a real party in interest or a holder entitled to enforce the
Receivable, the Issuer, and the Indenture Trustee on behalf of the Noteholders,
shall, at the written direction and expense of the Seller or Servicer, as the
case may be, take such reasonable steps as the Seller or the Servicer deems
necessary to enforce the Receivable, including bringing suit in the name or
names of the Issuer, the Certificateholders or the Noteholders.

        SECTION 9.03  Termination.

        (a) The respective obligations of the Seller, the Servicer, NMAC (so
long as NMAC has rights or obligations hereunder), the Owner Trustee, and the
Indenture Trustee, as the case may be, pursuant to this Agreement shall
terminate upon the earliest of (i) the maturity or other liquidation of the last
Receivable and the final disposition of all amounts received upon liquidation of
any remaining Receivables, or (ii) the election by the Servicer to purchase the
corpus of the Trust as described in Section 9.01 and the payment or distribution
to Securityholders of all amounts required to be paid to them under the
Indenture or the Trust Agreement, as the case may be.

        (b) Notice of any such termination under this Section 9.03 shall be
given by the Indenture Trustee or the Owner Trustee to each Securityholder of
record as specified in the Indenture or the Trust Agreement, as appropriate.

                                    ARTICLE X

                                  Miscellaneous

        SECTION 10.01 Amendment.

        (a) This Agreement may be amended by the Seller, the Servicer and the
Issuer, with the consent of the Indenture Trustee, but without the consent of
any of the Noteholders or the Certificateholders,

               (1) to cure any ambiguity, correct or supplement any provision
        herein that may be inconsistent with any other provision herein, or make
        any other provisions with respect to matters or questions arising
        hereunder that are not inconsistent with the provisions herein; provided
        that (i) the amendment will not materially and adversely affect the
        interest of any Noteholder or Certificateholder and (ii) the Servicer
        shall have delivered an Officer's Certificate to the Indenture Trustee
        and the Owner Trustee stating

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        that such amendment will not materially and adversely affect the
        interest of any Noteholder or Certificateholder; and

               (2) to change the formula for determining the required amount for
        the Specified Reserve Account Balance upon (i) confirmation from each
        Rating Agency that such amendment will not result in the qualification,
        reduction or withdrawal of any rating it currently assigns to any Class
        of Notes or Certificates, and (ii) delivery by the Servicer to the
        Indenture Trustee and the Owner Trustee of an Officer's Certificate
        stating that such amendment will not materially and adversely affect the
        interest of any Securityholder.

        An amendment will be deemed not to materially and adversely affect the
interests of any Noteholder or Certificateholder of any Class if (x) the
amendment does not adversely affect the Trust's status as a partnership (or, for
any period during which there is not more than one beneficial owner of a
Certificate, the Trust's status as an entity that is disregarded as an entity
separate from the Certificateholder) for federal income tax purposes, (y) each
Rating Agency confirms that that amendment will not result in a reduction or
withdrawal of its rating on the Certificates or the Notes of that Class, and (z)
the Servicer has delivered the Officer's Certificate described in this Section
10.01(a).

        (b) This Agreement may also be amended from time to time by the Seller,
the Servicer and the Issuer, with the consent of the Indenture Trustee and the
consent of:

                      (1) the Holders of Notes evidencing a majority of the
               Outstanding Amount of the Controlling Class of Notes; or

                      (2) in the case of any amendment that does not adversely
               affect the Indenture Trustee or the Noteholders, the Holders of
               the Certificates evidencing a majority of the outstanding
               Certificate Balance of the Controlling Class of Certificates (but
               excluding for purposes of calculation and action all Certificates
               held by the Seller, the Servicer or any of their Affiliates,
               unless all of the Certificates of such Class are held by the
               Seller, the Servicer or any of their Affiliates), 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 those Noteholders or
               Certificateholders; provided, however, that no amendment shall:

               (x) increase or reduce in any manner the amount of, or accelerate
               or delay the timing of, collections of payments on the
               Receivables or distributions that are required to be made for the
               benefit of those Noteholders or Certificateholders or change the
               Interest Rate or the Pass-Through Rate or the Specified Reserve
               Account Balance (except as described above under clause (2) of
               subsection (a) above) without the consent of each "adversely
               affected" Noteholder or Certificateholder; or

               (y) reduce the aforesaid percentage of the Outstanding Amount of
               the Notes or Certificate Balance of the Certificates which is
               required to consent to any

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<PAGE>   69

               amendment, without the consent of the Holders of all the then
               outstanding Notes or Certificates.

         An amendment referred to in clause (x) above will be deemed not to
"adversely affect" a Certificateholder or Noteholder of any Class only if each
Rating Agency confirms that that amendment will not result in a reduction or
withdrawal of its rating on the Certificates or Notes of that Class. In
connection with any amendment referred to in clause (x) above, the Servicer
shall deliver an Officer's Certificate to the Indenture Trustee and the Owner
Trustee stating that those Noteholders and Certificateholders whose consents
were not obtained were not adversely affected by such amendment.

        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 each Certificateholder, the Indenture Trustee and each of the Rating
Agencies.

        It shall not be necessary for the consent of the Certificateholders or
the Noteholders pursuant to this Section 10.01 to approve the particular form of
any proposed amendment or consent, but it shall be sufficient if such consent
shall approve the substance thereof.

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

        SECTION 10.02 Protection of Title to Trust.

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

        (b) The Seller and the Servicer shall notify the Owner Trustee and the
Indenture Trustee within 30 days after any change of its name, identity or
corporate structure in any manner that would, could or might make any financing
statement or continuation statement filed in accordance with paragraph (a) above
seriously misleading within the meaning of Section 9-402(7) of the UCC, and
shall promptly file appropriate amendments to all previously filed financing
statements or continuation statements.

        (c) Each of the Seller and the Servicer shall notify the Owner Trustee
and the Indenture Trustee of any relocation of its principal executive office
within 30 days after such relocation, if, as a result of such relocation, the
applicable provisions of the UCC would require the filing of any amendment of
any previously filed financing or continuation statement or of any

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new financing statement and shall promptly file any such amendment or new
financing statement. The Servicer shall at all times maintain each office from
which it shall service Receivables, and its principal executive office, within
the United States of America.

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

        (e) The Servicer shall maintain its computer systems so that, from and
after the time of sale under this Agreement of the Receivables to the Trust, the
Servicer's master computer records that refer to any Receivable shall indicate
clearly the interest of the Issuer and the Indenture Trustee in such Receivable
and that such Receivable is owned by the Issuer and has been pledged to the
Indenture Trustee. Indication of these respective interests in a Receivable
shall be deleted from or modified on the Servicer's computer systems when, and
only when, the related Receivable shall have become a Liquidated Receivable or
been repurchased.

        (f) If at any time the Seller or the Servicer shall propose to sell,
grant a security interest in, or otherwise transfer any interest in automotive
receivables to, any prospective purchaser, lender or other transferee, the
Servicer shall give to such prospective purchaser, lender or other transferee
computer tapes, records or printouts that, if they shall refer in any manner
whatsoever to any Receivable, shall indicate clearly that such Receivable has
been sold and is owned by the Issuer and has been pledged to the Indenture
Trustee.

        (g) Upon receipt of a written request from the Owner Trustee or the
Indenture Trustee, which request shall be made no more frequently than annually,
the Servicer shall furnish to the Owner Trustee or the Indenture Trustee, as the
case may be, within 20 Business Days after receipt of such request, a list of
all Receivables (by contract number and name of Obligor) then held as part of
the Trust, together with a reconciliation of the list of Receivables attached
hereto as Schedule A and to each of the Servicer's Certificates furnished before
such request indicating removal of Receivables from the Trust. The Servicer
shall permit the Indenture Trustee and its agents at any time during normal
business hours upon reasonable prior notice to inspect, audit and make copies of
and abstracts from the Servicer's records regarding any Receivable.

        (h) The Servicer shall deliver to the Owner Trustee and the Indenture
Trustee:

               (A) upon the execution and delivery of this Agreement and of each
        amendment hereto, an Opinion of Counsel, based on customary assumptions
        and qualifications, stating that, in the opinion of such counsel, either
        (A) all financing statements and continuation statements have been
        executed and filed that are necessary to perfect the interest of the
        Trust and the Indenture Trustee in the Receivables, and reciting the
        details of such filings or referring to prior Opinions of Counsel in
        which such details are given, or (B) no such action shall be necessary
        to preserve and protect such interest; and

                                       66
<PAGE>   71

               (B) if requested by the Indenture Trustee or the Owner Trustee,
        not more frequently than annually, an Opinion of Counsel, dated as of a
        date during such 90-day period, either (A) stating that, in the opinion
        of such counsel, based on customary assumptions and qualifications, all
        financing statements and continuation statements have been executed and
        filed that are necessary to perfect the interest of the Trust and the
        Indenture Trustee in the Receivables, and reciting the details of such
        filings or referring to prior Opinions of Counsel in which such details
        are given, or (B) no such action shall be necessary to preserve and
        protect such interest.

        (i) Each Opinion of Counsel referred to in clause (h)(A) or (B) above
shall specify any action necessary (as of the date of such Opinion of Counsel)
to be taken in the following year to preserve and protect such interest.

        SECTION 10.03 Notices. All demands, notices, communications and
instructions upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the
case of the Seller, to [Nissan Auto Receivables Corporation][Nissan Auto
Receivables Corporation II], 990 West 190th Street, Torrance, California 90502,
Attention of Secretary ([(310) 719-8013)] [(310) 719-8583], (b) in the case of
the Servicer, to Nissan Motor Acceptance Corporation, 990 West 190th Street,
Torrance, California 90502, Attention of Secretary ((310) 719-8000), (c) in the
case of the Issuer or the Owner Trustee, at the Corporate Trust Office, (d) in
the case of the Indenture Trustee, at the Corporate Trust Office, (e) in the
case of Moody's, to Moody's Investors Service, Inc., ABS Monitoring Department,
99 Church Street, New York, New York 10007, and (f) in the case of Standard &
Poor's, to Standard & Poor's Ratings Services, 55 Water Street, New York, New
York 10041-0003, Attention: 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 10.04 Assignment by the Seller or the Servicer. Notwithstanding
anything to the contrary contained herein, except as provided in Sections 6.04
and 7.03 of this Agreement and as provided in the provisions of this Agreement
concerning the resignation or termination of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer without the prior written consent
of the Indenture Trustee, the Owner Trustee, the Holders of the Certificates and
Notes evidencing not less than 66 2/3% of the Outstanding Amount and the
Certificate Balance, voting as a single class.

        SECTION 10.05 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Seller, the Servicer, the Issuer,
the Owner Trustee, the Certificateholders, 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 10.06 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

                                       67
<PAGE>   72

such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

        SECTION 10.07 Separate Counterparts. This Agreement may be executed by
the parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

        SECTION 10.08 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 10.09 Governing Law. This Agreement shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions (other than Section 5-1401 of the General Obligations
Law of the State of New York), and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

        SECTION 10.10 Assignment by Issuer. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Receivables and the related property acquired hereunder and/or the
assignment of any or all of the Issuer's rights and obligations hereunder to the
Indenture Trustee.

        SECTION 10.11 Nonpetition Covenants.

        (a) Notwithstanding any prior termination of this Agreement, the
Servicer and the Seller shall not, prior to the date which is one year and one
day after the termination of this Agreement with respect to the Issuer,
acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or
sustaining a case against the Issuer under any federal or state bankruptcy,
insolvency or similar law, or appointing a receiver, liquidator, assignee,
trustee, custodian, sequestrator or other similar official of the Issuer or any
substantial part of its property, or ordering the winding up or liquidation of
the affairs of the Issuer.

        (b) Notwithstanding any prior termination of this Agreement, each of the
Servicer and the Owner Trustee (not in its individual capacity but solely as
Owner Trustee), prior to the date which is one year and one day after the Notes
are paid in full, covenants and agrees that it will not at any time file, join
in any filing of, or cooperate with or encourage others to file any bankruptcy,
reorganization arrangement, insolvency or liquidation proceeding, or other
proceeding against the Seller under any federal or state bankruptcy, insolvency
or similar law, appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Seller or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Seller.

        SECTION 10.12 Limitation of Liability of Owner Trustee and Indenture
Trustee. Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by [________________], not in its individual
capacity, but solely in its capacity as

                                       68
<PAGE>   73

Owner Trustee of the Issuer, and by [________________], not in its individual
capacity, but solely in its capacity as Indenture Trustee under the Indenture.
In no event shall [______________] or [________________] 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 by the Seller or the Servicer, or prepared by the Seller or the
Servicer for delivery by the Owner Trustee on behalf of the Issuer, pursuant
hereto, as to all of which recourse shall be had solely to the assets of the
Issuer. For all purposes of this Agreement, in the performance of its duties or
obligations hereunder or in the performance of any duties or obligations of the
Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the
benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

                                       69
<PAGE>   74

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

                               NISSAN AUTO RECEIVABLES [___-___] OWNER TRUST

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

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

                               [NISSAN AUTO RECEIVABLES CORPORATION][NISSAN AUTO
                               RECEIVABLES CORPORATION II], Seller

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

                               NISSAN MOTOR ACCEPTANCE CORPORATION, Servicer

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

ACKNOWLEDGED AND ACCEPTED AS OF
THE DAY AND YEAR FIRST ABOVE WRITTEN:

___________________________________ , not in its
individual capacity but solely as Indenture Trustee

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

                                      S-1
<PAGE>   75

                                   SCHEDULE A

                             SCHEDULE OF RECEIVABLES

             (Delivered to the Trust on CD-ROM on the Closing Date)

<PAGE>   76

                                   SCHEDULE B

                        LOCATION OF THE RECEIVABLES FILES

1.      NISSAN MOTOR ACCEPTANCE CORPORATION
        2901 Kinwest Parkway
        Irving, Texas 75063

2.      NISSAN MOTOR ACCEPTANCE CORPORATION
        990 W. 190th Street
        Torrance, California  90502

3.      IRON MOUNTAIN, INC.
        1235 N. Union Bower
        Irving, Texas 75061

<PAGE>   77

                                    EXHIBIT A

                       FORM OF YIELD SUPPLEMENT AGREEMENT

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