Document:

exv4w2

 

EXHIBIT 4.2

EXECUTION COPY

BAY VIEW DEPOSIT CORPORATION

Transferor

BAY VIEW ACCEPTANCE CORPORATION

Servicer

DEUTSCHE BANK TRUST COMPANY AMERICAS

Indenture Trustee

CENTERONE FINANCIAL SERVICES LLC

Back-up Servicer

and

WILMINGTON TRUST COMPANY

Owner Trustee

TRUST AND SERVICING AGREEMENT

Dated as of February 1, 2005

Bay View 2005-LJ-1 Owner Trust

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	ARTICLE I Creation of Trust
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.01 Name
	 	 	1	 
	SECTION 1.02 Office
	 	 	1	 
	SECTION 1.03 Purposes and Powers
	 	 	1	 
	SECTION 1.04 Appointment of Owner Trustee
	 	 	2	 
	SECTION 1.05 Initial Capital Contribution of Trust Estate
	 	 	2	 
	SECTION 1.06 Declaration of Trust
	 	 	2	 
	SECTION 1.07 Title to Trust Property
	 	 	3	 
	SECTION 1.08 Situs of Trust
	 	 	3	 
	SECTION 1.09 Separateness Covenants
	 	 	3	 
	SECTION 1.10 Restrictions on Trust Activities
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II Definitions
	 	 	4	 
	 
	 	 	 	 
	SECTION 2.01 Definitions
	 	 	4	 
	SECTION 2.02 Usage of Terms
	 	 	24	 
	SECTION 2.03 Record Date
	 	 	24	 
	SECTION 2.04 Section References
	 	 	24	 
	SECTION 2.05 Compliance Certificates
	 	 	24	 
	SECTION 2.06 Directions
	 	 	25	 
	SECTION 2.07 Calculations
	 	 	25	 
	SECTION 2.08 Action by or Consent of Noteholders
	 	 	25	 
	SECTION 2.09 Material Adverse Effect
	 	 	25	 
	 
	 	 	 	 
	ARTICLE III Conveyance of Receivables
	 	 	25	 
	 
	 	 	 	 
	SECTION 3.01 Conveyance of Receivables and other Trust Property
	 	 	25	 
	 
	 	 	 	 
	ARTICLE IV Acceptance by Owner Trustee
	 	 	27	 
	 
	 	 	 	 
	SECTION 4.01 Acceptance by Owner Trustee
	 	 	27	 
	 
	 	 	 	 
	ARTICLE V Information Delivered to the Rating Agencies
	 	 	27	 
	 
	 	 	 	 
	SECTION 5.01 Information Delivered to the Rating Agencies
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI Agent for Service
	 	 	28	 
	 
	 	 	 	 
	SECTION 6.01 Agent for Service
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VII The Receivables
	 	 	28	 
	 
	 	 	 	 
	SECTION 7.01 Representations and Warranties of Transferor
	 	 	28	 
	SECTION 7.02 Repurchase Upon Breach
	 	 	30	 
	SECTION 7.03 Custody of Receivable Files
	 	 	30	 
	SECTION 7.04 Duties of Servicer as Custodian on behalf of the Trust
	 	 	31	 
	SECTION 7.05 Instructions; Authority to Act
	 	 	32	 

Trust and Servicing Agreement

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	 	 	PAGE	 
	ARTICLE VIII Administration and Servicing of Receivables
	 	 	32	 
	 
	 	 	 	 
	SECTION 8.01 Duties of Servicer
	 	 	32	 
	SECTION 8.02 [Intentionally Omitted.]
	 	 	33	 
	SECTION 8.03 The Back-up Servicer
	 	 	33	 
	SECTION 8.04 Retention and Termination of Servicer
	 	 	36	 
	SECTION 8.05 Collection of Receivable Payments
	 	 	36	 
	SECTION 8.06 Realization Upon Receivables
	 	 	37	 
	SECTION 8.07 Physical Damage Insurance
	 	 	38	 
	SECTION 8.08 Maintenance of Security Interests in Financed Vehicles
	 	 	39	 
	SECTION 8.09 Covenants of Servicer
	 	 	41	 
	SECTION 8.10 Purchase of Receivables Upon Breach
	 	 	41	 
	SECTION 8.11 Servicing Fee
	 	 	42	 
	SECTION 8.12 Servicer’s Certificate
	 	 	43	 
	SECTION 8.13 Annual Statement as to Compliance; Notice of Default
	 	 	43	 
	SECTION 8.14 Annual Independent Certified Public Accountant’s Report
	 	 	44	 
	SECTION 8.15 Access to Certain Documentation and Information Regarding Receivables

	 	 	45	 
	
SECTION 8.16 Servicer Expenses
	 	 	45	 
	SECTION 8.17 Reports to Noteholders
	 	 	45	 
	SECTION 8.18 Fidelity Bond
	 	 	46	 
	SECTION 8.19 Delegation of Duties
	 	 	46	 
	SECTION 8.20 Derivatives
	 	 	46	 
	 
	 	 	 	 
	ARTICLE IX Collections; Distributions to Noteholders and Certificateholder
	 	 	47	 
	 
	 	 	 	 
	SECTION 9.01 Lock-Box Account
	 	 	47	 
	SECTION 9.02 Collection Account
	 	 	49	 
	SECTION 9.03 Collections
	 	 	51	 
	SECTION 9.04 Additional Deposits
	 	 	51	 
	SECTION 9.05 Application of Funds
	 	 	52	 
	SECTION 9.06 Spread Account
	 	 	52	 
	SECTION 9.07 Advances
	 	 	52	 
	SECTION 9.08 No Segregation of Moneys; No Interest
	 	 	53	 
	 
	 	 	 	 
	SECTION 9.09 Accounting and Reports to the Certificateholder, the Internal Revenue
Service and Others
	 	 	53	 
	 
	 	 	 	 
	SECTION 9.10 Payahead Account
	 	 	54	 
	SECTION 9.11 Certain Reimbursements to the Servicer
	 	 	54	 
	SECTION 9.12 Securities Accounts
	 	 	55	 
	 
	 	 	 	 
	ARTICLE X Voting Rights and Other Actions
	 	 	55	 
	 
	 	 	 	 
	SECTION 10.01 Prior Notice with Respect to Certain Matters
	 	 	55	 
	SECTION 10.02 Action with Respect to Certain Matters
	 	 	56	 
	SECTION 10.03 Restrictions on Certificateholder’s Power
	 	 	56	 
	SECTION 10.04 Control
	 	 	57	 
	SECTION 10.05 Rights of Insurer
	 	 	57	 
	SECTION 10.06 Registration of Transfer and Exchange of the Certificate
	 	 	57	 

Trust and Servicing Agreement

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	 	 	PAGE	 
	ARTICLE XI The Certificate
	 	 	57	 
	 
	 	 	 	 
	SECTION 11.01 Initial Ownership
	 	 	57	 
	SECTION 11.02 The Certificate
	 	 	57	 
	SECTION 11.03 Authentication of Certificate
	 	 	58	 
	SECTION 11.04 Registration of Transfer and Exchange of Certificate
	 	 	58	 
	SECTION 11.05 Mutilated, Destroyed, Lost, or Stolen Certificates
	 	 	59	 
	SECTION 11.06 Persons Deemed Certificateholder
	 	 	59	 
	SECTION 11.07 Covenants of the Certificateholder
	 	 	60	 
	 
	 	 	 	 
	ARTICLE XII The Transferor
	 	 	60	 
	 
	 	 	 	 
	SECTION 12.01 Representations and Undertakings of Transferor
	 	 	60	 
	SECTION 12.02 Liability of Transferor; Indemnities
	 	 	65	 
	SECTION 12.03 Merger or Consolidation of, or Assumption of the Obligations of
Transferor
	 	 	66	 
	SECTION 12.04 Limitation on Liability of Transferor and Others
	 	 	66	 
	SECTION 12.05 Transferor May Own Notes
	 	 	67	 
	 
	 	 	 	 
	ARTICLE XIII The Servicer and Back-up Servicer
	 	 	67	 
	 
	 	 	 	 
	SECTION 13.01 Representations and Warranties
	 	 	67	 
	SECTION 13.02 Indemnities of Servicer and Back-up Servicer
	 	 	71	 
	SECTION 13.03 Merger or Consolidation of, or Assumption of the Obligations of the
Servicer and Back-up Servicer
	 	 	74	 
	SECTION 13.04 Limitation on Liability of Servicer and Others
	 	 	75	 
	SECTION 13.05 Servicer and Back-up Servicer Not to Resign
	 	 	76	 
	SECTION 13.06 Delegation of Duties
	 	 	76	 
	 
	 	 	 	 
	ARTICLE XIV Servicer and Back-up Servicer Defaults
	 	 	77	 
	 
	 	 	 	 
	SECTION 14.01 Events of Servicer Default
	 	 	77	 
	SECTION 14.02 Back-up Servicer Default
	 	 	80	 
	SECTION 14.03 Appointment of Successors
	 	 	83	 
	SECTION 14.04 Notice of Events of Servicer Default
	 	 	86	 
	SECTION 14.05 Waiver of Past Defaults
	 	 	86	 
	 
	 	 	 	 
	ARTICLE XV The Owner Trustee
	 	 	87	 
	 
	 	 	 	 
	SECTION 15.01 Duties of Owner Trustee
	 	 	87	 
	SECTION 15.02 Action upon Instruction
	 	 	87	 
	SECTION 15.03 Accounting and Records to the Certificateholder, the Internal Revenue
Service and Others
	 	 	90	 
	SECTION 15.04 Signature on Returns; Tax Matters Partner
	 	 	91	 
	SECTION 15.05 Owner Trustee’s Certificate
	 	 	91	 
	SECTION 15.06 Trust’s Assignment of Purchased Receivables
	 	 	91	 
	SECTION 15.07 Certain Matters Affecting the Owner Trustee
	 	 	92	 
	SECTION 15.08 Owner Trustee Not Liable for Certificate or Receivables
	 	 	93	 
	SECTION 15.09 Owner Trustee May Own Notes
	 	 	94	 
	SECTION 15.10 Owner Trustee’s and Indenture Trustee’s Fees and Expenses;
Indemnification
	 	 	94	 
	SECTION 15.11 Eligibility Requirements for Owner Trustee
	 	 	95	 

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	 	 	PAGE	 
	SECTION 15.12 Resignation or Removal of Owner Trustee
	 	 	95	 
	SECTION 15.13 Successor Owner Trustee
	 	 	96	 
	SECTION 15.14 Merger or Consolidation of Owner Trustee
	 	 	97	 
	SECTION 15.15 Appointment of Co-Trustee or Separate Owner Trustee
	 	 	97	 
	SECTION 15.16 Representations and Warranties of Owner Trustee
	 	 	98	 
	 
	 	 	 	 
	ARTICLE XVI Termination
	 	 	99	 
	 
	 	 	 	 
	SECTION 16.01 Termination of the Trust
	 	 	99	 
	SECTION 16.02 Optional Disposition of All Receivables
	 	 	100	 
	 
	 	 	 	 
	ARTICLE XVII Miscellaneous Provisions
	 	 	101	 
	 
	 	 	 	 
	SECTION 17.01 Amendment
	 	 	101	 
	SECTION 17.02 Protection of Title to Trust
	 	 	103	 
	SECTION 17.03 Limitation on Rights of Noteholders and the Certificateholder
	 	 	105	 
	SECTION 17.04 Governing Law
	 	 	106	 
	SECTION 17.05 Notices
	 	 	106	 
	SECTION 17.06 Severability of Provisions
	 	 	107	 
	SECTION 17.07 Assignment
	 	 	107	 
	SECTION 17.08 Insurer
	 	 	108	 
	SECTION 17.09 Nonpetition Covenants
	 	 	108	 
	SECTION 17.10 No Recourse
	 	 	108	 
	SECTION 17.11 No Legal Title to Trust Property in Certificateholder
	 	 	108	 
	SECTION 17.12 Further Assurances
	 	 	108	 
	SECTION 17.13 No Waiver; Cumulative Remedies
	 	 	108	 
	SECTION 17.14 Third-Party Beneficiaries
	 	 	109	 
	SECTION 17.15 Actions by Noteholders or Certificateholder
	 	 	109	 
	SECTION 17.16 Corporate Obligation
	 	 	109	 
	SECTION 17.17 Covenant Not File a Bankruptcy Petition
	 	 	110	 
	SECTION 17.18 Independence of the Servicer and Back-up Servicer
	 	 	110	 
	SECTION 17.19 No Joint Venture
	 	 	110	 
	SECTION 17.20 Headings
	 	 	110	 
	SECTION 17.21 Entire Agreement
	 	 	110	 
	SECTION 17.22 Limitation of Liability of Owner Trustee
	 	 	110	 
	SECTION 17.23 Effect of Policy Expiration Date
	 	 	111	 
	SECTION 17.24 Counterparts
	 	 	111	 
	SECTION 17.25 Consent to Jurisdiction
	 	 	111	 
	SECTION 17.26 Trial by Jury Waived
	 	 	112	 
	SECTION 17.27 Sarbanes-Oxley Certifications
	 	 	112	 

	 	 	 	 	 
	EXHIBIT A

	 	—
	 	Owner Trustee’s Certificate Pursuant to Section 15.05 (Assignment to BVAC)
	EXHIBIT B

	 	—
	 	Owner Trustee’s Certificate Pursuant to Section 15.05 (Assignment to Servicer)
	EXHIBIT C

	 	—
	 	Servicer’s Certificate
	EXHIBIT D

	 	—
	 	Form of Certificate of Trust

Trust and Servicing Agreement

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	EXHIBIT E

	 	—
	 	Form of Certificate

	EXHIBIT F

	 	—
	 	Confirmation of Computer Tape (Back-up Servicer)
	 
	SCHEDULE A

	 	—
	 	Schedule of Receivables
	SCHEDULE B

	 	—
	 	Location of Receivables
	SCHEDULE C

	 	—
	 	Back-up Servicer Schedule
	SCHEDULE D

	 	—
	 	Delivery Requirements
	SCHEDULE E

	 	—
	 	Exception List for CenterOne

Trust and Servicing Agreement

v

 

     This TRUST AND SERVICING AGREEMENT, dated as of February 1, 2005, is made with respect to the
formation of the Bay View 2005-LJ-1 Owner Trust, among BAY VIEW DEPOSIT CORPORATION, a Delaware
corporation, as transferor (the “Transferor”), BAY VIEW ACCEPTANCE CORPORATION, a Nevada
corporation, as servicer (the “Servicer”), DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking
corporation (the “Indenture Trustee”), CENTERONE FINANCIAL SERVICES LLC, a Delaware limited
liability company (the “Back-up Servicer”), and WILMINGTON TRUST COMPANY, a Delaware banking
corporation, as owner trustee (the “Owner Trustee”).

     WITNESSETH THAT: In consideration of the premises and of the mutual agreements herein
contained, the parties hereto agree as follows:

ARTICLE I

CREATION OF TRUST

     Upon the execution of this Agreement by the parties hereto and the prompt filing thereafter of
the Certificate of Trust in the State of Delaware, there is hereby created the Bay View 2005-LJ-1
Owner Trust.

     SECTION 1.01 Name. The Trust created hereby shall be known as “Bay View 2005-LJ-1
Owner Trust”, in which name the Owner Trustee may conduct the business of the Trust, make and
execute contracts and other instruments on behalf of the Trust and sue and be sued on behalf of the
Trust. The Trust shall constitute a statutory trust within the meaning of Section 3801(a) of the
Delaware Statutory Trust Act for which the Owner Trustee has filed a certificate of trust with the
Secretary of State of the State of Delaware pursuant to Section 3810(a) of the Delaware Statutory
Trust Act.

     SECTION 1.02 Office. The office of the Trust shall be in care of the Owner Trustee at
its Corporate Trust Office or at such other address as the Owner Trustee may designate by written
notice to the Certificateholder, the Noteholders, the Servicer, the Transferor, the Insurer, the
Back-up Servicer, and the Indenture Trustee.

     SECTION 1.03 Purposes and Powers. The purpose of the Trust is to engage in the
following activities:

	 	(i)  	to issue the Notes pursuant to the Indenture and the
Certificate pursuant to this Agreement and to sell or transfer the Notes and
the Certificate in one or more transactions;
	 
	 	(ii)  	with the proceeds of the sale of the Notes and the Certificate,
to fund the Spread Account pursuant to the terms of the Spread Account
Agreement and to purchase the Receivables pursuant to this Agreement;
	 
	 	(iii)  	to assign, grant, transfer, pledge, mortgage and convey the
Trust estate pursuant to the Indenture and to hold, manage and distribute to
the Certificateholder pursuant to the terms of this Agreement any portion of

Trust and Servicing Agreement

 

	 	   	the Trust estate released from the Lien of, and remitted to the Trust pursuant
to, the Indenture;
	 
	 	(iv)  	to enter into and perform its obligations under the Basic
Documents to which it is to be a party;
	 
	 	(v)  	to engage in those activities, including entering into
agreements, that are necessary, suitable or convenient to accomplish the
foregoing or are incidental thereto or connected therewith; and
	 
	 	(vi)  	subject to compliance with the Basic Documents to which it is a
party and the other documents related thereto, to engage in such other
activities as may be required in connection with conservation of the Trust
estate and the making of distributions to the Certificateholder, the
Noteholders, the Insurer and the others specified in this Agreement and the
Indenture.

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

     SECTION 1.04 Appointment of Owner Trustee. The Transferor hereby appoints the Owner
Trustee as trustee of the Trust effective as of the date hereof, to have all the rights, powers and
duties set forth herein and in the Delaware Statutory Trust Act.

     SECTION 1.05 Initial Capital Contribution of Trust Estate. The Transferor hereby
sells, assigns, transfers, conveys and sets over to the Trust, as of the date hereof, the Trust
Property. The Owner Trustee on behalf of the Trust hereby acknowledges receipt in trust from the
Transferor, as of the date hereof, of the foregoing contribution, which Trust Property shall
constitute the initial Trust estate. The Transferor shall pay the organizational expenses of the
Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the
Owner Trustee for any such expenses paid by the Owner Trustee.

     SECTION 1.06 Declaration of Trust. The Owner Trustee hereby declares that it will
hold such Trust estate in trust upon and subject to the conditions set forth herein for the use and
benefit of the Certificateholder, subject to the obligations of the Trust under the Basic Documents
and the other related documents. It is the intention of the parties hereto that the Trust
constitute a statutory trust under Delaware law and that this Agreement constitute the governing
instrument of such trust. It is the intention of the parties hereto that solely for federal, State
and local income and franchise tax purposes (i) so long as there is a sole Certificateholder, the
Trust shall be disregarded as a separate entity, with
the assets of the Trust being treated as the assets of such sole Certificateholder, and the
Notes being non-recourse debt of the sole Certificateholder, and (ii) if there is more than one
Certificateholder, the Trust shall be treated as a partnership, with the assets of the partnership
being the Trust estate, the partners of the partnership being the Certificateholder and the Notes
being non-recourse debt of the partnership. The Trust shall not elect to be treated as an
association under Treasury Regulations Section 301.7701-3(a) for federal income tax purposes. The
parties agree that unless otherwise required by appropriate tax authorities, the sole
Certificateholder or the Administrator on behalf of the Trust will file or

Trust and Servicing Agreement

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cause to be filed annual
or other necessary returns, reports and other forms consistent with the characterization of the
Trust as provided in the second preceding sentence for such tax purposes. The Owner Trustee, the
initial Certificateholder and each successor Certificateholder (as a condition to acquiring its
Certificate) agree to disregard the Trust as a separate entity (if there is one Certificateholder)
or to treat it as a partnership (if there are two or more Certificateholders) and to treat the
Notes as indebtedness for purposes of federal, State, and local income or franchise taxes.

     SECTION 1.07 Title to Trust Property. Legal title to all of the Trust estate shall be
vested at all times in the Trust as a separate legal entity except where applicable law in any
jurisdiction requires title to any part of the Trust estate to be vested in a trustee or trustees,
in which case title shall be deemed to be vested in the Owner Trustee, a co-trustee and/or a
separate trustee, as the case may be.

     SECTION 1.08 Situs of Trust. The Trust will be located and administered in the State
of Delaware. Any bank accounts maintained by the Owner Trustee on behalf of the Trust shall be
located in the State of Delaware. The Trust shall not have any employees in any State other than
Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from
having employees within or without the State of Delaware. Payments, if any, will be received by
the Trust only in Delaware, and payments, if any, will be made by the Trust only from Delaware.
The only office of the Trust will be at the Corporate Trust Office in Delaware.

     SECTION 1.09 Separateness Covenants. The Trust shall (a) maintain the Trust’s books
and records separate from any other person or entity; (b) maintain the Trust’s bank accounts
separate from any other person or entity; (c) not commingle the Trust’s assets with those of any
other person or entity; (d) conduct the Trust’s own business in its own name; (e) other than as
contemplated by the Basic Documents and related documentation, pay the Trust’s own liabilities and
expenses only out of its own funds; (f) observe all formalities required under the Delaware Trust
Statute; (g) enter into transactions with Affiliates or the Transferor only if each such
transaction is on the same terms as would be available in the arm’s length transaction with a
person or entity that is not an Affiliate; (h) not guarantee or become obligated for the debts of
any other entity or person; (i) not hold out the Trust’s credit as being available to satisfy the
obligation of any other person or entity; (j) not acquire the obligations or securities of the
Trust’s Affiliates or the Transferor; (k) other than as contemplated by the Basic Documents and
related documentation, not make any loans to any other person or entity or buy or hold evidence of
indebtedness issued by any other
person or entity; (l) other than as contemplated by the Basic Documents and related
documentation, not pledge the Trust’s assets for the benefit of any other person or entity; (m)
hold the Trust out as a separate entity and conduct any business only in its own name; (n) correct
any known misunderstanding regarding the Trust’s separate identity; (o) not identify the Trust as a
division of any other person or entity; (p) maintain appropriate minutes or other records of
appropriate actions; and (q) maintain its office separate from the office of the Transferor, BVAC,
BVDC and the Servicer.

     SECTION 1.10 Restrictions on Trust Activities. The Trust shall abide by the following
restrictions (a) other than as contemplated by the Basic Documents and related documentation, the
Trust shall not incur any indebtedness; (b) other than as contemplated by the Basic Documents and
related documentation, the Trust shall not engage in any dissolution,

Trust and Servicing Agreement

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liquidation, consolidation,
merger or sale of assets; (c) the Trust shall not engage in any business activity in which it is
not currently engaged other than as contemplated by the Basic Documents and related documentation;
(d) the Trust shall not form, or cause to be formed, any subsidiaries and shall not own or acquire
any asset other than as contemplated by the Basic Documents and related documentation; and (e)
other than as contemplated by the Basic Documents and related documentation, the Trust shall not
follow the directions or instructions of the Transferor, BVAC, BVDC or the Servicer.

ARTICLE II

DEFINITIONS

     SECTION 2.01 Definitions. Capitalized terms which are used in this Agreement but are
not defined herein shall have the meanings provided in the Indenture. Whenever used in this
Agreement, the following words and phrases, unless the context otherwise requires, shall have the
following meanings:

“Accrual Period” means, with respect to each Receivable and the related due
date, the immediately preceding calendar month. For purposes of making calculations
pursuant to this Agreement and the Indenture, interest shall be computed on each
Receivable on the basis of a 365-day year over the actual number of days elapsed for
purposes of this definition.

“Accrued Interest” means all interest accrued on the Receivables prior to the
opening of business on the day following the Cut-off Date.

“Additional Funds Available” means, with respect to any Payment Date, the sum
of (i) the Deficiency Claim Amount, if any, received by the Indenture Trustee with
respect to that Payment Date plus (ii) the Insurer Optional Deposit, if any,
received by the Indenture Trustee with respect to that Payment Date plus (iii) the
payment of any amounts with respect to a Preference Claim pursuant to the Policy.

“Administration Agreement” means the Administration Agreement dated as of
February 17, 2005 between the Trust and the Administrator and acknowledged by the
Indenture Trustee.

“Administrator” means the Administrator under the Administration Agreement,
which is initially BVAC, and its successors and assigns thereunder.

“Advance” means, with respect to a Receivable and with respect to a Collection
Period, the amount that the Servicer is required to advance pursuant to Section
9.07.

“Affiliate” means, with respect to any specified Person, any other Person who
directly or indirectly controls, or is under direct or indirect common control with
such specified Person. For the purposes of this definition, “control” when used
with respect to any Person means the power to direct the management and

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policies of
such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled”
have meanings correlative to the foregoing.

“Agreement” means this Trust and Servicing Agreement executed by the
Transferor, the Servicer, the Indenture Trustee, the Back-up Servicer and the Owner
Trustee, and all amendments and supplements hereto entered into from time to time in
accordance with the terms hereof.

“Amount Available” means with respect to any Payment Date, the sum of (x)
Available Funds for such Payment Date and (y) Additional Funds Available, if any,
for such Payment Date.

“Amount Financed” means, with respect to a Receivable, the aggregate amount
originally advanced under the Receivable toward the purchase price of the Financed
Vehicle.

“Annual Percentage Rate” or “APR” of a Receivable means the annual rate of
finance charges stated in the Receivable exclusive of prepaid finance charges. If
after the Closing Date, the annual rate with respect to such Receivable as of the
Closing Date, is reduced as a result of (i) an insolvency proceeding involving the
related Obligor or (ii) pursuant to the Servicemembers’ Civil Relief Act, the Annual
Percentage Rate or APR shall refer to such reduced rate.

“Assignment” means the assignment dated as of February 17, 2005 by BVAC to the
Transferor substantially in the form of Annex A to the Purchase Agreement, pursuant
to which the Receivables are conveyed to the Transferor.

“Authorized Newspaper” means a newspaper of general circulation in the Borough
of Manhattan, the City of New York, printed in the English language and customarily
published on each Business Day, whether or not published on Saturdays, Sundays and
holidays.

“Available Funds” means with respect to any Payment Date, each of the following
then on deposit in any Trust Accounts with respect to the related Collection Period,
(i) Scheduled Receivable Payments (including Modified Scheduled Receivable Payments)
and prepayments on Receivables (other than Payaheads) received by the Servicer; (ii)
any net withdrawal from the Payahead Account; (iii) interest earned on funds held in
the Collection Account and the Payahead Account; (iv) Liquidation Proceeds; (v)
Advances; (vi) Purchase Amounts and/or any indemnity payments made in lieu of or
otherwise relating to such Purchase Amounts in accordance with the terms of Sections
7.02, 8.08 and 8.10 of this Agreement, (vii) proceeds from any insurance policies
related to the Receivables or Financed Vehicles, (viii) Recoveries with respect to
Charged-off Receivables and (ix) the Redemption Price if, the Servicer exercise its
rights pursuant to Section 16.02.

Trust and Servicing Agreement

5

 

“Available Spread Amount” means, on any Payment Date, the amount on deposit in
the Spread Account, including any income or gain from any investment of funds in the
Spread Account, net of any losses from such investment before giving effect to
deposits into or withdrawals from the Spread Account pursuant to the Indenture and
the Spread Account Agreement on such Payment Date.

“Back-up Servicer” means CenterOne in its capacity as Back-up Servicer or such
Person as shall have been appointed as a successor Back-up Servicer pursuant to
Section 14.03 hereof.

“Back-up Servicer Default” has the meaning ascribed thereto in Section 14.02.

“Back-up Servicer Fee” means, for any Collection Period, the fee, costs and
expenses payable to the Back-up Servicer for services rendered during such
Collection Period, which shall be equal to the amount determined in accordance with
Schedule C attached hereto. If the Back-up Servicer shall have taken on the role as
Servicer hereunder, it shall be entitled to the Back-up Servicer Fee for any portion
of a Collection Period occurring prior to the date Back-up Servicer becomes
successor Servicer, and its compensation as successor Servicer for any Collection
Period or portion thereof after such date shall be equal to the amount determined in
accordance with Schedule C attached hereto as successor Servicer, and it shall not
be entitled to a Back-up Servicer Fee.

“Bank” means Bay View Bank, N.A. and its successors and assigns.

“Basic Documents” means this Agreement, the Indenture, the Purchase Agreement,
the Assignment, the Insurance Agreement, the Indemnification Agreement, the Spread
Account Agreement, the Premium Letter, the Lock-Box Agreement, the Administration
Agreement, the Custodian Agreement, the Transfer and Contribution Agreement, the
organizational documents of the Transferor and other documents and certificates
delivered in connection therewith.

“Business Day” means, unless otherwise specified, any day other than a
Saturday, a Sunday or a day on which banking institutions in Wilmington, Delaware,
New York, New York, San Mateo, California or St. Joseph, Missouri or any other
location of the Servicer, any successor Servicer, successor Back-up Servicer,
successor Owner Trustee, or successor Indenture Trustee, shall be authorized or
obligated by law, executive order, or governmental decree to be closed.

“BVAC” means Bay View Acceptance Corporation, a Nevada corporation, and its
successors and assigns, other than in its capacity as Servicer.

“BVDC” means Bay View Deposit Corporation, a Delaware corporation, and its
successors and assigns, other than in its capacity as Transferor.

“Casualty” means, with respect to any Financed Vehicle, the total loss or
destruction of such Financed Vehicle.

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“CenterOne” means CenterOne Financial Services LLC and its successors and
assigns.

“Certificate” means, individually and collectively, the certificate or
certificates executed on behalf of the Trust and authenticated by the Owner Trustee,
substantially in the form attached hereto as Exhibit E, which in the
aggregate represent ownership of a 100% interest in the Trust.

“Certificate of Trust” means the Certificate of Trust of the Trust in
substantially the form of Exhibit D hereto.

“Certificate Register” means the register maintained by the Owner Trustee
pursuant to Section 11.04(c) hereof.

“Certificateholder” or “Holder” means, individually and collectively, the
Person or Persons in whose name(s) the Certificate shall be registered in the
Certificate Register.

“Charged-Off Receivable” means, for any Collection Period, a Receivable as to
which any of the following has occurred: (i) any payment, or part thereof, is 120
days or more delinquent as of the last day of such Collection Period (without giving
effect to any Advances); provided, however, that with respect to any Cram Down
Remainder, any such delinquency shall be determined with respect to the date on
which the payments with respect to such Cram Down Remainder are required to begin
pursuant to an order of the bankruptcy court or court of appropriate jurisdiction
confirming the related Obligor’s bankruptcy plan, (ii) the Financed Vehicle that
secures the Receivable has been sold by the Servicer or repossessed for at least 90
days, or (iii) the Servicer has determined that the Receivable is uncollectible in
accordance with the Servicer’s customary practices on or before the last day of such
Collection Period; provided, however, that “Charged-Off Receivable” shall not
include any Receivable that is to be repurchased pursuant to Section 7.02 hereof or
purchased pursuant to Section 8.10
hereof; provided further, that any Advances made with respect to a Receivable shall
not be considered in the determination of the delinquency status of such Receivable.

“Closing Date” means February 17, 2005.

“Code” means the Internal Revenue Code of 1986, as amended from time to time,
and Treasury Regulations promulgated thereunder.

“Collateral Agent” shall mean Deutsche Bank Trust Company Americas, in its
capacity as collateral agent, including its successors in interest, until and unless
a successor Person shall become the Collateral Agent pursuant to the Spread Account
Agreement and thereafter, “Collateral Agent” shall mean such successor Person.

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“Collected Interest” on a Receivable, as of the last day of a Collection
Period, means the portion of all payments received by the Servicer allocable to
interest relating to such Collection Period.

“Collection Account” means the account designated as such, established and
maintained pursuant to Section 9.02 hereof.

“Collection Period” means, with respect to a Payment Date or a Redemption Date,
the calendar month immediately preceding the calendar month in which such Payment
Date or Redemption Date occurs, until the Trust shall terminate pursuant to Article
XVI.

“Computer Tape” means a computer tape or diskette (or other means of electronic
transmission acceptable to the Back-up Servicer and the Insurer) in a format
acceptable to the Back-up Servicer and the Insurer.

“Controlling Party” means the Insurer, so long as (i) no Insurer Default shall
have occurred and be continuing or (ii) the Insurance Agreement has not terminated,
and the Indenture Trustee, at the direction of the Majority Noteholders, for so long
as an Insurer Default shall have occurred and is continuing or if the Insurance
Agreement has terminated.

“Corporate Trust Office” means the office of the Owner Trustee at which its
corporate trust business shall, at any particular time, be administered, which
office at the date of the execution of this Agreement is located at Plaza Building,
1st Floor, 301 West 11th Street, Wilmington, Delaware
19890-0001; Attention: Corporate Trust Department; Telecopy (302) 636-6000 or at
such other address as the Owner Trustee may designate from time to time by notice to
the Certificateholder, the Transferor, the Servicer, the Insurer, the Back-up
Servicer, and the Indenture Trustee.

“Cram Down Remainder” means, for any Receivable subject to a Cram Down Loss,
the amount equal to the Principal Balance of such Receivable after giving effect to
the Cram Down Loss.

“Cumulative Net Loss Ratio” has the meaning ascribed in the Spread Account
Agreement.

“Custodian” means initially BVAC or any successor Custodian, in each case, in
accordance with the terms of the Custodian Agreement.

“Custodian Agreement” means the Custodian Agreement, dated as of February 1,
2005, among BVAC, as custodian, the Trust, the Insurer and the Indenture Trustee, as
the same may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

“Cut-off Date” means, January 31, 2005.

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“Dealer” means the seller of a Financed Vehicle, who originated and assigned
the related Receivable to BVAC under an existing agreement with BVAC, the Bank, or
the successor-in-interest to the Bank, as applicable, who arranged for a loan from
BVAC, the Bank, or the successor-in-interest to the Bank, as applicable, to the
purchaser of a Financed Vehicle under an existing agreement with BVAC, the Bank, or
the successor-in-interest to the Bank, as applicable.

“Deemed Cured” has the meaning set forth in the Spread Account Agreement.

“Deficiency Claim Amount” means, for any Payment Date, the amount, after taking
into account the application on such Payment Date of the Available Funds on such
Payment Date, equal to any shortfall in the full payment of amounts described in
clauses (i) through (vii) of Section 8.05(a) of the Indenture, to the extent that
such amount is available for the particular purpose on such Payment Date in
accordance with the provisions of the Spread Account Agreement.

“Deficiency Claim Date” means, with respect to any Payment Date, a date no
later than the fourth Business Day immediately preceding such Payment Date.

“Deficiency Notice” has the meaning ascribed thereto in Section 9.05(b) hereof.

“Delaware Statutory Trust Act” means the Delaware Statutory Trust Act, 12 Del.
C. §§.3801 et seq.

“Delinquency Ratio” has the meaning ascribed thereto in the Spread Account
Agreement.

“Delivery” means with respect to assets held in the Trust Accounts:

	 	(1)  	(a) with respect to bankers’ acceptances, commercial paper,
negotiable certificates of deposit and other obligations that
constitute “instruments” within the meaning of Section 9-102(a)(47)
of the UCC (other than certificated securities), transfer thereof:

	 	(i)  	by physical delivery to the
Indenture Trustee, endorsed by an effective indorsement to, or
registered in the name of, the Indenture Trustee or its nominee
or indorsed in blank by an effective indorsement;
	 
	 	(ii)  	by the Indenture Trustee
continuously maintaining possession of such instrument; and
	 
	 	(iii)  	by the Indenture Trustee
continuously indicating by book-entry that such instrument is
credited to the related Trust Account;

	 	(b)  	with respect to a “certificated security” (as
defined in Section 8-102(a)(4) of the UCC), transfer thereof:

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	 	(i)  	by physical delivery of such
certificated security to the Indenture Trustee, provided that if
the certificated security is in registered form, it shall be
indorsed by an effective indorsement to, or registered in the
name of, the Indenture Trustee or indorsed in blank by an
effective indorsement;
	 
	 	(ii)  	by the Indenture Trustee
continuously maintaining possession of such certificated
security; and
	 
	 	(iii)  	by the Indenture Trustee
continuously indicating by book-entry that such certificated
security is credited to the related Trust Account;

	 	(c)  	with respect to any security issued by the U.S.
Treasury, the Federal Home Loan Mortgage Corporation, the Government
National Mortgage Association or the Federal National Mortgage
Association that is a book-entry security held through the Federal
Reserve System pursuant to Federal book entry regulations, the
following procedures, all in accordance with applicable law, including
applicable federal regulations and Articles 8 and 9 of the UCC,
transfer thereof:

	 	(i)  	by (x) book-entry credit of such
property to an appropriate book-entry account maintained with a
Federal Reserve Bank by a securities intermediary which is also
a “participant” pursuant to applicable federal regulations, the
making by such securities intermediary of entries in its books
and records to a “securities account” (as defined in Section
8-501(a) of the UCC) the Indenture Trustee is the
holder of the “security entitlement” (as defined in Section
8-102(a)(17) of the UCC); and

	 	(ii)  	by the Indenture Trustee
continuously indicating by book-entry that property is credited
to the related Trust Account;

	 	(d)  	with respect to any asset in the Trust Accounts
that is an “uncertificated security” (as defined in Section
8-102(a)(18) of the UCC) and that is not governed by clause (c) above
or clause (e) below:

	 	(i)  	transfer thereof:

	 	(A)  	by registration
to the Indenture Trustee as the registered owner
thereof, on the books and records of the issuer thereof;
or
	 
	 	(B)  	by another Person
(not a securities intermediary) who either becomes the
registered owner of the 

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	 	   	uncertificated security on
behalf of the Indenture Trustee, or having become the
registered owner, acknowledges that it holds for the
Indenture Trustee; or

	 	(ii)  	the issuer thereof has agreed
that it will comply with instructions originated by the
Indenture Trustee with respect to such uncertificated security
without further consent of the registered owner thereof; or

	 	(e)  	in the case of each security in the custody of
or maintained on the books of a clearing corporation (as defined in
Section 8-102(a)(5) of the UCC) or its nominee, by causing:

	 	(i)  	the relevant clearing corporation
to credit such security to a securities account of the Indenture
Trustee at such clearing corporation; and
	 
	 	(ii)  	the Indenture Trustee to
continuously indicate by book-entry that such security is
credited to the related Trust Account;

	 	(f)  	with respect to the security entitlement (as
defined in clause (c)(i) above) to be transferred to or for the benefit
of the Indenture Trustee and not otherwise governed by clauses (c) or
(e) above: if a securities intermediary (A) indicates by book entry
that the underlying “financial asset” (as defined in Section
8-102(a)(9) of the UCC) has been credited to be the Indenture Trustee’s
securities account, (B) receives a financial asset from the Indenture
Trustee
or acquires the underlying financial asset for the Indenture Trustee,
and in either case, accepts it for credit to the Indenture Trustee’s
securities account (as defined in clause (c)(i) above) or (C) becomes
obligated under other law, regulation or rule to credit the
underlying financial asset to the Indenture Trustee’s securities
account, the making by the securities intermediary of entries on its
books and records continuously identifying such security entitlement
as belonging to the Indenture Trustee; and continuously indicating by
book-entry that such security entitlement is credited to the
Indenture Trustee’s securities account; and by the Indenture Trustee
continuously indicating by book-entry that such security entitlement
(or all rights and property of the Indenture Trustee representing
such securities entitlement) is credited to the related Trust
Account; and/or

	 	(2)  	In the case of any such asset, such additional or alternative
procedures as are now or may hereafter become appropriate to effect the
complete transfer of ownership of, or control over any such assets in the Trust

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Accounts to the Indenture Trustee free and clear of any adverse claims,
consistent with changes in applicable law or regulations or the interpretation
thereof.

In each case of delivery contemplated herein, the Indenture Trustee shall make appropriate
notations on its records, and shall cause the same to be made on the records of its nominees,
indicating that securities are held in trust pursuant to and as provided in this Agreement.

“Determination Date” means, for each Collection Period, the seventeenth
calendar day of the immediately succeeding month, or if such day is
not a Business Day, the first Business Day thereafter. The first
determination Date shall be March
17, 2005.

“Eligible Bank” means any depository institution with trust powers (including
the Owner Trustee and the Indenture Trustee), organized under the
laws of the United States or any State having a net worth in excess
of $50,000,000, the deposits of which are insured to the full extent
permitted by law by the Federal Deposit Insurance Corporation, which
is subject to supervision and examination by Federal or State
authorities and which (i) has a long-term unsecured debt rating of at least A2
from Moody’s and A from Standard & Poor’s or (ii) is approved by the Insurer and
each Rating Agency. The initial Indenture Trustee is deemed an Eligible Bank.

“Eligible Account” shall mean a segregated non-interest bearing trust account
or accounts maintained with (A) an institution whose deposits are insured by the
Federal Deposit Insurance Corporation, the unsecured and uncollateralized long term
debt obligations of which institution shall be rated AA- or higher by Standard &
Poor’s and Aa3 or higher by Moody’s and in the highest short term rating category by
each of the Rating Agencies, and which is (i) a federal savings
and loan association duly organized, validly existing and in good standing under the
federal banking laws, (ii) an institution duly organized, validly existing and in
good standing under the applicable banking laws of any State, (iii) a national
banking association duly organized, validly existing and in good standing under the
federal banking laws, (iv) a principal subsidiary of a bank holding company, or (v)
approved by the Insurer and each of the Rating Agencies by written notice to the
Indenture Trustee and the Collateral Agent, (B) a chartered depository institution
acceptable to each Rating Agency and the Insurer, having capital and surplus of not
less than $100,000,000, acting in its fiduciary capacity or (c) the initial
Indenture Trustee.

“Eligible Investment” means any of the following:

         (a) (i) direct interest-bearing obligations of, and interest-beating obligations
guaranteed as to timely payment of principal and interest by, the United States or any
agency or instrumentality of the United States the obligations of which are backed by the
full faith and credit of the United States and (ii) direct interest-bearing obligations of,
and interest-bearing obligations guaranteed as to timely payment of principal and interest
by,

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the
Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation,
but only if, at the time of investment, such obligations are rated AAA by Standard & Poor’s
and Aaa by Moody’s;

          (b) demand or time deposits in, certificates of deposit of, or bankers’ acceptances
issued by any depository institution or trust company organized under the laws of the United
States or any State and subject to supervision and examination by federal and/or State
banking authorities (including, if applicable, the Indenture Trustee or any agent of the
Indenture Trustee acting in their respective commercial capacities); provided that
the commercial paper or other short-term unsecured debt obligations of such depository
institution or trust company at the time of such investment, or contractual commitment
providing for such investment, are rated A-l+ by Standard & Poor’s and P-1 by Moody’s;

          (c) repurchase obligations pursuant to a written agreement (1) with respect to any
obligation described in clause (a)(i) above, where the Indenture Trustee has taken actual or
constructive delivery of such obligation, and (2) entered into with a depository institution
or trust company organized under the laws of the United States or any State thereof, the
deposits of which are insured by the Federal Deposit Insurance Corporation and the
short-term unsecured debt obligations of which are rated A-l+ by Standard & Poor’s and P-1
by Moody’s (including, if applicable, the Indenture Trustee or any agent of the Indenture
Trustee acting in its commercial capacity);

          (d) securities bearing interest or sold at a discount that, in each case, mature within
365 days of the date of issuance and that are issued by any corporation incorporated under
the laws of the United States or any State whose long-term unsecured debt obligations are
rated AAA by Standard & Poor’s and Aaa by Moody’s at the time of such investment or
contractual commitment providing for such investment; provided, however,
that such securities will not be Eligible Investments to the extent (i) that
investments therein will cause the then outstanding principal amount of such securities
(held as part of the related Trust Account) to exceed 5% of the Eligible Investments in such
account (only to the extent of such overage) or (ii) investments therein with respect to any
particular corporation will cause the then outstanding principal amount of such securities
issued by such corporation and held as part of the related Trust Account to exceed 1% of the
Eligible Investments in such account (only to the extent of such overage), in each case,
with Eligible Investments in the related Trust Account valued at par;

          (e) commercial paper that (1) is payable in United States dollars, (2) is rated at
least A-1+ by Standard & Poor’s and P-1 by Moody’s and (3) mature within 365 days of the
date of issuance;

          (f) any money market fund (including those owned, operated or managed by the Indenture
Trustee) that has been rated Aaa by Moody’s and AAAm or AAAm-G (without an “r” script) by
Standard & Poor’s and numerical gradations within such rating category (or the equivalent
long-term rating of such Rating Agency) for such money market funds; and

Trust and Servicing Agreement

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          (g) any other demand or time deposit, obligation, security or investment as may be
acceptable to the Rating Agencies and the Insurer (so long as the Insurer is the Controlling
Party) and has been rated Aaa by Moody’s and AAA by Standard & Poor’s or rated P-1 by
Moody’s and A-l+ by Standard & Poor’s).

          Any of the foregoing Eligible Investments may be purchased from, by or through the Owner
Trustee or the Indenture Trustee, or any of their respective Affiliates.

“Eligible Servicer” means BVAC, CenterOne or another Person which at the time
of its appointment as Servicer, (i) is servicing a portfolio of motor vehicle retail
installment sale contracts and/or motor vehicle installment loans, (ii) is legally
qualified and has the capacity to service the Receivables, (iii) has demonstrated
the ability professionally and competently to service a portfolio of motor vehicle
retail installment sale contracts and/or motor vehicle installment loans similar to
the Receivables with reasonable skill and care, and (iv) is qualified and entitled
to use, pursuant to a license or other written agreement, and agrees to maintain the
confidentiality of, the software which the Servicer uses in connection with
performing its duties and responsibilities under the this Agreement or otherwise has
available software which is adequate to perform its duties and responsibilities
under this Agreement.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

“Event of Servicer Default” means an event specified in Section 14.01 hereof.

“Financed Vehicle” means a new or used automobile, light-duty truck, sport
utility vehicle or van, together with all accessions thereto, securing an Obligor’s
indebtedness under the respective Receivable.

“GAAP” means generally accepted accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board, or in such other statements that are described in
Statement on Auditing Standards No. 69 “The Meaning of Present Fairly in Conformity
With Generally Accepted Accounting Principles in the Independent Auditor’s Report”
that are applicable to the circumstances as of the date of determination, applied on
a consistent basis.

“Holder” — see “Certificateholder.”

“Indemnification Agreement” means the Indemnification Agreement, dated as of
February 16, 2005 among BVAC, the Underwriters and the Insurer, as the same may be
amended, supplemented or otherwise modified from time to time in accordance with the
terms thereof.

“Indenture” means the Indenture dated as of February 1, 2005 between the Trust
and the Indenture Trustee, which provides for the issuance of the Notes as the

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same
may be amended, supplemented or otherwise modified from time to time in accordance
with the terms thereof.

“Indenture Trustee” means Deutsche Bank Trust Company Americas in its role as
Indenture Trustee under the Indenture and its permitted successors and assigns.

“Indenture Trustee Fee” means the fees and expenses payable on each Payment
Date to the Indenture Trustee in consideration for the performance of its duties as
Indenture Trustee and Collateral Agent as set forth in the fee letter agreement
dated January 21, 2005.

“Indenture Trustee Office” means the office of the Indenture Trustee at which
its business as Indenture Trustee under the Indenture shall be administered, which
office is presently located at 60 Wall Street, MS NYC 60-2606, New York, New York
10005; Attention: Corporate Trust and Agency Services, telecopy (212) 797-8606 or at
such other address as the Indenture Trustee may designate from time to time by
notice to the Owner Trustee, the Servicer, the Back-up Servicer and the Noteholders.

“Independent Accountants” means a firm of certified public accountants that is
Independent and is acceptable to the Insurer.

“Insolvency Event” means, with respect to a specified Person, (a) the filing of
a petition against such Person or the entry of a decree or order for relief by a
court having jurisdiction in the premises in respect of such Person or any
substantial part of its property in an involuntary case under any applicable federal
or State bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator, or
similar official for such Person or for any substantial part of its property, or
ordering the winding-up or liquidation of such Person’s affairs, and such petition,
decree or order remaining unstayed and in effect for a period of 60 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 any
substantial part of its property, or the making by such person of any general
assignment for the benefit of creditors, or the failure by such person generally to
pay its debts as such debts become due, or the taking of action by such Person in
furtherance of any of the foregoing.

“Insolvency Proceeding” means the commencement, after the date hereof, of any
bankruptcy, insolvency, readjustment of debt, reorganization, marshaling of assets
and liabilities or similar proceedings by or against BVAC, the Transferor or the
Issuer, as applicable, the commencement, after the date hereof, of any proceedings
by or against BVAC, the Transferor or the Issuer, as applicable, for

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the winding up
or liquidation of its affairs or the consent, after the date hereof, to the
appointment of a trustee, conservator, receiver, or liquidator in any bankruptcy,
insolvency, readjustment of debt, reorganization, marshaling of assets and
liabilities or similar proceedings of or relating to BVAC, the Transferor or the
Issuer.

“Instructing Party” has the meaning specified in Section 10.02 hereof.

“Insurance Agreement” means the Insurance Agreement, dated as of February 17,
2005, among the Insurer, the Transferor, the Issuer, BVAC, the Indenture Trustee,
the Collateral Agent and the Back-up Servicer, as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the terms
thereof.

“Insurance Agreement Event of Default” means an Insurance Agreement Event of
Default (as such term is defined in the Insurance Agreement).

“Insurance Policies” means any physical damage, credit life and credit accident
and health insurance policies or certificates or any vendor’s single interest
physical damage insurance policy relating to the Receivables, the Financed Vehicles
or the Obligors.

“Insurer” means MBIA Insurance Corporation, a New York stock insurance
corporation.

“Insurer Default” means the existence and continuance of any of the following:

          (a) the Insurer shall have failed to make a payment required under the Policy in
accordance with its terms; or

          (b) the Insurer shall have (i) filed a petition or commenced any case or proceeding
under any provision or chapter of the United States Bankruptcy Code or any other similar
federal or State law relating to insolvency, bankruptcy, rehabilitation, liquidation or
reorganization, (ii) made a general assignment for the benefit of its creditors, or (iii)
had an order for relief entered against it under the United States Bankruptcy Code or any
other similar federal or State law relating to insolvency, bankruptcy, rehabilitation,
liquidation or reorganization which is final and nonappealable; or

          (c) a court of competent jurisdiction, the New York Department of Insurance or other
competent regulatory authority shall have entered a final and nonappealable order, judgment
or decree (i) appointing a custodian, trustee, agent or receiver for the Insurer or for all
or any material portion of its property or (ii) authorizing the taking of possession by a
custodian, trustee, agent or receiver of the Insurer (or the taking of possession of all or
any material portion of the property of the Insurer).

“Interest Advance Amount” with respect to a simple interest Receivable as to
which an Advance is required to be made on the last day of a Collection Period,

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shall mean an amount equal to 30 days of interest upon the Principal Balance of such
Receivable as of such date; and, with respect to a Precomputed Receivable as to
which an Advance is required to be made on the last day of a Collection Period,
shall mean an amount equal to that portion of the earliest delinquent Scheduled
Receivable Payment allocable to interest (using the actuarial or constant yield
method).

“Interest Shortfall” means, as to any Simple Interest Receivable as of the last
day of any Collection Period, the amount, if any, by which (a) interest due on such
Receivable exceeds (b) the Collected Interest on such Receivable. “Interest
Shortfall” with respect to a Precomputed Receivable as of the last day of any
Collection Period means the amount, if any, by which the portion of the Scheduled
Receivable Payment due during such Collection Period allocable to interest (using
the actuarial or constant yield method) exceeds the Collected Interest on such
Receivable (computed using the same method except that the amount of Collected
Interest in respect of Precomputed Receivables shall be increased by giving effect
to the withdrawal for the related Payment Date of any previously received Scheduled
Receivable Payments in respect of such Receivable from the Payahead Account in
accordance with Sections 8.05(b) and 9.10 hereof).

“Lien” means a security interest, lien, charge, pledge, equity, or encumbrance
of any kind other than tax liens, mechanics’ liens, and any liens which attach to
the respective Receivable or related Financed Vehicle by operation of law.

“Liquidation Proceeds” means the monies collected from whatever source,
including, but not limited to, insurance proceeds and tax rebates/refunds, during a
Collection Period on a Charged-Off Receivable the Sale Amount related to any Sold
Receivable, net of the sum of (i) any reasonable out-of-pocket expenses
incurred by the Servicer in enforcing such Charged-Off Receivable plus (ii) any
amounts required by law to be remitted to the related Obligor.

“Lock-Box” means the post-office box or boxes, to be established by the
Lock-Box Processor on behalf of BVAC, as the initial Servicer, and maintained
pursuant to this Agreement and the Lock-Box Agreement, into which the initial
Servicer shall direct each Obligor under each Receivable to forward all payments in
respect of such Receivable.

“Lock-Box Account” means the segregated account or accounts designated as such,
established and maintained by the initial Servicer in accordance with this Agreement
and the Lock-Box Agreement.

“Lock-Box Agreement” means the Lock-Box and Deposit Account Control Agreement,
dated as of February 17, 2005, among BVAC, BVDC, the Trust, the Indenture Trustee,
the Lock-Box Bank and the Lock-Box Processor, as amended, modified or supplemented
from time to time in accordance with the terms thereof, unless such agreement shall
be terminated in accordance with its terms or the

Trust and Servicing Agreement

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terms hereof or unless a
replacement Lock-Box Agreement has been entered into in accordance with the terms
hereof, in which event “Lock-Box Agreement” shall mean such other agreement, in form
and substance acceptable to the Insurer, in its reasonable business judgment, among
BVAC, the Transferor, the Trust, the Lock-Box Bank, the Lock-Box Processor and the
Indenture Trustee.

“Lock-Box Bank” means, initially, Union Bank of California, or any replacement
or additional depository institution named by the initial Servicer and acceptable to
the Insurer, in its reasonable business judgment, at which a Lock-Box Account is
established and maintained in accordance with the terms of this Agreement and the
Lock-Box Agreement.

“Lock-Box Collection Percentage” has the meaning ascribed in the Insurance
Agreement.

“Lock-Box Processor” means, initially, Union Bank of California, or any
replacement or subcontracted Lock-Box Processor named by the initial Servicer and
acceptable to the Insurer (so long as the Insurer is the Controlling Party), in its
sole discretion, who acts as the processor of the payments received in respect of
the Receivables in the Lock-Box in accordance with the Lock-Box Agreement.

“Modified Scheduled Receivable” means any Receivable which is not a Charged-Off
Receivable and as to which the related Obligor shall have been declared bankrupt
with the result that such Obligor’s periodic Scheduled Receivable Payment amount has
been reduced pursuant to an order of the bankruptcy court.

“Modified Scheduled Receivable Payment” means, with respect to any Modified
Scheduled Receivable, the amount of such reduced periodic Scheduled Receivable
Payment.

“Monthly Extension Rate” has the meaning ascribed thereto in the Insurance
Agreement.

“Moody’s’’ means Moody’s Investors Service, Inc., and its successor and
assigns.

“Notes” mean the Notes issued by the Trust pursuant to the Indenture.

“Obligor” on a Receivable means the purchaser or the co-purchasers of the
Financed Vehicle or any other Person who owes payments under the Receivable. The
phrase “payment made on behalf of an Obligor” shall mean all payments made with
respect to a Receivable except payments made by BVAC, the Transferor or the
Servicer.

“Officers’ Certificate” means a certificate signed by any two of the chairman
of the board, the president, any vice chairman of the board, any vice president, the
treasurer, or the controller of BVAC, the Transferor, Back-up Servicer or the
Servicer, as the case may be; provided that no individual shall sign in a dual
capacity.

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“Opinion of Counsel” means a written opinion of counsel, who may be counsel to
the Transferor and/or Servicer, which counsel shall be reasonably acceptable to the
Owner Trustee, and the Insurer, so long as the Insurer is the Controlling Party.

“Original Pool Balance” means $232,100,331.32.

“Outstanding Advances” as of any date, with respect to a Receivable, means the
total amount of Advances made on such Receivable for which the Servicer has not been
reimbursed.

“Owner Trustee” means Wilmington Trust Company, a banking corporation organized
under the laws of the State of Delaware and its successors or any corporation
resulting from or surviving any merger or consolidation to which it or its
successors may be a party or any successor trustee at the time serving as successor
trustee hereunder.

“Owner Trustee’s Certificate” means a certificate completed and executed by the
Owner Trustee by a Responsible Officer pursuant to Section 15.05, substantially in
the form of, in the case of an assignment to BVAC, Exhibit A, and in the case of an
assignment to the Servicer, Exhibit B.

“Owner Trustee Fee” means the fees and expenses payable on each Payment Date to
the Owner Trustee in consideration for the performance of its duties as Owner
Trustee as set forth in the fee letter agreement dated February 17, 2005.

“Payahead” on a Precomputed Receivable means the amount, as of the close of
business on the last day of a Collection Period, computed in accordance with Section
8.05(b) hereof with respect to such Receivable.

“Payahead Account” means the account designated as such, established and
maintained pursuant to Section 9.10 hereof.

“Payahead Balance” on a Precomputed Receivable means the sum, as of the close
of business on the last day of a Collection Period, of all Payaheads made by or on
behalf of the Obligor with respect to such Precomputed Receivable, as reduced by
applications of previous Payaheads with respect to such Precomputed Receivable,
pursuant to Sections 8.05(b) and 8.07 of the Indenture.

“Payment Date” means, for each Collection Period, the twenty-fifth calendar day
of the immediately succeeding month or, if such day is not a Business Day, the first
Business Day thereafter. The first Payment Date shall be March 25, 2005.

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

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“Policy” means the financial guaranty insurance policy no. 45754 issued by the
Insurer to the Indenture Trustee for the benefit of the Noteholders pursuant to the
Insurance Agreement, including any endorsements thereto.

“Policy Expiration Date” means the date on which the Notes have been paid in
full and all outstanding Reimbursement Obligations and other amounts due to the
Insurer have been paid in full.

“Pool Balance” as of any date means the aggregate Principal Balance of the
Receivables as of such date; provided, however, that for purposes of determining
Monthly Principal, the Principal Balance of a Charged-Off Receivable or a Purchased
Receivable (if actually purchased by the Servicer or repurchased by BVAC) shall be
deemed to be zero on and after the close of business on the last day of the
Collection Period in which the Receivable becomes a Charged-Off Receivable or a
Purchased Receivable that is actually purchased or repurchased.

“Pool Factor” has the meaning ascribed thereto in the Spread Account Agreement.

“Precomputed Receivable” means any Receivable under which the portion of a
payment allocable to earned interest (which may be referred to in the related
contract as an add-on finance charge) and the portion allocable to the Amount
Financed is determined according to the sum of periodic balances, the sum of monthly
balances, the rule of 78’s or any equivalent method.

“Premium” has the meaning ascribed thereto in the Premium Letter.

“Premium Letter” means the premium letter, dated February 17, 2005 among the
Insurer, BVAC, the Transferor, the Trust and the Indenture Trustee.

“Prepayment Charges,” means, with respect to a Precomputed Receivable that is
prepaid in full, the difference between the Principal Balance of such Receivable
(plus accrued interest to the date of prepayment) and the Principal Balance of such
Receivable computed in accordance with the actuarial or constant yield method.

“Principal Balance” of a Simple Interest Receivable, as of the close of
business on the last day of a Collection Period, means the Amount Financed minus
that portion of all payments received on or before the close of business on such
last day allocable to principal of such Receivable. “Principal Balance” with
respect to a Precomputed Receivable, as of the close of business on the Cut-off
Date, means the gross principal balance of such Receivable on the records of the
Servicer, net of unearned or accrued interest reflected therein, and as of the close
of business on the last day of a Collection Period, means the Principal Balance as
of the Cut-off Date minus that portion of all Scheduled Receivable Payments received
with respect to such Receivable in respect of such Collection Period and all prior
Collection Periods allocable to principal of such Receivable using the actuarial or
constant yield method.

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“Purchase Agreement” means the Purchase Agreement dated as of the date hereof
by and between the Transferor and BVAC, as amended, supplemented or modified from
time to time in accordance with the terms thereof.

“Purchase Amount” of any Receivable, as of the close of business on the last
day of any Collection Period, means the amount equal to the sum of the Principal
Balance of such Receivable plus any unpaid interest accrued and due during or prior
to such Collection Period on such Receivable.

“Purchased Receivable” means a Receivable purchased by the Servicer pursuant to
Sections 7.02 or 8.10 hereof or repurchased by BVAC pursuant to Sections 7.02 or
8.08 hereof not later than the respective dates required thereby.

“Rating Agency” means each of Moody’s and Standard & Poor’s and their
successors and assigns.

“Receivable” means any simple interest or pre-computed (add-on) interest
installment sales contract or installment loan and security agreement which shall
appear on Schedule A to this Agreement.

“Receivable Files” means the documents specified in the Custodian Agreement.

“Receivables” means those Receivables conveyed to the Trust by the Transferor
listed as of the Cut-off Date in Schedule A hereto.

“Recoveries” means, with respect to a Charged-off Receivable and for any
Collection Period occurring after the Collection Period during which such Receivable
becomes a Charged-off Receivable, all payments, including insurance proceeds, that
the Servicer received from or on behalf of an Obligor regarding such Charged-off
Receivable, or from liquidation of the related Financed Vehicle,
net of any reasonable out-of-pocket expenses incurred by the Servicer in enforcing
such Charged-off Receivable.

“Reimbursement Obligations” means, with respect to each Payment Date, any
amounts due to the Insurer under the terms hereof, the Indenture, the Insurance
Agreement or the Premium Letter and with respect to which the Insurer has not been
previously paid whether or not BVAC is obligated to pay such amounts.

“Responsible Officer” means, when used with respect to the Owner Trustee, any
officer within the Corporate Trust Office (or any successor group of the Owner
Trustee) including any managing director, director, vice president, assistant vice
president, assistant treasurer, assistant secretary or any other officer of the
Owner Trustee customarily performing functions similar to those performed by the
persons who at the time shall be such officers, respectively, or to whom any
corporate trust matter is referred because of his knowledge of and familiarity with
the particular subject.

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“Sale Amount” means with respect to any Sold Receivable, the amount received
from the applicable third-party purchaser as payment for such Sold Receivable, which
amount shall be determined in accordance with Section 8.05(a).

“Scheduled Receivable Payment” on any Receivable (other than a Modified
Scheduled Receivable) means that portion of the payment required to be made by the
Obligor during the respective Collection Period sufficient to amortize the Principal
Balance over the term of the Receivable and to provide interest at the APR based on
a 365-day year over the actual number of days elapsed, and with respect to a
Modified Scheduled Receivable, the applicable Modified Scheduled Receivable Payment;
provided, however, that with respect to a Precomputed Receivable such interest
amount shall be determined on the basis of the actuarial or constant yield method.

“Secured Parties” means each of the Indenture Trustee, the Noteholders and the
Insurer pursuant to the Indenture.

“Securities” means the Notes and the Certificate.

“Servicer” means Bay View Acceptance Corporation, a Nevada corporation, in its
capacity as the servicer of the Receivables and each successor to Bay View
Acceptance Corporation (in the same capacity) pursuant to Sections 13.03 or 14.03
hereof; provided that, if the Servicer has been removed pursuant to Sections 8.04 or
14.03 hereof, “Servicer” shall mean the Back-up Servicer or such other Person
appointed as the successor Servicer pursuant to Section 14.03 hereof. If the
Back-up Servicer has been removed as Servicer pursuant to Section 14.03 hereof,
“Servicer” shall mean such other Person appointed as the successor Servicer pursuant
to Section 14.03 hereof.

“Servicer Fee” means the sum of the Servicing Fee and the Supplemental
Servicing Fee and all reasonable out-of-pocket expenses of the Servicer.

“Servicer Fee Rate” shall be 1/12th of 1.0% payable monthly.

“Servicer Procedures” has the meaning specified in Section 8.09 hereof.

“Servicer’s Certificate” means a certificate completed and executed by the
chairman of the board, the vice chairman, the president, any vice president, the
treasurer, any assistant treasurer, the chief financial officer, the secretary, any
assistant secretary, the controller, or any assistant controller of the Servicer
pursuant to Section 8.12 hereof.

“Servicing Fee” means, for any Collection Period, a fee payable to the Servicer
for services rendered during such Collection Period, which shall be the product of
(i) the Servicer Fee Rate and (ii) the aggregate Principal Balance of the
Receivables as of the first day of such Collection Period; provided, however, the
Servicing Fee with respect to the Back-up Servicer as successor Servicer shall be
calculated in accordance with Schedule C attached hereto.

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“Simple Interest Receivable” means any Receivable which provides for equal
monthly payments, pursuant to which the portion of such payment that is allocated to
interest is equal to the product of the fixed rate of interest on such obligation
multiplied by the period of time on the basis of a 365-day year over the actual
number of days elapsed.

“Sold Receivable” means a Receivable that was sold to an unaffiliated third
party by the Issuer, at the Servicer’s direction, pursuant to Section 8.05(a)
hereof.

“Spread Account” means the account designated as such, established and
maintained pursuant to the terms of the Spread Account Agreement.

“Spread Account Agreement” means the Spread Account Agreement, dated as of
February 17, 2005, among the Insurer, the Trust, the Indenture Trustee and
Collateral Agent, as the same may be amended, supplemented or otherwise modified
from time to time in accordance with the terms thereof.

“Spread Account Initial Deposit” is equal to $5,802,508.28.

“Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Company, Inc.

“State” means (i) any state of the United States of America or (ii) the
District of Columbia.

“Supplemental Servicing Fee” has the meaning set forth in Section 8.11(a)
hereof.

“Transfer and Contribution Agreement” means Transfer and Contribution
Agreement, dated as of February 1, 2005, between the successor-in-interest to the
Bank and BVAC pursuant to which such successor-in-interest contributed and
transferred all of its right, title and interest, if any, in, to and under the
Receivables and the related Transferred Property (as defined therein).

“Transferor” means Bay View Deposit Corporation, a Delaware corporation, in its
capacity as the transferor of the Receivables under this Agreement, and each
successor to Bay View Deposit Corporation (in the same capacity) pursuant to Section
12.03 hereof.

“Transition Costs” means reasonable costs and expenses (including reasonable
attorneys’ fees and expenses) incurred by and payable by the predecessor Servicer,
or to the extent not so paid, by the Issuer, to the extent of Available Funds,
pursuant to Section 8.05 of the Indenture, to the successor Servicer in connection
with the transfer of servicing (whether due to termination, resignation or
otherwise) from the Servicer to such successor Servicer, including, without
limitation, reasonable costs and expenses incurred in connection with transferring
the Receivable Files and amending this Agreement to reflect the transfer of
servicing, which shall be approved in writing by the Insurer; provided, however,
that the fees, costs, expenses and reimbursements itemized in Schedule C
hereto

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shall be deemed to be reasonable and, provided, further, in no event shall
the Transition Costs exceed $150,000 without the prior written consent of the
Controlling Party.

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

“Trigger Event” means any of the events identified as such in the Spread
Account Agreement.

“Trust” means the Delaware statutory trust created by this Agreement, the
estate of which shall generally comprise the Trust Property.

“Trust Accounts” means the Collection Account, the Lock-Box Account, the
Payahead Account and the Spread Account.

“Trust Property” has the meaning set forth in Section 3.01 hereof.

“UCC” means the Uniform Commercial Code as in effect in the applicable
jurisdiction.

     SECTION 2.02 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 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; and the term “including” means “including without limitation.”

     SECTION 2.03 Record Date. All references to the Record Date prior to the first Record
Date in the life of the Trust shall be to the Closing Date.

     SECTION 2.04 Section References. All Section references in this Agreement shall be to
Sections in this Agreement unless otherwise specified.

     SECTION 2.05 Compliance Certificates. Upon any application or request by the
Transferor, the Servicer or the Back-up Servicer to the Indenture Trustee to take any action under
any provision herein, such requesting party shall furnish to the Indenture Trustee and the Insurer
(so long as the Insurer is the Controlling Party), an Officer’s Certificate stating that all
conditions precedent, if any, provided for herein relating to the proposed action have been
complied with, except that in the case of any other such application or request as to which the
furnishing of such documents is specifically required by any provision of this Agreement relating
to such particular application or request, no additional certificate need be furnished.

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     Every certificate with respect to compliance with a condition or covenant provided herein
shall include a statement that each individual signing such certificate has read such covenant or
condition and the definitions and other provisions herein relating thereto.

     SECTION 2.06 Directions. Any direction required to be given by the Noteholders shall
be given hereunder by the Insurer, unless the Insurer ceases to be the Controlling Party or the
Policy shall have expired in accordance with its terms, in which case the Indenture Trustee, acting
at the direction of the Majority Noteholders, shall be entitled to give such direction.

     SECTION 2.07 Calculations. All calculations of the amount of the Servicing Fee, the
Back-up Servicer Fee, the Indenture Trustee Fee and the Owner Trustee Fee shall be made on the
basis of a 360-day year consisting of twelve thirty-day months. All references to the Principal
Balance of a Receivable as of the last day of a Collection Period shall refer to the close of
business on such day.

     SECTION 2.08 Action by or Consent of Noteholders. Whenever any provision of this
Agreement refers to action to be taken, or consented to, by Noteholders, such provision shall be
deemed to refer to Noteholders of record as of the Record Date immediately preceding the date on
which such action is to be taken, or consent given, by Noteholders. Solely for the purposes of any
action to be taken or consented to by
Noteholders, any Note registered in the name of the Issuer, the Transferor, the Servicer or
any Affiliate thereof shall be deemed not to be outstanding and shall not be taken into account in
determining whether the requisite interest necessary to effect any such action or consent has been
obtained; provided, however, that, solely for the purpose of determining whether the Indenture
Trustee is entitled to rely upon any such action or consent, only Notes which the Indenture Trustee
actually knows to be so owned shall be so disregarded.

     SECTION 2.09 Material Adverse Effect. Whenever a determination is to be made under
this Agreement as to whether a given event, action, course of conduct or set of facts or
circumstances could or would have a material adverse effect on the Issuer or Noteholders (or any
similar or analogous determination), such determination shall be made without taking into account
the insurance provided by the Policy. Whenever a determination is to be made under this Agreement
whether a breach of a representation, warranty or covenant has or could have a material adverse
effect on a Receivable or the interest therein of the Issuer, the Noteholders or the Insurer (or
any similar or analogous determination), such determination shall be made by the Controlling Party.

ARTICLE III

CONVEYANCE OF RECEIVABLES

     SECTION 3.01 Conveyance of Receivables and other Trust Property. In consideration of
the Trust’s issuance of, and the Owner Trustee’s delivery of, the Certificate to, or at the
direction of, the Transferor and the proceeds to be realized by the Trust from the issuance of the
Notes pursuant to the Indenture to the Transferor, the Transferor does hereby sell, transfer,
assign, and otherwise convey to the Trust, in trust without recourse (subject to the obligations
herein):

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	 	(i)  	all right, title, and interest of the Transferor in and to the
Receivables listed in Schedule A hereto;
	 
	 	(ii)  	the security interests in the Financed Vehicles granted by
Obligors pursuant to the Receivables;
	 
	 	(iii)  	any proceeds from claims and other amounts relating to
insurance policies covering the Receivables and other items financed under the
Receivables or otherwise covering an Obligor or a Financed Vehicle;
	 
	 	(iv)  	any Liquidation Proceeds;
	 
	 	(v)  	all property (including the right to receive future Liquidation
Proceeds) that secures a Receivable and that has been or may be acquired
pursuant to the liquidation of the Receivable;
	 
	 	(vi)  	the interest of the Transferor in any proceeds from recourse to
Dealers relating to the Receivables;
	 
	 	(vii)  	all documents contained in the Receivable Files;
	 
	 	(viii)  	all monies paid on the Receivables and all monies due thereon, including
Accrued Interest after the Cut-off Date;
	 
	 	(ix)  	all right, title and interest of the Transferor pursuant to
this Agreement and pursuant to the Purchase Agreement, including, without
limitation, a direct right to cause BVAC to purchase Receivables from the Trust
upon the occurrence of a breach of any of the representations and warranties
contained in Section 3.02 of the Purchase Agreement or the failure of BVAC to
timely comply with its obligations pursuant to Section 5.06 of the Purchase
Agreement;
	 
	 	(x)  	all rights of the Transferor pursuant to the Transfer and
Contribution Agreement; and
	 
	 	(xi)  	all proceeds of the foregoing.

     The Transferor does hereby further assign, convey, pledge and grant a security interest in (i)
any and all other right, title and interest, including any beneficial interest the Transferor may
have in the Trust Accounts and the funds deposited therein, and (ii) any proceeds of any of the
foregoing, to the Owner Trustee and for the benefit of the Noteholders to secure amounts payable to
Noteholders as provided under this Agreement. The Transferor acknowledges that all of the
foregoing shall constitute the “Trust Property” and the Transferor hereby consents to the pledge by
the Trust of all of such assets to the Indenture Trustee for the benefit of the Secured Parties
pursuant to the Indenture.

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ARTICLE IV

ACCEPTANCE BY OWNER TRUSTEE

     SECTION 4.01 Acceptance by Owner Trustee. The Owner Trustee does hereby accept on
behalf of the Trust all of the Trust Property conveyed by the Transferor pursuant to Article III,
and declares that the Owner Trustee shall hold the Trust Property, which shall comprise the Trust
estate, upon the trusts herein set forth for the benefit of all present and future
Certificateholders, subject to the terms and provisions of this Agreement.

ARTICLE V

INFORMATION DELIVERED TO THE RATING AGENCIES

     SECTION 5.01 Information Delivered to the Rating Agencies.

          (a) The Servicer hereby expresses its intention to deliver promptly to each Rating
Agency (i) a copy of each Servicer’s Certificate that it delivers to the Owner Trustee, the
Indenture Trustee and the Insurer pursuant to Section 8.12 hereof, (ii) a copy
of each annual Officers’ Certificate as to compliance and any notice of default that it
delivers to the Indenture Trustee or the Owner Trustee pursuant to Section 8.13 hereof,
(iii) delinquency and loss information for the Receivables, written notice of any merger,
consolidation, or other succession of the Servicer, pursuant to Section 13.03 hereof, or the
Transferor, pursuant to Section 12.03 hereof, (iv) a copy of each amendment to this
Agreement and (v) any Opinion of Counsel delivered to the Owner Trustee pursuant to Section
17.02(i) hereof.

          (b) The Owner Trustee hereby expresses its intention to deliver promptly to each Rating
Agency (i) a copy of each annual certified public accountant’s report received by the Owner
Trustee pursuant to Section 8.14 hereof, (ii) a copy of each amendment to this Agreement and
(iii) a copy of the notice of termination of the Trust provided to the Owner Trustee
pursuant to Section 16.01 hereof.

          (c) For purposes of delivery pursuant to paragraphs (a) and (b) of this Article V, the
addresses for the Rating Agencies are:

	 	   	Servicer_reports@sandp.com except for information not

deliverable in electronic format and then to:

ABS Surveillance Group

Standard & Poor’s Ratings Services

55 Water Street, 40th Floor

New York, New York 10041-0003

	 	   	ServicerReports@moodys.com except for information not

deliverable in electronic format and then to:

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	 	   	Moody’s Investors Services, Inc.

Attention: ABS Monitoring Department

4th Floor

99 Church Street

New York, New York 10007

          (d) The provisions of this Article V are included herein for convenience of reference
only and shall not be construed to be contractual undertakings or obligations. The failure
of the Servicer or the Owner Trustee to comply with any or all of the provisions of this
Article V shall not constitute an Event of Servicer Default, Back-up Servicer Default or a
default of any kind under this Agreement or make any remedy available to any Person.

ARTICLE VI

AGENT FOR SERVICE

     SECTION 6.01 Agent for Service. The agent for service for the Transferor shall be
Joseph J. Catalano, Senior Vice President of the Transferor. Any and all service on the agent for
service of the Transferor shall be sent to Bay View Deposit Corporation, 1840 Gateway Drive, Suite
400, San Mateo,
California 94404 or such other address as the Transferor shall provide notice thereof pursuant
to Sections 17.02(c) or 17.05 hereof.

     The agent for service for BVAC shall be Joseph J. Catalano, Senior Vice President of the
initial Servicer. Any and all service on the agent for service of the initial Servicer shall be
sent to Bay View Acceptance Corporation, 1840 Gateway Drive, Suite 300, San Mateo, California
94404, or such other address as BVAC shall provide notice thereof pursuant to Sections 17.02(c) or
17.05 hereof.

     A copy of any service of process served on the Transferor or BVAC hereunder shall also be sent
to the Indenture Trustee, the Insurer and the parties to receive notices on behalf of the
Transferor or BVAC, as the case may be, under Section 17.05 hereof of this Agreement.

ARTICLE VII

THE RECEIVABLES

     SECTION 7.01 Representations and Warranties of Transferor.

          (a) Pursuant to Article III, the Transferor has assigned to the Trust the benefit of,
and its rights respecting, the representations and warranties made to the Transferor in the
Purchase Agreement as to the Receivables on which the Trust relies in accepting the
Receivables in trust and executing and authenticating the Notes and executing and delivering
the Indenture and on which the Insurer will rely in issuing the Policy. The Transferor
agrees that the representations shall also be for the benefit of the Secured Parties to the
same extent as if each of such representations and warranties were fully set forth herein,
including, without limitation, the representations and warranties set forth in Sections 3.01
and 3.02 of the Purchase Agreement. Such representations and warranties

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speak as of the
execution and delivery of the Purchase Agreement but shall survive the sale, transfer, and
assignment of the Receivables to the Trust and the pledge of the Receivables to the
Indenture Trustee.

          (b) The Transferor hereby represents and warrants to the Trust that it has entered into
the Purchase Agreement with BVAC, that BVAC has made the representations and warranties set
forth therein, that such representations and warranties run to and are for the benefit of
the Transferor, and that pursuant to Article III of this Agreement the Transferor has
transferred and assigned to the Trust all rights of the Transferor to cause BVAC under the
Purchase Agreement to repurchase Receivables in the event of a breach of such
representations and warranties.

          (c) The foregoing provisions of this Section 7.01 are intended to grant the Trust and
its assignees a direct right against BVAC to demand performance of its obligations under the
Purchase Agreement.

          (d) It is the intention of the Transferor that the transfer and assignment herein
contemplated, taken as a whole, constitute a sale of the Receivables and the other Trust
Property from the Transferor to the Trust and that the Receivables and the other Trust
Property not be part of the bankruptcy estate in the event of the bankruptcy of the
Transferor. In the event that a court of competent jurisdiction were to conclude that
the transfer of Receivables or the other Trust Property constitutes a grant of a security
interest rather than a sale of the Receivables, the other Trust Property and the proceeds
thereof, this Agreement and the transactions provided for herein shall be deemed to
constitute a grant by the Transferor to the Trust of a valid continuing first priority
security interest in the Receivables, the other Trust Property and the proceeds thereof. No
Receivable or other item of Trust Property has been sold, transferred, assigned, or pledged
by the Transferor to any Person other than the Trust. Immediately prior to the transfer and
assignment herein contemplated, the Transferor had good and marketable title to each
Receivable and the other Trust Property, free and clear of all Liens, and, immediately upon
the transfer thereof, the Trust (for the benefit of the Certificateholder and the Secured
Parties pursuant to the Indenture) shall have good and marketable title to each Receivable
and the other Trust Property, free and clear of all Liens and rights of others, except for
the rights of the Certificateholder, the Noteholders and the Insurer; and the transfer has
been perfected under the UCC. On or prior to the Closing Date, all filings (including,
without limitation UCC filings) necessary in any jurisdiction to give the Trust and its
assignees a first priority perfected ownership interest in the Receivables and the other
Trust Property shall have been made.

          (e) In the event that a court of competent jurisdiction were to conclude that the
transfer of Receivables or the other Trust Property constitutes a grant of a security
interest rather than a sale of the Receivables, the Transferor represents and warrants that
this Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Receivables in favor of the Issuer, which security interest is prior
to all other Liens, and is enforceable as such as against creditors of and purchasers from
Transferor. Transferor has taken all steps necessary to perfect its security interest
against each Obligor in the property securing the Receivables. The Receivables constitute

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“tangible chattel paper” within the meaning of the applicable UCC. Transferor owns and has
good and marketable title to the Receivables free and clear of any Lien, claim or
encumbrance of any Person. All original executed copies of each written agreement that
constitute or evidence the Receivables will be delivered to the Custodian on or prior to the
Closing Date. Transferor has not authorized the filing of and is not aware of any financing
statements against Transferor that includes a description of collateral covering the
Receivables other than any financing statement (i) relating to the security interest granted
to the Issuer under this Indenture or (ii) that has been terminated. None of the documents
that constitute or evidence the Receivables has any marks or notations indicating that it
has been pledged, assigned or otherwise conveyed to any Person other than to the Issuer, for
the benefit of the Noteholders and the Insurer, other than certain Receivables that will be
re-marked on or prior to the Closing Date to reflect the interests of the Issuer under this
Indenture. The representations and warranties contained in this Section 7.01(e) shall
survive the execution and delivery of this Indenture. Compliance with the representations
and warranties contained in this Section 7.01(e) may not be waived without the consent of
Standard & Poor’s and the Issuer.

     SECTION 7.02 Repurchase Upon Breach. Each party hereto shall inform the other parties hereto and the Insurer promptly, in
writing, upon the discovery of any breach of the representations and warranties contained in
Section 3.02 of the Purchase Agreement and assigned to the Trust hereunder or upon the discovery
that any Receivable has been materially and adversely affected because a court has determined that
a Receivable is not perfected by a first priority perfected security interest in the related
Financed Vehicle in favor of the Indenture Trustee. Unless the breach or failure to perfect shall
have been cured by the last day of the first full Collection Period, following the discovery, the
Transferor shall cause BVAC, pursuant to its obligations under the Purchase Agreement to repurchase
any such Receivable if such Receivable or the interest therein of the Issuer, the Noteholders, the
Certificateholder or the Insurer is materially and adversely affected by any such breach or failure
to perfect as of the last day of the first full Collection Period. In consideration of the
purchase of the Receivable, BVAC shall remit the Purchase Amount, in the manner specified in
Section 9.04 hereof. As required under Section 3.03 of the Purchase Agreement, the Transferor
shall cause the Seller (as defined therein) to indemnify the Owner Trustee, the Issuer, the
Indenture Trustee, the Insurer, the Collateral Agent, the Back-up Servicer, the Servicer, the
Noteholders, the Certificateholder and their respective officers, directors and employees against
all reasonable costs, expenses, losses, damages, claims and liabilities, including reasonable fees
and expenses of counsel, which may be asserted against or incurred by any of them, as a result of
claims arising out of the events or facts giving rise to such repurchase. Notwithstanding the
foregoing, BVAC shall not be required to remit the Purchase Amount in the manner specified in this
Section 7.02 with respect to any Receivable repurchased or subject to repurchase by BVAC pursuant
to Section 8.08 for the reasons specified in Section 8.08. In no event shall BVAC’s repurchase
obligation pursuant to this Section 7.02 apply to the Back-up Servicer whether acting as successor
Servicer or otherwise.

     SECTION 7.03 Custody of Receivable Files. To assure uniform quality in servicing the
Receivables and to reduce administrative costs, the Trust, upon the execution and delivery of this
Agreement, hereby revocably appoints the Servicer, and the Servicer hereby

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accepts such
appointment, for the benefit of the Trust and the Indenture Trustee, to act as the agent of the
Trust as custodian thereof in accordance with the Custodian Agreement.

     SECTION 7.04 Duties of Servicer as Custodian on behalf of the Trust.

          (a) Safekeeping. In accordance with the Custodian Agreement, the Servicer, in
its capacity as custodian, shall segregate and hold the Receivable Files on behalf of the
Indenture Trustee, for the benefit of the Noteholders and the Insurer, and for the Trust
pursuant to Section 7.03 hereof and shall maintain such accurate and complete accounts,
records, and computer systems pertaining to each Receivable File as shall enable the Trust
to comply with this Agreement and the other Basic Documents to which it is a party. In
performing its duties as custodian pursuant to Section 7.03 hereof, 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 automobile receivables that
the Servicer services for itself. 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
Trust to verify the accuracy of the Servicer’s record keeping. The Servicer shall
promptly report to the Insurer, Owner Trustee and the Indenture Trustee any failure on its
part to hold the Receivable Files and maintain its accounts, records, and computer systems
as herein provided and promptly take appropriate action to remedy any such failure.

          (b) Maintenance of and Access to Records. The Servicer shall maintain each
Receivable File at its office specified in Schedule B to this Agreement, or, subject
to the prior consent of the Insurer (so long as it is the Controlling Party) pursuant to
Section 6 of the Custodian Agreement, at such other office as shall be specified to the
Owner Trustee, the Insurer and the Indenture Trustee by prior written notice. The Servicer
shall make available to the Insurer (so long as the Insurer is the Controlling Party), the
Owner Trustee and the Indenture Trustee and their duly authorized representatives,
attorneys, or auditors a list of locations of the Receivables, the Receivable Files, and the
related accounts, records, and computer systems maintained by the Servicer at such times as
the Insurer, the Owner Trustee or the Indenture Trustee, as applicable, shall instruct.

          (c) Custodian Agreement. To the extent that there is a conflict between this
Agreement and the Custodian Agreement with respect to the duties and obligations of the
Custodian, the terms of the Custodian Agreement shall control.

          (d) Back-up Servicer as Custodian. The Back-up Servicer shall only act as
Custodian if it is simultaneously acting as successor Servicer pursuant to this Agreement.
The predecessor Custodian shall promptly deliver all of the Receivables Files to the
successor Custodian and reasonably cooperate with the successor Custodian in organizing and
identifying the Receivables Files. The Back-up Servicer, as successor Servicer, shall be
reimbursed for all reasonable out-of-pocket expenses incurred in connection with its duties
as Custodian pursuant to this Section 7.04 in accordance with the provision of Section 8.05
of the Indenture.

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     SECTION 7.05 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 Responsible Officer of the Owner Trustee on behalf of the Trust, the
Indenture Trustee or the Insurer as set forth in the Custodian Agreement.

ARTICLE VIII

ADMINISTRATION AND SERVICING OF RECEIVABLES

     SECTION 8.01 Duties of Servicer.

          (a) The Servicer (and any successor Servicer), for the benefit of the Trust and the
Secured Parties, shall manage, service, administer, and make collections on the Receivables
with reasonable care, using that degree of skill and attention that servicers in the retail
automotive financing industry customarily exercise with respect to all comparable
receivables that they service for themselves or others and, to the extent more exacting,
that the Servicer (or successor Servicer) exercises with respect to all
comparable automobile receivables that it services for itself or others. The
Servicer’s duties shall include collection and posting of all payments, making Advances in
accordance with the terms hereof, responding to inquiries of Obligors or of federal, State
or local governmental authorities with respect to the Receivables, investigating
delinquencies, sending monthly billing statements to Obligors (except to the extent any such
Obligor has received a coupon book to use in paying such monthly remittances), accounting
for collections, and furnishing monthly and annual statements to the Owner Trustee, the
Indenture Trustee and the Insurer with respect to distributions. The Servicer shall follow
its customary standards, policies, and procedures in performing its duties as Servicer;
provided, however, that the Servicer shall not materially change its
servicing standards and procedures without the prior written consent of the Controlling
Party. Without limiting the generality of the foregoing, the Servicer is authorized and
empowered by the Trust to execute and deliver, on behalf of itself, the Trust, the Owner
Trustee, the Indenture Trustee or any of them, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other comparable instruments,
with respect to such Receivables or to the Financed Vehicles securing such Receivables;
provided, however, that notwithstanding the foregoing, the Servicer shall
not release an Obligor from payment of any unpaid amount under any Receivable or waive the
right to collect the unpaid balance of any Receivable from the Obligor, except (i) pursuant
to an order from a court of competent jurisdiction, (ii) in accordance with its customary
procedures or (iii) in accordance with Section 8.05 hereof. If the Servicer shall commence
a legal proceeding to enforce a Receivable or a Charged-Off Receivable, the Trust and the
Indenture Trustee shall thereupon be deemed to have automatically assigned, solely for the
purpose of collection, such Receivable to the Servicer. If in any enforcement suit or legal
proceeding it shall be held that the Servicer may not enforce a Receivable on the ground
that it shall not be a real party in interest or a holder entitled to enforce the
Receivable, the Trust and Indenture Trustee shall be deemed to have automatically assigned,
solely for the purpose of collection, such Receivable to the Servicer. The Owner Trustee
and the Indenture Trustee shall execute any documents prepared by the Servicer and delivered
to the Trust for execution that are necessary or

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appropriate to enable the Servicer to carry
out its servicing and administrative duties hereunder. The Servicer is also authorized and
empowered to direct the Trust to sell Receivables to unaffiliated third parties pursuant to
Section 8.05(a) hereof in exchange for payment of the related Sale Amount and the Servicer
is authorized and empowered by the Trust to execute and deliver, on behalf of itself, the
Trust, the Owner Trustee, the Indenture Trustee or any of them, any and all instruments of
transfer with respect to such sale

          (b) The Servicer, or a third party retained by Servicer (if BVAC is acting as the
Servicer, at its expense, otherwise at the expense of the Trust), shall obtain on behalf of
the Trust all licenses, if any, 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.

          (c) The Servicer shall furnish to the Owner Trustee, the Indenture Trustee, the
Collateral Agent and the Insurer from time to time such additional information regarding
the Trust or the Basic Documents as the Owner Trustee, the Indenture Trustee, the
Collateral Agent or the Insurer shall reasonably request.

     SECTION 8.02  [Intentionally Omitted.]

     SECTION 8.03  The Back-up Servicer.

          (a) Prior to the Back-up Servicer acting as successor Servicer hereunder, the Back-up
Servicer shall only be responsible to perform those duties specifically imposed upon it as
Back-up Servicer by the provisions hereof, and shall have no obligations or duties under any
agreement to which it is not a party, including but not limited to any other Basic Document
to which it is not a party.

          (b) Subject to the Back-up Servicer’s obligations pursuant to this Section 8.03, prior
to Back-up Servicer acting as successor Servicer hereunder, the Back-up Servicer shall not
be required to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties hereunder, or in the exercise of any of its rights or
powers, if the repayment of such funds or adequate written indemnity against such risk or
liability is not reasonably assured to it in writing prior to the expenditure or risk of
such funds or incurrence of financial liability. Notwithstanding any provision to the
contrary, the Back-up Servicer, in its capacity as such, and not in its capacity as
successor Servicer, shall not be liable for any obligation of the Servicer contained in this
Agreement so long as the Back-up Servicer is performing in its capacity as Back-up Servicer,
and the parties shall look only to the Servicer to perform such obligations.

          (c) The Back-up Servicer (including in its capacity as successor Servicer) may
conclusively rely and shall be fully protected in acting or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval or other paper or document believed by it to be genuine and to have been
signed or presented by the proper party or parties.

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          (d) The Back-up Servicer (including in its capacity as successor Servicer) may consult
with counsel and the advice or any opinion of counsel shall be full and complete
authorization and protection in respect of any action taken or omitted by it hereunder in
good faith and in accordance with any such written counsel, a copy of which has been
furnished to the Indenture Trustee and the Insurer.

          (e) The Back-up Servicer (including in its capacity as successor Servicer) shall not be
bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, entitlement
order, approval or other paper or document.

          (f) The Back-up Servicer (including in its capacity as successor Servicer) may execute
any of the trusts or powers hereunder or perform any duties hereunder either directly or by
or through agents, attorneys, custodians or nominees appointed with due care, and shall not
be responsible for any willful misconduct or negligence on the part of any agent, attorney,
custodian or nominee so appointed.

          (g) The Servicer shall have no liability, direct or indirect, to any party, for the
acts or omissions of the Back-up Servicer (including in its capacity as successor Servicer)
whenever such acts or omissions occur or whenever such liability is imposed.

          (h) Notwithstanding anything to the contrary herein, the Controlling Party shall have
the right, with or without cause, to remove the Back-up Servicer, in its capacity as Back-up
Servicer, in its sole discretion and replace the Back-up Servicer upon seven (7) days prior
written notice. In the event that the Controlling Party exercises its right to remove and
replace the Back-up Servicer, such Person shall have no further obligation to perform the
duties of the Back-up Servicer under this Agreement except as set forth in Section 13.02
hereof.

          (i) On or before the fifth Business Day of each month, the Servicer will deliver to the
Back-up Servicer a Computer Tape containing such information with respect to the Receivables
as of the close of business on the last day of the immediately preceding Collection Period
as is necessary for preparation of the Servicer’s Certificate. The Back-up Servicer shall
use the Computer Tape to recalculate the information specified in Sections 8.03(j)(ii) and
(iii) hereof contained in the Servicer’s Certificate delivered by the Servicer, and the
Back-up Servicer shall notify the Insurer that it has recalculated such information in the
Servicer’s Certificate in accordance with this Section 8.03 and shall notify the Servicer,
the Insurer and the Indenture Trustee of any discrepancies, in each case, on or before the
related Deficiency Claim Date but in no event fewer than five (5) Business Days after
receiving the information required to make such calculations. Such notice shall be
substantially in the form of Exhibit F attached hereto. In the event that the Back-up
Servicer reports any discrepancies, the Servicer and the Back-up Servicer shall attempt to
reconcile such discrepancies prior to the related Payment Date, but in the absence of a
reconciliation, the Servicer’s Certificate shall control for the purpose of calculations and
payments with respect to the related Payment Date. In the event that the Back-up Servicer
and the Servicer are unable to reconcile discrepancies with respect to a Servicer’s
Certificate by the related Payment Date, (i) the

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Back-up Servicer will notify the Insurer
and the Indenture Trustee, and (ii) the Servicer shall cause a firm of independent certified
public accountants, at the Servicer’s expense, to audit the Servicer’s Certificate and,
prior to the fifth calendar day of the following month, reconcile the discrepancies. The
effect, if any, of such reconciliation shall be reflected in the Servicer’s Certificate for
such next succeeding Determination Date. In addition, the Servicer shall, if so requested
by the Insurer (so long as Insurer is the Controlling Party) deliver to the Back-up Servicer
(i) within five (5) Business Days of demand therefore a Computer Tape containing as of the
close of business on the date of demand all of the data maintained by the Servicer in a
format acceptable to the Back-up Servicer in connection with servicing the Receivables and
(ii) within fifteen (15) Business Days of demand therefore a copy of such other information
as is reasonably requested by the Insurer, (so long as the Insurer is the Controlling Party)
for the purpose of reconciling such discrepancies. All Computer Tapes received by the
Back-up Servicer will be stored by the Back-up Servicer in accordance with its customary
practices.

          (j) The Back-up Servicer shall review each Servicer’s Certificate delivered by the
Servicer pursuant to Section 8.12 and shall, based upon the information provided from the
Servicer under Section 8.03(i):

               (i) confirm that such Servicer’s Certificate is complete on its face;

               (ii) load the Computer Tape received from the Servicer pursuant to Section
8.03(i) hereof, confirm that such Computer Tape is in a readable form, and calculate
the Principal Balance of the Receivables based on the aggregate Principal Balance of
the Receivables as of the preceding Payment Date (as set forth in such Servicer’s
Certificate) and the principal portion of the Scheduled Receivable Payment or
Modified Scheduled Receivable Payment for the Receivables (as set forth in such
Servicer’s Certificate) and compare such calculation to that set forth in the
Servicer’s Certificate (and give notice of any discrepancy to the Insurer); and

               (iii) recalculate the Available Funds, the Class A-1 Monthly Interest, the
Class A-2 Monthly Interest, the Class A-3 Monthly Interest, the Class A-4 Monthly
Interest, the Class I Monthly Interest, the Monthly Principal, the Servicing Fee,
the Back-up Servicer Fee, the Indenture Trustee Fee, the Owner Trustee Fee, the
amounts on deposit in the Spread Account, the Collection Account and the Payahead
Account, the Premium, the Lock-Box Collection Percentage, the Delinquency Ratio, the
Cumulative Net Loss Ratio, the Pool Factor and the Monthly Extension Rate in the
Servicer’s Certificate for such Determination Date, based solely on the balances and
calculations specifically set forth in the Servicer’s Certificate, and compare such
recalculations to those set forth in the Servicer’s Certificate. To the extent of
any discrepancy, the Back-up Servicer shall give notice thereof to the Insurer. The
Back-up Servicer’s obligation shall be limited to the mathematical recalculation of
the amounts set forth in Sections 8.03(j)(ii) and (iii) based on the Servicer’s
Certificate and Computer Tape.

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     SECTION 8.04 Retention and Termination of Servicer. The Servicer hereby covenants and
agrees to act as servicer under this Agreement until the earlier to occur of (i) the termination of
the Trust and (ii) the removal of the Servicer, as servicer, in accordance with Article 14 hereof
in connection with the occurrence of an Event of Servicer Default or Back-up Servicer Default, as
applicable, which has not otherwise been waived or cured.

     SECTION 8.05 Collection of Receivable Payments.

          (a) Consistent with the standards, policies and procedures required by this Agreement,
the Servicer shall make reasonable efforts to maximize the amount to be received by the
Trust with respect to the Receivables, including, without limitation, using reasonable
efforts to (i) 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 automobile receivables that it
services for itself or others and, in any event, with no less degree of skill and care than
would be exercised by a prudent servicer of similar motor vehicle retail installment sales
contracts and installment sale loan and security agreements or (ii) directing the Trust to
sell any of the Receivables from time to time to an unrelated third party for the maximum
market price available for such Receivable at such time, as determined by the Servicer
consistent with the standards set forth herein. In connection with any such Receivable sale
contemplated by clause (ii) of this Section 8.05(a), the related Sale Amount shall be
deposited into the Collection Account in accordance with Section 9.04(e). Promptly after
the Closing Date (but in any event within forty (40) days after the Closing Date), the
Servicer will provide each Obligor with a monthly statement in order to notify such Obligors
to make payments directly to the Lock-Box. If payments are modified or adjusted on a
Receivable (provided that no such modification or adjustment may be made to the APR or the
number or amounts of the Scheduled Receivable Payments) or are extended in the ordinary
course of the Servicer’s collection procedures (provided, that no extensions may be granted
by the Servicer until at least six Scheduled Receivable Payments have been received by the
Servicer under the related Receivable and thereafter only one extension not to exceed one
month may be granted each twelve month period and no more than three (3) extensions shall be
permitted with respect to any Receivable (other than to the extent allowed pursuant to the
Servicer’s collection or charge-off policies); provided, that not more than 0.75% (by
Principal Balance of the Receivables as a percentage of the Pool Balance) may be extended
during any Collection Period), and, as a result, any Receivable would be outstanding after
the month immediately preceding the Final Maturity Date for the Class A-4 Notes or any such
modification, adjustment or extension is in violation of the foregoing prohibitions, then
the Servicer shall be obligated to purchase such Receivable pursuant to Section 8.10 hereof
(unless such Receivable is otherwise being purchased pursuant to Section 16.02 hereof). The
Servicer may in its discretion waive any late payment charge or any other fees that it is
entitled to retain under Section 8.11 hereof, or other fee (to the extent consistent with
its credit and collection policy) that may be collected in the ordinary course of servicing
a Receivable.

          (b) All allocations of payments with respect to a Simple Interest Receivable to
principal and interest and determinations of periodic charges and the like shall be made
using the simple interest method, based on either the actual number of days elapsed and

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the
actual number of days in the calendar year or on a 365-day calendar year, as specified in
the related installment sales contract or installment loan and security agreement. Each
payment on a Simple Interest Receivable shall be applied (i) first, in connection with the
redemption of a Charged-off Receivable, to reimburse the Servicer for any reasonable
out-of-pocket expenses incurred by the Servicer in connection with such Receivable, (ii)
second, to late charges and other fees, (iii) third, to the extent necessary to bring such
Receivable current, to interest in accordance with the simple interest method and (iv)
fourth, to principal in accordance with the simple interest method; provided however, at the
Servicer’s option and sole discretion, it may allocate payments first to clauses (iii) and
(iv) of this Section 8.05(b), respectively, and then to clauses (i) and/or (ii) of this
Section 8.05(b) thereafter. All allocations of payments with respect to a Precomputed
Receivable to principal or interest shall be made using the actuarial or constant yield
method. Payments made by or on behalf of an Obligor on a Precomputed Receivable including
any Payaheads previously made and added to the Payahead Balance with respect to such
Precomputed Receivable shall be applied first, in connection with the redemption of a
Charged-off Receivable, to reimburse the Servicer for reasonable out-of-pocket expenses
incurred by the Servicer in connection with such Receivable, second, to late charges and
other fees, third, to overdue Scheduled Receivable Payments. Next, any excess shall be
applied to the Scheduled Receivable Payment and any remaining excess shall be added to the
Payahead Balance, and shall be applied to prepay the Precomputed Receivable, but only if
such Payahead Balance shall be sufficient to prepay the Receivable in full. Otherwise, any
such remaining excess payments shall constitute a Payahead and shall increase the Payahead
Balance. Notwithstanding the foregoing, no allocation pursuant to this Section 8.05(b)
shall in any way alter or modify the payment priorities and rights and restrictions on
Servicer reimbursement and compensation set forth in the Indenture.

     SECTION 8.06 Realization Upon Receivables.

          (a) On behalf of the Trust and the Secured Parties the Servicer shall use its
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 that eventual payment in full is unlikely and which
Receivable is not sold pursuant to Section 8.05(a) hereof. The Servicer shall follow such
customary and usual practices and procedures as it shall deem necessary or advisable in its
servicing of automobile receivables, which may include reasonable efforts to realize upon
any recourse to Dealers (provided, that if the Back-up Servicer is performing the duties of
Servicer hereunder, BVAC agrees to use commercially reasonable efforts to cooperate with
such Person in realizing upon such Dealer recourse, it being understood and agreed that the
Back-up Servicer in such capacity shall not have any obligation to pursue such remedies) and
selling the Financed Vehicle at public or private sale and directing the Trust to sell the
Receivables pursuant to Section 8.05(a) hereof. 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 Liquidation Proceeds of the related Receivable by an amount
equal to or greater than the

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amount of such expenses. After appropriate disposition of the
Financed Vehicle, the Servicer shall also take such measures as it deems reasonable and
appropriate to realize value in respect of any deficiency balance of the Receivable
including pursuit of action on behalf of the Trust and/or the Secured Parties against the
Obligor or public or private sale of the remaining interest of the Trust and/or the Secured
Parties in such Receivable. If the Back-up Servicer is the successor Servicer, it shall be
reimbursed for all reasonable out-of-pocket expenses incurred in connection with this
Section 8.06(a) and shall not be responsible for expenses incurred in connection with such
powers of attorney necessary to satisfy its administrative and servicing duties hereunder.

          (b) BVAC, as initial Servicer, agrees that within 45 days from the Closing Date, it
shall make such filings and effect such notices as are necessary under Sections 9-310,
9-324(b) and 9-324(c) of the New York UCC (or comparable section of the UCC of any
applicable State) to preserve the Trust’s ownership interest (or security interest, as
the case may be) and the security interest of the Indenture Trustee in any repossessed
Financed Vehicles delivered for sale to Dealers.

          (c) The Servicer agrees that at any time after the Closing Date there will be (i) no
more than 10 repossessed Financed Vehicles in the aggregate delivered for sale to any Dealer
and (ii) no more than 35 repossessed Financed Vehicles in the aggregate delivered for the
sale to all Dealers with respect to which the actions referred to in paragraph (b) above
have not been effected. The Servicer agrees that prior to delivering additional Financed
Vehicles for sale to any such Dealer in excess of the limits set forth in (i) and (ii)
above, it shall make such filings and effect such notices as are necessary under Sections
9-310, 9-324(b) and 9-324(c) of the New York UCC (or comparable section of the applicable
UCC) to preserve its ownership interest (or security interest, as the case may be) in any
such repossessed Financed Vehicle.

          (d) Unless otherwise stated in this Agreement, the Servicer shall either use its
reasonable best efforts to liquidate or, at its sole option, purchase each Financed Vehicle
that has not previously been liquidated and that secures, or previously secured, a
Charged-Off Receivable either (i) by the end of the Collection Period preceding the Final
Maturity Date for the Class A-4 Notes or (ii) if earlier, by the end of the Collection
Period following the Collection Period during which such Receivable became a Charged-Off
Receivable. Any purchase of a Financed Vehicle by the Servicer shall be made at a price
equal to the fair market value of the Financed Vehicle as determined by the Servicer in
accordance with the Servicer’s normal servicing standards. This purchase obligation shall
not apply to any successor Servicer.

SECTION 8.07 Physical Damage Insurance.

          (a) The Servicer, in accordance with its customary servicing procedures and
underwriting standards, shall require that (i) each Obligor shall have obtained insurance
covering the Financed Vehicle as of the date of execution of the Receivable insuring against
loss and damage due to fire, theft, transportation, collision and other risks generally
covered by comprehensive and collision coverage, (ii) each Receivable that finances the cost
of premiums for credit life and credit accident and health insurance is

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covered by an
insurance policy or certificate naming BVAC, the Bank or the successor-in-interest to the
Bank, as policyholder (creditor) or loss payee and (iii) as to each Receivable that finances
the cost of an extended service contract, the respective Financed Vehicle which secures the
Receivable is covered by such extended service contract; provided that the Back-up Servicer,
as successor Servicer, shall have no liability for any such failure.

          (b) To the extent applicable, the Servicer shall not take any action which would result
in noncoverage under the insurance policy referred to in Section 8.07(a) hereof which, but
for the actions of the Servicer, would have been covered thereunder. The Servicer, on
behalf of the Indenture Trustee, shall take such reasonable action as shall be necessary to
permit recovery under any of the foregoing insurance policies. Any amounts collected by the
Servicer under any of the foregoing insurance policies shall be
deposited in the Collection Account pursuant to Section 9.03 hereof. In no event shall
the Servicer be required or forced to place insurance on a Financed Vehicle.

     SECTION 8.08 Maintenance of Security Interests in Financed Vehicles.

          (a) The Servicer shall, in accordance with its customary servicing procedures, take
such steps as are necessary to ensure that perfection of the security interest created by
each Receivable in the related Financed Vehicle has been obtained and to maintain such
security interest. The Trust hereby authorizes the Servicer to take such steps as are
necessary to re-perfect such security interest on behalf of the Trust in the event of the
relocation of a Financed Vehicle or for any other reason. Any reasonable out-of-pocket
expenses incurred by the Servicer or any successor Servicer in connection with any such
re-perfection shall be reimbursable in accordance with the priorities set forth in Section
8.05 of the Indenture.

          (b) (i) In accordance with the Custodian Agreement, by the third Business Day following
the date (the “180 day notice date”) which is 180 days following the Closing Date or, if
such date is not a Business Day, on the next succeeding Business Day, BVAC, as the
Custodian, shall inform the Indenture Trustee and the other parties to this Agreement and
the Insurer of any Receivable listed on the exception list attached to the Certification
pursuant to Section 4 of the Custodian Agreement, as certified by the Custodian on the
Closing Date, for which the related Receivable File on the 180 day notice date does not
include a Certificate of Title (as defined in the Custodian Agreement) (or such evidence of
title as may be issued in any applicable jurisdiction as of the close of business on the
date which is 180 days after closing). BVAC shall repurchase any such Receivable as of the
last day of the Collection Period in which the date, which is 180 days following the Closing
Date, occurs (or if such date is not a Business Day, on the first Business Day thereafter),
if the related Receivable File does not include a Certificate of Title (as defined in the
Custodian Agreement) as of the close of business on such 180th day (or such evidence of
title as may be issued in any applicable jurisdiction). In consideration of the purchase of
such Receivable, BVAC shall remit the Purchase Amount in the manner specified in Section
8.10 hereof.

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               (ii) In accordance with the Custodian Agreement, by the third Business Day following
the date (the “30 day notice date”) which is 30 days following the Closing Date or, if such
date is not a Business Day, on the next succeeding Business Day, BVAC, as the Custodian,
shall inform the Indenture Trustee and the other parties to this Agreement and the Insurer
of any Receivable listed on the exception list attached to the Certification pursuant to
Section 4 of the Custodian Agreement as certified by the Custodian on the Closing Date, for
which a Receivable File is missing a fully executed original of the related retail
installment contract or retail installment loan contract, as applicable, which remains
uncured by the close of business on the date which is 30 days following the Closing Date.
BVAC shall repurchase any such Receivable within two Business Days after the date on which
BVAC, as the Custodian, delivers its report pursuant to this Section 8.08(b)(ii). In
consideration of the purchase of such Receivable, BVAC shall remit the Purchase Amount in
the manner specified in Section 8.10 hereof.

          (c) Upon the occurrence of an Insurance Agreement Event of Default and so long as the
Insurer is the Controlling Party, the Servicer, at the written direction of the Insurer,
shall take or cause to be taken such reasonable action as may, in the reasonable business
judgment of the Insurer, be necessary or prudent to perfect or re-perfect the security
interests in the Financed Vehicles securing the Receivables in the name of the Indenture
Trustee on behalf of the Issuer, the Noteholders and the Insurer by amending the title
documents of such Financed Vehicles or by such other reasonable means as may, in the
reasonable business judgment of the Insurer, be necessary or prudent and shall deliver to
the Indenture Trustee any Receivable File or portion thereof that has been released by the
Indenture Trustee to the Servicer and is then in the possession of the Servicer, including
any original certificates of title. The Servicer (so long as the Servicer is BVAC) shall,
and if the Servicer has been removed, BVAC shall pay all reasonable costs and expenses
related to such perfection or re-perfection (the “Reliening Expenses”). Prior to the
occurrence of an Insurance Agreement Event of Default and so long as the Insurer is the
Controlling Party, the Insurer may instruct the Indenture Trustee and the Servicer to take
or cause to be taken such action as may, in the reasonable business judgment of the Insurer,
be necessary to perfect or reperfect the security interest in the Financed Vehicles securing
the Receivables in the name of the Indenture Trustee on behalf of the Issuer, including by
amending the title documents of such Financed Vehicles to reflect the security interest of
the Indenture Trustee in the related Financed Vehicle or by such other reasonable means as
may, in the reasonable business judgment of the Insurer, be necessary or prudent; provided,
however, that if the Insurer requests that the title documents be so amended prior to the
occurrence of an Insurance Agreement Event of Default, the out-of-pocket expenses of the
Servicer or the Indenture Trustee in connection with such action shall be reimbursed to the
Servicer or the Indenture Trustee, as applicable, by the Insurer.

     The Servicer hereby makes, constitutes and appoints the Indenture Trustee acting through its
duly appointed officers or any of them, its true and lawful attorney, for it and in its name and on
its behalf, for the sole and exclusive purpose of authorizing said attorney to execute and deliver
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 show the Indenture Trustee as
lienholder or secured party on the Certificate of Title (as defined in the Custodian Agreement)

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relating to a Financed Vehicle. BVAC, as initial Servicer, shall cause the successor-in-interest
to the Bank to deliver a power of attorney to the Indenture Trustee in accordance with the
foregoing with respect to any interest of the Bank.

     SECTION 8.09 Covenants of Servicer. The Servicer hereby makes the following covenants
to the other parties hereto and the Insurer on which the Indenture Trustee shall rely in accepting
the Receivables in trust and on which the Insurer shall rely in issuing the Policy, except for a
release to an insurer in exchange for insurance proceeds paid by such insurer resulting from a
claim for the total insured value of a vehicle, the Servicer shall not (i) release the Financed
Vehicle securing each such Receivable from the security interest granted by such Receivable in
whole or in part except in the event of payment in full by or on behalf of the Obligor thereunder
or repossession, (ii) impair the rights of the Noteholders or the Insurer in the Receivables, (iii)
change the Annual Percentage Rate with
respect to any Receivable, except as may be required by applicable law and (iv) otherwise
modify any contract except as permitted by this Agreement. In addition, the Servicer shall service
the Receivables as required by the terms of this Agreement and in material compliance with its
current servicing procedures, including its collection policies and charge-off policies (the
“Servicer Procedures”) for servicing all of its comparable motor vehicle contracts; provided that
the Servicer Procedures with respect to the Receivables may not be amended, restated or otherwise
modified from time to time (x) without the prior written consent of the Controlling Party if such
amendment, restatement or other modification materially and adversely affects the Insurer, any
Noteholder or the Certificateholder and (y) so long as the Insurer is the Controlling Party except
in compliance with Section 2.03(d) of the Insurance Agreement. Notwithstanding the foregoing,
nothing contained in this Agreement or the Basic Documents is intended to restrict or otherwise
require Servicer to obtain any consents in order to amend, restate or modify the Servicer
Procedures relating to any of its contracts other than the Receivables. The initial Servicer
agrees to deliver to the Insurer a true and correct copy of its current Servicer Procedures
relating to the Receivables to the Insurer within ten (10) Business Days after the Closing Date.
CenterOne agrees to deliver to the Insurer a true and correct copy of its current servicing
procedures, including, but not limited to, its collection policies and charge-off policies, for
servicing all of its comparable motor vehicle contracts to the Insurer within thirty (30) Business
Days after the Closing Date. No successor Servicer shall incur any liability for the
representations, warranties or covenants of any predecessor Servicer hereunder.

     SECTION 8.10 Purchase of Receivables Upon Breach. The Servicer, the Transferor, the
Indenture Trustee or the Owner Trustee shall inform the other party and the Indenture Trustee and
the Insurer promptly, in writing, upon the discovery of (i) any breach by the Servicer of its
obligations under Sections 8.01, 8.05, 8.06, 8.07, 8.08 or 8.09 hereof or (ii) the existence of the
Servicer’s obligation to purchase a Receivable pursuant to Section 8.05(a) hereof;
provided, however, that the failure to give such notice shall not affect any
obligation of the Servicer hereunder. Unless such breach shall have been cured by the last day of
the first full Collection Period following the discovery or notice of such breach, the Servicer
shall on such day purchase any Receivable materially and adversely affected by such breach or which
materially and adversely affects the interests of the Insurer or the Noteholders (which shall
include any Receivable as to which a breach of Section 8.06 hereof has occurred); provided, that
with respect to any breach of Section 8.07(b) hereof, the Servicer may at its option, instead of
repurchasing the related Receivable, deposit in the Collection Account the amount of the loss

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resulting from the lapse or lack of insurance. In consideration of the purchase of such
Receivable, the Servicer shall remit the Purchase Amount with respect to such Receivable in the
manner specified in Section 9.04 hereof. The Indenture Trustee and Owner Trustee shall have no
duty to conduct any affirmative investigation as to the occurrence of any condition requiring the
repurchase of any Receivable pursuant to this Section. The sole remedy of the Owner Trustee, the
Trust, or the Secured Parties with respect to the aforementioned breaches shall be to require the
Servicer to purchase Receivables pursuant to this Section 8.10; provided, however,
that the Servicer shall indemnify the Insurer, the Issuer and the Noteholders and each of their
respective officers, employees, directors, agents and representatives against all costs, expenses,
losses, damages, claims and liabilities, including reasonable fees and expenses of counsel, which
may be asserted against or incurred by any of them as a result of third-party claims arising out of
the events or facts giving rise to such breach.

     No predecessor nor successor Servicer shall be responsible for the acts or omissions of any
other Servicer. Upon receipt of the Purchase Amount and any related indemnity payments, the
Indenture Trustee shall release to the Servicer or its designee the related Receivable File and
shall execute and deliver all instruments of transferor assignment, without recourse, as are
prepared by the Servicer and delivered to the Indenture Trustee and are necessary to vest in the
Servicer or such designee the Issuer’s right, title and interest in the Receivable.
Notwithstanding the foregoing, BVAC shall not be required to remit the Purchase Amount in the
manner specified in this Section 8.10 with respect to any Receivable repurchased or subject to
repurchase by BVAC pursuant to Section 8.08 hereof for the reasons specified in Section 8.08
hereof. Notwithstanding the foregoing, if Back-up Servicer shall have become the Servicer, it will
not be so obligated to purchase any Receivables or make any payment pursuant to this Section 8.10,
and Back-up Servicer, as successor Servicer’s only obligation in connection therewith shall be to
make the indemnity in Section 13.02 hereof.

     SECTION 8.11 Servicing Fee

          (a) The Servicer shall be entitled to a Servicing Fee as defined herein. The Servicer
shall also be entitled to retain, and need not deposit in the Collection Account, all late
fees, Prepayment Charges and other administrative fees and expenses or similar charges
allowed by applicable law with respect to the Receivables, collected (from whatever source)
on the Receivables during such Collection Period (the “Supplemental Servicing Fee”).

          (b) The Back-up Servicer will be entitled to the Back-up Servicer Fee up to but
excluding the date on which it is appointed or begins acting as successor Servicer. If it
becomes the Servicer, the Back-up Servicer will be entitled to the Servicer Fee (including
the Servicing Fee as calculated in Schedule C) for the periods in which it is acting as
successor Servicer and shall not be entitled to a Back-up Servicing Fee during such time.

          (c) Neither the Indenture Trustee nor Back-up Servicer (including in its capacity as
successor Servicer) shall be liable for any differential between the Servicing Fee and the
amount necessary to induce a successor Servicer to accept its appointment as such pursuant
to this Agreement.

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          (d) Each of the Servicer and the Back-up Servicer acknowledge and agree that any fees,
expenses, costs, indemnities and other amounts, including without limitation, Transition
Costs, payable to the Servicer and the Back-up Servicer shall not be payable from amounts
owed or paid under the Policy.

     SECTION 8.12 Servicer’s Certificate. On or before the Determination Date following
each Collection Period, the Servicer shall deliver to the Owner Trustee, the Indenture Trustee, the
Back-up Servicer, the Collateral Agent and the Insurer (so long as the Insurer is the Controlling
Party) a Servicer’s Certificate in substantially the form of Exhibit C attached hereto containing
all information necessary to make the distributions pursuant to Section 8.05 of the Indenture (so
long as the Notes remain
outstanding) for the Collection Period preceding the date of such Servicer’s Certificate and
all information necessary for the Indenture Trustee to send statements to the Noteholders and the
Owner Trustee to send statements to the Certificateholder, including (A) the amount of aggregate
collections on the Receivables, (B) the aggregate Purchase Amount of the Receivables repurchased by
BVAC and purchased by the Servicer, (C) with respect to Precomputed Receivables the net deposit
from the Collection Account to the Payahead Account or the net withdrawal from the Payahead Account
to the Collection Account required for the Collection Period in accordance with Section 9.10
hereof, and in the case of a net withdrawal, the Monthly Interest and Monthly Principal reported on
such Servicer’s Certificate shall reflect the portions of such withdrawal allocable to interest and
principal, respectively, in accordance with this Agreement, (D) the amount, if any, to be withdrawn
from the Spread Account and the amount, if any, to be drawn on the Policy, (E) information
respecting (i) delinquent Receivables that are 30, 60 and 90 days past due, (ii) the number of
repossessions of Financed Vehicles during the preceding Collection Period, number of unliquidated
repossessed Financed Vehicles, gross and net losses on the Receivables, and Recoveries; and
Recoveries on Charged-Off Receivables, and (iii) adjusted, modified or extended Receivables as
necessary or requested by the Indenture Trustee or the Insurer to confirm compliance with Section
8.05(a) hereof; (F) (for so long as BVAC is the Servicer) calculations of the financial covenants
required to be maintained pursuant to Sections 5.01(l), (m) and (n) of the Insurance Agreement and
whether BVAC is in compliance therewith; and (G) each other item listed in Section 8.05 of the
Indenture reasonably requested by a Rating Agency, the Indenture Trustee or the Insurer (so long as
the Insurer is the Controlling Party) in order to monitor the performance of the Receivables.
Receivables purchased by BVAC as of the last day of such Collection Period shall be identified by
the BVAC account number with respect to such Receivable (as specified in Schedule A to this
Agreement). In addition to the information set forth in the preceding sentence, the Servicer’s
Certificate shall also contain the following information: (a) the Lock-Box Collection Percentage,
the Delinquency Ratio (as defined in the Spread Account Agreement) and the Cumulative Net Loss
Ratio (as defined in the Spread Account Agreement), for such Determination Date; (b) whether any
Trigger Event has occurred as of such Determination Date; (c) whether any Trigger Event that may
have occurred as of a prior Determination Date is Deemed Cured as of such Determination Date; and
(d) whether to the knowledge of the Servicer an Insurance Agreement Event of Default has occurred.

     SECTION 8.13 Annual Statement as to Compliance; Notice of Default.

          (a) The Servicer shall deliver to the Indenture Trustee (without duplication), the
Owner Trustee, the Back-up Servicer, the Rating Agencies, the Insurer and the

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Noteholders,
on or before March 30 of each year, beginning on March 30, 2006, an Officers’ Certificate,
dated as of December 31 of the preceding year, stating that (i) a review of the activities
of the Servicer during the preceding 12-month period (or in the case of the initial
Officer’s Certificate for any Servicer, the period from the Closing Date or the date it
became Servicer to and including such preceding December 31) 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 period, or, if there has been a default in the
fulfillment of any such obligation, specifying each such default known to such officer and
the nature and status thereof.

          (b) The Servicer shall deliver to, without duplication, the Owner Trustee, the
Indenture Trustee, the Back-up Servicer, the Rating Agencies and the Insurer, promptly after
having obtained actual knowledge thereof, but in no event later than 2 Business Days
thereafter, written notice in an Officer’s Certificate of any event which with the giving of
notice or lapse of time, or both, would become an Event of Servicer Default (if BVAC is the
Servicer) under Section 14.01 or a Back-up Servicer Default (if the Back-up Servicer is the
Servicer) under Section 14.02. The Transferor shall deliver to the Owner Trustee, the
Indenture Trustee, the Back-up Servicer, the Rating Agencies, and the Insurer, promptly
after having obtained actual knowledge thereof, but in no event later than 2 Business Days
thereafter, written notice in an Officer’s Certificate of any event which with the giving of
notice or lapse of time, or both, would become an Event of Servicer Default under clause
(ii) of Section 14.01. The Indenture Trustee shall forward a copy of each Officer’s
Certificate so received to each Noteholder.

     SECTION 8.14 Annual Independent Certified Public Accountant’s Report.

          (a) The Servicer will deliver to, without duplication, the Indenture Trustee, the Owner
Trustee, the Insurer, the Back-up Servicer and the Rating Agencies, on or before April 30 of
each year beginning April 30, 2006, a report prepared by Independent Accountants, who may
also render other services to the Servicer or any of its Affiliates or to the Transferor
addressed to the Board of Directors of the Servicer or any of its Affiliates, the Indenture
Trustee and the Insurer and dated during the current year, to the effect that such firm has
audited the financial statements of the Servicer and issued its report therefor and that
such audit (a) was made in accordance with generally accepted auditing standards, and
accordingly included such tests of the accounting records and such other auditing procedures
as such firm considered necessary in the circumstances; (b) included tests relating to
automotive loans serviced for others in accordance with the requirements of the Uniform
Single Attestation Program for Mortgage Bankers (the “Program”), to the extent the
procedures in the Program are applicable to the servicing obligations set forth in this
Agreement; (c) included an examination of the delinquency and loss statistics relating to
the Servicer’s portfolio of automobile, sport utility vehicle, light-duty truck and van sale
contracts and loan and security agreements; and (d) except as described in the report,
disclosed no exceptions or errors in the records relating to automobile, sport utility
vehicle, light-duty truck and van loans serviced for others that, in the firm’s opinion, the
Program requires such firm to report. The accountant’s report shall further state that (1)
a review in accordance with agreed upon procedures was made

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of three randomly selected
Servicer’s Certificates; (2) except as disclosed in the report, no exceptions or errors in
the Servicer’s Certificates were found; and (3) the delinquency and loss information
relating to the Receivables contained in the Servicer’s Certificates were found to be
accurate.

          (b) Such report shall also indicate that the firm is independent of the Servicer and
its Affiliates within the meaning of the Code of Professional Ethics of the American
Institute of Certified Public Accountants.

          (c) In the event such firm requires the Indenture Trustee to agree to the procedures
performed by such firm, the Servicer shall direct each such Person in writing
to so agree, it being understood and agreed that each such Person will deliver such
letter of agreement in conclusive reliance upon the direction of the of the Servicer, and
neither such Person shall make any independent inquiry or investigation as to, and shall
have no obligation or liability in respect of, the sufficiency, validity or correctness of
such procedures. Delivery of such reports, information and documents to the Indenture
Trustee is for informational purposes only, and the Indenture Trustee’s receipt of such
shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Servicer’s compliance with
any of its covenants hereunder.

          (d) Notwithstanding this Section 8.14, if the Back-up Servicer is then acting as the
successor Servicer, it shall only be required to provide a copy of its annual SAS 70 report.

     SECTION 8.15 Access to Certain Documentation and Information Regarding Receivables.
The Servicer shall provide to the Owner Trustee, the Indenture Trustee, the Back-up Servicer and
the Insurer access to the Receivables Files in such cases where such parties shall be required by
applicable statutes or regulations to review such documentation. Access shall be afforded without
charge, but only upon reasonable request and during the normal business hours at the respective
offices of the Servicer. Nothing in this Section 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 8.15.

     SECTION 8.16 Servicer Expenses. The Servicer shall be required to pay all expenses
incurred by it in connection with its activities hereunder (other than those that are otherwise
reimbursable pursuant to the terms hereof), including fees and disbursements of independent
accountants, taxes imposed on the Servicer, and expenses incurred in connection with distributions
and reports to Noteholders, the Indenture Trustee and the Insurer; provided, however, that any
successor Servicer shall be entitled to be reimbursed for any Transition Costs, and with respect to
Back-up Servicer, such costs as set forth on Schedule C attached hereto.

     SECTION 8.17 Reports to Noteholders. The Indenture Trustee shall provide to any
Noteholder who so requests in writing (addressed to the Corporate Trust Office of the Indenture
Trustee) a copy of any certificate described in Section 8.12 hereof, the annual statement described
in Section 8.13 hereof, or the annual report described in Section 8.14 hereof.

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The Indenture
Trustee may require the requesting party to pay a reasonable sum to cover the cost of the Indenture
Trustee’s complying with such request.

     SECTION 8.18 Fidelity Bond. Each of the Servicer, the Back-up Servicer and any successor Servicer hereby represent and
covenant that it has obtained, and shall continue to maintain in full force and effect, a fidelity
bond and errors and omissions policy covering it of a type and to the extent and in such amount as
is customary for prudent servicers engaged in the business of servicing motor vehicle retail
installment sales contracts similar to the Receivables.

     SECTION 8.19 Delegation of Duties. The Servicer may at any time with the prior
written consent of the Insurer (so long as the Insurer is the Controlling Party) delegate duties
under this Agreement to sub-contractors who are in the business of servicing motor vehicle
contracts; provided, however, that no such delegation or sub-contracting of duties
by the Servicer shall relieve the Servicer of its responsibility with respect to such duties. In
the event the Servicer shall for any reason no longer be the Servicer of the Receivables (including
by reason of an Event of Servicer Default), the successor Servicer shall assume all of the rights
and obligations of the predecessor Servicer under one or more subservicing agreements that may have
been entered into by the predecessor Servicer by giving notice of such assumption to the
predecessor Servicer and any subcontracted Servicer within ten (10) Business Days of the
termination of such Servicer as servicer of the Receivables; provided, however,
that a successor Servicer may elect to terminate a subservicing agreement, with the prior written
consent of the Insurer so long as the Insurer is the Controlling Party. If the successor Servicer
does not elect to assume any subservicing agreement, any and all costs of termination shall be at
the predecessor Servicer’s expense. Upon the giving of such notice, the successor Servicer shall
be deemed to have assumed all of the predecessor Servicer’s interest therein and to have replaced
the predecessor Servicer as a party to the subservicing agreement to the same extent as if the
subservicing agreement had been assigned to the assuming party except that the predecessor Servicer
and the subcontracted Servicer, if any, shall not thereby be relieved of any liability or
obligations accrued up to the date of the replacement of the predecessor Servicer under the
subservicing agreement and the subcontracted Servicer, if any, shall not be relieved of any
liability or obligation to the predecessor Servicer that survives the assignment or termination of
the subservicing agreement. The successor Servicer shall notify each Rating Agency and, the
Insurer (so long as the Insurer is the Controlling Party) if any subservicing agreement is assumed
by such successor Servicer. The predecessor Servicer shall, upon request of the Indenture Trustee
or any successor Servicer, and, at the expense of the predecessor Servicer, deliver to the assuming
party all documents and records relating to the subservicing agreement and the Receivables then
being serviced and an accounting of amounts collected and held by it and otherwise use its
reasonable best efforts to effect the orderly and efficient transfer of the subservicing agreement
to the assuming party.

     SECTION 8.20 Derivatives. The Servicer may deposit a de minimis amount of derivatives
at any time into the Trust and any such deposited derivatives shall become part of the Trust
Property. Such deposits will be made without the intent or effect of guarantying a specific rate
of return to the Noteholders or with the intent or effect of providing any credit recourse or
enhancement by the Servicer for the benefit of the Trust or the Noteholders. In connection with
any such deposit with a fair market value in excess of $1,000, as determined by the Servicer, the
Servicer shall obtain an Opinion of
Counsel that states, in substance, that such deposit will not

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change the conclusions reached
by any “true sale” opinion delivered on behalf of the BVAC on the Closing Date.

     SECTION 8.21 Receivables Sales.

          (a) Upon the sale of any Receivable pursuant to Section 8.05(a) hereof, the Servicer
will notify the Custodian pursuant to a certificate of an officer of the Servicer (which
certificate shall include a statement to the effect that all amounts received in connection
with such sale which are required to be deposited in the Collection Account pursuant to
Section 8.05(a) have been so deposited) and shall request delivery of the Receivable and
Receivable File to the purchaser of such Receivable.

          (b) The Servicer shall not use any procedure in selecting Receivables to be sold to
third party purchasers, pursuant to Section 8.05(a), which is materially adverse to the
interest of the Noteholders or the Insurer.

     SECTION 8.22 Insurer Consent.

     No derivatives deposit contemplated in Section 8.20 or Receivable sale contemplated by Section
8.05(a) shall be consummated unless, in each instance, the Servicer shall have received the prior
written approval of the Insurer.

ARTICLE IX

COLLECTIONS; DISTRIBUTIONS TO NOTEHOLDERS AND CERTIFICATEHOLDER

     SECTION 9.01 Lock-Box Account.

     (a) No later than thirty-five (35) days after the Closing Date, BVAC, as initial
Servicer, shall establish the Lock-Box Account as an Eligible Account with the Lock-Box Bank
and provide notice thereof to the Obligors of the Receivables, all in accordance with the
terms of the Lock-Box Agreement; provided that the Servicer, with the prior written
consent of the Insurer (so long as it is the Controlling Party), may from time to time (a)
establish additional or substitute Lock-Box Accounts, each of which shall be an Eligible
Account, and (b) close or terminate the use of such account or any subsequently established
accounts, each of which accounts, at such time, shall no longer be deemed to be a Lock-Box
Account; provided, further, that pursuant to the Lock-Box Agreement, the
Lock-Box Processor and no other person, other than the Indenture Trustee or the Servicer,
shall have authority to direct disposition of funds related to the Receivables on deposit in
the Lock-Box Account consistent with the provisions of this Agreement and the Lock-Box
Agreement. The Indenture Trustee shall have no liability or responsibility with respect to
the Lock-Box Processor’s or the Servicer’s directions or activities as set forth in the
preceding sentence. The Lock-Box Account shall be established pursuant to and maintained in
accordance with the Lock-Box Agreement and shall at all times be an Eligible Account. In
conjunction with the establishment of the Lock-Box Account, the Lock-box Processor, on
behalf of BVAC, as initial Servicer, shall establish and maintain the Lock-Box at a United
States Post Office Branch in accordance with the terms of the Lock-Box Agreement.
Notwithstanding the Lock-Box Agreement or any of the

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provisions of this Agreement relating to the Lock-Box and the Lock-Box Agreement, the
Servicer shall remain obligated and liable to the Indenture Trustee and the Noteholders for
servicing and administering the Receivables and the other Trust Property in accordance with
provisions of this Agreement without diminution of such obligation or liability by virtue
thereof.

          (b) In the event the Servicer shall for any reason no longer be acting as such, the
Lock-Box Agreement shall terminate in accordance with its terms and thereafter, funds on
deposit in the Lock-Box Account shall be distributed by the Lock-Box Bank, as agent for the
beneficial owners of funds in the Lock-Box Account (including the Issuer), as directed by
the successor Servicer, and the Lock-Box Bank shall deposit any such funds relating to the
Receivables to such other account as shall be identified by the successor Servicer for
deposit therein; provided, however, that the outgoing Servicer shall not
thereby be relieved of any liability or obligations on the part of the outgoing Servicer to
the Lock-Box Bank under such Lock-Box Agreement. The outgoing Servicer shall, upon request
of the Indenture Trustee, but at the expense of the outgoing Servicer, deliver to the
successor Servicer all documents and records relating to the Lock-Box Agreement and an
accounting of amounts collected and held in the Lock-Box Account or held by the Lock-Box
Processor in respect of the Receivables and otherwise use its reasonable best efforts to
effect the orderly and efficient transfer of any Lock-Box Agreement to the successor
Servicer. In the event that the Lock-Box Account fails at any time to qualify as an
Eligible Account, the Servicer, at its expense, shall cause the Lock-Box Bank to deliver, at
the direction of the Controlling Party to the Indenture Trustee or a successor Lock-Box
Bank, all documents and records relating to the Receivables and all amounts held (or
thereafter received) on deposit in the Lock-Box Account or held by the Lock-Box Processor in
respect of the Receivables (together with an accounting of such amounts) and shall otherwise
use its reasonable best efforts to effect the orderly and efficient transfer of the Lock-Box
arrangements, and the Servicer shall promptly notify the Obligors to make payments to any
new Lock-Box.

          (c) Until such time as the Lock-Box Collection Percentage with respect to any
Determination Date equals or exceeds 85%, the Servicer (i) shall on or prior to the Closing
Date, obtain and maintain an employee dishonesty bond in the amount of $3,000,000 covering
each employee of the Servicer responsible for opening, processing and depositing Scheduled
Receivable Payments received directly by the Servicer, and (ii) shall prepare a weekly
reconciliation (certified by an Authorized Officer of the Servicer), of Scheduled Receivable
Payments which have been received by the Servicer during the prior calendar week and confirm
that such payments have been deposited to the Look-Box Account or the Collection Account
(the “Reconciliation Report”), which Reconciliation Report shall be delivered to the Insurer
(so long as the Insurer is the Controlling Party) and the Indenture Trustee on Tuesday of
each week (or if such day is not a Business Day, the next succeeding Business Day), with
respect to collections received during the immediately preceding calendar week. In
addition, following satisfaction of such Lock-Box Collection Percentage, upon the request of
the Insurer (so long as it is the Controlling Party), the Servicer shall provide the Insurer
and the Indenture Trustee with the Reconciliation Report on a monthly or less frequent
basis, as so requested. The provisions of this Section 9.01 shall not apply to the Back-up
Servicer;

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provided, however, any subsequent lock-box account established by CenterOne as
successor Servicer with respect to the Receivables shall at all times be an Eligible Account
at an Eligible Bank.

SECTION 9.02 Collection Account.

(a) BVAC, as initial Servicer, shall establish the Collection Account as a segregated
non-interest bearing trust account in the name of the Trust for the benefit of the Secured
Parties with the Indenture Trustee (at the Indenture Trustee Office) or another Eligible
Bank. The Servicer shall direct the Indenture Trustee to invest the amounts in the
Collection Account in Eligible Investments that mature not later than the Business Day prior
to the next succeeding Payment Date and to hold such Eligible Investments to maturity
(provided that, if the Back-up Servicer is then acting as Servicer, such direction shall be
made by the Transferor). The Indenture Trustee (or its custodian) shall at all times (i)
maintain possession of any negotiable instruments or securities evidencing Eligible
Investments until the time of sale or maturity and each certificated security or negotiable
instrument evidencing an Eligible Investment shall be endorsed in blank or to the Indenture
Trustee (or its custodian) or registered in the name of the Indenture Trustee and (ii) cause
any Eligible Investment represented by an uncertificated security to be registered in the
name of the Indenture Trustee (or its custodian).

(b) Funds on deposit in the Collection Account and the Payahead Account shall each be
invested by the Indenture Trustee (or any custodian with respect to funds on deposit in any
such account) in Eligible Investments selected in writing by the Servicer (pursuant to
standing instructions or otherwise) (provided that, if the Back-up Servicer is then acting
as Servicer, such selection shall be made by the Transferor), bearing interest or sold at a
discount, and maturing, unless payable on demand, (i) no later than the Business Day
immediately preceding the next Payment Date if a Person other than the Indenture Trustee is
the Obligor thereon, and (ii) no later than the next Payment Date, if the Indenture Trustee
is the Obligor thereon; provided, however, it is understood and agreed that the Indenture
Trustee shall not be liable for any loss arising from such investment in Eligible
Investments unless the Eligible Investment was a direct obligation of the Indenture Trustee
or unless such loss was caused by the Indenture Trustee’s negligence or willful misconduct
(it being understood and acknowledged that no loss on any such Eligible Investment which was
made in conformity with this Agreement and the instructions of the Servicer or Transferor,
shall be considered “caused by the Indenture Trustee’s negligence or willful misconduct”).
No investment may be sold prior to its maturity. All such Eligible Investments shall be
held by or on behalf of the Indenture Trustee for the benefit of the Indenture Trustee on
behalf of the Noteholders, the Insurer and the Certificateholder as their interests may
appear. Funds deposited in the Collection Account or the Payahead Account on the day
immediately preceding a Payment Date upon the maturity of any Eligible Investments are not
required to be invested overnight. On each Payment Date, all interest income (net of
investment losses and expenses) on funds on deposit in the Collection Account and the
Payahead Account, as of the end of the Collection Period shall be included in Available
Funds. For purposes of this paragraph, the Indenture Trustee will take delivery of the
Eligible Investments in accordance with Schedule D.

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          (c) If (i) the Servicer shall have failed to give investment directions for any funds
on deposit in the Collection Account or the Payahead Account to the Indenture Trustee by
2:00 p.m. Eastern Time (or such other time as may be agreed by the Issuer and Indenture
Trustee) on any Business Day; or (ii) an 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, or, if such Notes shall have been declared due and payable following an Event of
Default under the Indenture, amounts collected or receivable from the Trust Property are
being applied 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 and
the Payahead Account in one or more investments within the categories of Eligible
Investments as specified in an investment instruction letter delivered by the Servicer
(provided that, if the Back-up Servicer is then acting as Servicer, such direction shall be
made by the Transferor).

          (d) (1) The Trust shall possess all right, title and interest in all funds from time to
time on deposit in, and assets credited to, the Trust Accounts and in all proceeds thereof
and all such funds, assets, investments, proceeds and income shall be part of the Trust
Property. Except as otherwise provided herein, the Trust Accounts shall be under the sole
dominion and control of the Indenture Trustee for the benefit of the Noteholders, to the
extent expressly set forth herein or in the other Basic Documents, the Insurer and the
Certificateholder as their interests may appear.

               (2) With respect to any Eligible Investments held from time to time in any Trust
Account, the Indenture Trustee agrees that:

                        (A) any Eligible Investment that is held in deposit accounts shall be, except
as otherwise provided herein, subject to the exclusive custody and control of the
Indenture Trustee, and the Indenture Trustee shall have sole signature authority
with respect thereto; and

                        (B) any other Eligible Investment shall be held, pending maturity or
disposition by the Indenture Trustee in accordance with the terms of the definition
of “Delivery.”

          (e) No Trust Account shall be maintained with an institution other than the Indenture
Trustee unless such institution agrees in writing to the provisions of Sections 9.02(d)(2)
and 9.12 hereof as if such institution were the Indenture Trustee, except that pursuant to
the first sentence of Section 9.12 hereof, the Indenture Trustee shall continue to be the
“entitlement holder” of the related Trust Account.

     In no event shall the Indenture Trustee be liable for the selection of investments or for
investment losses incurred thereon. The Indenture Trustee shall have no liability in respect of
losses incurred as a result of the liquidation of any investment prior to its stated maturity or
the failure of the Servicer to provide timely written investment direction. Subject to the
provisions of 9.01 hereof and the Indenture Trustee’s standard of care set forth in Section 6.01 of
the Indenture, in no event shall the Indenture Trustee be liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including but not limited to lost profits),
even if the

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Indenture Trustee has been advised of the likelihood of such loss or damage and regardless of
the form of action.

     SECTION 9.03 Collections.

          (a) Upon establishment of the Lock-Box Account in accordance with Section 9.01(a)
hereof, the Servicer shall use reasonable best efforts to cause the Lock-Box Processor to
transfer any payments in respect of the Receivables from or on behalf of Obligors received
in the Lock-Box to the Lock-Box Account on the Business Day on which such payments are
received, pursuant to the Lock-Box Agreement. Within two (2) Business Days of receipt of
such funds into the Lock-Box Account, the Servicer shall cause the Lock-Box Bank to transfer
available funds from the Lock-Box Account to the Collection Account, and if such funds are
not available funds, as soon thereafter as they clear (i.e., become available for withdrawal
from the Lock-Box Account). In addition, the Servicer shall remit all payments (other than
amounts comprising the Supplemental Servicing Fee) by or on behalf of the Obligors received
by the Servicer with respect to the Receivables (other than Purchased Receivables), and all
Liquidation Proceeds, insurance proceeds and other collections from whatever source, no
later than the second Business Day following receipt into the Lock-Box Account or the
Collection Account, as applicable. On the Closing Date, the Servicer shall deposit in the
Collection Account the foregoing amounts received through the date that is two Business Days
prior to the Closing Date with respect to the Receivables during the first Collection
Period.

          (b) The Indenture Trustee shall deposit in the Collection Account any funds received
from the Collateral Agent, from the Spread Account or in respect of funds drawn under the
Policy from the Insurer, provided that such funds may only be applied to cover Deficiency
Claim Amounts and Insured Payments on the related Payment Date.

     SECTION 9.04 Additional Deposits

          (a) (i) Not later than the Determination Date, the Servicer shall remit to the
Collection Account the aggregate Purchase Amount for such Collection Period pursuant to
Sections 7.02 and 8.10 hereof; and (ii) not later than 11:00 a.m. (New York City time) on
the related Payment Date, the Servicer shall remit to the Collection Account the Redemption
Price for Receivables on such Payment Date pursuant to Section 16.02 hereof.

          (b) Following the acceleration of the Notes pursuant to Section 5.02 of the Indenture,

any proceeds of the Trust Property shall be deposited in the Collection Account to be
distributed by the Indenture Trustee in accordance with Section 8.05(g) of the Indenture.

          (c) On or before each Payment Date, the Indenture Trustee shall transfer to the
Collection Account any amounts transferred to the Indenture Trustee by the Collateral Agent
from the Spread Account in accordance with the Spread Account Agreement.

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          (d) On or before the Redemption Date, the Indenture Trustee shall deposit in the
Collection Account the Redemption Price paid by or on behalf of the Issuer pursuant to
Article XI of the Indenture.

          (e) On the Business Day upon which any sale of Receivables contemplated by Section
8.05(a) any Sale Amount received shall be deposited into the Collection Account.

     SECTION 9.05 Application of Funds.

          (a) On each Determination Date, the Servicer shall determine the amount of Available
Funds and the amount of funds necessary to make the distributions required pursuant to
Section 8.05(a) of the Indenture on the next Payment Date. The Servicer shall by a
Servicer’s Certificate on or before the Determination Date notify the Owner Trustee,

Collateral Agent, the Indenture Trustee and the Insurer of such amounts by telecopy to the
Corporate Trust Office, the Indenture Trustee Office and the address of the Insurer set
forth in Section 17.05 hereof or to such numbers as the Owner Trustee, Indenture Trustee or
the Insurer may from time to time provide, followed promptly by mailing such notice to the
Owner Trustee, the Indenture Trustee and the Insurer.

          (b) For any Payment Date on which there will not be sufficient Available Funds to make
the distributions required pursuant to Section 8.05(a)(i) through (vii) of the Indenture,
the Indenture Trustee shall deliver to the Collateral Agent, the Insurer, and the Servicer,
by hand delivery or facsimile transmission, a written notice (a “Deficiency Notice”)
specifying the Deficiency Claim Amount for such Payment Date. Any Deficiency Notice shall
be delivered on or as promptly as reasonably possible after the Determination Date and in no
event later than 11:00 a.m., Eastern time, on the fourth Business Day preceding such Payment
Date. Such Deficiency Notice shall direct the Collateral Agent to remit such Deficiency
Claim Amount (to the extent of the funds available to be distributed pursuant to the Spread
Account Agreement) to the Indenture Trustee for deposit of such amount in the Collection
Account. If such deficiency exceeds the Available Spread Amount, the Indenture Trustee
shall submit, concurrently with the Deficiency Notice or promptly thereafter but in no event
later than the Draw Date, a claim under the Policy to the Insurer and the Fiscal Agent (as
defined in the Insurance Agreement) pursuant to Section 9.03 of the Indenture. All amounts
paid under the Policy shall be applied by the Indenture Trustee pursuant to Section 8.05 of
the Indenture.

          (c) On each Payment Date, the Owner Trustee shall send to the Certificateholder the
Servicer’s Certificate provided to the Owner Trustee by the Servicer for such Payment Date.

     SECTION 9.06 Spread Account. The Transferor agrees, simultaneously with the execution
and delivery of this Agreement, to deposit the Spread Account Initial Deposit in the Spread Account
on the Closing Date.

SECTION 9.07 Advances

          (a) (i) As of the last day of the initial Collection Period, the Servicer shall advance
funds equal to the excess, if any, of Monthly Interest due in respect of the initial

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Collection Period, over the Collected Interest for such Collection Period; and (ii) as of
the last day of each subsequent Collection Period, the Servicer shall advance funds in the
amount of the Interest Advance Amount (or such other amount as the Servicer shall reasonably
determine to cover an Interest Shortfall) with respect to each Receivable that is delinquent
for more than 30 days, in each such case, to the extent that the Servicer, in its sole
discretion, determines that the Advance will be recoverable from payments by or on behalf of
the Obligor, the Purchase Amount, or Liquidation Proceeds. With respect to each Receivable,
the Advance paid pursuant to this Section 9.07 shall increase Outstanding Advances.
Outstanding Advances shall be reduced by subsequent payments by or on behalf of the Obligor,
collections of Liquidation Proceeds, or payments of the Purchase Amount in accordance with
the priorities set forth in Section 8.05 of the Indenture. The Servicer shall remit any
Advances with respect to a Collection Period to the Collection Account by the related
Determination Date.

          (b) If the Servicer shall determine that an Outstanding Advance with respect to any
Receivable shall not be recoverable, the Servicer shall be reimbursed from any collections
made on other Receivables in the Trust in accordance with the priorities set forth in
Section 8.05 of the Indenture, and Outstanding Advances with respect to such Receivable
shall be reduced accordingly.

          (c) No successor Servicer shall be obligated to make Advances under this Agreement and
shall not be liable for Advances incurred by the Servicer before the commencement of
performance by such successor Servicer.

     SECTION 9.08 No Segregation of Moneys; No Interest. Subject to Section 9.05 hereof,
moneys received by the Owner Trustee hereunder need not be segregated in any manner except to the
extent required by law or this Agreement and may be deposited under such general conditions as may
be prescribed by law, and the Owner Trustee shall not be liable for any interest thereon.

     SECTION 9.09 Accounting and Reports to the Certificateholder, the Internal Revenue Service
and Others. The Owner Trustee shall deliver to the Certificateholder, as may be required by
the Code and applicable Treasury Regulations, or as may be requested by such Certificateholder,
such information, reports or statements as may be reasonably necessary to enable the
Certificateholder to prepare its federal and State income tax returns. Consistent with the Trust’s
characterization for tax purposes as a disregarded entity so long as the Transferor or any other
Person is the sole beneficial owner of the Trust, no federal income tax return shall be filed on
behalf of the Trust unless either (i) the Owner Trustee shall receive an Opinion of Counsel that,
based on a change in applicable law occurring after the date hereof, or as a result of a transfer
by a selling Certificateholder permitted by Section 11.04 hereof, the Code requires such a filing
or
(ii) the Internal Revenue Service shall determine that the Trust is required to file such a
return. In the event that there shall be two or more beneficial owners of the Trust (including the
treatment of any class of Notes as a beneficial ownership in the Trust pursuant to a final
determination of the Internal Revenue Service or a court), the Owner Trustee shall inform the
Indenture Trustee in writing of such event, (x) the Administrator, on behalf of the Trust, shall
prepare or shall cause to be prepared federal and, if applicable, State or local partnership tax
returns required to be filed by the Trust (using the calendar year or its fiscal year, or such
other

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taxable year as may be required by the Code) and shall remit such returns to the Transferor
for signature (or if the Transferor no longer owns the Certificate, to the Transferor to the extent
its tax liability is affected thereby and otherwise to the successor Certificateholder owning the
largest percentage interest in the Certificates) at least (5) days before such returns are due to
be filed, and (y) capital accounts shall be maintained for each beneficial owner in accordance with
the Treasury Regulations under Section 704(b) of the Code reflecting each such beneficial owner’s
share of the income, gains, deductions, and losses of the Trust and/or guaranteed payments made by
the Trust and contributions to, and distributions from, the Trust. The Transferor (or such
successor Certificateholder, as applicable) shall promptly sign such returns and deliver such
returns after signature to the Administrator, on behalf of the Trust and such returns shall be
filed by the Administrator, on behalf of the Trust, with the appropriate tax authorities. In the
event that a “tax matters partner” (within the meaning of Code Section 6231(a)(7)) is required to
be appointed with respect to the Trust, the Transferor is hereby designated as tax matters partner
or, if the Transferor is not the Certificateholder, the Transferor to the extent its tax liability
is affected thereby and otherwise the successor Certificateholder owning the largest percentage
interest in the Certificates, shall be designated as tax matters partner. In no event shall the
Owner Trustee, the Administrator or the Transferor (or such designee Certificateholder, as
applicable) be liable for any liabilities, costs or expenses of the Trust or the Noteholders
arising out of the application of any tax law, including federal, State, foreign or local income or
excise taxes or any other tax imposed on or measured by income (or any interest, penalty or
addition with respect thereto or arising from a failure to comply therewith) except for any such
liability, cost or expense attributable to any act or omission by the Owner Trustee, the
Administrator or the Transferor (or such designee Certificateholder as applicable), as the case may
be, in breach of its obligations under this Agreement. Unless otherwise instructed by a majority
in interest of the Certificates, none of the Owner Trustee, the Administrator, or the Transferor
shall elect, or shall cause an election to be made on behalf of the Trust, under (i) Section 1278
of the Code to accrue its market discount income currently or (ii) Section 754 of the Code.

     SECTION 9.10 Payahead Account. The Servicer shall establish the Payahead Account in
the name of the Trust on behalf of the Obligors, the Noteholders and the Insurer as their interests
may appear. The Servicer shall maintain the Payahead Account pursuant to Section 8.07 of the
Indenture.

     SECTION 9.11 Certain Reimbursements to the Servicer. The Servicer will be entitled to
be reimbursed from amounts on deposit in the Collection Account with respect to a Collection Period
for amounts previously deposited in the Collection Account but later determined by the Servicer to
have resulted from mistaken deposits
or postings or checks returned for insufficient funds; provided, however, that
such reimbursement must be requested by the Servicer within six months of the related mistaken
deposit into the Collection Account, otherwise such right to reimbursement shall be forfeited (this
proviso shall not apply to any successor Servicer). The amount to be reimbursed hereunder shall be
paid to the Servicer on the related Payment Date pursuant to Section 8.05 of the Indenture upon
certification by the Servicer of such amounts and the provision of such information to the
Indenture Trustee and the Insurer as may be reasonably necessary in the reasonable business
judgment of the Insurer to verify the accuracy of such certification. In the event that the
Insurer has not received evidence reasonably satisfactory to it of the Servicer’s entitlement to
reimbursement pursuant to this Section, the

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Insurer shall (so long as Insurer is the Controlling
Party) give the Indenture Trustee notice to such effect, following receipt of which the Indenture
Trustee shall not make a distribution to the Servicer in respect of such amount pursuant to Section
8.05(a) of the Indenture, or if the Servicer prior thereto has been reimbursed pursuant to Section
8.05(a) of the Indenture, the Indenture Trustee shall withhold such amounts from amounts otherwise
distributable to the Servicer pursuant to Section 8.05(a) of the Indenture on the next succeeding
Payment Date.

     SECTION 9.12 Securities Accounts. The Indenture Trustee agrees that any Trust Account
held by it hereunder shall be maintained as a “securities account” as defined in the Uniform
Commercial Code as in effect in New York (the “New York UCC”), and that it shall be acting as a
“securities intermediary” for the Indenture Trustee itself as the “entitlement holder” (as defined
in Section 8-102(a)(7) of the New York UCC) with respect to each such Trust Account. The parties
hereto agree that each Trust Account shall be governed by the laws of the State of New York, and
regardless of any provision in any other agreement, the “securities intermediary’s jurisdiction”
(within the meaning of Section 8-110 of the New York UCC) shall be the State of New York. The
Indenture Trustee acknowledges and agrees that (a) each item of property (whether investment
property, financial asset, security, instrument or cash) credited to the Accounts shall be treated
as a “financial asset” within the meaning of Section 8-102(a)(9) of the New York UCC and (b)
notwithstanding anything to the contrary, if at any time the Indenture Trustee shall receive any
order from the Indenture Trustee directing transfer or redemption of any financial asset relating
to the Trust Accounts, the Indenture Trustee shall comply with such entitlement order without
further consent by the Transferor or any other person. In the event of any conflict of any
provision of this Section 9.12 with any other provision of this Agreement or any other agreement or
document, the provisions of this Section 9.12 shall prevail.

ARTICLE X

VOTING RIGHTS AND OTHER ACTIONS

     SECTION 10.01 Prior Notice with Respect to Certain Matters. The Owner Trustee shall
not take any of the actions set forth below unless the Owner Trustee shall have notified the
Certificateholder and the Insurer (so long as the Insurer is the Controlling Party) and each Rating
Agency of the proposed action and the Certificateholder, with the prior written consent of the
Insurer (so long as it is the Controlling Party), has approved such

     action in writing, which approval has been received by the Owner Trustee by, the
30th day after such notice has been given:

          (i) the election by the Trust to file an amendment to the Certificate of Trust (unless
such amendment is required to be filed under the Delaware Statutory Trust Act);

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

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

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          (iv) except pursuant to Section 17.01 hereof, the amendment, change or modification of
this Agreement;

          (v) except as provided in Article XVI hereof, dissolve, terminate or liquidate the
Trust in whole or in part;

          (vi) do any act which would make it impossible to carry on the ordinary business of the
Trust;

          (vii) confess a judgment against the Trust;

          (viii) possess Trust assets, or assign the Trust’s right to property, for other than a
Trust purpose;

          (ix) cause the Trust to lend any funds to any entity;

          (x) change the Trust’s purpose and powers from those set forth in this Agreement; or

          (xi) cause the Trust to incur, assume or guaranty any indebtedness except as set forth
in this Agreement and the other Basic Documents.

     SECTION 10.02 Action with Respect to Certain Matters. The Owner Trustee shall not
have the power, except in accordance with the Basic Documents and upon the written direction of (i)
the Controlling Party or, after the Notes have been paid in full and the expiration of the Policy
in accordance with its terms and written notice thereof has been delivered by the Indenture Trustee
to the Owner Trustee, (ii) the Certificateholder (in each case, such directing party, the
“Instructing Party”) to (a) remove the Servicer, or the Back-up Servicer hereunder or (b) except as
expressly provided in the Basic Documents, sell the Receivables after the termination of the
Indenture. The Owner Trustee shall take the actions referred to in the preceding sentence only
upon written instructions signed by the Instructing Party and the furnishing of indemnification
satisfactory to the Owner Trustee by the Certificateholder and providing each Rating Agency with
prior or concurrent notice of such action. Notwithstanding anything to the contrary set forth in
this Agreement, any instruction,
direction or consent to be given by the Controlling Party or Instructing Party under this
Agreement or any other Basic Document to the Owner Trustee shall include a certification by such
Controlling Party or Instructing Party that such Person is the Controlling Party or Instructing
Party in accordance with the provisions of the Basic Documents, and the Owner Trustee shall have no
liability to the extent it relies in good faith thereon.

     SECTION 10.03 Restrictions on Certificateholder’s Power.

          (a) The Certificateholder shall not direct the Owner Trustee to take or refrain from
taking any action if such action or inaction would be contrary to any obligation of the
Trust or the Owner Trustee under this Agreement or any of the Basic Documents or would be
contrary to Section 1.03 hereof nor shall the Owner Trustee follow any direction to the
extent the Owner Trustee has actual knowledge that such direction is in violation hereof.

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          (b) The Certificateholder shall not have any right by virtue or by availing itself of
any provisions of this Agreement to institute any suit, action, or proceeding in equity or
at law upon or under or with respect to this Agreement or any Basic Document, unless the
Certificateholder is the Instructing Party pursuant to Section 10.02 hereof and unless the
Certificateholder previously shall have given to the Owner Trustee a written notice of
default and of the continuance thereof, as provided in this Agreement, and also unless the
Certificateholder shall have made written request upon the Owner Trustee to institute such
action, suit or proceeding in its own name as Owner Trustee under this Agreement and shall
have offered to the Owner Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, and the Owner Trustee,
for 30 days after its receipt of such notice, request, and offer of indemnity, shall have
neglected or refused to institute any such action, suit, or proceeding, and during such
30-day period no request or waiver inconsistent with such written request has been given to
the Owner Trustee pursuant to and in compliance with this Section or Section 10.02 hereof.
For the protection and enforcement of the provisions of this Section, the Owner Trustee
shall be entitled to such relief as can be given either at law or in equity.

     SECTION 10.04 Control. The Certificateholder shall not have any right to vote or in
any manner otherwise control the operation and management of the Trust except as expressly provided
in this Agreement.

     SECTION 10.05 Rights of Insurer. Notwithstanding anything to the contrary in the
Basic Documents, without the prior written consent of the Insurer (so long as the Insurer is the
Controlling Party), the Owner Trustee shall not (i) remove the Servicer or the Back-up Servicer,
(ii) initiate any claim, suit or proceeding by the Trust or compromise any claim, suit or
proceeding brought by or against the Trust, other than with respect to the enforcement of any
Receivable or any rights of the Trust thereunder, (iii) authorize the merger or consolidation of
the Trust with or into any other
statutory trust or other entity (other than in accordance with Section 3.10 of the Indenture)
or (iv) amend the Certificate of Trust (except as may be required by the Delaware Statutory Trust
Act).

     SECTION 10.06 Registration of Transfer and Exchange of the Certificate. Upon the
formation of the Trust by the contribution by the Transferor pursuant to Article III hereof and
until the issuance of the Certificate to the initial Certificateholder, the Transferor shall be the
sole beneficiary of the Trust.

ARTICLE XI

THE CERTIFICATE

     SECTION 11.01 Initial Ownership. Upon the formation of the Trust by the contribution
by the Transferor pursuant to Article III and until the issuance of the Certificate to the initial
Certificateholder, the Transferor shall be the sole beneficiary of the Trust.

     SECTION 11.02 The Certificate. The Certificate shall be issued in the form of one or
more certificates and shall initially be issued to the Transferor. The Certificate shall be

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executed on behalf of the Trust by manual or facsimile signature of a Responsible Officer of the
Owner Trustee. A Certificate bearing the manual or facsimile signatures of individuals who were,
at the time when such signatures shall have been affixed, authorized to sign on behalf of the
Trust, shall be valid and binding obligations of the Trust, notwithstanding that such individuals
or any of them shall have ceased to be so authorized prior to the authentication and delivery of
such Certificate or did not hold such offices at the date of such Certificate.

     SECTION 11.03 Authentication of Certificate. Subject to Section 11.04 hereof, the
Owner Trustee shall cause one Certificate to be executed on behalf of the Trust, authenticated, and
delivered to or upon the written order of the Transferor, signed by its chairman of the board, its
president, or any vice president, without further corporate action by the Transferor, in authorized
denominations, pursuant to this Agreement. No Certificate shall entitle its holder to any benefit
under this Agreement, or shall be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication, substantially as set forth in the form of Certificate
attached as Exhibit E to this Agreement, executed by a Responsible Officer of the Owner Trustee by
manual signature; such authentication shall constitute conclusive evidence that such Certificate
shall have been duly authenticated and delivered hereunder. Each Certificate shall be dated the
date of its authentication.

     SECTION 11.04 Registration of Transfer and Exchange of Certificate.

          (a) Upon formation of the Trust by the contribution by the Transferor pursuant to
Section 1.05, the Transferor shall be issued a Certificate, duly executed and
delivered in exchange therefor, evidencing ownership of 100% of the beneficial
ownership of the assets of the Trust.

          (b) Neither the registered nor the beneficial interest in any Certificate may be
transferred, assigned, hypothecated or pledged in any manner by any direct or indirect owner
thereof (including any transferee thereof subsequent to the date hereof) without the prior
written notice by such owner to each of the Insurer and the Owner Trustee. Any purported
transfer, assignment, hypothecation or pledge in any manner of any such registered or
beneficial interest in any Certificate in the Trust in violation of this Section 11.04(b)
shall be null and void and shall not cause any rights to inure to the benefit of the
purported transferee.

          (c) (i) The Owner Trustee shall keep or cause to be kept, at the Corporate Trust
Office, a Certificate Register in which, subject to such reasonable regulations as it may
prescribe, the Owner Trustee shall provide for the registration of each Certificate and of
transfers and exchanges of a Certificate subject to the restrictions provided herein.

               (ii) The Certificate Registrar shall provide the Indenture Trustee and the Insurer with
the name and address of the Certificateholder on the Closing Date, to the extent such
information has been provided to the Certificate Registrar and in the form provided to the
Certificate Registrar on such date. Upon any transfers of the Certificate, the Certificate
Registrar shall notify the Indenture Trustee and the Insurer of the name and address of the
transferee in writing, by facsimile, on the day of such transfer, or promptly thereafter.

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          (d) Upon surrender for registration of transfer of any Certificate at the Corporate
Trust Office, the Owner Trustee shall execute, authenticate, and deliver, in the name of the
designated transferee or transferees, one or more new Certificates in authorized
denominations of a like aggregate amount dated the date of authentication by the Owner
Trustee, provided, however, that registration of transfer of the Certificate may not be
effected unless (A) the Owner Trustee receives an Opinion of Counsel, satisfactory to it, to
the effect that (i) such transfer may be made in reliance upon an exemption from the
registration requirements of the Securities Act of 1933, as amended, and (ii) such transfer
will not adversely affect the tax treatment of the Trust or the Notes; (B) the Insurer has
consented to such transfer and (C) the Rating Agency Condition shall have been satisfied
with respect to such transfer.

          (e) Every Certificate presented or surrendered for registration of transfer or exchange
shall be accompanied by a written instrument of transfer in form satisfactory to the Owner
Trustee duly executed by the Holder or his attorney duly authorized in writing. Each
Certificate surrendered for registration of transfer and exchange shall be canceled and
subsequently destroyed by the Owner Trustee.

          (f) No service charge shall be made for any registration of transfer or exchange of a
Certificate, but the Owner 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 a Certificate.

     SECTION 11.05 Mutilated, Destroyed, Lost, or Stolen Certificates. If (a) any
mutilated Certificate shall be surrendered to the Owner Trustee, or if the Owner Trustee shall
receive evidence to its satisfaction of the destruction, loss, or theft of any Certificate and (b)
there shall be delivered to the Owner Trustee such security or indemnity as may be required by it
to save it harmless, then in the absence of notice that such Certificate shall have been acquired
by a bona fide purchaser, the Owner Trustee on behalf of the Trust shall execute and the Owner
Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost, or stolen Certificate, a new Certificate of like tenor and denomination. In
connection with the issuance of any new Certificate under this Section 11.05, the Owner Trustee may
require the payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in connection therewith. Any duplicate Certificate issued pursuant to this Section 11.05
shall constitute conclusive evidence of ownership in the Trust, as if originally issued, whether or
not the lost, stolen, or destroyed Certificate shall be found at any time.

     SECTION 11.06 Persons Deemed Certificateholder. Every Person by virtue of becoming a
Certificateholder in accordance with this Agreement shall be deemed to be bound by the terms of
this Agreement. Prior to due presentation of a Certificate for registration of transfer, the Owner
Trustee, any agent of the Owner Trustee, the Insurer and the Certificate Registrar, may treat the
Person in whose name any Certificate shall be registered in the Certificate Register as the owner
of such Certificate for the purpose of receiving distributions pursuant to this Agreement and the
Spread Account Agreement and for all other purposes whatsoever, and none of the Owner Trustee, the
Insurer, the Certificate Registrar or any agent of the Owner Trustee be bound by any notice to the
contrary absent the presentation of such Certificate.

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     SECTION 11.07 Covenants of the Certificateholder. The Certificateholder by becoming a
beneficial owner of a Certificate or by its acceptance of a Certificate agrees:

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

          (b) to the appointment of the Owner Trustee as such Certificateholder’s agent and
attorney-in-fact to sign any federal income tax information return filed on behalf of the
Trust and, if requested by the Trust, to sign such federal income tax information return in
its capacity as Holder of an interest in the Trust;

          (c) not to take any position in such Certificateholder’s tax returns inconsistent with
those taken in any tax returns filed by the Trust;

          (d) if such Certificateholder is other than an individual or other entity holding its
Certificate through a broker who reports securities sales on Form 1099-B, to notify the
Owner Trustee in writing of any transfer by it of a Certificate in a taxable sale or
exchange, within 30 days of the date of the transfer; and

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

ARTICLE XII

THE TRANSFEROR

     SECTION 12.01 Representations and Undertakings of Transferor.

          (a) Representations and Warranties of Transferor. The Transferor makes the
following representations on which the Trust relies in accepting the Receivables in trust
and executing and authenticating the Certificate and undertaking its obligations under the
Indenture and on which the Insurer will rely in issuing the Policy. The Transferor agrees
that the representations shall also be for the benefit of the Secured Parties. The
representations speak as of the execution and delivery of this Agreement and shall

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survive
the sale of the Receivables to the Trust and the subsequent pledge of the Receivables to the
Indenture Trustee.

	 	(i)  	Organization and Good Standing. The Transferor is duly
organized and validly existing as a corporation in good standing under the laws
of the State of Delaware, with the 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, the corporate power, authority, and legal right to acquire and own the
Receivables and the other Transferred Property (as defined in the Purchase
Agreement) transferred to it under the Purchase Agreement and to convey the
Receivables and the other Trust Property to the Trust pursuant to this
Agreement, and to perform its other obligations under this Agreement and any
other Basic Documents to which it is a party. The
Transferor is, and from inception has been, organized exclusively under the
laws of the State of Delaware.
	 
	 	(ii)  	Due Qualification. The Transferor is duly qualified to
do business as a foreign corporation in good standing, and has obtained all
necessary licenses and approvals in all jurisdictions in which the ownership or
lease of property or the conduct of its business (including, without
limitation, the purchase of the Receivables from BVAC under the Purchase
Agreement, the conveyance of the Receivables by the Transferor pursuant to this
Agreement, and the performance of its other obligations under this Agreement
and the other Basic Documents to which it is a party) shall require such
qualifications, licenses and/or approvals, other than where the failure to
obtain such qualification, license or approval would not have a material
adverse effect on the ability of the Transferor to perform its obligations
under this Agreement or any other Basic Document to which it is a party, on any
Receivable or on the interest therein of the Issuer, the Noteholders or the
Insurer.
	 
	 	(iii)  	Power and Authority. The Transferor has the power and
authority to execute and deliver this Agreement and the other Basic Documents
to which it is a party and to carry out their respective terms and the
execution, delivery and performance of this Agreement and the other Basic
Documents to which it is a party have been duly authorized by the Transferor by
all necessary corporate action.
	 
	 	(iv)  	Binding Obligation. Each of this Agreement and each
other Basic Document to which the Transferor is a party shall constitute a
legal, valid, and binding obligation of the Transferor enforceable in
accordance with its terms except only as such enforcement may be limited by
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally.

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	 	(v)  	No Violation. The execution, delivery and performance
by the Transferor of this Agreement and the other Basic Documents to which it
is a party and the consummation of the transactions contemplated hereby and
thereby and the fulfillment of the terms hereof and thereof do not conflict
with, result in a 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 Transferor, or any indenture, agreement,
mortgage, deed of trust, or other instrument to which the Transferor is a party
or by which it is bound or to which any of its properties are subject; nor
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any indenture, agreement, mortgage, deed of trust, or
other instrument (other than the Basic Documents); nor violate any law, order,
rule or regulation applicable to the Transferor of any court or of any federal
or State regulatory body,
administrative agency or other governmental instrumentality having
jurisdiction over the Transferor or its properties.
	 
	 	(vi)  	No Proceedings. There are no proceedings or
investigations pending, or to the Transferor’s best knowledge, threatened,
before any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Transferor or its properties: (A)
asserting the invalidity of this Agreement, the Notes, the Certificate, or any
other Basic Document; (B) seeking to prevent the issuance of the Notes or the
consummation of any of the transactions contemplated by this Agreement or any
other Basic Document to which it is a party; (C) seeking any determination or
ruling that might materially and adversely affect the performance by the
Transferor of its obligations under, or the validity or enforceability of, the
Notes or any other Basic Document to which it is a party; or (D) relating to
the Transferor and which might adversely affect the federal or State income,
excise, franchise or similar tax attributes of the Notes.
	 
	 	(vii)  	No Consents. No consent, approval, authorization or
order of or declaration or filing with any governmental authority is required
to be obtained by the Transferor for the issuance or sale of the Notes or the
consummation of the other transactions contemplated by this Agreement or any
other Basic Document to which it is a party, except such as have been duly made
or obtained or where the failure to obtain such consent, approval,
authorization, order or declaration, or to make such filing, would not have a
material adverse effect on the ability of the Transferor to perform its
obligations under this Agreement or any other Basic Document to which it is a
party or on any Receivable or the interest therein of the Issuer, the
Noteholders or the Insurer.
	 
	 	(viii)  	Valid Assignment. Each Receivable has been validly assigned by the
Transferor to the Issuer on the Closing Date pursuant to this Agreement

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	 	   	and no
Receivable has been sold, transferred, assigned or pledged by the Transferor to
any Person other than the Issuer.
	 
	 	(ix)  	Legal Name. The Transferor’s exact legal name is, and
has always been, Bay View Deposit Corporation.
	 
	 	(x)  	Executive Office. The Transferor’s chief executive
office is located in San Mateo, California.

          (b) Covenants of Transferor. The Transferor further covenants that, prior to
termination of the Trust:

	 	(i)  	It will not engage at any time in any business or business
activity other than such activities expressly set forth in its Certificate of
Incorporation delivered to the Insurer on or prior to the Closing Date, and
will not
amend its Certificate of Incorporation or otherwise amend, alter, change or
repeal the special purposes or separateness provisions or the definition of
Independent Director (as defined in the Certificate of Incorporation) with
respect to the Certificate of Incorporation or by-laws of the Transferor
without the prior written consent of the Insurer (so long as the Insurer is
the Controlling Party).
	 
	 	(ii)  	[Reserved].
	 
	 	(iii)  	It will not:

	 	(A)  	Fail to do all things necessary to maintain its
corporate existence separate and apart from BVAC or the Trust and any
other Person, including, without limitation, holding regular meetings
of its stockholders and board of directors and maintaining appropriate
corporate books and records (including a current minute book);
	 
	 	(B)  	Suffer any limitation on the authority of its
own directors and officers to conduct its business and affairs in
accordance with their independent business judgment or authorize or
suffer any Person (other than its own officers and directors or others
customarily delegated under powers of attorney) to take any action for
which a corporation’s own officers and directors would customarily be
responsible;
	 
	 	(C)  	Fail to (i) maintain, or cause to be maintained
by an agent of the Transferor under the Transferor’s control, physical
possession of all its books and records, (ii) maintain capitalization
adequate for the conduct of its business, (iii) account for and manage
all its liabilities separately from those of any other Person,
including payment by it of all payroll, administrative expenses and
taxes, if any, from its own assets, (iv) segregate and identify
separately all of its assets from those of any other Person, (v) to the
extent any

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	 	   	such payments are made, pay its employees, officers and
agents for services performed for the Transferor or (vi) maintain a
separate office address with a separate telephone number from those of
BVAC, the Trust or any other affiliate thereof; or
	 
	 	(D)  	Except as may be provided in this Agreement, or
a similar agreement relating to other securitizations in which the
Transferor has similar rights and/or obligations, commingle its funds
with those of BVAC or any affiliate thereof or use its funds for other
than the Transferor’s uses.

          (c) It shall not create, incur or suffer to exist any indebtedness or engage in any
business, except, in each case, as permitted by its certificate of incorporation, bylaws and
the Basic Documents;

          (d) It shall not, for any reason, institute proceedings for the Trust to be adjudicated
bankrupt or insolvent, or consent to or join in the institution of bankruptcy or Insolvency
Proceedings against the Trust, or file a petition seeking or consenting to reorganization or
relief under any applicable federal or State law relating to the bankruptcy of the Trust, or
consent to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or
other similar official) of the Trust or a substantial part of the property of the Trust or
cause or permit the Trust to make any assignment for the benefit of creditors, or admit in
writing the inability of the Trust to pay its debts generally as they become due, or declare
or effect a moratorium on the debt of the Trust or take any action in furtherance of any
such action;

          (e) It shall obtain from each counterparty to each Basic Document to which it or the
Trust is a party and each other agreement entered into in connection herewith or any other
Basic Document on or after the date hereof to which it or the Trust is a party, an agreement
by each such counterparty that prior to one year and one day after the completion of the
event specified in Section 16.01(a) hereof such counterparty shall not institute against, or
join any other Person in instituting against, it or the Trust, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other similar
proceedings under the laws of the United States or any State of the United States; and

          (f) Subject to Section 13.05 hereof, it shall not, for any reason, withdraw or attempt
to withdraw from this Agreement or any other Basic Document to which it is a party,
dissolve, institute proceedings for it to be adjudicated bankrupt or insolvent, or consent
to the institution of bankruptcy or Insolvency Proceedings against it, or file a petition
seeking or consenting to reorganization or relief under any applicable federal or State law
relating to bankruptcy, or consent to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of it or a substantial part of its
property, or make any assignment for the benefit of creditors, or admit in writing its
inability to pay its debts generally as they become due, or declare or effect a moratorium
on its debt or take any action in furtherance of any such action.

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     SECTION 12.02 Liability of Transferor; Indemnities. The Transferor shall be liable in
accordance herewith only to the extent of the obligations specifically undertaken by the Transferor
under this Agreement.

	 	(i)  	The Transferor shall indemnify, defend, and hold harmless the
Owner Trustee, the Indenture Trustee, the Insurer, the Back-up Servicer
(including in its capacity as successor Servicer), and their respective
officers, directors, employees and agents, the Trust and the Noteholders from
and against any taxes that may at any time be asserted against such parties
with respect to, and as of the date of, the sale of the Receivables to the
Trust or the issuance and original sale of the Certificate and the Notes
(except any income taxes arising out of fees paid to the Owner Trustee, the
Indenture Trustee, the Insurer and the Back-up Servicer and except any taxes to
which the Owner Trustee, the Indenture Trustee, the Insurer or the
Back-up Servicer may otherwise be subject to, without regard to the
transactions contemplated hereby), including any sales, gross receipts,
general corporation, tangible or intangible 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 distributions on the Certificate or the Notes)
and reasonable costs and expenses in defending against the same.
	 
	 	(ii)  	The Transferor shall indemnify, defend, and hold harmless the
Owner Trustee, the Indenture Trustee, the Insurer, the Servicer, the Back-up
Servicer, and their officers, directors, employees and agents and the Trust
from and against any loss, liability, or expense incurred by reason of (a) the
Transferor’s willful misconduct, 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 (b) the Transferor’s violation
of federal or State securities laws in connection with the registration of the
sale of the Certificates.
	 
	 	(iii)  	The Transferor shall indemnify, defend, and hold harmless the
Back-up Servicer (including in its capacity as successor Servicer), the
Indenture Trustee and their respective officers, directors, employees and
agents, from and against any loss, liability, or expense incurred as a result
of third party claims arising out of the events or facts giving rise to a
breach of the covenants or representations and warranties of the Transferor set
forth in Sections 7.01 and 12.01 hereof.

     Indemnification under this Section 12.02 shall include, without limitation, reasonable fees
and expenses of counsel and expenses of litigation. If the Transferor shall have made any
indemnity payments to the Owner Trustee or the Trust pursuant to this Section and the Owner Trustee
or the Trust thereafter shall collect any of such amounts from others, the Owner Trustee or the
Trust, as the case may be, shall repay such amounts to the Transferor, without interest. This
indemnification shall survive the termination of this Agreement and the resignation or removal of
the Owner Trustee or the Indenture Trustee. Notwithstanding the foregoing, any

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amounts Transferor
shall pay pursuant to this Section 12.02 shall be paid solely from funds available for distribution
to the Certificateholder in accordance with the terms of the Basic Documents and shall in any case
be nonrecourse to the Transferor and to the Transferor’s assets and, to the extent funds are not so
available to pay any amounts when due and owing, the claims relating thereto shall not constitute a
claim (as defined in Section 101 of Title 11 of the United States Bankruptcy Code) against the
Transferor but shall continue to accrue. Each party hereto agrees that the payment of any claim of
any such party pursuant to this Section 12.02 shall be subordinated to the payment in full of all
outstanding interest and principal due pursuant to the Notes to the Noteholders. The payment of
any claim pursuant to this Section 12.02 shall in no event be construed as a “fee” of the Indenture
Trustee or the Owner Trustee as such term is used in Section 8.05(a)(i) or Section 8.05(a)(iii) of
the Indenture. The Transferor’s obligation to provide indemnity under this Section 12.02 shall
survive the termination of this Agreement or the earlier resignation or removal of either of the
indemnified parties.

     SECTION 12.03 Merger or Consolidation of, or Assumption of the Obligations of
Transferor. Any Person (a) into which the Transferor may be merged or consolidated, (b) which
may result from any merger or consolidation to which the Transferor shall be a party, or (c) which
may succeed to all or substantially all of the properties and assets of the Transferor’s business,
which Person in any of the foregoing cases executes an agreement of assumption to perform every
obligation of the Transferor under this Agreement, shall be the successor to the Transferor
hereunder without the execution or filing of any document or any further act by any of the parties
to this Agreement; provided, however, that (i) immediately after giving effect to such transaction,
no representation or warranty made pursuant to Section 7.01 hereof shall have been breached and no
Event of Servicer Default, and no event that, after notice or lapse of time, or both, would become
an Event of Servicer Default, shall have happened and be continuing, (ii) the Transferor shall have
delivered to the Owner Trustee and the Indenture Trustee an Officers’ Certificate and an Opinion of
Counsel each stating that such consolidation, merger, or succession and such agreement of
assumption comply with this Section 12.03 and that all conditions precedent, if any, provided for
in this Agreement relating to such transaction have been complied with and (iii) the Transferor
shall have delivered an Opinion of Counsel to the Insurer, the Owner Trustee and the Indenture
Trustee either (A) stating that, in the opinion of such counsel, all financing statements and
continuation statements and amendments thereto have been executed or duly authorized and filed that
are necessary fully to preserve and protect the interest of the Trust 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 preserve and protect such interest.
Notwithstanding the foregoing, the Transferor shall not engage in any merger or consolidation with
any Person, or a disposition of all or substantially all of its assets without providing advance
written notice thereof to the Owner Trustee, the Indenture Trustee and the Rating Agencies and
without obtaining the prior written consent of the Insurer, so long as the Insurer is the
Controlling Party.

     SECTION 12.04 Limitation on Liability of Transferor and Others. The Transferor and
any director or officer or employee or agent of the Transferor may rely in good faith on the advice
of counsel or on any document of any kind, prima facie properly executed and submitted by any
Person respecting any matters arising hereunder. The Transferor shall not be under any obligation
to appear in, prosecute, or defend any legal action that shall not be incidental to its

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obligations
under this Agreement, and that in its opinion may involve it in any expense or liability.

     SECTION 12.05 Transferor May Own Notes. The Transferor and any Person controlling,
controlled by, or under common control with the Transferor may in its individual or any other
capacity become the owner or pledgee of Notes with the same rights as it would have if it were not
the Transferor or an affiliate thereof, except as otherwise provided in the definition of
“Noteholder,” “Class A Noteholder” and “Class I Noteholder.” Certificates so owned by or pledged to
the Transferor or such controlling or commonly controlled Person shall have an equal
and proportionate benefit under the provisions of this Agreement, without preference,
priority, or distinction as among all of the Notes.

ARTICLE XIII

THE SERVICER AND BACK-UP SERVICER

     SECTION 13.01 Representations and Warranties

          (a) The Servicer. BVAC makes the following representations and warranties on
which the Trust, the Owner Trustee, the Indenture Trustee and the Back-up Servicer rely in
accepting the Receivables in trust and in connection with the performance by each of the
Indenture Trustee and the Back-up Servicer of its obligations hereunder and on which the
Insurer relies in issuing the Policy. The representations and warranties speak as of the
execution and delivery of this Agreement on the Closing Date, but shall survive each sale of
the Receivables to the Trust and the subsequent pledge thereof to the Indenture Trustee
pursuant to the Indenture:

	 	(i)  	Organization, Good Standing and Due Qualification. The
Servicer is duly organized and validly existing in good standing as a
corporation under the laws of the State of Nevada, with power and authority to
own its properties and to conduct its business as such properties shall be
currently owned and such business is presently conducted, and had at all
relevant times, and has, the corporate power, authority, and legal right to
acquire, own, sell, and service the Receivables, and is duly qualified and has
all necessary licenses in all such jurisdictions as are required by it to
conduct its business (including the servicing of the Receivables as required by
this Agreement and the performance of its other obligations under this
Agreement) except when the failure to so qualify would not materially and
adequately affect the performance by the Servicer of its obligations under, or
the validity or enforceability of this Agreement or the Notes.
	 
	 	(ii)  	Power and Authority; Binding Obligations. The Servicer
has the power and authority to execute and deliver this Agreement and to carry
out the terms hereof. This Agreement and each other Basic Document to which it
is a party delivered hereunder or pursuant hereto, and the transactions
contemplated hereby or thereby, have been duly authorized by all necessary
corporate proceedings of the Servicer. This Agreement has

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	 	   	been duly and
validly executed and delivered by the Servicer and, assuming due authorization,
execution and delivery by each other party hereto, this Agreement is a valid
and legally binding agreement of the Servicer enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, reorganization, or
other similar laws affecting the enforcement of creditors’ rights generally and
to general principles of equity.

	 	(iii)  	No Violation. The execution and delivery of this
Agreement and performance under this Agreement by the Servicer and the
compliance by the Servicer with all provisions of this Agreement do not
conflict with or violate any applicable law, regulation or order of any court
or of any federal or State regulatory body, administrative agency or other
governmental instrumentality and do not conflict with or result in a breach of
or (with or without notice or lapse of time) default under any of the terms or
provisions of any contract or agreement to which the Servicer is subject or by
which it or its property is bound, or result in the creation or imposition of a
Lien upon any of its properties pursuant to the terms of any such contract or
agreement, nor does such execution, delivery or compliance violate the
certificate of incorporation or by-laws of the Servicer except when the failure
to so qualify would not materially and adequately affect the performance by the
Servicer of its obligations under, or the validity or enforceability of, this
Agreement or the Notes.
	 
	 	(iv)  	No Proceedings. There are no proceedings or
investigations pending, or, to the Servicer’s knowledge, threatened against the
Servicer, before any court, regulatory body, administrative agency, or other
tribunal governmental instrumentality having jurisdiction over the Servicer or
its properties: (A) asserting the invalidity of this Agreement, the other
Basic Documents to which the Servicer is a party, the Notes or the Certificate,
(B) seeking to prevent the issuance of the Notes or the Certificate or the
consummation of any of the transactions contemplated by this Agreement the
Notes or the Certificate, (C) seeking any determination or ruling that might
materially and adversely affect the performance by the Servicer of its
obligations under, or the validity or enforceability of, this Agreement, the
Notes or the Certificate, (D) relating to the Servicer and which might
adversely affect the federal or State income, excise, franchise or similar tax
attributes of the Securities, or (E) that could have a material adverse effect
on the Receivables.
	 
	 	(v)  	No consent, approval, authorization or order of or declaration
or filing with any governmental authority is required for the issuance or sale
of the Notes or the consummation of the transactions contemplated by this
Agreement except such as have been duly made or obtained.
	 
	 	(vi)  	The Servicer has filed on a timely basis all tax returns
required to be filed by it and paid all taxes to the extent that such taxes
have become due.

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	 	(vii)  	The Servicer hereby represents and warrants that the
Servicer’s principal place of business and chief executive office is, and for
the four months preceding the date of this Agreement has been, located at:
1840 Gateway Drive, San Mateo, California 94404.
	 
	 	(viii)  	The practices used or to be used by the Servicer to monitor collections with
respect to the Receivables and repossess and dispose of the Financed Vehicles related to the Receivables will be, in all material respects,
legal, proper and in conformity with the requirements of all applicable
federal and State laws, rules and regulations, and this Agreement. The
Servicer is in possession of all State and local licenses (including all
debt collection licenses) required for it to perform its services hereunder,
and none of such licenses has been suspended, revoked or terminated.
	 
	 	(ix)  	There are no existing injunctions, writs, restraining orders or
other similar orders which might adversely affect the performance by the
Servicer or its obligations under, or the validity and enforceability of, this
Agreement.
	 
	 	(x)  	The Servicer is in compliance with all requirements of federal
and State laws, rules, regulations and orders, except where the failure so to
comply would not have a material adverse effect on the Servicer, its business
or its properties, or the ability of the Servicer to perform its obligations
under this Agreement.

     The representations and warranties contained in this Section 13.01(a) shall survive the
execution and delivery of this Agreement, the transfer of the Receivables on the Closing Date and
the pledge of the Receivables to the Indenture Trustee pursuant to the Indenture.

          (b) The Back-up Servicer makes the following representations and warranties on which
the Trust, the Owner Trustee and the Indenture Trustee rely in accepting the Receivables in
trust and the Insurer relies in issuing the Policy. The representations and warranties
speak as of the execution and delivery of this Agreement on the Closing Date, but shall
survive each sale of the Receivables to the Trust and the subsequent pledge of the
Receivables to the Indenture Trustee pursuant to the Indenture:

	 	(i)  	Organization and Good Standing. The Back-up Servicer
is duly organized and is validly existing as a limited liability company in
good standing under the laws of the State of Delaware, with power and authority
and legal right to own its properties and to conduct its business as such
properties are currently owned and such business is presently conducted, and
has and had at all relevant times, full power, authority, and legal right to
acquire, own, sell, and service the Receivables;
	 
	 	(ii)  	Due Qualification. The Back-up Servicer is duly
qualified to do business as a foreign limited liability company 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 (including the

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	 	   	servicing of the Receivables as required by this
Agreement and the performance of its other obligations under this Agreement and
the other Basic Documents to which it is a party) requires such qualifications
except where such failure will not have a material adverse effect on the
Back-up Servicer, its business or its properties, or the ability of the Back-up
Servicer to perform its obligations under this Agreement or any other Basic
Document to which it is a party;

	 	(iii)  	Power and Authority. The Back-up Servicer has the
power and authority to execute and deliver this Agreement and the other Basic
Documents to which it is a party and to carry out their respective terms, and
the execution, delivery, and performance of this Agreement and the other Basic
Documents to which it is a party have been duly authorized by the Back-up
Servicer by all necessary corporate action;
	 
	 	(iv)  	Binding Obligations. This Agreement and the other
Basic Documents to which it is a party constitute legal, valid, and binding
obligations of the Back-up Servicer enforceable in accordance with their
respective terms, subject to the effects of bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors’
rights generally and to general principles of equity;
	 
	 	(v)  	No Violation. The execution, delivery and performance
by the Back-up Servicer of this Agreement and the other Basic Documents to
which the Back-up Servicer is a party, and the consummation of the transactions
contemplated by this Agreement and the other Basic Documents to which it is a
party and the fulfillment of the terms hereof and thereof do not conflict with,
result in any breach of any of the terms and provisions of, nor constitute
(with or without notice or lapse of time) a default under, the charter
documents of the Back-up Servicer, or any indenture, agreement, or other
instrument to which the Back-up Servicer is a party or by which it may 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 this Agreement); nor, to the best of the Back-up
Servicer’s knowledge, violate any law applicable to the Back-up Servicer or any
order, rule, or regulation applicable to the Back-up Servicer of any court or
of any federal or State regulatory body, administrative agency, or other
governmental instrumentality having jurisdiction over the Back-up Servicer or
its properties;
	 
	 	(vi)  	No Proceedings. There are no proceedings or
investigations pending, or, to the Back-up Servicer’s actual knowledge,
threatened, before any court, regulatory body, administrative agency, or other
governmental instrumentality having jurisdiction over the Back-up Servicer or
its properties: A) asserting the invalidity of this Agreement or any of the
Basic Documents to which it is a party, B) seeking to prevent the consummation
of any of the transactions contemplated by this Agreement

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	 	  	or any of the Basic
Documents to which it is a party or C) seeking any determination or ruling that
would materially and adversely affect the performance by the Back-up Servicer
of its obligations under this Agreement or any of the Basic Documents to which
it is a party;
	 
	 	(vii)  	No Consents. No consent, license, approval,
authorization or order of, or registration declaration or filing with, any
governmental authority or other Person is required to be made in connection
with the execution, delivery
or performance of the Basic Documents to which Back-up Servicer is a party
or the consummation of the transactions contemplated thereby, except such as
have been duly made, effected or obtained and except where such failure
would not have a material adverse effect on the ability of the Back-up
Servicer to perform its obligations under this Agreement;
	 
	 	(viii)  	Taxes. The Back-up Servicer has filed on a timely basis all tax
returns required to be filed by it and paid all taxes, to the extent that such
taxes have become due;
	 
	 	(ix)  	Chief Executive Office. The principal place of
business and chief executive office of the Back-up Servicer is, and for the
four months preceding the date of this Agreement has been, located at 190 Jim
Moran Blvd., Deerfield Beach, Florida 33442;
	 
	 	(x)  	No Injunctions. There are no existing injunctions,
writs, restraining orders or other similar orders which would adversely affect
the performance by the Back-up Servicer or its obligations under, or the
validity and enforceability of, this Agreement; and
	 
	 	(xi)  	Compliance with Law. The Back-up Servicer is in
compliance with all requirements of federal and State laws, rules, regulations
and orders, except where the failure so to comply would not have a material
adverse effect on the ability of the Back-up Servicer to perform its
obligations under this Agreement.

     The
representations and warranties contained in this Section 13.01(b) shall survive the
execution and delivery of this Agreement, the transfer of the Receivables on the Closing Date and
the pledge of the Receivables to the Indenture Trustee pursuant to the Indenture.

     SECTION 13.02 Indemnities of Servicer and Back-up Servicer.

          (a) The Servicer shall be liable in accordance herewith only to the extent of the
obligations specifically undertaken by the Servicer under this Agreement and no implied
duties or obligations shall be read into this Agreement against the Servicer.

	 	(i)  	The Servicer shall defend, indemnify, and hold harmless the
Owner Trustee, the Indenture Trustee, the Collateral Agent, the Insurer, the
Back-up Servicer and their officers, directors, employees and agents, the
Trust, each Certificateholder and the Noteholders from and against any and all

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	 	   	costs, expenses, losses, damages, claims, and liabilities, arising out of or
resulting from the use, ownership, or operation by the Servicer or any
affiliate thereof of a Financed Vehicle.
	 
	 	(ii)  	The Servicer shall indemnify, defend and hold harmless the
Owner Trustee, the Indenture Trustee, the Collateral Agent, the Insurer, the
Back-up Servicer and the Trust from and against any taxes that may at any time
be asserted against such parties with respect to the transactions
contemplated herein (except any income taxes arising out of fees paid to the
Owner Trustee, the Indenture Trustee, the Collateral Agent, the Insurer, the
Back-up Servicer and the Trust and except any taxes to which the Owner
Trustee, the Indenture Trustee, the Collateral Agent, the Insurer, the
Back-up Servicer or the Trust may otherwise be subject to, without regard to
the transactions contemplated hereby), including, without limitation, any
sales, gross receipts, general corporation, tangible or intangible personal
property, privilege, or license taxes (but, in the case of the Trust, not
including any taxes asserted with respect to, and as of the date of, the
sale of the Receivables to the Trust or the issuance and original sale of
the Certificates, the Notes, or asserted with respect to ownership of the
Receivables, or federal or other income taxes arising out of distributions
on the Certificates or the Notes) and reasonable costs and expenses in
defending against the same.
	 
	 	(iii)  	The Servicer shall indemnify, defend, and hold harmless the
Owner Trustee, the Indenture Trustee, the Collateral Agent, the Insurer, the
Back-up Servicer, the Trust, each Certificateholder and the Noteholders from
and against any and all costs, expenses, losses, claims, damages, and
liabilities to the extent that such cost, expense, loss, claim, damage, or
liability arose out of, or was imposed upon such parties through, the
negligence (or, with respect to CenterOne, gross negligence), willful
misconduct, 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; provided, however, that the Servicer shall not be
liable to the Owner Trustee or Indenture Trustee for any portion of any such
amount resulting from the willful misconduct, bad faith, or negligence of the
Owner Trustee or the Indenture Trustee, as applicable. This indemnity shall
survive the termination of this Agreement or the Trust and the resignation or
removal of the Owner Trustee and the Indenture Trustee and the Back-up
Servicer.
	 
	 	(iv)  	The Servicer shall indemnify, defend, and hold harmless the
Owner Trustee, the Indenture Trustee, the Collateral Agent, the Insurer, the
Back-up Servicer and their respective officers, directors, employees and agents
and the Trust from and against all costs, expenses, losses, claims, damages,
and liabilities arising out of or incurred in connection with the acceptance or
performance of the trusts and duties herein contained or any of the provisions
contained in any of the Basic Documents, or any of the

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	 	   	transactions
contemplated thereby, except to the extent that such cost, expense, loss,
claim, damage or liability: (a) shall be due to the willful misconduct, bad
faith, or negligence (or, with respect to CenterOne, gross negligence) of such
indemnified party; (b) relates to any tax other than the taxes with respect to
which either the Transferor or Servicer shall be required to indemnify the
Owner Trustee or the Indenture Trustee; (c) shall arise from the breach of any
of representations or warranties of such indemnified party; (d) shall be one as
to which the Transferor is
required to indemnify the Owner Trustee or the Indenture Trustee under this
Agreement and the Transferor has paid such indemnity claim; (e) shall arise
out of or be incurred in connection with the acceptance or performance by
the Indenture Trustee of the duties of successor Servicer; or (f) with
respect to the Insurer, shall arise out of its obligations to perform under
the Policy and is not an otherwise indemnifiable obligation pursuant to the
Insurance Agreement.

          Notwithstanding the foregoing, clauses (ii) and (iv) above shall not apply to the
Back-up Servicer in the event the Back-up Servicer becomes the successor Servicer. The
succession of Back-up Servicer to Servicer hereunder shall not reduce or otherwise effect
any of the indemnifications provided in this Section 13.02 for the benefit of such
entity as Back-up Servicer and such entity will continue to remain the beneficiary of such
obligations with respect to that period in which such entity acted as Back-up Servicer.

          Indemnification by each of the Servicer or the Back-up Servicer (or any other successor
Servicer), as Servicer, shall be made only with respect to the period that it acts as
Servicer and its acts and omissions while acting as such. Indemnification under this
Section by the Servicer, with respect to the period such Person was (or was deemed to be)
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 and the recipient thereafter
collects any of such amounts from others, the recipient shall promptly repay such amounts to
the Servicer, without interest.

          (b) The Back-up Servicer shall be liable in accordance herewith only to the extent of
the obligations specifically undertaken by the Back-up Servicer in its capacity as Back-up
Servicer under this Agreement, and no implied duties or obligations shall be read into this
Agreement against the Back-up Servicer. The Back-up Servicer shall indemnify, defend, and
hold harmless the Trust, the Indenture Trustee, the Insurer, the Servicer and the
Noteholders from and against any and all costs, expenses, losses, claims, damages, and
liabilities to the extent that such cost, expense, loss, claim, damage, or liability arose
out of, or was imposed upon the Trust, the Indenture Trustee, the Servicer, the Insurer or
the Noteholders through the negligence (or, with respect to CenterOne, gross negligence),
willful misconduct or bad faith of the Back-up Servicer, in the performance of its duties as
Back-up Servicer under this Agreement or by reason of reckless disregard of the Back-up
Servicer’s obligations and duties as Back-up Servicer under this Agreement. In the event
that the Back-up Servicer becomes the successor

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	 	   	Servicer, the Back-up Servicer in its
capacity as successor Servicer, shall be liable in accordance with, and to the extent set
forth in, Section 13.02(a) hereof.

          (c) Indemnification under this Section 13.02 shall include reasonable fees and expenses
of counsel and expenses of litigation. If the Servicer or indemnifying party shall have
made any indemnity payments pursuant to this Section and the recipient thereafter collects
any of such amounts from others, the recipient shall promptly repay such amounts to the
Servicer or indemnifying party, without interest. This
indemnification under Section 13.02 shall survive the termination of this Agreement and
the removal of the Servicer, the Back-up Servicer and/or the Indenture Trustee.

     SECTION 13.03 Merger or Consolidation of, or Assumption of the Obligations of the Servicer
and Back-up Servicer.

          (a) The Servicer shall not merge or consolidate with any other Person, convey, transfer
or lease substantially all its assets as an entirety to another Person, or permit any other
Person to become the successor to the Servicer’s business unless, after the merger,
consolidation, conveyance, transfer, lease or succession, the successor or surviving entity
shall be an Eligible Servicer and shall be capable of fulfilling the duties of the Servicer
contained in this Agreement and the other Basic Documents to which the Servicer is a party.
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 which may
succeed to the properties and assets of the Servicer substantially as a whole or (iii)
succeeding to the business of the Servicer (or to substantially all of the Servicer’s
business insofar as it relates to the servicing of the Receivables), which Person in any of
the foregoing cases executes an agreement of assumption reasonably acceptable to the Insurer
in its sole and absolute discretion to perform every obligation of the Servicer under this
Agreement and the other Basic Documents to which it is a party, will be the successor to the
Servicer under this Agreement and the other Basic Documents to which it is a party 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 (w) immediately after giving effect to such
transaction, no representation or warranty made pursuant to Section 13.01 hereof or made by
BVAC in the Purchase Agreement shall have been breached (for purposes hereof, such
representations and warranties shall speak as of the date of the consummation of such
transaction), no Event of Servicer Default or Insurance Agreement Event of Default shall
have occurred and be continuing, and no event which, after notice or lapse of time, or both,
would become an Event of Servicer Default or Insurance Agreement Event of Default shall have
occurred and be continuing, (x) the Servicer shall have delivered to the Insurer (so long as
the Insurer is the Controlling Party) and the Indenture Trustee an Officer’s Certificate and
an Opinion of Counsel each stating that such consolidation, conversion, merger or succession
and such agreement of assumption comply with this Section and that all conditions precedent
provided for in this Agreement and the other Basic Documents to which it is a party relating
to such transaction have been complied with, and (y) the Servicer shall have delivered to
the Insurer (so long as the Insurer is the Controlling Party) and the Indenture Trustee, an
Opinion of Counsel either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements

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	 	   	and amendments thereto have been executed and filed
that are necessary fully to preserve and protect the interest of the Trust 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 preserve and protect
such interest and (z) the Rating Agencies shall have confirmed the “shadow ratings” of the
Notes without regard to the Policy. The Servicer shall provide notice of any merger,
conversion, consolidation or succession pursuant to this Section to the Insurer and the
Rating Agencies then providing a rating for the Securities. The Indenture Trustee shall
forward a copy of each such
notice to each Noteholder. Notwithstanding anything herein to the contrary, the
execution of the foregoing agreement of assumption and compliance with clauses (w), (x), (y)
and (z) above shall be conditions to the consummation of the transactions referred to in
clauses (i), (ii) or (iii) above. The Opinion of Counsel required by this Section shall not
be an expense of the Indenture Trustee or the Insurer.

          (b) Any Person (i) into which the Back-up Servicer may be merged or consolidated, (ii)
which may result from any merger or consolidation to which the Back-up Servicer shall be a
party, (iii) which may succeed to the properties and assets of the Back-up Servicer
substantially as a whole or (iv) succeeding to the business of the Back-up Servicer, shall
execute an agreement of assumption to perform every obligation of the Back-up Servicer
hereunder, and whether or not such assumption agreement is executed, shall be the successor
to the Back-up Servicer under this Agreement without further act on the part of any of the
parties to this Agreement; provided, however, that nothing herein shall be deemed to release
the Back-up Servicer from any obligation. In connection with any transaction described
above, the Back-up Servicer must comply with the provisions of this Section 13.03 as if it
were then acting as Servicer.

     SECTION 13.04 Limitation on Liability of Servicer and Others.

          (a) Neither the Servicer nor the Back-up Servicer nor any of their respective directors
or officers or employees or agents shall be under any liability to the Trust, the Indenture
Trustee, the Certificateholder or the Noteholders, except as specifically provided under
this Agreement, for any action taken or for refraining from the taking of any action
pursuant to this Agreement; provided, however, that this provision shall not protect the
Servicer against any liability that would otherwise be imposed by reason of willful
misconduct, bad faith or negligence (or, with respect to CenterOne, gross negligence) in the
performance of its duties or by reason of reckless disregard of obligations and duties under
this Agreement. The Servicer and the Back-up Servicer and any respective director or
officer or employee or agent thereof may rely in good faith 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 (collection
actions with respect to Charged-Off Receivables are understood to be incidental to the
Servicer’s duties to service the Receivables), and that in its opinion may involve it in any
expense or liability.

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          (c) Notwithstanding anything to the contrary herein, neither the Servicer nor the
Back-up Servicer, nor any of their respective directors or officers or employees or agents
of the Servicer, shall be liable to any party hereto (or any Affiliate of any such Person)
for indirect, punitive, exemplary, or consequential damages arising from any breach of
contract, tort, or other wrong relating to the establishment, administration, or collection
of the Receivables or as a result of any transaction contemplated under this Agreement or
any other Basic Document; provided, however, that this provision shall not
protect the Servicer or Back-up Servicer, respectively, against any liability that
would otherwise be imposed by reason of negligence (or, with respect to CenterOne, gross
negligence) in the performance of its respective actions or by the failure to act in
performing its respective duties under this Agreement.

     SECTION 13.05 Servicer and Back-up Servicer Not to Resign. Subject to the provisions
of Sections 14.01 and 14.02 hereof, as applicable, neither the Servicer nor the Back-up Servicer
shall resign from the obligations and duties imposed on it by this Agreement as Servicer or Back-up
Servicer, respectively, except upon a determination that by reason of a change in legal
requirements the performance of its duties under this Agreement would cause it to be in violation
of such legal requirements in a manner which would result in a material adverse effect on the
Servicer or the Back-up Servicer, as the case may be, and the Insurer (so long as the Insurer is
the Controlling Party) does not or the Majority Noteholders (in the event that the Insurer ceases
to be the Controlling Party) do not (i) elect in its or their absolute discretion to waive the
obligations of the Servicer or the Back-up Servicer, as the case may be, to perform the duties that
render it legally unable to act or (ii) allow in its or their absolute discretion the Servicer or
the Back-up Servicer, as the case may be, to delegate those duties to another Person. Any such
determination permitting the resignation of the Servicer or the Back-up Servicer shall be evidenced
by an Opinion of Counsel as to the legal requirements that would be violated, delivered to the
Owner Trustee, the Indenture Trustee and the Insurer. No resignation of the Servicer shall become
effective until the Back-up Servicer or an entity acceptable to the Insurer (so long as the Insurer
is the Controlling Party) shall have assumed the responsibilities and obligations of the Servicer,
or, in the event that the Insurer ceases to be the Controlling Party, until the Back-up Servicer or
a successor Servicer that is an Eligible Servicer shall have assumed the responsibilities and
obligations of the Servicer. No resignation of the Servicer shall become effective until the
Back-up Servicer or an entity acceptable to the Insurer (so long as the Insurer is the Controlling
Party) shall have assumed the responsibilities and obligations of the Servicer. No resignation of
the Servicer or the Back-up Servicer shall relieve the Servicer or the Back-up Servicer, as the
case may be, of any liability to which it has previously become subject under this Agreement or any
Basic Document.

     SECTION 13.06 Delegation of Duties. Except as provided in Section 13.03 hereof, it is
understood and agreed by the parties hereto that the Servicer or the Transferor may at any time
delegate any duties including duties as custodian to any Person willing to accept such delegation
and acceptable to the Controlling Party and to perform such duties (including any affiliate of the
Servicer) in accordance with the customary procedures of the Servicer. In connection with such
delegation, the Servicer or the Transferor may assign rights to the delegee or direct the payment
to the delegee of benefits or amounts otherwise inuring to the benefit of, or payable to, the
Transferor or the Servicer hereunder. Any such delegation shall not relieve the Servicer or the
Transferor of their respective liability and responsibility with respect to such

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duties, and shall
not constitute a resignation within Section 13.05 hereof. The Servicer shall give written notice
to the Rating Agencies, the Owner Trustee, the Indenture Trustee and the Insurer of any such
delegation.

ARTICLE XIV

SERVICER AND BACK-UP SERVICER DEFAULTS

     SECTION 14.01 Events of Servicer Default. While the Servicer or any successor
Servicer (other than the Back-up Servicer) is acting as the Servicer hereunder, any one of the
following events shall constitute an “Event of Servicer Default”:

	 	(i)  	Any failure by the Servicer (x) to deposit, or to deliver to
the Indenture Trustee for deposit, to any Trust Account any amount required to
be so delivered or deposited therein by the Servicer that shall continue
unremedied for a period of one (1) Business Day or (y) to deliver to the
Indenture Trustee, the Back-up Servicer or the Insurer the Servicer’s
Certificate on the related Determination Date that shall continue unremedied
for a period of two (2) Business Days or the statement required by Section 8.13
hereof or the report required by Section 8.14 hereof shall not have been
delivered within five (5) days after the date such statement or report, as the
case may be, is required to be delivered after, in either case, (A) after
written notice from either the Owner Trustee, the Indenture Trustee or the
Insurer (so long as the Insurer is not in default of its obligations under the
Policy) or by the holders of Notes evidencing not less than 25% of the
aggregate outstanding balance of the Notes is received by the Servicer as
specified in this Agreement or (B) after actual discovery by an officer of the
Servicer;
	 
	 	(ii)  	Failure on the part of the Servicer, and for so long as the
Servicer is obligated to perform as the Servicer, failure on the part of the
Transferor or BVAC, as the case may be, to repurchase a Receivable in
accordance with Sections 7.02, 8.08 or 8.10 hereof and, in the case of BVAC
pursuant to Section 7.02 hereof and Section 3.03 of the Purchase Agreement, as
the case may be, which failure shall continue unremedied for a period of two
(2) Business Days after the same is required to be delivered in accordance with
such Sections after, in either case, (A) after written notice from either the
Owner Trustee, the Indenture Trustee or the Insurer (so long as the Insurer is
not in default of its obligations under the Policy) or by the holders of Notes
evidencing not less than 25% of the aggregate outstanding balance of the Notes
is received by the Servicer or BVAC as specified in this Agreement or (B) after
discovery by an officer of the Servicer;
	 
	 	(iii)  	Failure on the part of the Servicer to observe its covenants
and agreements set forth in Section 8.09 hereof or, for so long as the Servicer
is obligated

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	 	   	to perform as the Servicer, failure on the part of the Transferor
to observe its covenants and agreements in Article V of the Purchase Agreement;
	 
	 	(iv)  	Failure on the part of the Servicer, and for so long as the
Servicer is obligated to perform as the Servicer, failure on the part of the
Transferor or BVAC duly to observe or to perform any other covenants or agreements of
the Servicer, the Transferor or BVAC (as the case may be) set forth in this
Agreement or any other Basic Document, which failure shall (a) materially
and adversely affect the rights of Noteholders or the Insurer and (b)
continue unremedied for a period of 30 days after the date on which written
notice of such failure requiring the same to be remedied, shall have been
given (1) to the Servicer, the Transferor or BVAC (as the case may be) by
the Insurer or the Indenture Trustee, or (2) to the Servicer, the Transferor
or BVAC (as the case may be) and to the Indenture Trustee and the Insurer by
the Noteholders evidencing not less than 25% of the Class A Note Balance;
	 
	 	(v)  	The entry of a decree or order for relief by a court or
regulatory authority having jurisdiction in respect of the Servicer (or, so
long as the Servicer is obligated to perform as the Servicer, the Transferor or
any of the Servicer’s other Affiliates, if the Servicer’s ability to service
the Receivables is adversely affected in a material respect thereby) in an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future, federal or State, bankruptcy, insolvency
or similar law, or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of BVAC, the Servicer (or the
Transferor or any other Affiliate of BVAC, if applicable) or of any substantial
part of their respective properties or ordering the winding up or liquidation
of the affairs of BVAC or the Servicer (or the Transferor or any other
Affiliate of BVAC, if applicable) or the commencement of an involuntary case
under the federal or State bankruptcy, insolvency or similar laws, as now or
hereafter in effect, or another present or future, federal or State bankruptcy,
insolvency or similar law with respect to BVAC or the Servicer (or the
Transferor or any other Affiliate of BVAC, if applicable) and such case is not
dismissed within 60 days;
	 
	 	(vi)  	The commencement by BVAC or the Servicer (or, so long as the
Servicer is obligated to perform as the Servicer, the Transferor or any of the
Servicer’s other Affiliates, if the Servicer’s ability to service the
Receivables is adversely affected thereby) of a voluntary case under the
federal bankruptcy laws, as now or hereafter in effect, or any other present or
future, federal or State, bankruptcy, insolvency or similar law, or the consent
by BVAC or the Servicer (or the Transferor or any other Affiliate of BVAC, if
applicable) to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar
official of BVAC or the Servicer (or the Transferor or any other Affiliate of
BVAC, if applicable) or of any substantial part of its property or the making
by BVAC or the Servicer (or the Transferor or any other

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	 	   	Affiliate of BVAC, if
applicable) of an assignment for the benefit of creditors or the failure by
BVAC or the Servicer (or the Transferor or any other Affiliate of BVAC, if
applicable) generally to pay its debts as such
debts become due or the taking of corporate action by BVAC or the Servicer
(or the Transferor or any other Affiliate of BVAC, if applicable) in
furtherance of any of the foregoing;
	 
	 	(vii)  	Any representation, warranty or statement of the Servicer or,
for so long as the Servicer is obligated to perform as the Servicer, BVAC or
the Transferor made in this Agreement and, with respect to BVAC and the
Transferor, the Purchase Agreement, or in each case any certificate, report or
other writing delivered pursuant hereto or thereto shall prove to be incorrect
as of the time when the same shall have been made (excluding, however, any
representation or warranty set forth in Section 3.02 of the Purchase
Agreement), and the incorrectness of such representation, warranty or statement
has a material adverse effect on the Issuer, the Insurer or the Noteholders
and, within 60 days after written notice thereof, shall have been given (1) to
BVAC, the Servicer or the Transferor (as the case may be) by the Indenture
Trustee or the Insurer or (2) to BVAC, the Servicer or the Transferor (as the
case may be), and to the Indenture Trustee and the Insurer by the Noteholders
evidencing not less than 25% of the Class A Note Balance, the circumstances or
condition in respect of which such representation, warranty or statement was
incorrect shall not have been eliminated or otherwise cured;
	 
	 	(viii)  	An Insurance Agreement Event of Default has occurred; or
	 
	 	(ix)  	A claim is made under the Policy.

     If an Event of Servicer Default shall occur and be continuing (and not otherwise waived or
cured) then, in each and every case, the Indenture Trustee shall, (x) at the direction of the
Insurer, in its sole and absolute discretion, so long as the Insurer is the Controlling Party or
(y) at the direction of the Majority Noteholders, in the event the Insurer ceases to be the
Controlling Party, terminate all of the rights and obligations of the Servicer under this Agreement
upon written notice to Servicer as provided in Section 14.03(a). Upon sending or receiving any
such directive or notice, the Indenture Trustee shall promptly send a copy thereof to the Owner
Trustee, the Rating Agencies, the Insurer (so long as the Insurer is the Controlling Party), the
Back-up Servicer and to each Noteholder. On or after the receipt by the Servicer of such written
notice (unless otherwise directed by the Insurer and subject to Section 14.03(a) hereof), all
authority and power of the Servicer as the Servicer under this Agreement, whether with respect to
the Securities or the Receivables or otherwise, shall, without further action, pass to and be
vested in the Back-up Servicer or any such successor Servicer as may be appointed under Section
14.03 hereof; and, without limitation, the Back-up Servicer, any such successor Servicer and the
Indenture Trustee are hereby authorized and empowered to execute and deliver, on behalf of the
predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and

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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 indorsement of the
Receivables and related documents, or otherwise provided, however, that the Back-up Servicer shall
have no obligation to assume the responsibilities of the Servicer with fewer than forty-five (45)
days prior written notice other than, during an Insurer Default, to use
its reasonable efforts to process payments received in respect of the Receivables in
accordance with the terms of this Agreement. The predecessor Servicer shall cooperate with the
successor Servicer and the Indenture Trustee in effecting 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 or
should have been held by the predecessor Servicer for deposit, or shall thereafter be received with
respect to a Receivable and the delivery to the successor Servicer of all files and records
concerning the Receivables and a Computer Tape in readable form containing all information
necessary to enable the successor Servicer to service the Receivables and the other property of the
Issuer. All Transition Costs shall be paid by the predecessor Servicer upon presentation of
reasonable documentation of such costs and expenses and, if not so paid, shall be reimbursable to
the successor Servicer, to the extent of Available Funds on each Payment Date, pursuant to the
priorities set forth in Section 8.05 of the Indenture; provided, that such payment shall not
relieve the predecessor Servicer from the responsibility for making such payment and the Issuer
shall be subrogated to the rights of the successor Servicer with respect to such Transition Costs
and shall have a direct right to institute proceedings against the predecessor Servicer for such
payment. The predecessor Servicer shall grant the Transferor, the Indenture Trustee, the Back-up
Servicer and the Insurer reasonable access to the predecessor Servicer’s premises, computer files,
personnel, records and equipment at the predecessor Servicer’s expense. Upon the appointment of
the Back-up Servicer as successor Servicer, any arrangements relating to (i) the Lock-Box Account
with the Lock-Box Bank, (ii) the Lock-Box or (iii) the Lock-Box Agreement shall be terminated, and
the successor Servicer shall direct the Obligors to make all payments under the Receivables
directly to a lock-box in the name of the successor Servicer at the predecessor Servicer’s expense
(in which event the successor Servicer shall process such payments directly). The Indenture
Trustee shall send copies of all notices given pursuant to this Section 14.01 to the Insurer so
long as the Insurer is the Controlling Party and to the Noteholders in the event that the Insurer
ceases to be the Controlling Party.

     When the Back-up Servicer incurs expenses after the occurrence of an Event of Servicer Default
specified in this Section 14.01, the expenses are intended to constitute expenses of administration
under Title 11 of the United States Code or any other applicable federal or State bankruptcy,
insolvency or similar law.

     SECTION 14.02 Back-up Servicer Default.

          (a) Any one of the following events shall constitute a “Back-up Servicer Default” with
respect to the Back-up Servicer acting in its capacity as Back-up Servicer hereunder and in
its capacity as successor Servicer hereunder (unless specifically stated otherwise):

	 	(i)  	Any failure by the Back-up Servicer (so long as the Back-up
Servicer is obligated to perform as the Servicer) (x) to deposit, or to deliver
to the

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	 	   	Indenture Trustee for deposit, to any Trust Account or the Spread
Account any amount required to be so delivered or deposited therein by the
Servicer or (y) to deliver to the Indenture Trustee or the Insurer the
Servicer’s Certificate on the related Determination Date that shall continue
unremedied for a period of two (2) Business Days or the statement
required by Section 8.13 hereof or the report required by Section 8.14
hereof shall not have been delivered within five (5) days after the date
such statement or report, as the case may be, is required to be delivered;
	 
	 	(ii)  	[Reserved.]
	 
	 	(iii)  	Failure on the part of the Back-up Servicer duly to observe or
to perform any other covenants or agreements of the Back-up Servicer set forth
in this Agreement (except as otherwise specifically referred to in this Section
14.02(a)), which failure shall (a) materially and adversely affect the rights
of Noteholders or the Insurer and (b) continue unremedied for a period of 30
days after the date on which written notice of such failure requiring the same
to be remedied, shall have been given (1) to the Back-up Servicer by the
Insurer or the Indenture Trustee, or (2) to the Back-up Servicer and to the
Indenture Trustee and the Insurer by the Noteholders evidencing not less than
25% of the Class A Note Balance;
	 
	 	(iv)  	The entry of a decree or order for relief by a court or
regulatory authority having jurisdiction in respect of the Back-up Servicer or
any of the Back-up Servicer’s Affiliates, if the Back-up Servicer’s ability to
service the Receivables is materially adversely affected thereby, in an
involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future, federal or State, bankruptcy, insolvency
or similar law, or appointing a receiver, liquidator, assignee, trustee,
custodian, sequestrator or other similar official of the Back-up Servicer or
any such Affiliate or of any substantial part of their respective properties or
ordering the winding up or liquidation of the affairs of Back-up Servicer or
any such Affiliate or the commencement of an involuntary case under the federal
or State bankruptcy, insolvency or similar laws, as now or hereafter in effect,
or another present or future, federal or State bankruptcy, insolvency or
similar law with respect to the Back-up Servicer or any such Affiliate and such
case is not dismissed within 60 days (in each case with respect to the
foregoing which involves any Affiliate of the Back-up Servicer, only in the
event the Back-up Servicer’s ability to service the Receivables is materially
adversely affected thereby);
	 
	 	(v)  	The commencement by the Back-up Servicer or any of the Back-up
Servicer’s Affiliates, if the Back-up Servicer’s ability to service the
Receivables is materially adversely affected thereby, of a voluntary case under
the federal bankruptcy laws, as now or hereafter in effect, or any other
present or future, federal or State, bankruptcy, insolvency or similar law, or
the consent by Back-up Servicer or any such Affiliate to the

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	 	   	appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Back-up Servicer or any such
Affiliate or of any substantial part of its property or the making by the
Back-up Servicer or any such Affiliate of an assignment for the benefit of
creditors or the failure by the Back-up Servicer or any
such Affiliate generally to pay its debts as such debts become due or the
taking of corporate action by the Back-up Servicer or any such Affiliate in
furtherance of any of the foregoing (in each case with respect to the
foregoing which involves any Affiliate of the Back-up Servicer, only in the
event the Back-up Servicer’s ability to service the Receivables is
materially adversely affected thereby);
	 
	 	(vi)  	Any representation, warranty or statement of the Back-up
Servicer made in this Agreement or in any certificate, report or other writing
delivered pursuant hereto shall prove to be incorrect as of the time when the
same shall have been made, and the incorrectness of such representation,
warranty or statement has a material adverse effect on the Issuer, the Insurer
or the Noteholders and, within 30 days after written notice thereof shall have
been given (1) to the Back-up Servicer by the Indenture Trustee or the Insurer
or (2) to the Back-up Servicer, and to the Indenture Trustee and the Insurer by
the Noteholders evidencing not less than 25% of the Class A Note Balance, the
circumstances or condition in respect of which such representation, warranty or
statement was incorrect shall not have been eliminated or otherwise cured;
	 
	 	(vii)  	[Reserved.]

            then, and in each and every case, subject to the notice and cure provisions of
paragraph (b) below, the Indenture Trustee shall, at the direction of the Controlling Party,
by notice then given in writing to the Back-up Servicer as the Servicer or as the Back-up
Servicer (and to the Indenture Trustee if given by the Noteholders) shall terminate all of
the rights and obligations of the Back-up Servicer as the Servicer or as the Back-up
Servicer under this Agreement. Upon sending or receiving any such notice, the Indenture
Trustee shall promptly send a copy thereof to the Owner Trustee, the Rating Agencies, the
Insurer, the Servicer, the Back-up Servicer and to each Noteholder. On or after the receipt
by the Back-up Servicer of such written notice (unless otherwise directed by the Insurer and
subject to Section 14.03(a) hereof), all authority and power of the Back-up Servicer as the
Servicer and as the Back-up Servicer under this Agreement, whether with respect to the
Securities or the Receivables or otherwise, shall, without further action, pass to and be
vested in any such successor Back-up Servicer or successor Servicer, as applicable, as may
be appointed under Section 14.03 hereof; and, without limitation, any such successor Back-up
Servicer or successor Servicer, is hereby authorized and empowered to execute and deliver,
on behalf of the predecessor Servicer, as attorney-in-fact or otherwise, any and all
documents and other instruments, and to do or accomplish all other acts or things necessary
or appropriate to effect the purposes of such notice of termination, whether to complete the
transfer and endorsement of the Receivables and related documents, or otherwise.

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     The Back-up Servicer shall cooperate with the successor Back-up Servicer or successor
Servicer, as applicable, in effecting the termination of its responsibilities and rights under this
Agreement, including the transfer to the successor Back-up Servicer or successor Servicer, as
applicable, for administration by it of all cash amounts that shall at the time be held by it for
deposit, or shall thereafter be received by it with respect to any Receivable, and the related
accounts and records maintained by the Back-up Servicer.

          (b) The Insurer (so long as it is the Controlling Party), the Majority Noteholders or
the Indenture Trustee shall provide the Back-up Servicer with written notice of any Back-up
Servicer Default, which notice must grant the Back-up Servicer an opportunity to cure any
such event of termination as follows: (i) in the case of any failure of the Back-up
Servicer to properly administer or deliver any monies as required pursuant to this
Agreement, for a period of three (3) Business Days after receipt of the notice by the
Back-up Servicer; or (ii) in the case of any failure pursuant to this Agreement that is
non-monetary in nature, for a period of thirty (30) days after receipt of the notice by the
Back-up Servicer. Such notice must explicitly provide that if any such failure by the
Back-up Servicer giving rise to the event of termination is not cured within the applicable
cure period, then the Controlling Party shall have the right to terminate the appointment of
the Back-up Servicer effective as of a date no sooner than the end of the applicable cure
period.

          (c) The Back-up Servicer may be released from its obligations under this Agreement if
it does not receive payment of its Back-up Servicer Fee or the Servicer Fee if it is a
successor Servicer required to be made under the terms of this Agreement, which failure
continues unremedied for a period of thirty (30) days after receipt by the Insurer of
written notice of such failure and that the Back-up Servicer intends to terminate its
appointment as Back-up Servicer if such failure to pay is not remedied within such thirty
(30) day period, which written notice shall explicitly state that failure to pay any Back-up
Servicer Fee or successor Servicer Fee owing to the Back-up Servicer, if not cured within
thirty (30) days of the date of receipt of notice thereof, will give the Back-up Servicer
the right to terminate its appointment as Back-up Servicer.

     SECTION 14.03 Appointment of Successors.

          (a) Upon the Servicer’s receipt of notice of its termination from the Indenture Trustee
pursuant to Section 14.01 hereof or the Servicer’s resignation in accordance with the terms
of this Agreement, the 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 (which date shall be at least 45 days after the date of such notice), or,
if no such date is specified in a notice of termination, until the expiration of 45 days
after receipt of such notice by the Servicer and, in the case of resignation, until the
later of (x) the date forty-five (45) days from the delivery to the Back-up Servicer, the
Indenture Trustee and the Insurer of written notice of such resignation (or the date of
written confirmation of such notice prior to the expiration of the forty-five (45) days) in
accordance with the terms of this Agreement and (y) the date upon which the predecessor
Servicer shall become unable to act as Servicer, as specified in the notice of resignation
and accompanying Opinion of Counsel. In the event of the Servicer’s resignation or

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	 	   	termination hereunder, and unless the Controlling Party directs otherwise, the Back-up
Servicer shall, subject to the provisions of Section 14.01, automatically be the successor
Servicer under this Agreement and the transactions set forth or provided for herein and
shall be subject to all the responsibilities, duties and liabilities relating thereto placed
on the Back-up Servicer as Servicer by the terms and provisions hereof; provided, however,
that neither the Back-up Servicer, nor any other successor Servicer shall be liable for any
actions of the Servicer or any other predecessor Servicer prior to such succession or for
any breach by the Servicer or any other predecessor Servicer of any of its representations,
warranties or covenants contained in this Agreement or in any related document or agreement.

          (b) Upon appointment, subject to the provisions of Section 14.01, the successor
Servicer shall be the successor in all respects to the predecessor Servicer and shall be
subject to all the responsibilities, duties, and liabilities arising thereafter relating
thereto placed on the Servicer, and shall be entitled to the Servicer Fee and all of the
rights granted to the predecessor Servicer, by the terms and provisions of this Agreement;
provided, however, notwithstanding any other provision of this Agreement or any other Basic
Document, such responsibilities, duties and liabilities shall be amended as provided in
Schedule E hereto. The predecessor Servicer shall be entitled to be reimbursed for
Outstanding Advances.

          (c) In connection with such appointment, the Indenture Trustee may make such
arrangements for the successor Servicer to be compensated out of payments on Receivables as
it and such successor Servicer shall agree; provided, however, that (except as provided in
Schedule C with respect to the Back-up Servicer) no such compensation shall be in excess of
that permitted the original Servicer under this Agreement. The Owner Trustee and such
successor Servicer shall take such action, consistent with this Agreement, as shall be
necessary to effectuate any such succession.

          (d) To the extent that the Back-up Servicer shall be entitled to any indemnity payment
from the Servicer pursuant to Sections 13.02 or 14.03(i) hereof and such indemnity payment
has not been made within 30 calendar days of demand thereof, the Back-up Servicer shall be
entitled to reimbursement for such unpaid amounts, to the extent of available funds, as
provided in Section 8.05 of the Indenture.

          (e) If the Back-up Servicer becomes aware of any error or continuing error, which in
the reasonable business judgment of the Back-up Servicer impairs its ability to perform its
services hereunder, the Back-up Servicer may undertake such data or records reconstruction
as it deems appropriate to correct any such error or continued error and to prevent future
continuing error. To the extent it is not otherwise reimbursed under this Agreement, the
Back-up Servicer shall be entitled to recover its costs incurred in correcting any such
error or continuing error.

          (f) Upon the Back-up Servicer’s receipt of notice of termination following a Back-up
Servicer Default or the Back-up Servicer’s resignation in accordance with the terms of this
Agreement, the Back-up Servicer shall continue to perform its functions as Back-up Servicer
or Servicer, as applicable, under this Agreement, in the case of

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	 	   	termination, only until the
date specified in such termination notice or, if no such date is specified in a notice of
termination, until receipt of such notice and, in the case of resignation, until the later
of (x) the date 30 days from the delivery to the Back-up Servicer, the Indenture Trustee,
and the Insurer of written notice of such resignation (or
the date of written confirmation of such notice prior to the expiration of the 30 days)
in accordance with the terms of this Agreement and (y) the date upon which the Back-up
Servicer shall become unable to act as Back-up Servicer or Servicer, as applicable, as
specified in the notice of resignation and accompanying Opinion of Counsel.

          (g) Upon receipt by any successor Servicer (other than the Back-up Servicer in
accordance with Section 14.03(f) above) of notice of termination or such successor
Servicer’s resignation in accordance with the terms of this Agreement, such successor
Servicer shall continue to perform its functions as Servicer under this Agreement, in the
case of termination, only until the date specified in such termination notice or, if no such
date is specified in a notice of termination, until receipt of such notice and, in the case
of resignation, until the later of (x) the date 30 days from the delivery to the then acting
Back-up Servicer, if any, the Indenture Trustee and the Insurer of written notice of such
resignation (or the date of written confirmation of such notice prior to the expiration of
the 30 days) in accordance with the terms of this Agreement and (y) the date upon which such
successor Servicer shall become unable to act as Servicer, as specified in the notice of
resignation and accompanying Opinion of Counsel. In the event of such successor Servicer’s
resignation or termination hereunder, and if the Controlling Party so directs, the then
acting Back-up Servicer, if any, shall be the successor in all respects to the Servicer
under this Agreement and the transactions set forth or provided for herein and shall be
subject to all the responsibilities, duties and liabilities relating thereto placed on the
Servicer by the terms and provisions hereof; provided, however, that the then acting Back-up
Servicer shall not be liable for any actions of the predecessor Servicer prior to such
succession or for any breach by the predecessor Servicer of any of its representations,
warranties and covenants contained in this Agreement or in any related document or
agreement.

          (h) Notwithstanding the above, if the Servicer or Back-up Servicer, as applicable, is
legally unable to so act or the Controlling Party otherwise directs in accordance with the
terms of this Agreement, the Controlling Party shall appoint a successor Servicer or
successor Back-up Servicer, as applicable. Otherwise, the Indenture Trustee shall appoint
(after soliciting bids from potential servicers), or petition a court of competent
jurisdiction to appoint, a Servicer (as successor Servicer) or Back-up Servicer (as
successor Back-up Servicer) hereunder, in each case acceptable to the Controlling Party, in
the assumption of all or any part of the responsibilities, duties or liabilities of the
outgoing Servicer or Back-up Servicer, as applicable, hereunder.

          (i) Any successor Servicer may accept and reasonably rely on all accounting and
servicing records and other documentation provided to such successor Servicer in connection
with succession to Servicer duties, including documents prepared or maintained by BVAC, the
Transferor, or the Servicer, or any party providing services related to the Receivables
(each, a “Third Party”). The initial Servicer shall indemnify and hold harmless CenterOne,
in its capacity as Back-up Servicer or successor Servicer,

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	 	   	as applicable, and its officers,
employees and agents, the Issuer, the Noteholders and the Insurer against any and all
claims, losses, penalties, fines, forfeitures, legal fees and related costs, judgments, and
any other costs, fees and expenses that CenterOne, in its capacity as Back-up Servicer or
successor Servicer as applicable, the Issuer, the
Noteholders and the Insurer may sustain in any way (i) solely related to the negligence
or willful misconduct of the Servicer or any such Third Party based upon any matter related
to or arising out of this Agreement except for any claims, losses, penalties, fines,
forfeitures, legal fees, and related costs and judgments arising from the gross negligence
of or willful misconduct of CenterOne in its capacity as Back-up Servicer or successor
Servicer, as applicable; or (ii) solely related to the conduct of CenterOne in its capacity
as Back-up Servicer or successor Servicer, as applicable, undertaken at the direction of any
party hereto or which relate to the transfer of servicing to CenterOne. The successor
Servicer shall have no duty, responsibility, obligation or liability (collectively
“liability”) for the acts or omissions of any Third Party. In the event that the initial
Servicer fails to make any such indemnity payment to CenterOne pursuant to the terms hereof,
and, with respect to each other successor Servicer hereunder, such successor Servicer shall
be entitled to receive such payment from the Issuer, to the extent of Available Funds on
each Payment Date, as provided in Section 8.05 of the Indenture; provided, that such Issuer
payment shall not relieve the initial Servicer from the responsibility for making such
payment to CenterOne in its capacity as Back-up Servicer or successor Servicer and the
Issuer shall be subrogated to the rights of CenterOne with respect to such indemnity claim
and shall have a direct right to institute proceedings against the initial Servicer for such
payment. If any error, inaccuracy or omission (collectively “error”) exists in any
information provided to CenterOne in its capacity as successor Servicer, and such error
causes or materially contributes to such successor Servicer making or continuing any error
(a “continuing error”), such successor Servicer shall have no liability for such continuing
error; provided, however, that this provision shall not protect such successor Servicer
against any liability arising from its willful misconduct bad faith or gross negligence in
discovering or correcting or failing to discover or correct any error or in the performance
of its other duties contemplated herein.

          (j) Notwithstanding anything in the Basic Documents to the contrary, in no event shall
the Indenture Trustee (i) be liable for, or obligated to pay, any Transition Costs or (ii)
have any duty or obligation to act as successor Servicer, to act as successor Back-up
Servicer or assume any servicing duties under the Basic Documents.

      SECTION 14.04 Notice of Events of Servicer Default. Upon any notice of an Event of
Servicer Default or upon any termination of, or appointment of a successor to, the Servicer
pursuant to this Article XIV, the Owner Trustee shall give prompt written notice thereof to
Certificateholder at the address appearing in the Certificate Register, to each of the Rating
Agencies then rating the Notes, to the Insurer and to the Indenture Trustee for further notice
thereof to the Noteholders.

      SECTION 14.05 Waiver of Past Defaults. The Insurer (so long as the Insurer is the
Controlling Party) or the Indenture Trustee (in the event the Insurer ceases to be the Controlling
Party) upon direction from holders of Notes evidencing not less than 51% of the outstanding
principal balance of the Notes may waive any default by the Servicer in the performance of its

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obligations hereunder and/or 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 Event of 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
thereon.

ARTICLE XV

THE OWNER TRUSTEE

     SECTION 15.01 Duties of Owner Trustee. The Owner Trustee, both prior to and after the
occurrence of an Event of Servicer Default, shall undertake to perform such duties as are
specifically set forth in this Agreement. If an Event of Servicer Default shall have occurred and
shall not have been cured and the Owner Trustee has received notice of such Event of Servicer
Default, the Owner Trustee shall exercise such of the rights and powers vested in it by this
Agreement, and shall use the same degree of care and skill in their exercise, as a prudent person
would exercise or use under the circumstances in the conduct of his own affairs.

     The Owner Trustee shall execute and deliver, on behalf of the Trust, each Basic Document to
which the Trust is a party and all certificates, instruments and agreements contemplated thereby.
The Owner Trustee shall execute and authenticate the Certificate in accordance with this Agreement
and shall execute the Notes in accordance with the Indenture.

     It shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all its
responsibilities pursuant to the terms of this Agreement and the other documents to which the Trust
is a party and to administer the Trust in the interest of the Certificateholder, subject to and in
accordance with the provisions of this Agreement and the other documents to which the Trust is a
party. Without limiting the foregoing, the Owner Trustee shall, upon written direction of the
Certificateholder and on behalf of the Trust, file and prove any claim or claims that may exist on
behalf of the Trust against the Transferor in connection with any claims paying procedure as part
of an insolvency or a receivership proceeding involving the Transferor. Notwithstanding the
foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities
hereunder and under the other documents to which the Trust is a party to the extent the
Administrator has agreed in the Administration Agreement to perform any act or to discharge any
duty of the Owner Trustee hereunder or under any other document to which the Trust is a party, and
the Owner Trustee shall not be held liable for the default or failure of the Administrator to carry
out its obligations under the Administration Agreement. Except as expressly provided in the
documents to which the Trust is a party, the Owner Trustee shall have no obligation to administer,
service or collect the Receivables or to maintain, monitor or otherwise supervise the
administration, servicing or collection of the Receivables.

     SECTION 15.02 Action upon Instruction.

          (a) Subject to Article X and the terms of the Spread Account Agreement, the Instructing
Party shall have the exclusive right to direct the actions of the Owner Trustee in the
management of the Trust, so long as such instructions are not in violation of the

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	 	   	express terms set forth herein or in any Basic Document. The Instructing Party shall not instruct
the Owner Trustee in a manner inconsistent with this Agreement or the Basic Documents.

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

          (c) Whenever the Owner Trustee is unable to decide between alternative courses of
action permitted or required by the terms of this Agreement or any Basic Document, the Owner
Trustee shall promptly give notice (in such form as shall be appropriate under the
circumstances) to the Instructing Party requesting instruction from it as to the course of
action to be adopted, and to the extent the Owner Trustee acts in good faith in accordance
with any written instruction of the Instructing Party received, the Owner Trustee shall not
be liable on account of such action to any Person. If the Owner Trustee shall not have
received appropriate instruction within ten (10) days of such notice (or within such shorter
period of time as reasonably may be specified in such notice or may be necessary under the
circumstances) it may, but shall be under no duty to, take or refrain from taking such
action, not inconsistent with this Agreement or the Basic Documents, as it shall deem to be
in the best interests of the Certificateholder and shall have no liability to any Person for
such action or inaction except as otherwise expressly provided in this Agreement.

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

          (e) The Owner Trustee shall not take any action (a) that violates the purposes of the
Trust set forth in Section 1.03 hereof or (b) that, to the actual knowledge of the Owner
Trustee, would result in the Trust becoming taxable as a corporation for federal

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	 	   	income tax
purposes. The Instructing Party shall not direct the Owner Trustee to take action that
would violate the provisions of this Section.

          (f) The Owner Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders or other instruments furnished to the
Owner Trustee that shall be specifically required to be furnished pursuant to any
provision of this Agreement, shall examine them to determine whether they conform to the
requirements of this Agreement. To the extent not otherwise provided to such Person
pursuant to the terms hereof or the other Basic Documents, and otherwise without
duplication, the Owner Trustee shall furnish to the Certificateholder, the Insurer and the
Rating Agencies promptly upon receipt of a written request therefor, duplicates or copies of
all reports, notices, requests, demands, certificates, financial statements and any other
instruments furnished to the Owner Trustee under the Basic Documents.

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

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

	 	(i)  	Prior to the occurrence of an Event of Servicer Default, and
after the curing of all such Events of Servicer Default that may have occurred,
the duties and obligations of the Owner Trustee shall be determined solely by
the express provisions of this Agreement, the Owner Trustee shall not be liable
except for the performance of such duties and obligations as shall be
specifically set forth in this Agreement, no implied covenants or obligations
shall be read into this Agreement against the Owner Trustee and, in the absence
of bad faith on the part of the Owner Trustee, or manifest error, the Owner
Trustee may conclusively rely on the truth of the statements and the
correctness of the opinions expressed in any certificates or opinions furnished
to the Owner Trustee and conforming to the requirements of this Agreement;
	 
	 	(ii)  	The Owner Trustee shall not be liable for an error of judgment
made in good faith by a Responsible Officer, unless it shall be proved that the
Owner Trustee shall have been grossly negligent in ascertaining the pertinent
facts;
	 
	 	(iii)  	The Owner Trustee shall not be liable with respect to any
action taken, suffered, or omitted to be taken in good faith in accordance with
this Agreement or at the direction of the Certificate relating to the time,
method, and place of conducting any proceeding for any remedy available to the
Owner Trustee, or exercising any trust or power conferred upon the Owner
Trustee, under this Agreement;

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	 	(iv)  	The Owner Trustee shall not be charged with knowledge of any
failure by the Servicer to comply with the obligations of the Servicer referred
to in clauses (i) or (ii) of Section 14.01 hereof, or of any failure by the
Transferor to comply with the obligations of the Transferor referred to in
clause (ii) of Section 14.01 hereof, unless a Responsible Officer of the
Owner Trustee receives written notice of such failure (it being understood
that knowledge of the Servicer or the Servicer as custodian, in its capacity
as agent for the Owner Trustee, is not attributable to the Owner Trustee)
from the Servicer or the Transferor, as the case may be; and
	 
	 	(v)  	Without limiting the generality of this Section or Section
15.07 hereof, the Owner Trustee shall have no duty (A) to see to any recording,
filing, or depositing of this Agreement or any agreement referred to therein or
any financing statement (or continuation statement) evidencing a security
interest in the Receivables or the Financed Vehicles, or to see to the
maintenance of any such recording or filing or depositing or to any
rerecording, refiling or redepositing of any thereof, (B) to see to any
insurance of the Financed Vehicles or Obligors or to effect or maintain any
such insurance, (C) to see to the payment or discharge of any tax, assessment,
or other governmental charge or any Lien or encumbrance of any kind owing with
respect to, assessed, or levied against, any part of the Trust, (D) to confirm
or verify the contents of any reports or certificates of the Servicer delivered
to the Trust pursuant to this Agreement believed by the Owner Trustee to be
genuine and to have been signed or presented by the proper party or parties, or
(E) to inspect the Financed Vehicles at any time or ascertain or inquire as to
the performance or observance of any of the Transferor’s or the Servicer’s
representations, warranties or covenants or the Servicer’s duties and
obligations as Servicer and as custodian of the Receivable Files under this
Agreement.

     The Owner 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 hereunder, or in the exercise of any of
its rights or powers, if there shall be reasonable ground for believing that the repayment of such
funds or adequate indemnity against such risk or liability shall not be reasonably assured to it,
and none of the provisions contained in this Agreement shall in any event require the Owner Trustee
to perform, or be responsible for the manner of performance of, any of the obligations of the
Servicer under this Agreement except during such time, if any, as the Owner Trustee shall be the
successor to, and be vested with the rights, duties, powers, and privileges of, the Servicer in
accordance with the terms of this Agreement. Except for actions expressly authorized by this
Agreement, the Owner Trustee shall take no action reasonably likely to impair the security
interests created or existing under any Receivable or to impair the value of any Receivable.

     SECTION 15.03 Accounting and Records to the Certificateholder, the Internal Revenue
Service and Others. The Owner Trustee shall (a) maintain (or cause to be maintained) the books
of the Trust on a calendar year basis with respect to amounts actually received or disbursed by the
Owner Trustee (unless otherwise required by Code Section 706(b)), (b) deliver (or cause to be
delivered) to each Certificateholder, such information as may be required by the

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Code, the Internal
Revenue Service and applicable Treasury Regulations to enable each Certificateholder to prepare its
federal and State income tax returns, and (c) file or cause to be filed such tax returns relating
to the Trust provided to it in execution form, and pursuant to direction of BVAC make such
elections, except Form 8832, as may from time to time be
requested in connection with any applicable State or federal statute or rule or regulation
thereunder. The Owner Trustee shall make all elections pursuant to this Section as directed in
writing by BVAC. The Owner Trustee shall sign all tax information returns provided to it in
execution form pursuant to this Section and any other returns as may be requested by BVAC, and in
doing so shall rely entirely upon, and shall have no liability for information provided by, or
calculations provided by, BVAC. The Trust shall comply with the provisions to Section 9.09 related
to elections under Sections 754 and 1278 of the Code.

     SECTION 15.04 Signature on Returns; Tax Matters Partner.

          (a) The Owner Trustee shall sign on behalf of the Trust the tax returns of the Trust,
if any, unless applicable law requires a Certificateholder to sign such documents, in which
case, as provided in Section 9.09 hereof such documents shall be signed by BVAC as “tax
matter partner.”

          (b) The Certificateholder hereby elects BVAC as the “tax matters partner” of the Trust
pursuant to Section 6231 of the Code and the Treasury Regulations promulgated thereunder.

     SECTION 15.05 Owner Trustee’s Certificate. On or as soon as practicable after each
Payment Date on which Receivables shall be (i) assigned to BVAC pursuant to Section 7.02 hereof or
deemed to be assigned to the Transferor as a result of the application of Available Funds in
respect of Charged-Off Receivables pursuant to Sections 9.05 hereof or (ii) assigned to the
Servicer pursuant to Section 8.10 hereof or to the Servicer or any other Person designated by the
Servicer pursuant to Section 16.02 hereof, the Owner Trustee shall, at the written request of the
Servicer, execute an Owner Trustee’s Certificate, substantially in the form of, in the case of an
assignment to BVAC, Exhibit A, or, in the case of an assignment to the Servicer, Exhibit B, based
on the information contained in the Servicer’s Certificate for the related Collection Period,
amounts deposited to the Collection Account, and notices received pursuant to this Agreement,
identifying the Receivables repurchased or deemed to be repurchased by BVAC pursuant to Sections
7.02 or 8.08 hereof or purchased by the Servicer pursuant to Section 8.10 or the Servicer or any
other Person designated by the Servicer pursuant to Section 16.02 during such Collection Period,
and shall deliver such Owner Trustee’s Certificate, accompanied by a copy of the Servicer’s
Certificate for such Collection Period to BVAC or the Servicer, as the case may be, with a copy to
the Indenture Trustee. The Owner Trustee’s Certificate shall be an assignment pursuant to Section
15.06 hereof.

     SECTION 15.06 Trust’s Assignment of Purchased Receivables. With respect to each
Receivable repurchased by BVAC pursuant to Section 7.02 hereof, or deemed to be so repurchased
pursuant to Section 8.08 hereof, purchased by the Servicer pursuant to Section 8.10 hereof or the
Servicer or any other Person designated by the Servicer pursuant to Section 16.02 hereof, the Trust
shall assign, as of the last day of the Collection Period during which such Receivable became a
Charged-Off Receivable or became subject to repurchase by BVAC or

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purchase by the Servicer or such
other Person, without recourse, representation, or warranty, to BVAC, the Servicer or such other
Person (as the case may be) all the Trust’s right, title, and interest in and to such Receivables,
and all security and documents relating thereto, such assignment being an assignment outright and
not for security. If in any enforcement suit or legal proceeding it shall be held that the
Servicer may not enforce a Receivable on the ground that it shall not be a real party in interest
or a holder entitled to enforce the Receivable, the Owner Trustee shall, at BVAC’s expense, take
such steps as the Owner Trustee deems necessary to enforce the Receivable, including bringing suit
in its name and/or the name of the Indenture Trustee.

     SECTION 15.07 Certain Matters Affecting the Owner Trustee. Except as otherwise
provided in Section 15.01:

	 	(i)  	The Owner Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, Officers’ Certificate, Servicer’s
Certificate, 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 Owner Trustee may consult with counsel and any written
advice or Opinion of Counsel shall be full and complete authorization and
protection in respect of any action taken or suffered or omitted by it under
this Agreement in good faith and in accordance with such written advice or
Opinion of Counsel.
	 
	 	(iii)  	The Owner Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Agreement, or to institute,
conduct, or defend any litigation under this Agreement or in relation to this
Agreement, at the request, order, or direction of the Certificateholder
pursuant to the provisions of this Agreement, unless such Certificateholder
shall have offered to the Owner Trustee reasonable security or indemnity
reasonably satisfactory to the Owner Trustee against the costs, expenses, and
liabilities that may be incurred therein or thereby. Nothing contained in this
Agreement, however, shall relieve the Owner Trustee of the obligations, upon
the occurrence of an Event of Servicer Default (that
shall not have been cured), to exercise such of the rights and powers vested
in it by this Agreement, and to use the same degree of care and skill in
their exercise as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs.
	 
	 	(iv)  	The Owner Trustee shall not be liable for any action taken,
suffered, or omitted by it in good faith and believed by it to be authorized or
within the discretion or rights or powers conferred upon it by this Agreement.
	 
	 	(v)  	Prior to the occurrence of an Event of Servicer Default and
after the curing of all Events of Servicer Default that may have occurred, the
Owner

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Trustee shall not be bound to 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 the Insurer or the Indenture
Trustee or holders of Notes evidencing not less than 25% of the outstanding
principal balance of the Notes; provided, however, that if the payment within a
reasonable time to the Owner Trustee of the costs, expenses, or liabilities
likely to be incurred by it in the making of such investigation shall be, in
the reasonable business judgment of the Owner Trustee, not reasonably assured
to the Owner Trustee by the security afforded to it by the terms of this
Agreement, the Owner 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 BVAC, as initial Servicer,
or, if paid by the Owner Trustee, shall be reimbursed by BVAC, as initial
Servicer, upon demand. Nothing in this clause (v) shall affect the obligation
of the Servicer to observe any applicable law prohibiting disclosure of
information regarding the Obligors.

	 	(vi)  	The Owner Trustee may execute any of the trusts or powers
hereunder or perform any duties under this Agreement either directly or by or
through agents or attorneys or a custodian. The Owner Trustee shall not be
responsible for any misconduct or negligence solely attributable to the acts or
omissions of the Servicer in its capacity as Servicer or custodian or the
Administrator.
	 
	 	(vii)  	The Owner Trustee shall have no duty of independent inquiry,
except as may be required by Section 15.01 hereof, and the Owner Trustee may
rely upon the representations and warranties and covenants of the Transferor
and the Servicer contained in this Agreement with respect to the Receivables
and the Receivable Files.

     SECTION 15.08 Owner Trustee Not Liable for Certificate or Receivables. The recitals
contained herein and in the Certificate (other than the certificate of authentication on the
Certificate) shall be taken as the statements of the Transferor or the
Servicer, as the case may be, and the Owner Trustee assumes no responsibility for the
correctness thereof. The Owner Trustee shall make no representations as to the validity or
sufficiency of this Agreement or of the Certificate (other than the certificate of authentication
on the Certificate), or of any Receivable or related document. The Owner Trustee shall at no time
have any responsibility or liability for or with respect to the legality, validity, and
enforceability of any security interest in any Financed Vehicle or any Receivable, or the
perfection and priority of such a security interest or the maintenance of any such perfection and
priority, or for or with respect to the efficacy of the Trust or its ability to generate the
payments to be distributed to the Certificateholder or the Noteholders under this Agreement or the
Indenture, including, without limitation: the existence, condition, location, and ownership of any
Financed Vehicle; the existence and enforceability of any physical damage insurance, lender’s
single interest insurance, or credit life or disability and hospitalization insurance with respect
to any Receivable; the existence and contents of any

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Receivable or any computer or other record
thereof; the validity of the assignment of any Receivable to the Trust or of any intervening
assignment; the completeness of any Receivable; the performance or enforcement of any Receivable;
the compliance by the Transferor or the Servicer with any warranty or representation made under
this Agreement or in any related document and the accuracy of any such warranty or representation
prior to the Owner Trustee’s receipt of notice or other discovery of any noncompliance therewith or
any breach thereof; any investment of monies by the Servicer or any loss resulting therefrom (it
being understood that the Owner Trustee shall remain responsible for any Trust Property that it may
hold); the acts or omissions of the Transferor, the Servicer, or any Obligor; an action of the
Servicer taken in the name of the Owner Trustee; or any action by the Owner Trustee taken at the
instruction of the Servicer; provided, however, that the foregoing shall not relieve the Owner
Trustee of its obligation to perform its duties under this Agreement. Except with respect to a
claim based on the failure of the Owner Trustee to perform its duties under this Agreement or based
on the Owner Trustee’s negligence or willful misconduct, no recourse shall be had for any claim
based on any provision of this Agreement, the Certificateholder or the Noteholders, or any
Receivable or assignment thereof against the Owner Trustee in its individual capacity, the Owner
Trustee shall not have any personal obligation, liability, or duty whatsoever to any
Certificateholder or the Noteholders 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 Agreement. The Owner Trustee shall not be accountable for the use or
application by the Transferor of any Certificate or Notes or of the proceeds thereof, or for the
use or application of any funds paid to the Transferor or the Servicer in respect of the
Receivables.

     SECTION 15.09 Owner Trustee May Own Notes. The Owner Trustee in its individual or any
other capacity may become the owner or pledgee of Notes with the same rights as it would have if it
were not Owner Trustee.

     SECTION 15.10 Owner Trustee’s and Indenture Trustee’s Fees and Expenses;
Indemnification.

     (a) In accordance with the priorities set forth in Section 8.05(a) of the Indenture,
the Owner Trustee shall receive as compensation for its services hereunder the Owner Trustee
Fee, and the Owner Trustee shall be entitled to be reimbursed in
accordance with such priorities for its other reasonable expenses incurred hereunder,
including the reasonable compensation, expenses and disbursements of such agents,
representatives, experts and counsel as the Owner Trustee may employ in connection with the
exercise and performance of its rights and its duties hereunder and under the Basic
Documents, and the Servicer shall pay or reimburse the Owner Trustee upon its request for
all reasonable expenses, disbursements, and advances (including the reasonable compensation
and the expenses and disbursements of its counsel and of all persons not regularly in its
employ) incurred or made by the Owner Trustee in accordance with any provisions of this
Agreement and the Indenture, except any such expense, disbursement, or advance as may be
attributable to its willful misconduct, negligence, or bad faith. Any amounts paid to the
Owner Trustee pursuant to this Section 15.10 shall be deemed not to be a part of the Trust
Property immediately after such payment. The Servicer shall indemnify the Owner Trustee
(which, for purposes of this section, shall include its directors, officers, employees, and
agents) for and hold it

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harmless against any loss, liability, or expense incurred without
willful misconduct, negligence, or bad faith on its part, arising out of or in connection
with the acceptance or administration of the Trust, including the reasonable costs and
expenses of defending itself against any claim or liability in connection with the exercise
or performance of any of its powers or duties under this Agreement and any Basic Document to
which it is a party on behalf of the Trust. The Servicer shall pay the fees and expenses of
the Administrator under the Administration Agreement; provided, however, that the Servicer
shall only be required to pay the reasonable fees and expenses of any successor
Administrator or such other fees agreed to in writing by the Servicer and BVAC.
Additionally, the Transferor, pursuant to Section 12.02 and subject to the limitations set
forth therein, and the Servicer, pursuant to Section 13.02, respectively, shall indemnify
the Owner Trustee with respect to certain matters. The indemnities of this paragraph shall
survive the termination of this Agreement and the Indenture or the termination of the Trust
and the resignation or removal of the Owner Trustee.

     (b) The Servicer hereby agrees to pay or reimburse the fees and reasonable expenses of
the Indenture Trustee as provided in Section 6.07 of the Indenture.

     (c) No successor Servicer (including the Back-up Servicer) shall be obligated to make
any payments or indemnities required by this Section 15.10 and instead the Owner Trustee and
the Indenture Trustee shall receive such amounts, to the extent of Available Funds on each
Payment Date, in the priorities set forth in Section 8.05(a) of the Indenture provided,
however, the Owner Trustee agrees that no amount owed or paid under the Policy shall be paid
to the Owner Trustee for amounts payable to the Owner Trustee.

     SECTION 15.11 Eligibility Requirements for Owner Trustee. The Owner Trustee under
this Agreement shall at all times be a corporation (i) having an office in the same State as the
location of the Corporate Trust Office as specified in this Agreement; (ii) organized and doing
business under the laws of such State or the United States of America; (iii) authorized under such
laws to exercise corporate trust powers; (iv) having a net worth of at least $50,000,000; (v)
subject to supervision or examination by federal or State
authorities; and (vi) the long-term unsecured debt of which is rated at least A2 by Moody’s
and A by Standard & Poor’s or which is approved by the Insurer and each Rating Agency. If such
corporation shall publish reports of condition at least annually, pursuant to law or to the
requirements of the aforesaid supervising or examining authority, then for the purpose of this
Section 15.11, the combined capital and surplus of such corporation shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. In
case at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of
this Section 15.11, the Owner Trustee shall resign immediately in the manner and with the effect
specified in Section 15.12 hereof.

     SECTION 15.12 Resignation or Removal of Owner Trustee. The Owner Trustee may at any
time resign and be discharged from the trusts hereby created by giving written notice thereof to
the Servicer. Upon receiving such notice of resignation, the Servicer (or if Back-up Servicer is
then acting as Servicer, the Indenture Trustee), with the prior written consent of the Insurer (so
long as it is the Controlling Party), shall promptly appoint a successor Owner Trustee,

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by written
instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner
Trustee and one copy to the successor Owner Trustee. If no successor Owner Trustee shall have been
so appointed and have accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the
appointment of a successor Owner Trustee.

     If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions
of Section 15.11 hereof and shall fail to resign after written request therefor by the Servicer, or
if at any time the Owner Trustee shall be legally unable to act, or shall be adjudged bankrupt or
insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public
officer shall take charge or control of the Owner Trustee or of its property or affairs for the
purpose of rehabilitation, conservation, or liquidation, then the initial Servicer (or if the
Back-up Servicer is then acting as Servicer, the Controlling Party) may remove the Owner Trustee.
If it shall remove the Owner Trustee under the authority of the immediately preceding sentence, the
initial Servicer (or if the Back-up Servicer is then acting as Servicer, the Controlling Party)
shall promptly appoint a successor Owner Trustee by written instrument, in duplicate, one copy of
which instrument shall be delivered to the Owner Trustee so removed and one copy to the successor
Owner Trustee.

     Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee
pursuant to any of the provisions of this Section 15.12 shall not become effective until acceptance
of appointment by the successor Owner Trustee pursuant to Section 15.13 hereof.

     SECTION 15.13 Successor Owner Trustee. Any successor Owner Trustee appointed pursuant
to Section 15.12 hereof shall execute, acknowledge, and deliver to the Servicer and to the
predecessor Owner Trustee an instrument accepting such appointment under this Agreement, and
thereupon the resignation or removal of the predecessor Owner Trustee shall become effective and
such successor Owner Trustee, without any further act, deed, or conveyance, shall become fully
vested with all the rights,
powers, duties, and obligations of its predecessor under this Agreement, with like effect as
if originally named as Owner Trustee. Any successor Owner Trustee appointed hereunder shall file
an amendment to the Certificate of Trust with the Delaware Secretary of State reflecting the name
and principal place of business of such successor Owner Trustee in the State of Delaware. The
predecessor Owner Trustee shall deliver to the successor Owner Trustee all documents and statements
held by it under this Agreement; and the Servicer and the predecessor Owner Trustee shall execute
and deliver such instruments and do such other things as may reasonably be required for fully and
certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties,
and obligations.

     No successor Owner Trustee shall accept appointment as provided in this Section 15.13 unless
at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section
15.11 hereof.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section 15.13,
the Servicer shall mail notice of the successor of such Owner Trustee under this Agreement to the
Indenture Trustee and to the Holder of the Certificate at its address as shown in the Certificate
Register. If the Servicer shall fail to mail such notice within 10 days after acceptance of
appointment by the successor Owner Trustee, the successor Owner Trustee shall

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cause such notice to
be mailed at the expense of the Servicer (or if BVAC is no longer the Servicer, the Owner Trustee
shall be reimbursed for such expenses in accordance with the priorities set forth in Section
8.05(a) of the Indenture).

     SECTION 15.14 Merger or Consolidation of Owner Trustee. Any corporation into which
the Owner Trustee may be merged or converted or with which it may be consolidated, or any
corporation resulting from any merger, conversion, or consolidation to which the Owner Trustee
shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided such
corporation shall be eligible pursuant to Section 15.11 hereof, without the execution or filing of
any instrument or any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding.

     SECTION 15.15 Appointment of Co-Trustee or Separate Owner Trustee. Notwithstanding
any other provisions of this Agreement, at any time, for the purpose of meeting any legal
requirements of any jurisdiction in which any part of the Trust or any Financed Vehicle may at the
time be located, the Servicer (or the Back-up Servicer is then acting as Servicer, the Controlling
Party) and the Owner Trustee acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by the Owner Trustee to act as co-trustee,
jointly with the Owner Trustee, or separate trustee or separate trustees, of all or any part of the
Trust, and to vest in such Person, in such capacity and for the benefit of the Certificateholder,
such title to the Trust, or any part thereof, and, subject to the other provisions of this Section
15.15, such powers, duties, obligations, rights, and trusts as the Servicer and the Owner Trustee
may consider necessary or desirable. If the Servicer shall not have joined in such appointment
within 15 days after the receipt by it of a request so to do, or in the case an Event of Servicer
Default shall have occurred and be continuing or the Back-up
Servicer is then acting as Servicer, the Owner Trustee alone shall have the power to make such
appointment. No co-trustee or separate trustee under this Agreement shall be required to meet the
terms of eligibility as a successor Owner Trustee pursuant to Section 15.11 hereof and no notice to
Certificateholder of the appointment of any co-trustee or separate trustee shall be required
pursuant to Section 15.13 hereof.

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

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

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	 	(ii)  	No trustee under this Agreement shall be personally liable by
reason of any act or omission of any other trustee under this Agreement; and
	 
	 	(iii)  	The Servicer and the Owner Trustee acting jointly may at any
time accept the resignation of or remove any separate trustee or co-trustee.

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

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

     SECTION 15.16 Representations and Warranties of Owner Trustee. The Owner Trustee
makes the following representations and warranties on which the Transferor, the Certificateholder
and the Secured Parties may rely:

     (a) Organization and Existence. The Owner Trustee is a national banking
corporation duly organized and validly existing under the laws of the State of Delaware and
authorized to engage in a banking and trust business under such laws.

     (b) Power and Authority. The Owner Trustee has full power, authority, and
legal right to execute, deliver, and perform this Agreement, and shall have taken all
necessary action to authorize the execution, delivery, and performance by it of this
Agreement.

     (c) Duly Executed. This Agreement has been duly executed and delivered by the
Owner Trustee and constitutes the legal, valid, and binding agreement of the Owner Trustee,
enforceable in accordance with its terms, except as such enforceability may be limited by
(i) bankruptcy, insolvency, liquidation, reorganization, moratorium, conservatorship,
receivership or other similar laws now or hereinafter in effect relating to the enforcement
of creditors’ rights in general, as such laws would apply in the event of a bankruptcy,
insolvency, liquidation, reorganization, moratorium, conservatorship, receivership or
similar occurrence affecting the Owner Trustee, and (ii) general principles

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of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at
law) as well as concepts of reasonableness, good faith and fair dealing.

ARTICLE XVI

TERMINATION

     SECTION 16.01 Termination of the Trust.

     (a) The respective obligations and responsibilities of the Transferor, the Servicer,
the Back-up Servicer, the Indenture Trustee and the Owner Trustee created hereby shall
terminate and the Trust created by this Agreement shall dissolve upon (i) written notice to
the Owner Trustee from the Servicer (or if Back-up Servicer is then acting Servicer, the
Transferor) at any time after the disposition of the Trust corpus as of the last day of any
Collection Period at the direction of the Servicer, at its option, pursuant to Section 16.02
hereof, or (ii) the payment to all Noteholders and the Insurer of all amounts required to be
paid to them pursuant to this Agreement, the Indenture and the Insurance Agreement (as set
forth in writing by the Insurer) and the disposition of all property held as part of the
Trust; provided, however, that in no event shall the trust created by this Agreement
continue beyond the expiration of 21 years from the date as of which this Agreement is
executed. The Servicer shall promptly notify the Owner Trustee, the Indenture Trustee and
the Insurer in writing of any prospective termination pursuant to this Section 16.01.
Notwithstanding the foregoing, the Trust shall continue and the Indenture Trustee shall
pursue recovery of any Preference Amounts (as defined in the Policy) under the Policy and
the distribution of the same to Noteholders (and to the
Servicer to the extent the Servicer is required to reimburse the Insurer pursuant to
Section 3.03(f) of the Insurance Agreement) until the Policy terminates by its own terms.

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

     (c) Notice of any termination of the Trust, specifying the Payment Date upon which the
Certificateholder shall surrender its Certificate to the Indenture Trustee, as paying agent
who shall then surrender such Certificate to the Owner Trustee for cancellation, shall be
given by the Owner Trustee by letter to the Certificateholder mailed within five (5)
Business Days of receipt of notice of such termination from the Transferor or Servicer, as
the case may be, given pursuant to this Section 16.01 stating (i) the Payment Date upon or
with respect to which final payment of the Certificate shall be made upon presentation and
surrender of the Certificate at the office of the Indenture Trustee therein designated, (ii)
the amount of any such final payment and (iii) that the Record Date otherwise applicable to
such Payment Date is not applicable, payments being made only upon presentation and
surrender of the Certificate at the office of the Owner Trustee therein specified. The
Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner
Trustee), the Insurer and the Indenture Trustee at the time such notice is given to the
Certificateholder. Upon presentation and surrender of the Certificate to the Owner Trustee,
the Indenture Trustee shall cause to be

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distributed to the Certificateholder amounts
distributable on such Payment Date pursuant to Section 16.02.

     In the event that the Certificateholder shall not surrender its Certificate for
cancellation within six (6) months after the date specified in the above-mentioned written
notice, the Owner Trustee shall give a second written notice to the Certificateholder to
surrender its Certificate for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice, the Certificate shall not have been
surrendered for cancellation, any funds remaining in the Trust after exhaustion of such
remedies shall be distributed, subject to applicably escheat laws, by the Indenture Trustee
to the Transferor and the Certificateholder shall look solely to the Transferor for payment.

     (d) Any funds remaining in the Trust, after funds for final distribution have been
distributed or set aside for distribution and reasonable provision has been made for known
claims and obligations of the Trust, shall be distributed to the Certificateholder.

     (e) Upon dissolution and the winding up of the Trust pursuant to Section 16.01(a)
hereof, the Owner Trustee shall cause the Certificate of Trust to be canceled by filing a
certificate of cancellation with the Secretary of State in accordance with the provisions of
Section 3810 of the Delaware Statutory Trust Act.

     SECTION 16.02 Optional Disposition of All Receivables. On any Payment Date (after
giving effect to any payments to be made on such Payment Date) on which (i) the Notional Principal
Amount has been reduced to zero and (ii) the aggregate
Principal Balance of the Receivables will be equal to or less than 15% of the Original Pool
Balance, the Servicer shall have the option to cause the Owner Trustee to sell (to the Servicer or
any other person designated by the Servicer) the corpus of the Trust at the Redemption Price. Any
such purchase will be effective as of the end of the Collection Period which relates to the Payment
Date on which the repurchase occurs. The proceeds of such sale will be deposited into the
Collection Account for distribution to the Indenture Trustee (and, to the extent applicable, the
Insurer) on the next succeeding Payment Date. The Servicer shall notify the Owner Trustee and the
Indenture Trustee on or before the Determination Date if the aggregate Principal Balance as of the
related Payment Date (after giving effect to any payments to be made on such Payment Date) will be
less than or equal to 15% of the Original Pool Balance. The Servicer shall notify the Owner
Trustee and the Indenture Trustee in writing on or before the applicable Determination Date if the
Servicer intends to exercise its option to purchase the corpus of the Trust pursuant to this
Section 16.02. Such Redemption Price shall be deposited to the Collection Account in immediately
available funds by 11:00 a.m., New York City time, on the Payment Date and, upon notice to the
Owner Trustee and the Indenture Trustee of such deposit, whereupon the Notes and the Certificate
shall no longer evidence any right or interest in the Receivables or any proceeds thereof. The
fair market value of the outstanding Receivables for purposes of this Section 16.02 shall be an
amount equal to the average of the bid prices for such assets taken as a whole, provided to the
Servicer by two independent, nationally recognized dealers in automobile loans substantially
similar to the Receivables.

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ARTICLE XVII

MISCELLANEOUS PROVISIONS

     SECTION 17.01 Amendment.

     (a) This Agreement may be amended from time to time by the Issuer, the Transferor, the
Servicer, the Back-up Servicer, the Owner Trustee and the Indenture Trustee and, (i) so long
as the Insurer is the Controlling Party, with the prior written consent of the Insurer and
(ii) in the event the Insurer ceases to be the Controlling Party, with the consent of the
Majority Noteholders (which consent given pursuant to this Section or pursuant to any other
provision of this Agreement shall be conclusive and binding on such Holders and on all
future Holders of such Notes and of any Notes issued upon the transfer thereof or in
exchange thereof or in lieu thereof whether or not notation of such consent is made upon the
Notes) for the purpose of adding any provisions to or changing in any manner or eliminating
any of the provisions of this Agreement, or of modifying in any manner the rights of the
Holders of Notes; provided, however, that, in the case of either clause (i) or (ii) above,
no such amendment shall (a) increase or reduce in any manner the amount of, or accelerate or
delay the timing of, or change the allocation or priority of, collections of payments on
Receivables or payments that shall be required to be made on any Note or Certificate or
change the applicable interest rate payable on any Note without the consent of each
Noteholder and Certificateholder affected thereby and the satisfaction of the Rating Agency
Condition, (b) reduce the aforesaid percentage of the Note Balance required to consent to
any such amendment, without the consent of the Holders of all Notes then outstanding or
eliminate the right of the Noteholder or the Certificateholder to consent to any change
described in clause (a)
affecting the Noteholder or the Certificateholder without the consent of the Noteholder
or the Certificateholder, as applicable, or (c) result in a downgrade or withdrawal of the
then current rating of the Notes by either of the Rating Agencies without the consent of all
the Noteholders and the satisfaction of the Rating Agency Condition; provided, further that
in the case of clause (ii) above, this Agreement may be amended from time to time by the
Issuer, the Transferor, the Servicer, the Back-up Servicer, the Owner Trustee and the
Indenture Trustee, with the prior written consent of the Insurer, so long as it is the
Controlling Party, for any of the following purposes:

          (x) to correct or amplify the description of any property at any time conveyed to the
Issuer hereunder, or better to assure, convey and confirm unto the property conveyed
pursuant hereto;

          (y) to add to the covenants of the Transferor, BVAC, the Servicer or the Back-up
Servicer for the benefit of the Holders of the Notes and the Insurer, or

          (z) to cure any ambiguity, to correct or supplement any provision herein which may be
inconsistent with any other provision herein or to make any other provisions with respect to
matters or questions arising under this Agreement; provided that such action pursuant to
this subclause (z) shall not adversely affect in any material respect the interests of the
Holders of the Notes, as evidenced by written confirmation

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that such amendment would not
result in a downgrade or withdrawal of the then current rating of the Notes by either of the
Rating Agencies.

     (b) The Owner Trustee shall furnish prior notice of any such proposed amendment to each
Rating Agency and promptly after the execution of any such amendment or consent, the
Indenture Trustee shall furnish a copy of such amendment and/or consent, if applicable, to
each Noteholder, the Insurer and each of the Rating Agencies.

     (c) Prior to the execution of any amendment to this Agreement, the Owner 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 17.02(i)(l) hereof. The Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Indenture Trustee’s own
rights, duties or immunities under this Agreement or otherwise.

     (d) So long as it is the Controlling Party, the Insurer shall have the right to
exercise all rights, including voting rights, which the Noteholders are entitled to exercise
pursuant to this Agreement, without any consent of such Noteholders; provided, however, that
without the consent of each Noteholder affected thereby, the Insurer shall not exercise such
rights to amend this Agreement in any manner that would (i) reduce the amount of, or delay
the timing of, collections of payments on the Receivables or distributions which are
required to be made on any Note, (ii) adversely affect in any material respect the interests
of the Holders of any Notes, or (iii) alter the rights of any such Holder to consent to such
amendment.

     (e) Notwithstanding any provision in this Agreement to the contrary, in the event the
Insurer ceases to be the Controlling Party, the Insurer shall not have the right to take any
action under this Agreement, consent to or to control or direct the actions of the Trust,
the Transferor, the Servicer, the Back-up Servicer, the Indenture Trustee or the Owner
Trustee pursuant to the terms of this Agreement, nor shall the consent of the Insurer be
required with respect to any action (or waiver of a right to take action) to be taken by the
Trust, the Transferor, the Servicer, the Back-up Servicer, the Indenture Trustee, the Owner
Trustee or the Noteholders or the Certificateholder.

     (f) It shall not be necessary for the consent of the Certificateholder or the
Noteholders pursuant to this Section 17.01 to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consents and of evidencing the authorization of the
execution thereof by the Certificateholder shall be subject to such reasonable requirements
as the Owner Trustee may prescribe.

     (g) Promptly after the execution of any amendment to the Certificate of Trust, the
Owner Trustee shall cause the filing of such amendment with the Secretary of State of the
State of Delaware.

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     SECTION 17.02 Protection of Title to Trust.

     (a) Each of the Transferor and BVAC, as to itself, shall file such financing statements
and cause to be filed such continuation statements, all in such manner and in such places as
may be required by law fully to preserve, maintain, and protect the interest of the
Noteholders, to the extent expressly set forth herein or the other Basic Documents, the
Insurer and the Indenture Trustee in the Receivables and in the proceeds thereof and the
sale of accounts and chattel paper. Each of the Transferor and BVAC, as to itself, shall
deliver (or cause to be delivered) to the Indenture Trustee and the Insurer file-stamped
copies of, or filing receipts for, any document filed as provided above, as soon as
available following such filing.

     (b) Neither BVAC nor the Transferor shall change its name, identity, or corporate
structure in any manner that would, could, or might make any financing statement or
continuation statement filed by the Transferor or BVAC in accordance with paragraph (a)
above seriously misleading within the meaning of Section 9-507 of the UCC, unless it shall
have given the Indenture Trustee and the Insurer at least 60 days’ prior written notice
thereof and shall have promptly filed appropriate amendments to all previously filed
financing statements or continuation statements and shall have delivered an Opinion of
Counsel (A) stating that, in the opinion of such counsel, all amendments to all previously
filed financing statements and continuation statements have been executed and filed that are
necessary fully to preserve and protect the interest of the Indenture Trustee in the
Receivables and the other Trust Property, 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.

     (c) Each of the Transferor and BVAC shall give the Indenture Trustee and the Insurer at
least 60 days’ prior written notice of any relocation of its principal executive office, or
State of incorporation, 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 new financing statement and shall promptly file any such
amendment and shall have delivered an Opinion of Counsel (A) stating that, in the opinion of
such counsel, all amendments to all previously filed financing statements and continuation
statements have been executed and filed that are necessary fully to preserve and protect the
interest of the Indenture Trustee in the Receivables and the other Trust Property, 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 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.

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     (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 (including any back-up archives) that refer to a Receivable shall indicate clearly
(including by means of tagging) the interest of the Trust in such Receivable and that such
Receivable is owned by the Trust. Indication of the Trust’s ownership of a Receivable shall
be deleted from or modified on the Servicer’s computer systems when, and only when, the
Receivable shall have been paid in full or repurchased.

     (f) If at any time BVAC or the Transferor or the Servicer shall propose to sell, grant
a security interest in, or otherwise transfer any interest in automotive receivables to any
prospective purchaser, lender, or other transferee, the Servicer shall give to such
prospective purchaser, lender, or other transferee computer tapes, records, or print-outs
(including any restored from back-up archives) that, if they shall refer in any manner
whatsoever to any Receivable, shall indicate clearly (including by means of tagging) that
such Receivable has been sold and is owned by the Trust and pledged to the Indenture
Trustee.

     (g) Upon reasonable prior notice, the Servicer shall permit the Indenture Trustee, the
Insurer (so long as the Insurer is the Controlling Party) and their respective agents at any
time during normal business hours to inspect, audit, and make copies of and abstracts from
the Servicer’s records regarding any Receivable provided, that such inspection and audit
shall not unreasonably interfere with the Servicer’s daily business operations.

     (h) Upon request, the Servicer shall furnish to the Owner Trustee, the Indenture
Trustee and the Insurer (so long as it is the Controlling Party), within five
Business Days, a list of all Receivables (by account number and name of Obligor) then
held as part of the Trust, together with a reconciliation of such list to the Schedule 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.

     (i) The Servicer shall deliver to the Owner Trustee and the Indenture Trustee and the
Insurer (so long as the Insurer is the Controlling Party):

(1) promptly after the execution and delivery of this Agreement and of each
amendment thereto, an Opinion of Counsel either (A) stating that, in the
opinion of such counsel, all financing statements (and releases of financing
statements) and continuation statements have been executed (or otherwise
authorized) and filed that are necessary fully to preserve and protect the
interest of the Indenture Trustee in the Receivables and reciting the
details of such filings or referring to prior Opinions of Counsel in which
such details are given, or (B) stating that, in the opinion of such counsel,
no such action shall be necessary to preserve and protect such interest; and

(2) within 90 days after the beginning of each calendar year beginning with
the first calendar year beginning more than three months after the

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Cut-off
Date, an Opinion of Counsel, dated as of a date during such 90-day period,
either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements have been executed and filed that are
necessary fully to preserve and protect the interest of the Indenture
Trustee in the Receivables, and reciting the details of such filings or
referring to prior Opinions of Counsel in which such details are given, or
(B) stating that, in the opinion of such counsel, no such action shall be
necessary to preserve and protect such interest. Such Opinion of Counsel
shall also describe the execution and filing of any financing statements and
continuation statements that will, in the opinion of such counsel, be
required to preserve and protect the interest of the Indenture Trustee in
the Receivables, until January 30 in the following calendar year.

     Each Opinion of Counsel referred to in clause (i)(1) or (i)(2) above shall specify any action
necessary (as of the date of such opinion) to be taken in the following year to preserve and
protect such interest.

     (j) If the Back-up Servicer is acting as the successor Servicer, it shall be reimbursed
for any costs incurred by it in performing its duties pursuant to this Section.

     SECTION 17.03 Limitation on Rights of Noteholders and the Certificateholder.

     (a) The death or incapacity of any Noteholder or Certificateholder shall not operate to
terminate this Agreement or the Trust, nor entitle such Noteholder’s or such
Certificateholder’s legal representatives or heirs to claim an accounting or to take any
action or commence any proceeding in any court for a partition or winding up of the
Trust, nor otherwise affect the rights, obligations, and liabilities of the parties to this
Agreement or any of them.

     (b) No Noteholder shall have any right to vote (except as provided in this Agreement)
or in any manner otherwise control the operation and management of the Trust, or the
obligations of the parties to this Agreement except as expressly set forth herein, nor shall
anything in this Agreement set forth, or contained in the terms of the Notes, be construed
so as to constitute the Noteholders from time to time as partners or members of an
association; nor shall any Noteholders be under any liability to any third person by reason
of any action taken pursuant to any provision of this Agreement. No Noteholder shall have
any right by virtue or by availing itself of any provisions of this Agreement to institute
any suit, action, or proceeding in equity or at law upon or under or with respect to this
Agreement, unless the Insurer (so long as the Insurer is the Controlling Party) has given
its prior written consent and such Holder previously shall have given to the Indenture
Trustee a written notice of default and of the continuance thereof, and unless also (i) the
default arises from the Transferor’s or the Servicer’s failure to remit payments when due
hereunder, or (ii) the Majority Noteholders shall have made written request upon the
Indenture Trustee to institute such action, suit or proceeding in its own name as Indenture
Trustee under this Agreement and such Holder shall have offered to the Indenture Trustee
such reasonable indemnity as it may require

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against the costs, expenses, and liabilities to
be incurred therein or thereby, and the Indenture Trustee, for 30 days after its receipt of
such notice, request, and offer of indemnity, shall have neglected or refused to institute
any such action, suit or proceeding and during such 30-day period no request or waiver

inconsistent with such written request has been given to the Indenture Trustee pursuant to
this Section or Section 13.04; no one or more Holders of Notes or the Certificates shall
have any right in any manner whatever by virtue or by availing itself or themselves of any
provisions of this Agreement to affect, disturb, or prejudice the rights of the Holders of
any other of the Notes or the Certificate, or to obtain or seek to obtain priority over or
preference to any other such Holder, or to enforce any right, under this Agreement except in
the manner provided in this Agreement and for the equal, ratable, and common benefit of all
Noteholders or Certificateholder, as applicable. For the protection and enforcement of the
provisions of this Section, each Noteholder, the Certificateholder and the Indenture Trustee
shall be entitled to such relief as can be given either at law or in equity. Nothing in
this Agreement shall be construed as giving the Noteholders any direct right to make a claim
on the Policy.

     (c) In the event the Indenture Trustee shall receive conflicting or inconsistent
requests and indemnity from two or more groups of Holders of Securities, each representing
less than the required amount of the Securities, the Trustee in its sole discretion may
determine what action, if any, shall be taken, notwithstanding any other provisions of this
Agreement.

     SECTION 17.04 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE AND
THE OBLIGATIONS, RIGHTS, AND REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS AND WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (EXCEPT WITH REGARD TO
THE UCC).

     SECTION 17.05 Notices. All demands, notices, and communications under this Agreement
shall be in writing, personally delivered, sent by facsimile or electronic transmission to, sent by
courier to or mailed by certified mail, return receipt requested (except as otherwise indicated
below), and shall be deemed to have been duly given unless otherwise provided herein, upon receipt:

     (a) in the case of the Transferor, at the following address: Bay View Deposit
Corporation, 1840 Gateway Drive, Suite 400, San Mateo, California 94404, Attention: Joseph
J. Catalano; at the following phone number: (650) 312-6810; and at the following fax
number (650) 573-6381.

     (b) in the case of the Servicer, at the following address: Bay View Acceptance
Corporation, 1840 Gateway Drive, Suite 300, San Mateo, California 94404, Attention: Joseph
J. Catalano; at the following phone number: (650) 312-6810; and at the following fax
number (650) 573-6381.

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     (c) in the case of the Owner Trustee at the following address: Bay View 2005-LJ-1
Owner Trust, c/o Wilmington Trust Company, Owner Trustee, Plaza Building, 1st
Floor, 301 West 11th Street, Wilmington, Delaware 19890-0001, Attention:
Corporate Trust Administration; at the following phone number (302) 636-6000, and at the
following fax number (302) 636-4140;

     (d) in the case of the Insurer, to: MBIA Insurance Corporation, 113 King Street,
Armonk, New York 10504, Attention: IPM-SF (Bay View 2005-LJ-1); at the following phone
number: (914) 765-3781; and at the following fax number (914) 765-3810;

     (e) in the case of the Indenture Trustee, at its Corporate Trust Office, Attention:
Trust Securities Services;

     (f) in the case of the Back-up Servicer, at the following address: CenterOne Financial
Services LLC, Attention: Ed Brown; at the following phone number (954) 596-3976; and at the
following fax number (954) 596-7713.

     (g) in the case of Moody’s, all notices thereto via electronic delivery to
ServicerReports@moodys.com, except for any information not available in electronic format,
then to the following address in accordance with delivery instructions set forth above: at
the following address: 99 Church Street, New York, New York 10007 Attn: ABS Monitoring
Department;

     (h) in the case of Standard & Poor’s, all notices thereto via electronic delivery to
Servicer_reports@sandp.com, except for any information not available in electronic format,
then to the following address in accordance with delivery instructions set forth above: 55
Water Street, New York, New York 10041, Attention: Asset-Backed Surveillance Department;

     Any notice required or permitted to be mailed to a Noteholder or Certificateholder, as the
case may be, shall be given by first class mail, postage prepaid, at the address of such Holder as
shown in the Note or Certificate Register. Any notice so mailed within the time prescribed in this
Agreement shall be conclusively presumed to have been duly given, whether or not the Noteholder or
the Certificateholder, as the case may be, shall receive such notice.

     SECTION 17.06 Severability of Provisions. If any one or more of the covenants,
agreements, provisions, or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining
covenants, agreements, provisions, or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement or of the Certificate or the
Notes or the rights of the Holders thereof or of the Insurer.

     SECTION 17.07 Assignment. Notwithstanding anything to the contrary contained herein,
except as provided below or in Sections 12.03 and 13.03 hereof and as provided in the provisions of
this Agreement concerning the resignation of the Servicer or the Back-up Servicer, this Agreement
may not be assigned by the Transferor, the Servicer or the Back-up Servicer without the prior
written consent of the Owner Trustee and the Controlling Party.

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     SECTION 17.08 Insurer. Without limiting the generality of the foregoing, all
covenants and agreements in this Agreement which confer rights upon the Insurer shall be for the
benefit of and run directly to the Insurer to the extent expressly set forth herein or in the other
Basic Documents, and the Insurer shall be entitled to rely on and enforce such covenants and
agreements, subject, however, to the limitations on such rights provided in this Agreement and the
Basic Documents. The Insurer may disclaim any of its respective rights and powers under this
Agreement (but not its duties and obligations under the Policy), upon delivery of a written notice
to the Owner Trustee. Nothing herein, however, shall be construed to have created a fiduciary
obligation of the Owner Trustee to any person or persons other than the Certificateholder.

     SECTION 17.09 Nonpetition Covenants. The Owner Trustee (in its individual capacity
and as Owner Trustee), by entering into this Agreement, the Certificateholder, by accepting a
Certificate, and the Indenture Trustee and each Noteholder by accepting the benefits of this
Agreement, hereby covenant and agree that they will not at any time institute against the
Transferor or the Trust, or join in any institution against the Transferor or the Trust of, any
bankruptcy, reorganization, arrangement, insolvency
or liquidation proceedings, or other proceedings under any federal or State bankruptcy or
similar law in connection with any obligations relating to the Certificate, the Notes, this
Agreement or any of the Basic Documents.

     SECTION 17.10 No Recourse. The Certificateholder, by accepting a Certificate,
acknowledges that such Certificateholder’s Certificate represents a percentage beneficial interest
in the assets of the Trust only and does not represent an interest in or obligation of the
Transferor, the Servicer, the Back-up Servicer, BVAC, the Owner Trustee, the Indenture Trustee, the
Insurer, the Collateral Agent, the Custodian or any Affiliate thereof, and no recourse may be had
against such parties or their assets, except as may be expressly set forth or contemplated in this
Agreement, the Certificate or the Basic Documents.

     SECTION 17.11 No Legal Title to Trust Property in Certificateholder. The
Certificateholder shall not have legal title to any part of the Trust Property. The
Certificateholder shall be entitled to receive distributions only in accordance with the Indenture
the Spread Account Agreement and this Agreement. No transfer, by operation of law or otherwise, of
any right, title or interest of the Certificateholder to and in its ownership interest in the Trust
Property shall operate to terminate this Agreement or the trusts hereunder or entitle any
transferee to an accounting or to the transfer to it of legal title to any part of the Trust
Property.

     SECTION 17.12 Further Assurances. The Transferor, the Servicer and the Back-up
Servicer agree to do and perform, from time to time, any and all acts and to execute any and all
further instruments required or reasonably requested by the Indenture Trustee or the Insurer more
fully to effect the purposes of this Agreement and the other Basic Documents, including, without
limitation, the execution of any financing statements or continuation statements relating to the
Receivables for filing under the provisions of the UCC of any applicable jurisdiction.

     SECTION 17.13 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Owner Trustee, the Insurer, the Noteholders or the
Certificateholder, any right, remedy, power or privilege hereunder, shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power or privilege

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hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exhaustive of any rights, remedies, powers and privileges provided by law.

     SECTION 17.14 Third-Party Beneficiaries. This Agreement will inure to the benefit of
and be binding upon the parties hereto, the Indenture Trustee, the Noteholders and the
Certificateholder, respectively, and their respective successors and permitted assigns. Except as
may be otherwise provided in this Agreement, no other person will have any right or obligation
hereunder. The Owner Trustee (including in its
individual capacity), and the Insurer are each an express third party beneficiary of this
Agreement. Each of the parties to the Purchase Agreement hereby agrees that the Insurer shall be
permitted but not obligated to enforce the rights of the Transferor directly thereunder in the
place and stead of the Transferor but the Insurer shall have no obligations under the Purchase
Agreement.

     SECTION 17.15 Actions by Noteholders or Certificateholder.

     (a) Wherever in this Agreement a provision is made that an action may be taken or a
notice, demand, or instruction given by Noteholders or by Certificateholder, as the case may
be, such action, notice, demand or instruction may be taken or given by any Noteholder or by
the Certificateholder, unless such provision requires a specific percentage of Noteholders
or Certificateholders, as the case may be.

     (b) Any request, demand, authorization, direction, notice, consent, waiver or other
action provided by this Agreement to be taken or given by Noteholders or Certificateholder,
as the case may be, may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders or Certificateholder, as the case may
be, in person or by an agent duly appointed in writing.

     (c) The fact and date of the execution by any Noteholder or any Certificateholder of
any instrument or writing may be proved in any reasonable manner which the Indenture Trustee
deems sufficient.

     (d) Any request, demand, authorization, direction, notice, consent, waiver, or other
act by a Noteholder or the Certificateholder, as the case may be, shall bind such Noteholder
or Certificateholder, as the case may be, and every subsequent holder of such Certificate or
Note issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done or omitted to be done by the Indenture Trustee, the
Transferor, the Servicer or the Back-up Servicer in reliance thereon, whether or not
notation of such action is made upon such Certificate or Note.

     (e) The Indenture Trustee may require such additional proof of any matter referred to
in this Section as it shall deem necessary.

     SECTION 17.16 Corporate Obligation. No recourse may be taken, directly or indirectly,
against any partner, incorporator, subscriber to the capital stock, stockholder, director, officer
or employee of the Transferor, the Servicer or the Back-up Servicer with respect to their
respective obligations and indemnities under this Agreement or any certificate or other writing
delivered in connection herewith.

Trust and Servicing Agreement

109

 

     SECTION 17.17 Covenant Not File a Bankruptcy Petition. The parties hereto agree that
until one year and one day after such time as the Notes issued under the Indenture are paid in full
and all amounts due to the Insurer under the Insurance Agreement are paid in full, they shall not
(i) institute the filing of a bankruptcy petition against the Transferor or the Trust based upon
any claim in its favor arising hereunder or under the Basic
Documents; (ii) file a petition or consent to a petition seeking relief on behalf of the
Transferor or the Trust under the Bankruptcy Law; or (iii) consent to the appointment of a
receiver, liquidator, assignee, trustee, sequestrator (or similar official) of the Transferor or
the Trust or a substantial portion of the property of the Transferor or the Trust. The parties
hereto agree that all obligations of the Issuer and the Transferor are non-recourse to the Trust
Property except as specifically set forth in the Basic Documents.

     SECTION 17.18 Independence of the Servicer and Back-up Servicer. For all purposes of
this Agreement, each of the Servicer and Back-up Servicer shall be an independent contractor and
shall not be subject to the supervision of the Trust, the Indenture Trustee or the Owner Trustee
with respect to the manner in which it accomplishes the performance of its obligations hereunder.
Unless expressly authorized by this Agreement, the Servicer and Back-up Servicer shall have no
authority to act for or represent the Issuer or the Owner Trustee in any way and shall not
otherwise be deemed an agent of the Issuer or the Owner Trustee.

     SECTION 17.19 No Joint Venture. Nothing contained in this Agreement (i) shall
constitute the Servicer or the Back-up Servicer and either of the Trust or the Owner Trustee as
members of any partnership, joint venture, association, syndicate, unincorporated business or other
separate entity, (ii) shall be construed to impose any liability as such on any of them or (iii)
shall be deemed to confer on any of them any express, implied or apparent authority to incur any
obligation or liability on behalf of the others.

     SECTION 17.20 Headings. The headings of articles and sections and the table of
contents contained in this Agreement are provided for convenience only. They form no part of this
Agreement and shall not affect its construction or interpretation. Unless otherwise indicated, all
references to articles and sections in this Agreement refer to the corresponding articles and
sections of this Agreement.

     SECTION 17.21 Entire Agreement. This Agreement sets forth the entire agreement
between the parties with respect to the subject matter hereof, and this Agreement supersedes and
replaces any agreement or understanding that may have existed between the parties prior to the date
hereof in respect of such subject matter.

     SECTION 17.22 Limitation of Liability of Owner Trustee. Notwithstanding anything
contained herein to the contrary, this Agreement has been countersigned by Wilmington Trust Company
not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer and in no
event shall Wilmington Trust Company in its individual capacity or, except as expressly provided in
this Agreement, as Owner Trustee, 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 of the Issuer delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer.
For all purposes of this Agreement, in the performance of its duties or obligations hereunder or in
the performance of

Trust and Servicing Agreement

110

 

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 this Agreement.

     SECTION 17.23 Effect of Policy Expiration Date. Notwithstanding anything to the
contrary set forth herein, all references to any right of the Insurer to direct, appoint, consent
to, accept, approve of, take or omit to take any action under this Agreement or any other Basic
Document shall be inapplicable at all times after the Policy Expiration Date or when the Insurer is
not the Controlling Party, and (i) if such reference provides for another party or parties to take
or omit to take such action following an Insurer Default, such party or parties shall also be
entitled to take or omit to take such action, following the Policy Expiration Date and (ii) if such
reference does not provide for another party or parties to take or omit to take such action
following an Insurer Default, then the Indenture Trustee acting at the direction of the Majority
Noteholders shall have the right to take or omit to take any such action, following the Policy
Expiration Date or so long as an Insurer Default has occurred and is continuing. In addition, any
other provision of this Agreement or any other Basic Document which is operative based in whole or
in part on whether an Insurer Default has or has not occurred shall, at all times on or after the
Policy Expiration Date, be deemed to refer to whether or not the Policy Expiration Date has
occurred.

     SECTION 17.24 Counterparts. For the purpose of facilitating the execution of this
Agreement and for other purposes, this Agreement may be executed in any number of counterparts,
each of which counterparts shall be deemed to be an original, and all of which counterparts shall
constitute but one and the same instrument.

     SECTION 17.25 Consent to Jurisdiction.

     (a) TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO HEREBY
IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK AND ANY COURT IN THE STATE OF NEW YORK LOCATED IN THE CITY AND COUNTY
OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION, SUIT OR PROCEEDING
BROUGHT AGAINST IT AND TO OR IN CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS OR THE
TRANSACTION OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND THE PARTIES HERETO HEREBY
IRREVOCABLY AND UNCONDITIONALLY AGREE THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD OR DETERMINED IN SUCH NEW YORK STATE COURT OR IN SUCH FEDERAL COURT.
THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT IN ANY SUCH ACTION, SUIT OR PROCEEDING SHALL
BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY
OTHER MANNER PROVIDED BY LAW. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO HEREBY WAIVE AND AGREE NOT TO ASSERT BY
WAY OF MOTION, AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY CLAIM
THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURTS, THAT THE SUIT, ACTION
OR PROCEEDING IS BROUGHT IN AN

Trust and Servicing Agreement

111

 

INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR
PROCEEDING IS IMPROPER OR THAT THE RELATED DOCUMENTS OR THE SUBJECT MATTER THEREOF MAY NOT
BE LITIGATED IN OR BY SUCH COURTS.

     (b) To the extent permitted by applicable law, the parties hereto shall not seek and
hereby waive the right to any review of the judgment of any such court by any court of any
other nation or jurisdiction which may be called upon to grant an enforcement of such
judgment.

     (c) Each of the Transferor and BVAC, so long as it is the Servicer, hereby agree that
until such time as the Notes and the Reimbursement Obligations have been paid in full and
the Insurance Agreement has terminated, each of the Transferor and BVAC shall have
appointed, with prior written notice to the Insurer, an agent registered with the Secretary
of State of the State of New York, with an office in the County of New York in the State of
New York, as its true and lawful attorney and duly authorized agent for acceptance of
service of legal process (which as of the date hereof is Corporate Research Solutions, Inc.,
1773 Western Avenue, Albany, New York 12203). Each of the Transferor and BVAC agrees that
service of such process upon such Person shall constitute personal service of such process
upon it.

     SECTION 17.26 Trial by Jury Waived. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION ARISING DIRECTLY
OR INDIRECTLY OUT OF, UNDER OR IN CONNECTION WITH ANY OF THE TRANSACTION DOCUMENTS OR THE
TRANSACTION. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT IT WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THE TRANSACTION DOCUMENTS TO WHICH IT IS A PARTY BY, AMONG OTHER THINGS, THIS WAIVER.

     SECTION 17.27 Sarbanes-Oxley Certifications. The certifications required by the
Sarbanes-Oxley Act of 2002 and the rules of the Securities and Exchange Commission promulgated
thereunder to be included in filings with respect to the Trust pursuant to the Securities Exchange
Act of 1934, as amended, shall be made by BVAC, so long as BVAC is the Servicer; provided,
however, in the event BVAC is no longer the Servicer, such certifications shall be made by
the Transferor. If BVAC is no longer the Servicer, the successor Servicer shall provide to the
Transferor all information as the Transferor
may reasonably request in order to fulfill its obligations to make such certifications. In
addition, the Indenture Trustee shall provide to BVAC or the Transferor (whichever of the two is
then required to make such certifications) with a certification signed by a Responsible Officer (as
defined in the Indenture) stating that such Responsible Officer is not actually aware (without any
independent duty of inquiry or investigation) of any matters which would cause the certification to
be made by BVAC or the Transferor, as the case may be, to be incorrect.

Trust and Servicing Agreement

112

 

[remainder of page intentionally left blank; signature page follows]

Trust and Servicing Agreement

113

 

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

	 	 	 	 	 
	 	BAY VIEW DEPOSIT CORPORATION,
as Transferor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	BAY VIEW ACCEPTANCE CORPORATION,
as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY
AMERICAS, as Indenture Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CENTERONE FINANCIAL SERVICES LLC
as Back-up Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY,
as Owner Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Trust and Servicing Agreement

 

 

Exhibit A

Owner Trustee’s Certificate

pursuant to Section 15.05

of the Trust and Servicing Agreement

     Wilmington Trust Company, as owner trustee (the “Owner Trustee”) of the Bay View 2005-LJ-1
Owner Trust created pursuant to the Trust and Servicing Agreement (the “Trust Agreement”) dated as
of February 1, 2005, among Bay View Deposit Corporation, as depositor (the “Transferor”), Bay View
Acceptance Corporation, as Servicer (the “Servicer”), Deutsche Bank Trust Company Americas, as
Indenture Trustee, CenterOne Financial Services LLC, as Back-up Servicer and the Owner Trustee,
does hereby sell, transfer, assign, and otherwise convey to Bay View Acceptance Corporation without
recourse, representation, or warranty, all of the Owner Trustee’s right, title, and interest in and
to all of the Receivables (as defined in the Trust Agreement) identified in the attached Servicer’s
Certificate as “Purchased Receivables,” which have been repurchased by the Transferor pursuant to
Section 7.02 or Section 8.08 of the Trust Agreement and all security and documents relating
thereto.

     IN WITNESS WHEREOF I have hereunto set my hand this                     day of                    .

Exhibit A To
Trust and Servicing Agreement

1

 

Exhibit B

Owner Trustee’s Certificate

pursuant to Section 15.05

of the Trust and Servicing Agreement

     Wilmington Trust Company, as owner trustee (the “Owner Trustee”) of the Bay View 2005-LJ-1
Owner Trust created pursuant to the Trust and Servicing Agreement (the “Trust Agreement”), dated as
of February 1, 2005, among Bay View Deposit Corporation, as depositor (the “Transferor”), Bay View
Acceptance Corporation, as Servicer (the “Servicer”), Deutsche Bank Trust Company Americas, as
Indenture Trustee, CenterOne Financial Services LLC, as Back-up Servicer and the Owner Trustee,
does hereby sell, transfer, assign, and otherwise convey to the Servicer, representation, or
warranty, all of the Owner Trustee’s right, title, and interest in and to all of the Receivables
(as defined in the Trust Agreement) identified in the attached Servicer’s Certificate as “Purchased
Receivables,” which have been purchased by the Servicer pursuant to Section 8.10 or Section 16.02
of the Trust Agreement, and all security and documents relating thereto.

     IN WITNESS WHEREOF I have hereunto set my hand this                     day of                                        .

Exhibit B To
Trust and Servicing Agreement

1

 

Exhibit C

Form of Servicer’s Certificate

pursuant to Section 8.12

of the Trust and Servicing Agreement

SERVICER’S CERTIFICATE

Exhibit C To
Trust and Servicing Agreement

1

 

EXHIBIT D

CERTIFICATE OF TRUST OF

BAY VIEW 2005-LJ-1 OWNER TRUST

     This Certificate of Trust of Bay View 2005-LJ-1 Owner Trust (the “Trust”), dated as of
February _, 2005, is being duly executed and filed by Wilmington Trust Company, a Delaware banking
corporation, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del.
Code, Section 3801 et seq.).

     1. Name. The name of the statutory trust formed hereby is BAY VIEW 2005-LJ-1 OWNER TRUST.

     2. Delaware Trustee. The name and business address of the trustee of the Trust in the State
of Delaware is Wilmington Trust Company, Plaza Building, 1st Floor, 301 West
11th Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration.

     IN WITNESS WHEREOF, the undersigned, being the sole trustee of the Trust, has executed this
Certificate of Trust as of the date first above written.

	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY, not in its individual
capacity but solely as owner trustee under a Trust
Agreement dated as of February _, 2005.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

Exhibit D To
Trust and Servicing Agreement

1

 

EXHIBIT E

[Form of Certificate]

BAY VIEW 2005-LJ-1 OWNER TRUST

AUTOMOBILE RECEIVABLE

BACKED CERTIFICATE

     evidencing an undivided interest in the Trust, as defined below, the property of which
includes a pool of simple interest and precomputed interest installment sale and installment loan
contracts and security agreements secured by new and used automobiles, light-duty trucks, sport
utility vehicles and vans. The contracts were sold to the Trust by Bay View Deposit Corporation.

     (This Certificate does not represent an interest in or obligation of Bay View Deposit
Corporation or any of its affiliates. Neither this Certificate nor the underlying Receivables, as
defined below, are insured or guaranteed by any other government agency).

	 	 	 	 
	 	NUMBER

R-1
	 	One Unit

     THIS CERTIFIES THAT                                         , is the registered owner of a nonassessable, fully-paid
interest in the Bay View 2005-LJ-1 Owner Trust (the “Trust”), a Delaware statutory trust. The
Trust was created pursuant to a Trust and Servicing Agreement dated as of February                     , 2005 (the
“Agreement”), among Bay View Deposit Corporation, as Transferor, Bay View Acceptance Corporation,
as Servicer, Deutsche Bank Trust Company Americas, as Indenture Trustee, CenterOne Financial
Services LLC, as Back-up Servicer, and Wilmington Trust Company, as Owner Trustee (the “Owner
Trustee”), a summary of certain of the pertinent provisions of which is set forth below. A copy of
the Agreement may be examined during normal business hours at the Corporate Trust Office of the
Owner Trustee by the Certificateholder upon request. To the extent not otherwise defined herein,
the capitalized terms used herein have the meanings assigned to them in the Agreement. This
Certificate is issued under and is subject to the terms, provisions, and conditions of the
Agreement, to which Agreement the holder of this Certificate by virtue of the acceptance hereof
assents and by which such holder is bound. The property of the Trust includes a pool of simple and
precomputed interest installment sale and installment loan contracts and security agreements for
new and used automobiles, light-duty trucks, sport utility vehicles and vans (the “Receivables”),
all monies paid thereon, and all monies due thereon, including Accrued Interest, after                                         ,
2005 (but excluding Accrued Interest paid or due before the Closing Date), security interests in
the vehicles financed thereby, certain bank accounts and the proceeds thereof and certain other
property and rights described in the Agreement and the proceeds of the foregoing.

     This Certificate represents an interest in certain assets of the Trust, including the right to
receive a portion of the collections and other amounts at the times and in the amounts specified in
the Agreement. The rights of the Certificateholder in the assets of the Trust are subordinated to
the rights of the Noteholders as set forth in the Indenture and the Agreement.

Exhibit E To
Trust and Servicing Agreement

1

 

     Unless the certificate of authentication hereon shall have been executed by a Responsible
Officer of the Owner Trustee, by manual or facsimile signature, this Certificate shall not entitle
the holder hereof to any benefit under the Agreement or be valid for any purpose. Registration of
transfer of this Certificate to a person may not be effected unless (a) the Insurer consents to
such transfer, (b) such transfer will not adversely affect the tax treatment of the Trust or the
Notes, and (c) the Rating Agency Condition has been satisfied with respect to such transfer.

     The obligations and responsibilities created by the Agreement and the Trust created thereby
shall terminate upon the payment to the Certificateholder of all amounts required to be paid to
them pursuant to the Agreement and the disposition of all property held as part of the Trust. The
Servicer may at its option cause the Owner Trustee to sell the corpus of the Trust at a price not
to be less than the price specified in the Agreement; however, such right is exercisable only as of
the last day of a Collection Period on which the Pool Balance is less than or equal to 15% of the
Original Pool Balance. The Certificateholder is required to pay any unpaid fees and reasonable
expenses of the Owner Trustee and in connection with such disposition.

     Although this Certificate summarizes certain provisions of the Agreement, this Certificate
does not purport to summarize the Agreement and reference is made to the Agreement for information
with respect to the interests, rights, benefits, obligations, proceeds and duties evidenced hereby
and the rights, duties and obligations of the Owner Trustee. In the event of any inconsistency or
conflict between the terms of this Certificate and the terms of the Agreement, the terms of the
Agreement shall control. By acceptance of this Certificate, the holder agrees to be bound by the
terms of the Agreement, including the agreement to treat the Trust as a partnership for income tax
purposes and the Certificate as an equity interest therein.

     IN WITNESS WHEREOF, the Owner Trustee on behalf of the Trust and not in its individual
capacity has caused this Certificate to be duly executed.

Dated: February _, 2005

	 	 	 	 	 	 
	 	 	BAY VIEW 2005-LJ-1 OWNER TRUST
	 
	 	 	 	 
	 	 	By Wilmington Trust Company, not in its individual

capacity, but solely in its capacity as Owner Trustee
	 
	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 	 ,
	

	 	 	 	Responsible Officer

Exhibit E To
Trust and Servicing Agreement

2

 

CERTIFICATE OF AUTHENTICATION

     This is the Certificate referred to in the Within-mentioned Agreement.

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

	 	 	 	 
	

	 	By	 	 
	

	 	 	 	 	 ,
	

	 	 	 	Signatory

Dated: ______________

Exhibit E To
Trust and Servicing Agreement

3

 

ASSIGNMENT

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

PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE

(Please print or typewrite name and address, including postal zip code, of assignee) the within
Certificate, and all rights thereunder, hereby irrevocably constituting and appointing Attorney to
transfer said Certificate on the books of the Certificate Registrar, with full power of
substitution in the premises.

Dated: __________

	 	 	 
	*
	Signature Guaranteed:
	*

	*  	NOTICE: The signature to this assignment must correspond with the name as it appears upon
the face of the within Certificate in every particular, without alteration, enlargement or any
change whatever. Such signature must be guaranteed by a member of the New York Stock Exchange
or a commercial bank, trust company savings bank or other savings and loan institution.

Exhibit E To
Trust and Servicing Agreement

4

 

EXHIBIT F

CONFIRMATION OF COMPUTER TAPE

Bay View Acceptance Corporation

1840 Gateway Drive

San Mateo, California 94404

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

     Re:     Bay View 2005-LJ-1 Owner Trust

	 	 	 
	Month                                         

	 	Year                                        

     Under the Trust and Servicing Agreement dated as of February 1, 2005 among Wilmington Trust
Company, as Owner Trustee, Bay View Acceptance Corporation, as Servicer, Bay View Deposit
Corporation, as Transferor, CenterOne Financial Services LLC, as Back-up Servicer, and Deutsche
Bank Trust Company Americas, as Indenture Trustee (the “Servicing Agreement”), the undersigned is
hereby providing written confirmation that (i) it has received the Computer Tape and (ii) such
Computer Tape is in readable form and in the correct format subject only to minor changes or
modifications that would not significantly affect the Back-up Servicer’s assumption and performance
of the Servicer’s duties hereunder (subject to those duties that would be specifically excluded if
the Back-up Servicer was the successor Servicer). Capitalized terms shall have the meaning
ascribed to such terms in the Servicing Agreement].

	 	 	 	 	 
	 	 	CenterOne Financial Services LLC
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

Date: ____________________

Exhibit F To
Trust and Servicing Agreement

1

 

Schedule A

to the Trust and Servicing Agreement

SCHEDULE OF RECEIVABLES

	 	 	 	 	 	 	 	 	 
	Transferor	 	 	 	 	 	 
	Account Number	 	 	 	 	 	 
	(as of the Cut-off Date)	 	Name of Obligor	 	Amount Financed	 
	$
	 	 	 	 	 	 	 	 

A COPY OF THE SCHEDULE OF RECEIVABLES, INCLUDING THE ABOVE CAPTIONED
INFORMATION WITH RESPECT TO EACH RECEIVABLE, WAS DELIVERED TO THE
INDENTURE TRUSTEE, CUSTODIAN, OWNER TRUSTEE WITH A COUNTERPART OF
THE TRUST AND SERVICING AGREEMENT.

Schedule A To
Trust and Servicing Agreement

1

 

Schedule B

to the Trust and Servicing Agreement

	 	 	 
	1.

	 	Location of Receivables:
	 
	 	 
	

	 	Bay View Acceptance Corporation
	

	 	818 Oakpark Drive
	

	 	Covina, California 91724

Schedule B To
Trust and Servicing Agreement

1

 

Schedule C

to the Trust and Servicing Agreement

SCHEDULE OF BACK-UP SERVICER FEES AND

SUCCESSOR SERVICER FEES

	 	 	 	 	 	 	 
	I.

	 	FEES	 	 	 	 
	 
	 	 	A.	 	Back-up Servicing (1)
	 
	 	 	 	 	 	 
	

	 	 	 	1.     One-Time Setup Fee
	 	[____]
	 
	 	 	 	 	 	 
	

	 	 	 	2.     Outside Legal Fees and Expenses
	 	[____]
	 
	 	 	 	 	 	 
	

	 	 	 	3.     Monthly Fee (2)
	 	[____]
	 
	 	 	 	 	 	 
	 	 	B.	 	Successor Servicing (3)
	 
	 	 	 	 	 	 
	

	 	 	 	1.     One Time Boarding Fee
	 	[____]
	 
	 	 	 	 	 	 
	

	 	 	 	2.     Monthly Fee (2) (4) the greater of
	 	[____]
	 
	 	 	 	 	 	 
	

	 	 	 	3.     Minimum Monthly Fee
	 	[____]
	 
	 	 	 	 	 	 
	II.

	 	DUTIES	 	 	 	 

Schedule C To
Trust and Servicing Agreement

1

 

Schedule D

to the Trust and Servicing Agreement

Delivery Requirements

     The Indenture Trustee shall have sole control over each such investment and the income
thereon, and any certificate or other instrument evidencing any such investment, if any shall,
except for clearing corporation securities, be delivered directly to the Indenture Trustee or its
agent, together with each document of transfer, if any, necessary to transfer title to such
investment to the Indenture Trustee in a manner that complies with this Agreement and the
requirements of the definition of Eligible Investments.

Schedule D To
Trust and Servicing Agreement

1exv4w3

 

EXHIBIT 4.3

EXECUTION VERSION

INDENTURE

between

BAY VIEW 2005-LJ-1 OWNER TRUST

as Issuer

and

DEUTSCHE BANK TRUST COMPANY AMERICAS

as Indenture Trustee

Dated as of February 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	 	2
	 
	 	 	 	 
	SECTION 1.01
	 	Definitions	 	2
	SECTION 1.02
	 	Incorporation by Reference of Trust Indenture Act	 	15
	SECTION 1.03
	 	Rules of Construction	 	15
	SECTION 1.04
	 	Directions	 	16
	 
	 	 	 	 
	ARTICLE II THE NOTES	 	16
	 
	 	 	 	 
	SECTION 2.01
	 	Form	 	16
	SECTION 2.02
	 	Execution, Authentication and Delivery	 	16
	SECTION 2.03
	 	Temporary Notes	 	17
	SECTION 2.04
	 	Registration; Registration of Transfer and Exchange	 	17
	SECTION 2.05
	 	Mutilated, Destroyed, Lost or Stolen Notes	 	18
	SECTION 2.06
	 	Payment of Principal and Interest; Defaulted Interest	 	19
	SECTION 2.07
	 	Cancellation	 	21
	SECTION 2.08
	 	Book-Entry Notes	 	21
	SECTION 2.09
	 	Notices to Clearing Agency	 	22
	SECTION 2.10
	 	Definitive Notes	 	22
	SECTION 2.11
	 	Release of Pledged Assets	 	23
	SECTION 2.12
	 	Tax Treatment	 	23
	SECTION 2.13
	 	ERISA	 	23
	SECTION 2.14
	 	CUSIP Numbers	 	23
	 
	 	 	 	 
	ARTICLE III COVENANTS	 	23
	 
	 	 	 	 
	SECTION 3.01
	 	Payment of Principal and Interest	 	23
	SECTION 3.02
	 	Maintenance of Office or Agency	 	24
	SECTION 3.03
	 	Money for Payments to be Held in Trust	 	24
	SECTION 3.04
	 	Existence	 	25
	SECTION 3.05
	 	Protection of Trust Estate	 	26
	SECTION 3.06
	 	Opinions as to Pledged Assets	 	26
	SECTION 3.07
	 	Performance of Obligations; Servicing of Receivables	 	27
	SECTION 3.08
	 	Negative Covenants	 	28
	SECTION 3.09
	 	Annual Statement as to Compliance	 	29
	SECTION 3.10
	 	Issuer May Consolidate, etc. Only on Certain Conditions	 	29
	SECTION 3.11
	 	Successor Transferee	 	31
	SECTION 3.12
	 	No Other Business	 	31
	SECTION 3.13
	 	No Borrowing	 	32
	SECTION 3.14
	 	Servicer’s Obligations	 	32
	SECTION 3.15
	 	Guarantees, Loans, Advances and Other Liabilities	 	32
	SECTION 3.16
	 	Capital Expenditures	 	32
	SECTION 3.17
	 	Restricted Payments	 	32
	SECTION 3.18
	 	Notice of Events of Default	 	32
	SECTION 3.19
	 	Further Instruments and Acts	 	33

i

Indenture

 

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 3.20
	 	Compliance with Laws	 	33
	SECTION 3.21
	 	Amendments of Trust Agreement	 	33
	SECTION 3.22
	 	Certain Representations, Warranties and Covenants Related to Receivables	 	33
	 
	 	 	 	 
	ARTICLE IV SATISFACTION AND DISCHARGE	 	34
	 
	 	 	 	 
	SECTION 4.01
	 	Satisfaction and Discharge of Indenture	 	34
	SECTION 4.02
	 	Application of Trust Money	 	35
	SECTION 4.03
	 	Repayment of Monies Held by Paying Agent	 	35
	 
	 	 	 	 
	ARTICLE V EVENTS OF DEFAULT; REMEDIES	 	36
	 
	 	 	 	 
	SECTION 5.01
	 	Events of Default	 	36
	SECTION 5.02
	 	Rights Upon Event of Default	 	37
	SECTION 5.03
	 	Collection of Indebtedness and Suits for Enforcement by Indenture Trustee	 	39
	SECTION 5.04
	 	Remedies	 	41
	SECTION 5.05
	 	Optional Preservation of the Receivables	 	42
	SECTION 5.06
	 	Priorities	 	42
	SECTION 5.07
	 	Limitation of Suits	 	42
	SECTION 5.08
	 	Unconditional Rights of Noteholders to Receive Principal and Interest	 	43
	SECTION 5.09
	 	Restoration of Rights and Remedies	 	43
	SECTION 5.10
	 	Rights and Remedies Cumulative	 	43
	SECTION 5.11
	 	Delay or Omission Not a Waiver	 	43
	SECTION 5.12
	 	Control by Controlling Party	 	44
	SECTION 5.13
	 	Waiver of Past Defaults	 	44
	SECTION 5.14
	 	Undertaking for Costs	 	44
	SECTION 5.15
	 	Waiver of Stay or Extension Laws	 	45
	SECTION 5.16
	 	Action on Notes	 	45
	SECTION 5.17
	 	Performance and Enforcement of Certain Obligations	 	45
	SECTION 5.18
	 	Optional Deposits by the Insurer	 	46
	 
	 	 	 	 
	ARTICLE VI THE INDENTURE TRUSTEE	 	46
	 
	 	 	 	 
	SECTION 6.01
	 	Duties of Indenture Trustee	 	46
	SECTION 6.02
	 	Rights of Indenture Trustee	 	48
	SECTION 6.03
	 	Individual Rights of Indenture Trustee	 	50
	SECTION 6.04
	 	Indenture Trustee’s Disclaimer	 	50
	SECTION 6.05
	 	Notice of Defaults	 	50
	SECTION 6.06
	 	Reports by Indenture Trustee to Holders	 	50
	SECTION 6.07
	 	Compensation and Indemnity	 	50
	SECTION 6.08
	 	Replacement of Indenture Trustee	 	51
	SECTION 6.09
	 	Successor Indenture Trustee by Merger	 	52
	SECTION 6.10
	 	Appointment of Co-Indenture Trustee or Separate Indenture Trustee	 	53
	SECTION 6.11
	 	Eligibility	 	54
	SECTION 6.12
	 	Collateral Agent to Follow Indenture Trustee’s Instructions	 	54
	SECTION 6.13
	 	Preferential Collection of Claims Against Issuer	 	54

Indenture

ii

 

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 6.14
	 	Representations and Warranties of Indenture Trustee	 	55
	SECTION 6.15
	 	Disqualification of the Indenture Trustee	 	55
	SECTION 6.16
	 	Waiver of Setoffs	 	55
	SECTION 6.17
	 	Control by the Controlling Party	 	55
	 
	 	 	 	 
	ARTICLE VII NOTEHOLDERS’ LISTS AND REPORTS	 	56
	 
	 	 	 	 
	SECTION 7.01
	 	Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders	 	56
	SECTION 7.02
	 	Preservation of Information; Communications to Noteholders	 	56
	SECTION 7.03
	 	Reports by Issuer	 	56
	SECTION 7.04
	 	Reports by Indenture Trustee	 	57
	 
	 	 	 	 
	ARTICLE VIII DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS	 	57
	 
	 	 	 	 
	SECTION 8.01
	 	Lock-Box Account	 	57
	SECTION 8.02
	 	Collection Account	 	57
	SECTION 8.03
	 	Collections	 	57
	SECTION 8.04
	 	Purchase Amounts	 	58
	SECTION 8.05
	 	Distributions to Parties	 	58
	SECTION 8.06
	 	Servicer Advances	 	61
	SECTION 8.07
	 	Payahead Account	 	62
	SECTION 8.08
	 	Reserved	 	62
	SECTION 8.09
	 	Release of Pledged Assets	 	62
	SECTION 8.10
	 	Opinion of Counsel	 	63
	SECTION 8.11
	 	Calculation of Notional Principal Amount	 	63
	 
	 	 	 	 
	ARTICLE IX CREDIT ENHANCEMENT	 	64
	 
	 	 	 	 
	SECTION 9.01
	 	Subordination	 	64
	SECTION 9.02
	 	Spread Account	 	64
	SECTION 9.03
	 	Policy	 	65
	SECTION 9.04
	 	Surrender of the Policy	 	67
	 
	 	 	 	 
	ARTICLE X SUPPLEMENTAL INDENTURES	 	67
	 
	 	 	 	 
	SECTION 10.01
	 	Supplemental Indentures Without Consent of Noteholders	 	67
	SECTION 10.02
	 	Supplemental Indentures With Consent of Noteholders	 	68
	SECTION 10.03
	 	Execution of Supplemental Indentures	 	69
	SECTION 10.04
	 	Effect of Supplemental Indenture	 	70
	SECTION 10.05
	 	Conformity with Trust Indenture Act	 	70
	SECTION 10.06
	 	Reference in Notes to Supplemental Indentures	 	70
	 
	 	 	 	 
	ARTICLE XI REDEMPTION OF NOTES	 	70
	 
	 	 	 	 
	SECTION 11.01
	 	Redemption	 	70
	SECTION 11.02
	 	Form of Redemption Notice	 	71
	SECTION 11.03
	 	Notes Payable on Redemption Date	 	71
	 
	 	 	 	 
	ARTICLE XII MISCELLANEOUS	 	71
	 
	 	 	 	 
	SECTION 12.01
	 	Compliance Certificates and Opinions, etc	 	71
	SECTION 12.02
	 	Form of Documents Delivered to Indenture Trustee	 	73

Indenture

iii

 

	 	 	 	 	 
	 	 	 	 	Page
	SECTION 12.03
	 	Acts of Noteholders	 	74
	SECTION 12.04
	 	Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating Agencies	 	74
	SECTION 12.05
	 	Notices to Noteholders; Waiver	 	75
	SECTION 12.06
	 	Alternate Payment and Notice Provisions	 	76
	SECTION 12.07
	 	Conflict With Trust Indenture Act	 	76
	SECTION 12.08
	 	Effect of Headings and Table of Contents	 	76
	SECTION 12.09
	 	Successors and Assigns	 	76
	SECTION 12.10
	 	Separability	 	77
	SECTION 12.11
	 	Benefits of Indenture	 	77
	SECTION 12.12
	 	Legal Holidays	 	77
	SECTION 12.13
	 	Governing Law	 	77
	SECTION 12.14
	 	Counterparts	 	77
	SECTION 12.15
	 	Recording of Indenture	 	77
	SECTION 12.16
	 	Trust Obligation	 	77
	SECTION 12.17
	 	No Petition	 	78
	SECTION 12.18
	 	Inspection	 	78
	SECTION 12.19
	 	Limitation of Liability of Owner Trustee	 	78
	SECTION 12.20
	 	Certain Matters Regarding the Insurer	 	78
	SECTION 12.21
	 	No Legal Title in Holders	 	79
	SECTION 12.22
	 	Effect of Termination Date	 	79
	SECTION 12.23
	 	Sarbanes-Oxley Certifications	 	79

	 	 	 
	EXHIBITS
	 	 
	Schedule A
	 	Form of Depository Agreement
	Exhibit A-1
	 	Form of Class A-1 Note
	Exhibit A-2
	 	Form of Class A-2 Note
	Exhibit A-3
	 	Form of Class A-3 Note
	Exhibit A-4
	 	Form of Class A-4 Note
	Exhibit A-5
	 	Form of Class I Note
	Schedule B
	 	Planned Notional Principal Amount Schedule

CROSS REFERENCE TABLE

	 	 	 	 	 
	Trust Indenture	 	Indenture	 	 
	Act Section	 	Section	 	 
	310(a)
	 	6.11	 	 
	310(b)
	 	6.11	 	 
	310(c)
	 	N/A	 	 
	311(a)
	 	6.13	 	 
	311(b)
	 	6.13	 	 
	311(c)
	 	N/A	 	 
	312(a)
	 	N/A	 	 
	312(b)
	 	7.02	 	 

Indenture

iv

 

	 	 	 	 	 
	Trust Indenture	 	Indenture	 	 
	Act Section	 	Section	 	 
	312(c)
	 	7.02	 	 
	313(a)
	 	7.04	 	 
	313(b)
	 	7.04	 	 
	313(c)
	 	7.03	 	 
	314(a)
	 	7.03	 	 
	314(b)
	 	3.06	 	 
	314(c)
	 	2.11, 8.09, 12.01	 	 
	314(d)
	 	2.11, 8.09, 12.01	 	 
	314(e)
	 	13.01	 	 
	314(f)
	 	N/A	 	 
	315(a)
	 	N/A	 	 
	315(b)
	 	N/A	 	 
	315(c)
	 	N/A	 	 
	315(d)
	 	N/A	 	 
	315(e)
	 	N/A	 	 
	316(a)
	 	N/A	 	 
	316(b)
	 	N/A	 	 
	316(c)
	 	12.03	 	 
	317(a)
	 	N/A	 	 
	317(b)
	 	N/A	 	 
	318(a)
	 	N/A	 	 

Indenture

v

 

     This INDENTURE, dated as of February 1, 2005, is entered into between BAY VIEW 2005-LJ-1 OWNER
TRUST, a Delaware statutory trust, as issuer (the “Issuer”), and DEUTSCHE BANK TRUST COMPANY
AMERICAS, a New York banking corporation, as indenture trustee (the “Indenture Trustee”).

     Each party agrees as follows for the benefit of the other parties and for the benefit of the
Noteholders and the Insurer:

GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee on the Closing Date, on behalf of and for
the benefit of the Noteholders and the Insurer without recourse, all of the Issuer’s right, title
and interest in, to and under, (i) the Receivables listed on Schedule A to the Trust Agreement,
(ii) the security interests in the Financed Vehicles or in any other property granted by Obligors
pursuant to the Receivables, (iii) any proceeds from claims and other amounts relating to Insurance
Policies and other items financed under the Receivables or otherwise covering an Obligor or a
Financed Vehicle, (iv) any Liquidation Proceeds, (v) all property (including the right to receive
future Liquidation Proceeds) that secures a Receivable and that has been or may be acquired
pursuant to the liquidation of the Receivable, (vi) the interest of the Issuer in any proceeds from
recourse to Dealers relating to the Receivables, (vii) all documents contained in the Receivable
Files relating to the Receivables, (viii) all monies paid on the Receivables, and all monies due
thereon after the Cut-off Date, (ix) the rights of the Transferor pursuant to the Purchase
Agreement and the rights of the Issuer pursuant to the Trust Agreement and the Transfer and
Contribution Agreement, including without limitation, a direct right to cause BVAC to purchase
Receivables from the Transferor upon the occurrence of a breach of any of the representations and
warranties contained in Section 3.02 of the Purchase Agreement or the failure of BVAC to timely
comply with its obligations pursuant to Section 5.06 of the Purchase Agreement and (x) all proceeds
(including, without limitation, “proceeds” as defined in the UCC of the jurisdiction the law of
which governs the perfection of the interest in such Receivables and such other property so
transferred) of any of the foregoing. Such property described in the preceding sentence, together
with the following other property (a) any and all other right, title and interest, including any
beneficial interest the Issuer may have in the Collection Account, the Spread Account, the Payahead
Account and the Lock-Box Account, (b) the funds deposited in and financial assets credited to and
from time to time on deposit in such accounts, and all Eligible Investments and other securities,
instruments and other investments purchased from such funds, shall hereinafter be referred to as
the “Pledged Assets” all of which the Issuer hereby Grants to the Indenture Trustee on the Closing
Date, on behalf of and for the benefit of the Noteholders and the Insurer without recourse. The
Issuer does not convey to the Indenture Trustee, and the Pledged Assets do not include, any
interest in any contracts with Dealers related to any “dealer reserve” or any rights to the
recapture of any dealer reserve with respect to such Receivables.

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

Indenture

 

 

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

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     SECTION 1.01 Definitions.

          (a) Except as otherwise specified herein or as the context may otherwise require, (i)
capitalized terms that are used herein that are not otherwise defined herein shall have the
meanings assigned to them in the Trust Agreement (as defined below) and (ii) the following terms
have the respective meanings set forth below for all purposes of this Indenture.

          “Act” shall have the meaning specified in Section 12.03(a) hereof.

          “Authorized Officer” means, with respect to the Issuer, the Owner Trustee and the Servicer,
any officer of the Issuer, the Owner Trustee or the Servicer, as applicable, or agent acting
pursuant to a power of attorney, with respect to the Back-up Servicer, any officer or agent of the
Back-up Servicer, in each case who is identified on the list of Authorized Officers delivered to
the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from time
to time thereafter) and, so long as the Administration Agreement is in effect, any Vice President
or more senior officer of the Administrator who is authorized to act for the Administrator in
matters relating to the Issuer and to be acted upon by the Administrator pursuant to the
Administration Agreement and who is identified on a list of Authorized Officers delivered by the
Administrator to the Indenture Trustee on the Closing Date (as such list may be modified or
supplemented from time to time thereafter).

          “Book-Entry Notes” means a beneficial interest in the Notes, ownership and transfers of which
shall be made through book entries by a Clearing Agency as described in Section 2.08 hereof.

          “BVAC” means Bay View Acceptance Corporation, a Nevada corporation, and its successors.

          “Certificateholder” means each of the owners or holders of a Certificate pursuant to the Trust
Agreement.

          “Class” means all Notes whose form is identical except for variation in denomination,
principal amount or owner.

          “Class A Monthly Interest” means, for any Payment Date, the sum of Class A-1 Monthly Interest,
Class A-2 Monthly Interest, Class A-3 Monthly Interest and Class A-4 Monthly Interest.

Indenture

2

 

          “Class A Monthly Principal” means, for any Payment Date, the sum of Class A-1 Monthly
Principal, Class A-2 Monthly Principal, Class A-3 Monthly Principal and Class A-4 Monthly
Principal.

          “Class A Note” means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a Class A-4 Note.

          “Class A Note Balance” means, for any date of determination, the aggregate of the Class A-1
Note Balance, Class A-2 Note Balance, Class A-3 Note Balance and Class A-4 Note Balance for such
date of determination.

          “Class A Noteholder” means a Class A-1 Noteholder, a Class A-2 Noteholder, a Class A-3
Noteholder or a Class A-4 Noteholder.

          “Class A-l Interest Rate” means 2.89625% per annum.

          “Class A-l Monthly Interest” means, (i) for the first Payment Date, the product of (x)
one-three hundred sixtieth (1/360th) of the Class A-l Interest Rate, (y) the actual number of days
from and including the Closing Date through and including the day before the first Payment Date and
(z) the Initial Class A-l Note Balance and (ii) for any subsequent Payment Date, the product of (x)
one-three hundred sixtieth (1/360th) of the Class A-l Interest Rate, the (y) actual number of days
from and including the previous Payment Date through and including the day before the related
Payment Date and (z) the Class A-l Note Balance as of the immediately preceding Payment Date (after
giving effect to any payment of Monthly Principal made on such immediately preceding Payment Date).

          “Class A-1 Monthly Principal” means that portion of Monthly Principal to be paid to Class A-1
Noteholders on each Payment Date in accordance with Section 8.05 hereof.

          “Class A-l Note” means a promissory note executed on behalf of the Trust and authenticated by
the Indenture Trustee substantially in the form attached hereto as Exhibit A-l.

          “Class A-l Note Balance” means, as of any date of determination, the Initial Class A-l Note
Balance minus all payments of Monthly Principal actually distributed to Class A-l Noteholders as of
such date of determination.

          “Class A-1 Noteholder” means the Person in whose name the respective Class A-1 Note shall be
registered in the Note Register, except that, solely for the purposes of giving any consent,
waiver, request, or demand pursuant to this Indenture, the interest evidenced by any Class A-1 Note
registered in the name of the Issuer, the Transferor, the Servicer or BVAC, or any Person
controlling, controlled by, or under common control with the Issuer, the Transferor or the
Servicer, 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.

          “Class A-2 Interest Rate” means 3.62000% per annum.

Indenture

3

 

          “Class A-2 Monthly Interest” means for any Payment Date, the product of (x) one-twelfth of the
Class A-2 Interest Rate and (y) the Class A-2 Note Balance as of the immediately preceding Payment
Date (after giving effect to any payment of Monthly Principal made on such immediately preceding
Payment Date) or, in the case of the first Payment Date, the Closing Date.

          “Class A-2 Monthly Principal” means that portion of Monthly Principal to be paid to Class A-2
Noteholders on each Payment Date in accordance with Section 8.05 hereof.

          “Class A-2 Note” means a promissory note executed on behalf of the Trust and authenticated by
the Indenture Trustee substantially in the form attached hereto as Exhibit A-2.

          “Class A-2 Note Balance” means, as of any date of determination, the Initial Class A-2 Note
Balance minus all payments of Monthly Principal actually distributed to Class A-2 Noteholders as of
such date of determination.

          “Class A-2 Noteholder” means the Person in whose name the respective Class A-2 Note shall be
registered in the Note Register, except that, solely for the purposes of giving any consent,
waiver, request, or demand pursuant to this Indenture, the interest evidenced by any Class A-2 Note
registered in the name of the Issuer, the Transferor, the Servicer or BVAC, or any Person
controlling, controlled by, or under common control with the Issuer, the Transferor or the
Servicer, 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.

          “Class A-3 Interest Rate” means 3.86000% per annum.

          “Class A-3 Monthly Interest” means, for any Payment Date, the product of (x) one twelfth of
the Class A-3 Interest Rate and (y) the Class A-3 Note Balance as of the immediately preceding
Payment Date (after giving effect to any payment of Monthly Principal made on such immediately
preceding Payment Date) or, in the case of the first Payment Date, the Closing Date.

          “Class A-3 Monthly Principal” means that portion of Monthly Principal to be paid to Class A-3
Noteholders on each Payment Date in accordance with Section 8.05 hereof.

          “Class A-3 Note” means a promissory note executed on behalf of the Trust and authenticated by
the Indenture Trustee substantially in the form attached hereto as Exhibit A-3.

          “Class A-3 Note Balance” means, as of any date of determination, the Initial Class A-3 Note
Balance minus all payments of Monthly Principal actually distributed to Class A-3 Noteholders as of
such date of determination.

          “Class A-3 Noteholder” means the Person in whose name the respective Class A-3 Note shall be
registered in the Note Register, except that, solely for the purposes of giving any consent,
waiver, request, or demand pursuant to this Indenture, the interest evidenced by any Class A-3 Note
registered in the name of the Issuer, the Transferor, the Servicer or BVAC, or any Person
controlling, controlled by, or under common control with the Issuer, the

Indenture

4

 

Transferor or the Servicer, 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.

          “Class A-4 Interest Rate” means 4.09000% per annum.

          “Class A-4 Monthly Interest” means, for any Payment Date, the product of (x) one twelfth of
the Class A-4 Interest Rate and (y) the Class A-4 Note Balance as of the immediately preceding
Payment Date (after giving effect to any payment of Monthly Principal made on such immediately
preceding Payment Date) or, in the case of the first Payment Date, the Closing Date.

          “Class A-4 Monthly Principal” means that portion of Monthly Principal to be paid to Class A-4
Noteholders on each Payment Date in accordance with Section 8.05 hereof.

          “Class A-4 Note” means a promissory note executed on behalf of the Trust and authenticated by
the Indenture Trustee substantially in the form attached hereto as Exhibit A-4.

          “Class A-4 Note Balance” means, as of any date of determination, the Initial Class A-4 Note
Balance minus all payments of Monthly Principal actually distributed to Class A-4 Noteholders as of
such date of determination.

          “Class A-4 Noteholder” means the Person in whose name the respective Class A-4 Note shall be
registered in the Note Register, except that, solely for the purposes of giving any consent,
waiver, request, or demand pursuant to this Indenture, the interest evidenced by any Class A-4 Note
registered in the name of the Issuer, the Transferor, the Servicer or BVAC, or any Person
controlling, controlled by, or under common control with the Issuer, the Transferor or the
Servicer, 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.

          “Class I Final Scheduled Payment Date” means June 25, 2008.

          “Class I Monthly Interest” means (i) for the first Payment Date, the product of (x)
one-twelfth of the Class I Note Rate multiplied by (y) the Original Notional Principal Amount, and
(ii) for any subsequent Payment Date, one-twelfth of the product of (x) the Class I Note Rate and
(y) the Notional Principal Amount as of the immediately preceding Payment Date (after giving effect
to any reduction of the Notional Principal Amount due to allocations of principal on such preceding
Payment Date); provided, however, that after the Class I Final Scheduled Payment
Date, the Class I Monthly Interest shall be zero; provided, further, that in the event the Notes
are accelerated pursuant to Section 5.02(a) hereof following an Event of Default, the Class I
Monthly Interest for any remaining Payment Date will be due to the Class I Noteholders based on the
Planned Notional Principal Amount for that Payment Date as set forth in the Planned Notional
Principal Amount Schedule.

          “Class I Note” means a promissory note executed on behalf of the Trust and authenticated by
the Indenture Trustee substantially in the form attached hereto as Exhibit A-5.

Indenture

5

 

          “Class I Noteholder” means the Person in whose name the respective Class I Note shall be
registered in the Note Register, except that, solely for the purposes of giving any consent,
waiver, request, or demand pursuant to this Indenture, the interest evidenced by any Class I Note
registered in the name of the Issuer, the Transferor, the Servicer or BVAC, or any Person
controlling, controlled by, or under common control with the Issuer, the Transferor or the
Servicer, 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.

          “Class I Note Rate” means 0.50000% 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.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Collateral Agent” means Deutsche Bank Trust Company Americas, in its capacity as collateral
agent under the Spread Account Agreement.

          “Companion Component” shall have the meaning specified in Section 8.11 hereof

          “Controlling Party” means the Insurer, so long as no Insurer Default shall have occurred and
be continuing or the Insurance Agreement has not terminated, and the Indenture Trustee, at the
direction of the Majority Noteholders, for so long as an Insurer Default shall have occurred and be
continuing or if the Insurance Agreement has terminated.

          “Corporate Trust Office” means the corporate trust office of the Indenture Trustee, which at
time of execution of this Indenture is 60 Wall Street, MS NYC 60-2606, New York, New York 10005,
Attention: Trust Securities Services or at such other address as the Indenture Trustee may
designate from time to time by notice the Noteholders, the Servicer, the Back-up Servicer, the
Insurer and the Issuer, or the principal corporate trust office of any successor Indenture Trustee
(the address of which the successor Indenture Trustee will notify the Noteholders, the Insurer and
the Issuer). With respect only to the surrender of Notes for registration of transfer or exchange
or payment of the final distribution, “Corporate Trust Office” means, on the date hereof, the
office of the Indenture Trustee or its agent which is DTC Transfer Agent Services, 55 Water
Street-Jeanette Park Entrance, New York, New York 10041.

          “Cram Down Loss” means, for any Receivable (other than a Charged-Off Receivable), if a court
of appropriate jurisdiction in an insolvency proceeding issues a ruling that reduces the amount
owed on the Receivable or otherwise modifies or restructures the scheduled payments to be made on
the Receivable, an amount equal to the Principal Balance of the Receivable immediately prior to the
order minus the Principal Balance of the Receivable as so reduced, modified or restructured.

Indenture

6

 

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

          “Definitive Notes” shall have the meaning specified in Section 2.08 hereof.

          “Depository Agreement” means the agreement dated the Closing Date among the Issuer, the
Indenture Trustee and DTC, as the initial Clearing Agency, relating to the Notes, substantially in
the form attached hereto as Schedule A.

          “Determination Date” means, for each Collection Period, the seventeenth calendar day of the
immediately succeeding month or if such day is not a Business Day, the next following Business Day.

          “Draw Date” means a date no later than the third Business Day (as defined in the Policy) prior
to each Payment Date.

          “DTC” means The Depository Trust Company, a New York corporation.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

          “Event of Default” shall have the meaning specified in Section 5.01(a) hereof.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Executive Officer” means, with respect to any corporation or bank, 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 or bank; and with respect to any
partnership, any general partner thereof.

          “Final Maturity Date” means February 27, 2006 with respect to the Class A-l Notes, July 25,
2008 with respect to the Class A-2 Notes, March 25, 2010 with respect to the Class A-3 Notes and
May 25, 2012 with respect to the Class A-4 Notes.

          “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 Pledged Assets
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
Pledged Assets and all other monies payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and options, to bring a
Proceeding 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” means the Person in whose name a Note is registered on the Note Register on the
applicable Record Date.

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          “Indebtedness” means, with respect to any Person at any time, (i) indebtedness or liability of
such Person for borrowed money whether or not evidenced by bonds, debentures, notes or other
instruments, or for the deferred purchase price of property or services (including trade
obligations); (ii) obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded as capital leases;
(iii) current liabilities of such Person in respect of unfunded vested benefits under plans covered
by Title IV of ERISA; (iv) obligations issued for or liabilities incurred on the account of such
Person; (v) obligations or liabilities of such Person arising under acceptance facilities; (vi)
obligations of such Person under any guarantees, endorsements (other than for collection or deposit
in the ordinary course of business) and other contingent obligations to purchase, to provide funds
for payment, to supply funds to invest in any Person or otherwise to assure a creditor against
loss; (vii) obligations of such Person secured by any lien on property or assets of such Person,
whether or not the obligations have been assumed by such Person; provided that the amount
of such Indebtedness if not so assumed shall in no event be deemed to be greater than the fair
market value from time to time (as reasonably determined in good faith by the Issuer) of the
property subject to such lien; or (viii) obligations of such Person under any interest rate or
currency exchange agreement.

          “Indenture” means this Indenture, as amended or supplemented from time to time.

          “Indenture Trustee” means Deutsche Bank Trust Company Americas, a New York banking
corporation, as the Indenture Trustee under this Indenture and its permitted successors and
assigns.

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

          “Independent Certificate” means a certificate or opinion to be delivered to the Indenture
Trustee and the Insurer, so long as the Insurer is the Controlling Party, under the circumstances
described in, and otherwise complying with, the applicable requirements of Section 12.01 hereof,
made by an Independent appraiser or other expert appointed by an Issuer Order and approved by the
Indenture Trustee, and, so long as it is the Controlling Party, the Insurer, 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.

          “Initial Class A-1 Note Balance” means $38,600,000.

          “Initial Class A-2 Note Balance” means $62,600,000.

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          “Initial Class A-3 Note Balance” means $64,100,000.

          “Initial Class A-4 Note Balance” means $66,800,331.

          “Insurance Premium” means the Premium as defined in the Premium Letter.

          “Insurance Policies” means any physical damage, credit life and credit accident and health
insurance policies or certificates or any vendor’s single interest physical damage insurance policy
relating to the Receivables, the Financed Vehicles or the Obligors.

          “Insured Payments” has the meaning specified in the Policy.

          “Insurer Optional Deposit” shall have the meaning specified in Section 5.18 hereof.

          “Issuer” means Bay View 2005-LJ-1 Owner Trust as the issuer of the Notes under this Indenture
and its permitted successors and assigns.

          “Issuer Order” and “Issuer Request” means a written order or request signed in the name of the
Issuer by an Authorized Officer and delivered to the Indenture Trustee (a copy of which shall be
delivered to the Insurer).

          “Majority Noteholders” means, as of any date of determination, the Holders holding in the
aggregate 66 2/3% or more of the outstanding Note Balance as of such date.

          “Monthly Interest” means, with respect to any Payment Date, the sum of Class A Monthly
Interest and Class I Monthly Interest.

          “Monthly Principal” means for any Payment Date, the sum of the following: (i) the portion of
Available Funds relating to principal for the Collection Period immediately preceding such Payment
Date; (ii) an amount equal to (x) the aggregate Principal Balances of all Receivables that became
Charged-off Receivables during the related Collection Period, in each case immediately prior to the
charge-off of such Receivable minus (y) any Liquidation Proceeds allocable to principal
with respect to such Charged-off Receivables received during such Collection Period; (iii) the
aggregate amount of Cram Down Losses on the Receivables incurred during the Collection Period
immediately preceding such Payment Date; and (iv) any portion refunded to Obligors during the
related Collection Period of extended warranty protection plan costs, or of physical damage, credit
life, or disability insurance premiums included in the Amount Financed.

          “Note” means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note, a Class A-4 Note or a Class
I Note.

          “Note Balance” means the Class A-1 Note Balance, the Class A-2 Note Balance, the Class A-3
Note Balance or the Class A-4 Note Balance, depending upon the context. When the term “Note
Balances” is used herein with respect to an issue relating to the consent of or voting of
Noteholders, such term shall refer only to the classes of Class A Notes then

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Outstanding such that the Class A Noteholders will vote as a single class. The Class I Notes
shall have no voting rights.

          “Noteholder” means any Holder of a Note.

          “Noteholder List” has the meaning specified in Section 7.01 hereof.

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

          “Note Register” and “Note Registrar” have the respective meanings specified in Section 2.04
hereof.

          “Notice of Claim” has the meaning specified in Section 9.03(b) hereof.

          “Notional Principal Amount” means, as of any date of determination, for the purpose of
calculating the Class I Monthly Interest, the Original Notional Principal Amount minus all
allocations of Monthly Principal to the PAC Component as of such date of determination pursuant to
Section 8.11 hereof.

          “Officer’s Certificate” means a certificate signed by an Authorized Officer of the Issuer,
under the circumstances described in, and otherwise complying with, the applicable requirements of
Section 12.01 hereof, and delivered to, the Indenture Trustee or the Insurer, as applicable.

          “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Indenture, be employees of or counsel to the Transferor or the
Issuer and who shall be satisfactory to the Indenture Trustee and, if addressed to the Insurer,
satisfactory to the Insurer (so long as it is the Controlling Party), and which shall comply with
any applicable requirements of Section 12.01 hereof.

          “Original Notional Principal Amount” means $176,576,067.

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

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

          (ii) 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 (provided, however, that if such Notes are to be
redeemed, notice of such redemption has been duly given pursuant to this Indenture or
provision for such notice has been made, satisfactory to the Indenture Trustee, has been
made); and

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          (iii) Notes in exchange for or in lieu of other Notes which 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 bona fide purchaser; provided,
however, that Notes which have been paid with the proceeds of the Policy shall
continue to remain Outstanding for purposes of this Indenture until the Insurer has been
paid as subrogee hereunder or reimbursed pursuant to the Insurance Agreement as evidenced by
a written notice from the Insurer delivered to the Indenture Trustee, and the Insurer shall
be deemed to be the Holder thereof to the extent of any payments thereon made by the
Insurer; provided, further, that in determining whether the Holders of the
requisite Outstanding Class A Note Balance have given any request, demand, authorization,
direction, notice, consent or waiver hereunder or under any other Basic Document, Notes
owned by the Issuer, the Transferor, BVAC, any other obligor upon the Notes, or any of their
respective Affiliates 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 a
Responsible Officer of the Indenture Trustee either actually knows to be so owned or has
received written notice thereof 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, the Transferor, BVAC, any other obligor upon
the Notes, or any of their respective Affiliates.

          “Owner Trustee” means Wilmington Trust Company, acting not in its individual capacity but
solely as owner trustee under the Trust Agreement on behalf of the Trust.

          “PAC Component” shall have the meaning specified in Section 8.11 hereof.

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

          “Plan” means any Person that is (i) an “employee benefit plan” (as defined in Section 3(3) of
ERISA) that is subject to the provisions of Title I of ERISA, (ii) a “plan” (as defined in Section
4975(e)(1) of the Code) that is subject to Section 4975 of the Code or (iii) an entity whose
underlying assets include assets of a plan described in (i) or (ii) above by reason of such plan’s
investment in the entity.

          “Planned Notional Principal Amount” means, for each respective Payment Date, the corresponding
amount specified in the Planned Notional Principal Amount Schedule.

          “Planned Notional Principal Amount Schedule” means the amortization schedule of Planned
Notional Principal Amount for each respective Payment Date, attached hereto as Schedule B.

          “Pledged Assets” has the meaning provided in the Granting Clause of this Indenture.

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          “Policy Claim Amount” shall have the meaning specified in Section 9.03(a) hereof.

          “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 hereof in lieu of a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

          “Principal Balance” means, for any Receivable as of any date,

               (1) the Amount Financed

          minus

               (2) the sum, without duplication, of

                    (a) that portion of all Scheduled Receivable Payments received on or prior to
such day allocable to principal;

          plus

          (b) any portion refunded to obligors of extended warranty protection plan
costs, or of physical damage, credit life, or disability insurance premiums included
in the Amount Financed;

          plus

                    (c) any payment of the purchase amount with respect to the Receivable allocable
to principal;

          plus

                    (d) the principal portion of any Modified Schedule Receivable Payments received
on or prior to such day;

          plus

                    (e) any prepayment in full or any partial prepayments applied to reduce the
principal balance of the Receivable;

          plus

                    (f) the amount of any Cram Down Loss;

provided, however, that any Charged-off Receivable or Purchased Receivable will
have a Principal Balance of zero as of the last day of the Collection Period in which such
Receivable was charged-off or repurchased, as applicable.

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          “Principal Payment Sequence” means the order in which Monthly Principal shall be distributed
among the Noteholders. The order of distribution of Monthly Principal is:

          1. to the Class A-1 Noteholders until the Class A-1 Note Balance has been reduced to
zero;

          2. to the Class A-2 Noteholders until the Class A-2 Note Balance has been reduced to
zero;

          3. to the Class A-3 Noteholders until the Class A-3 Note Balance has been reduced to
zero; and

          4. to the Class A-4 Noteholders until the Class A-4 Note Balance has been reduced to
zero;

provided, however, in the event the amount of Available Funds (together with
amounts withdrawn from the Spread Account and/or the Policy), are not sufficient to pay the
outstanding principal amount of any class of Class A Notes on the Final Maturity Date of
such class of Notes at any time after the occurrence and during the continuance of an
Insurer Default, the amount of such funds available to pay Class A Monthly Principal to
Class A Noteholders will be distributed pro rata to the Class A Noteholders based upon the
relative Note Balance of each class of Class A Notes.

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

          “Rating Agency Condition” means, with respect to any action, that (i) Moody’s shall have been
given ten Business Days (or such shorter period as is acceptable to Moody’s) prior notice thereof
and that Moody’s shall have notified the Transferor, the Servicer, the Insurer and the Issuer in
writing that such action will not result in a qualification, reduction or withdrawal of its
then-current rating of any Class of Notes, (ii) Standard & Poor’s shall have been given ten
Business Days (or such shorter period as is acceptable to Standard & Poor’s) prior notice thereof
and copies of all documentation relating to the event requiring such Rating Agency Condition and
(iii) each Rating Agency shall have confirmed to the Insurer that the shadow risk of the Insurer
with respect to the Notes is investment grade.

          “Rating Event” means the qualification, reduction or withdrawal by either Rating Agency of its
then-current rating of any Class of Notes.

          “Record Date” means, with respect to a Payment Date or Redemption Date, the close of business
on the last day of the related Collection Period.

          “Recoveries of Advances” means, for any Collection Period, all payments received by the
Servicer by or on behalf of Obligors (other than Obligors with respect to Defaulted Receivables and
excluding reimbursements of Outstanding Advances on Defaulted Receivables pursuant to Section
8.05(a)(ii) hereof) during such Collection Period representing recoveries of Interest Shortfalls
for which Advances were made for prior Collection Periods.

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          “Redemption Date” means the Payment Date specified by the Servicer or the Issuer pursuant to
Section 11.01 hereof.

          “Redemption Price” means an amount equal to the fair market value of the Receivables but not
less than the sum of: (i) the unpaid principal amount of the Class A Notes redeemed plus (ii)
accrued and unpaid interest on the Class A Notes and Class I Notes at the respective interest rates
of each Class of Notes being so redeemed through the end of the related Collection Period plus
(iii) all amounts then due and owing to the Insurer, the Servicer, the Back-up Servicer, the
Collateral Agent, the Indenture Trustee and the Owner Trustee.

          “Requisite Amount” has the meaning specified in the Spread Account Agreement.

          “Responsible Officer” means, when used with respect to the Indenture Trustee, any officer
within the corporate trust department of the Indenture Trustee including any director, managing
director, 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 the persons who at the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of his knowledge of and familiarity with the particular subject.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Servicer Default” means an Event of Servicer Default under the Trust Agreement.

          “State” means any one of the 50 states of the United States or the District of Columbia.

          “Termination Date” means the latest of (i) the expiration of the Policy in accordance with its
terms, (ii) the date on which the Insurer shall have received payment and performance of all
amounts and obligations owed to or on behalf of the Insurer under this Indenture or the Insurance
Agreement and (iii) the date on which the Indenture Trustee shall have received payment and
performance of all amounts and obligations which the Issuer may owe to or on behalf of the
Indenture Trustee for the benefit of the Noteholders under this Indenture or the Notes.

          “Transferor” means Bay View Deposit Corporation, a Delaware corporation, in its capacity as
the seller of the Receivables under the Trust Agreement.

          “Trust Agreement” means the Trust and Servicing Agreement, dated as of the date hereof,
between the Transferor, the Servicer, the Back-up Servicer, the Indenture Trustee and the Owner
Trustee.

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as in force on the
date hereof, unless otherwise specifically provided.

          “Underwriters” means Barclays Capital Inc. and UBS Securities LLC.

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          “Underwriter Exemption” means the exemption granted to Barclays Capital Inc., by the U.S.
Department of Labor in EXPRO 04-03E (Feb. 4, 2004).

          “United States” means the United States of America.

     SECTION 1.02 Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the Trust Indenture Act, the provision is incorporated by
reference in and made a part of this Indenture. The following Trust Indenture Act 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 Trust Indenture Act terms used in this Indenture that are defined by the Trust
Indenture Act, defined by Trust Indenture Act reference to another statute or defined by Commission
rule have the meaning assigned to them by such definitions.

     SECTION 1.03 Rules of Construction. Unless the context otherwise requires:

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

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

          (iii) “or” is not exclusive;

          (iv) “including” means including without limitation;

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

          (vi) any agreement, instrument or statute defined or referred to herein or in any
instrument or certificate delivered in connection herewith means such agreement, instrument
or statute as from time to time amended, modified or supplemented and includes (in the case
of agreements or instruments) references to all
attachments thereto and instruments incorporated therein; references to a Person are
also to its permitted successors and assigns; and

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15

 

          (vii) the words “hereof,” “herein” and “hereunder” and words of similar import when
used in this Indenture shall refer to this Indenture as a whole and not to any particular
provision of this Indenture; Section, subsection and Schedule references contained in this
Indenture are references to Sections, subsections and Schedules in or to this Indenture
unless otherwise specified.

     SECTION 1.04 Directions. Any direction required to be given by the Noteholders shall
be given hereunder by the Insurer, unless the Insurer is no longer the Controlling Party, in which
case the Majority Noteholders shall be entitled to give such direction.

ARTICLE II

THE NOTES

     SECTION 2.01 Form.

          (a) The Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes and Class I Notes,
in each case together with the Indenture Trustee’s certificate of authentication, shall be in
substantially the forms set forth as Exhibits A-1, A-2, A-3, A-4 and A-5 to this Indenture with
such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of identification and
such legends or endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the Notes. Any portion of the
text of any Note may be set forth on the reverse thereof, with an appropriate reference thereto on
the face of the Note.

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

          (c) Each Note shall be dated the date of its authentication. The terms of the Notes set forth
in the exhibits hereto are part of the terms of this Indenture.

     SECTION 2.02 Execution, Authentication and Delivery.

          (a) The Notes shall be executed on behalf of the Issuer by the Owner Trustee, as provided
herein. 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.

          (b) The Indenture Trustee shall, upon receipt of an Issuer Order, authenticate and deliver for
original issue Notes in the amount of the Initial Class A-1 Note Balance, the Initial Class A-2
Note Balance, the Initial Class A-3 Note Balance and the Initial Class A-4 Note Balance and in the
case of the Class I Note, the Original Notional Principal Amount. The aggregate principal amount
of the Class A Notes outstanding at any time may not exceed such respective amounts, except as
otherwise provided in Section 2.05 hereof. Each Note shall be

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dated the date of its
authentication. The Notes shall be issuable as registered Notes in the minimum denomination of
$1,000 and in integral multiples of $1,000 ($1,000 Notional Principal Amount in the case of the
Class I Notes) in excess thereof, except that one Note of each Class may be issued in a different
denomination.

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

     SECTION 2.03 Temporary Notes.

          (a) Pending the preparation of Definitive Notes, the Issuer may execute, and upon receipt of
an Issuer Order the Indenture Trustee shall authenticate and deliver, temporary Notes that are
printed, lithographed, typewritten, mimeographed or otherwise produced, 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.

          (b) 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 hereof, without charge to the Holder.
Upon surrender for cancellation of any one or more temporary Notes, the Issuer shall execute and
the Indenture Trustee shall authenticate and deliver in exchange therefor a like tenor and
principal amount of Definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under this Indenture as
Definitive Notes.

     SECTION 2.04 Registration; Registration of Transfer and Exchange.

          (a) The Issuer shall cause to be kept a register (the “Note Register”) in which, subject to
such reasonable regulations as it may prescribe, the Issuer shall provide for the registration of
Notes and the registration of transfers of Notes. The Indenture Trustee shall be “Note Registrar”
for the purpose of registering Notes and transfers of Notes as herein provided. Upon any
resignation of any Note Registrar, the Issuer shall promptly appoint a successor or, if it elects
not to make such an appointment, assume the duties of Note Registrar.

          (b) If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar,
the Issuer will give the Indenture Trustee and the Insurer 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 and the Insurer shall have the right to
rely upon a certificate executed on behalf of the Note Registrar by an Executive

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Officer thereof as
to the names and addresses of the Noteholders and the principal amounts and number of such Notes.

          (c) Upon surrender for registration of transfer of any Note at the office or agency of the
Issuer to be maintained as provided in Section 3.02 hereof, the Issuer shall execute, and the
Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in
the name of the designated transferee or transferees, one or more new Notes of the same Class in
any authorized denominations, of a like aggregate principal amount.

          (d) 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.

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

          (f) Every Note presented or surrendered for registration of transfer or exchange shall be duly
endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in
writing, with such signature guaranteed by a commercial bank or trust company located, or having a
correspondent located, in the City of New York or the city in which the Corporate Trust Office is
located, or by a member firm of a national securities exchange, and such other documents as the
Indenture Trustee may require.

          (g) No service charge shall be made to a Holder for any registration of transfer or exchange
of Notes, but the Issuer or the Indenture Trustee may require payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection with any registration of
transfer or exchange of Notes, other than exchanges pursuant to Sections 2.03 or 10.06 hereof not
involving any transfer.

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

     SECTION 2.05 Mutilated, Destroyed, Lost or Stolen Notes.

          (a) 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 and the Insurer (so long as the Insurer is the
Controlling Party) such security or indemnity as may be required by them to hold the Issuer, the
Indenture Trustee and the Insurer 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 bona fide

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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; provided, however, that if any such destroyed, lost or stolen
Note, but not a mutilated Note, shall have become or within seven days shall be due and payable, or
shall have been called for redemption, instead of issuing a replacement Note, the Issuer may pay
such destroyed, lost or stolen Note when so due or payable or upon the Redemption Date without
surrender thereof. If, after the delivery of such replacement Note or payment of a destroyed, lost
or stolen Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of the
original Note in lieu of which such replacement Note was issued presents for payment such original
Note, the Issuer, the Insurer 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 bona fide 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, the Insurer or the Indenture Trustee in connection therewith.

          (b) Upon the issuance of any replacement Note under this Section, the Issuer or the Indenture
Trustee may require the 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 and any other reasonable expenses
(including the reasonable fees and expenses of the Indenture Trustee and/or the Note Registrar)
connected therewith.

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

          (d) The provisions of this Section 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. In the case of the registration of transfer of any Note, the Issuer, the
Indenture Trustee, the Insurer and any of their respective agents may treat the Person in whose
name any Note is registered (as of the day of determination) as the owner of such Note for the
purpose of receiving payments of principal of and interest, if any, on such Note and for all other
purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the Insurer, the
Indenture Trustee nor any of their respective agents shall be affected by notice to the contrary.

     SECTION 2.06 Payment of Principal and Interest; Defaulted Interest.

          (a) Each Class of Notes shall accrue interest as provided in this Indenture at the related
interest rate for such Class, and such interest shall be payable on each Payment Date as specified
herein, subject to Section 3.01 hereof. Interest accrued on any Note but not paid on any Payment
Date will be due on the immediately succeeding Payment Date, together with, to the extent permitted
by applicable law, interest on such shortfall at the related interest rate. Any installment of
interest or principal, if any, payable on any Note which is punctually paid or duly provided for by
the Issuer on the applicable Payment Date shall be paid to the Person in whose

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name such Note (or
one or more Predecessor Notes) is registered on the Record Date, by check mailed first-class,
postage prepaid to such Person’s address as it appears on the Note Register on such Record Date,
except that, unless Definitive Notes have been issued pursuant to Section 2.10 hereof, with respect
to Notes registered on the Record Date in the name of the nominee of the Clearing Agency
(initially, such nominee to be Cede & Co.), payment will be made by wire transfer in immediately
available funds to the account designated by such nominee and except for the final installment of
principal payable with respect to such Note on a Payment Date, a Redemption Date or on the related
Final Maturity Date, as the case may be (and except for the Redemption Price for any Note called
for redemption pursuant to Section 11.01 hereof), which shall be payable as provided below. The
funds represented by any such checks returned undelivered shall be held in accordance with Section
3.03 hereof.

          (b) The principal of each Class A Note shall be payable on each Payment Date to the extent
provided in this Indenture and in the form of the related Note set forth as an Exhibit hereto.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes of a Class of Class
A Notes shall be due and payable, if not previously paid, on the earlier of:

          (i) the Final Maturity Date of such Class;

          (ii) the Redemption Date;

          (iii) if (A) an Event of Default shall have occurred and be continuing, and (B) so long
as the Insurer is the Controlling Party, the date on which the Insurer shall have declared
the Notes to be immediately due and payable in the manner provided in Section 5.02 hereof;
or

          (iv) if (A) an Event of Default shall have occurred and be continuing and (B) the
Insurer is no longer the Controlling Party, the date on which the Majority Noteholders shall
have declared the Notes to be immediately due and payable in the manner provided in Section
5.02 hereof.

     All principal payments on each Class of Notes shall be made pro rata to the Noteholders
of such Class entitled thereto. The Indenture Trustee shall notify the Person in whose name
a Note is registered at the close of business on the Record Date preceding the Payment Date
on which the Issuer expects that the final installment of principal of and interest on such
Note will be paid. Such notice shall be mailed within five Business Days of such Payment
Date (or, in the case of Notes registered in the name of Cede & Co., as nominee of DTC, such
notice shall be provided within one Business Day of such Payment Date) or receipt of notice of termination of the Trust pursuant to Section
16.01 of the Trust Agreement and shall specify that such final installment will be payable

only upon presentation and surrender of such Note and shall specify the place where such
Note may be presented and surrendered for payment of such installment. Notices in
connection with redemptions of Notes shall be mailed to Noteholders as provided in Section
11.02 hereof. In addition, the Administrator shall notify the Insurer and the Rating
Agencies upon the final payment of interest and principal of each Class of Notes, and upon
the termination of the Trust, in each case pursuant to the Administration Agreement.

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          (c) In furtherance of and in limitation of the foregoing, each Noteholder, by its acceptance
of a Note, specifically acknowledges that it has no right to or interest in any monies at any time
held in the Spread Account prior to the release of such monies pursuant to Section 9.02 hereof,
such monies being held in trust for the benefit of the beneficiary to this Indenture.

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

     SECTION 2.07 Cancellation. All Notes surrendered for payment, registration of
transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture
Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture
Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes
previously authenticated and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that they be destroyed
or returned to it; provided that such Issuer Order is timely and the Notes have not been previously
disposed of by the Indenture Trustee.

     SECTION 2.08 Book-Entry Notes. The Notes, upon original issuance, will be issued in
the form of a typewritten Note or Notes representing the Book-Entry Notes, to be delivered to DTC,
the initial Depository, by, or on behalf of, the Issuer (except for any fractional units which
cannot be accepted by DTC). Such Notes shall initially be registered on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no Note Owner will receive a
Definitive Note representing such Note Owner’s interest in such Note, except as provided in Section
2.10 hereof. Unless and until definitive, fully registered Notes (the “Definitive Notes”) have
been issued to Note Owners pursuant to Section 2.10 hereof:

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

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

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

          (iv) the rights of Note Owners shall be exercised only through the Clearing Agency and
shall be limited to those established by law and agreements

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between such Note Owners and the
Clearing Agency and/or the Clearing Agency Participants. Pursuant to the Depository
Agreement, unless and until Definitive Notes are issued pursuant to Section 2.10 hereof, the
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

          (v) whenever this Indenture requires or permits actions to be taken based upon
instructions or directions of Noteholders evidencing a specified percentage of the Note
Balances, 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 2.09 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 Note Owners pursuant to Section 2.10 hereof, the Indenture Trustee shall give all such
notices and communications specified herein to be given to Noteholders to the Clearing Agency, and
shall have no obligation to the Note Owners.

     SECTION 2.10 Definitive Notes.

          (a) If (i) the Administrator advises the Indenture Trustee in writing that the Clearing Agency
is no longer willing or able to properly discharge its responsibilities as described in the
Depository Agreement, and the Administrator or the Indenture Trustee is unable to locate a
qualified successor to which the Insurer (unless the Insurer is not the Controlling Party) has
provided its prior written consent, or (ii) after the occurrence of an Event of Default or a
Servicer Default, the Controlling Party advises the Indenture Trustee through the Clearing Agency
Participants in writing that the continuation of a book-entry system through the Clearing Agency is
no longer in the best interests of the related Note Owners, then the Indenture Trustee shall notify
all Note Owners, through the Clearing Agency, and the Insurer of the availability of Definitive
Notes to Note Owners requesting the same. Upon surrender to the Indenture Trustee of the Note or
Notes evidencing the Book Entry Notes by the Clearing Agency, accompanied by
registration instructions from the Clearing Agency, the Issuer shall execute and the Indenture
Trustee shall authenticate the Definitive Notes and deliver such Definitive Notes in accordance
with the instructions of the Clearing Agency. None of the Issuer, the Note Registrar, the Insurer
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 of a Class, the Indenture Trustee shall recognize the Holders of the Definitive
Notes as Noteholders hereunder.

          (b) The Indenture Trustee shall not be liable if the Indenture Trustee or the Administrator is
unable to locate a qualified successor Clearing Agency. 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.

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     SECTION 2.11 Release of Pledged Assets. Subject to Section 12.01 hereof and the terms
of the Basic Documents, the Indenture Trustee shall release property from the lien of this
Indenture only upon receipt by the Indenture Trustee and the Insurer of an Issuer Request
accompanied by an Officer’s Certificate, an Opinion of Counsel and Independent Certificates in
accordance with Sections 314(c) and 314(d)(1) of the Trust Indenture Act or an Opinion of Counsel
in lieu of such Independent Certificates to the effect that the Trust Indenture Act does not
require any such Independent Certificates.

     SECTION 2.12 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 Pledged
Assets. The Issuer and the Indenture Trustee, by entering into this Indenture, and each
Noteholder, by its acceptance of its Note (and each Note Owner by its acceptance of an interest in
the applicable Book-Entry Note), agree to treat the Notes for federal, State and local income,
single business and franchise tax purposes as indebtedness of the Issuer.

     SECTION 2.13 ERISA. Each purchaser or transferee of a Note that is a Benefit Plan (as
such term is defined in ERISA) shall be deemed to have represented that the relevant conditions for
exemptive relief under Prohibited Transaction Class Exemption (“PTCE”) 84-14, PTCE 90-1, PTCE
91-38, PTCE 95-60 or PTCE 96-23, the Underwriter Exemption or other applicable exemption providing
substantially similar relief have been satisfied.

     SECTION 2.14 CUSIP Numbers. The Issuer in issuing the notes may use “CUSIP” numbers
(if then generally in use), and, if so, the Indenture Trustee may use such “CUSIP” numbers in
notices of redemption as a convenience to the Holders; provided that any such notice may state that
no representation is made as to the correctness of such numbers either as printed on the Notes or
as contained in any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Issuer will promptly notify the Indenture Trustee of any change in
the “CUSIP” numbers.

ARTICLE III

COVENANTS

     SECTION 3.01 Payment of Principal and Interest. The Issuer will duly and punctually
pay Monthly Interest and Monthly Principal on the Notes in accordance with the terms of the Notes
and this Indenture. Without limiting the foregoing, subject to Section 8.05(a) hereof, the Issuer
will cause to be distributed the amount of Available Funds on each Payment Date. The Issuer will
cause the deposits received on Receivables to be deposited into the Collection Account pursuant to
the Trust Agreement for the benefit of the Noteholders and the Insurer to the extent expressly set
forth herein or the other Basic Documents. Amounts properly withheld under the Code by any Person
from a payment of interest and/or principal to any Noteholder shall be considered as having been
paid by the Issuer to such Noteholder for all purposes of this Indenture.

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     SECTION 3.02 Maintenance of Office or Agency. The Issuer will maintain or will cause
the Administrator or the Indenture Trustee to maintain 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 Corporate Research Solutions, Inc., 1773 Western Avenue, Albany, New York 12203 to serve
as its agent for the foregoing purposes. The Issuer will give prompt written notice to the
Indenture Trustee and the Insurer 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 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.

     SECTION 3.03 Money for Payments to be Held in Trust.

          (a) As provided in Section 9.02 of the Trust Agreement, all payments of amounts due and
payable with respect to any Notes that are to be made from amounts withdrawn from the Collection
Account and the Payahead Account shall be made on behalf of the Issuer by the Indenture Trustee or
by another Paying Agent, and no amounts so withdrawn from the Collection Account and the Payahead
Account for payments of Notes shall be paid over to the Issuer except as provided in this Section.

          (b) The Notes shall be non-recourse obligations of the Issuer and shall be limited in right of
payment to amounts available from the Pledged Assets, the Spread Account and the Policy as provided
in this Indenture, the Spread Account Agreement and the Policy and the Issuer shall not otherwise
be liable for payments on the Notes. No Person shall be personally liable for any amounts payable
under the Notes. If any other provision of this Indenture conflicts or is deemed to conflict with the provisions of this paragraph, the provisions of this
paragraph shall control.

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

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

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

          (iii) at anytime during the continuance of any such default, upon the written request
of the Indenture Trustee, or so long as it is the Controlling Party, the Insurer, forthwith
pay to the Indenture Trustee all sums so held in trust by such Paying Agent;

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

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

          (d) The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, by Issuer Order direct any 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 sums.

     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 for two years after such amount has become due and payable shall be discharged
from such trust and be paid to the Issuer upon receipt of an Issuer Request with the prior written
consent of the Insurer (so long as the Insurer is the Controlling Party), 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; provided, however, that if such money or any portion
thereof had been previously deposited by the Insurer or the Indenture Trustee for the payment of principal or interest on the Notes, to the extent any amounts are owing to the
Insurer in accordance with the terms of the Insurance Agreement, such amounts shall be paid
promptly to the Insurer upon the Indenture Trustee’s receipt of a written request by the Insurer to
such effect; and provided, further, that the Indenture Trustee or such Paying Agent, before being
required to make any such repayment, shall at the expense and direction of the Issuer cause to be
published once, in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the City of New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining will be repaid to or
for the account of the Issuer. The Indenture Trustee may also adopt and employ, at the expense of
the Issuer, any other reasonable means of notification of such repayment (including, but not
limited to, mailing notice of such repayment to Holders whose Notes have been called but have not
been surrendered for redemption or whose right to or interest in monies due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any Paying Agent, at the
last address of record for each such Holder).

     SECTION 3.04 Existence. The Issuer will keep in full effect its existence, rights and
franchises as a statutory trust under the laws of the State of Delaware 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, and the
Pledged Assets.

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     SECTION 3.05 Protection of Trust Estate. The Issuer intends the security interest
Granted pursuant to this Indenture in favor of the Indenture Trustee on behalf of the Noteholders
to be prior to all other liens in respect of the Pledged Assets, and the Issuer shall take all
actions necessary to obtain and maintain, for the benefit of the Indenture Trustee on behalf of the
Noteholders and, to the extent expressly set forth herein or in the other Basic Documents, the
Insurer, so long as it is the Controlling Party, a first lien on and a first priority, perfected
security interest in the Pledged Assets. 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, all as prepared by the initial Servicer and
delivered to the Issuer, and will take such other action necessary or advisable to:

          (i) Grant more effectively all or any portion of the Pledged Assets;

          (ii) maintain or preserve the lien and security interest (and the priority thereof)
created by this Indenture in favor of the Indenture Trustee for the benefit of the
Noteholders to the extent expressly set forth herein or the other Basic Documents and, to
the extent expressly set forth herein and so long as it is the Controlling Party, the
Insurer, or carry out more effectively the purposes hereof;

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

          (iv) enforce any of the Pledged Assets;

          (v) preserve and defend title to the Pledged Assets and the rights of the Indenture
Trustee, the Noteholders and, to the extent expressly set forth herein and so long as it is
the Controlling Party, the Insurer, in such Pledged Assets against the claims of all persons
and parties; or

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

The Issuer hereby designates the Indenture Trustee (without any obligation) its agent and
attorney-in-fact to execute all financing statements, continuation statements or other instruments
required to be executed pursuant to this Section.

     SECTION 3.06 Opinions as to Pledged Assets.

          (a) Promptly after the execution and delivery of this Indenture, the Issuer shall furnish to
the Indenture Trustee and the Insurer an Opinion of Counsel to the effect that, in the opinion of
such counsel, either (i) all UCC financing statements and continuation statements have been
executed (or otherwise authorized) and filed that are necessary to create and continue the
Indenture Trustee’s first priority perfected security interest in the Pledged Assets for the
benefit of the Noteholders and, to the extent expressly set forth herein or the other Basic
Documents, the Insurer, and reciting the details of such filings or referring to prior Opinions of
Counsel in which such details are given, or (ii) no such action shall be necessary to perfect such
security interest.

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          (b) Within 90 days after the beginning of each calendar year beginning with the first calendar
year beginning more than three months after the Cut-off Date, the Issuer shall furnish to the
Indenture Trustee and the Insurer an Opinion of Counsel, dated as of a date during such 90-day
period, to the effect that, in the opinion of such counsel, either (i) all UCC financing statements
and continuation statements have been executed (or otherwise authorized) and filed that are
necessary to create and continue the Indenture Trustee’s first priority perfected security interest
in the Pledged Assets for the benefit of the Noteholders and, to the extent expressly set forth
herein or the other Basic Documents, the Insurer, and reciting the details of such filings or
referring to prior Opinions of Counsel in which such details are given, or (ii) no such action
shall be necessary to perfect such security interest.

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 Pledged Assets 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 or such other instrument or agreement.

          (b) The Issuer may contract with or otherwise obtain the assistance of other Persons
(including, without limitation, the Administrator under the Administration Agreement) acceptable to
the Insurer to assist it in performing its duties and obligations under this Indenture, and any
performance of such duties by a Person identified to the Indenture Trustee and the Insurer in an Officer’s Certificate shall be deemed to be action taken by the Issuer. The
Indenture Trustee shall not be responsible for the action or inaction of the Servicer or the
Administrator. Initially, the Issuer has contracted with BVAC as 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 this Indenture, the other Basic Documents and in the instruments and agreements
included in the Pledged Assets, 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 this
Indenture and the Trust Agreement in accordance with and within the time periods provided for
herein and therein. Except as otherwise expressly provided therein, the Issuer shall not waive,
amend, modify, supplement or terminate any Basic Document or any provision thereof without the
consent of the Indenture Trustee and the Insurer (so long as the Insurer is the Controlling Party).

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

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          (e) Upon the resignation or termination of the Servicer pursuant to Sections 13.05 or 14.01 of
the Trust Agreement, the Back-up Servicer shall, subject to the conditions and limitations set
forth in the Trust Agreement, automatically become Servicer, unless the Controlling Party directs
otherwise, as provided in Section 14.03 of the Trust Agreement.

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

          (g) The Issuer agrees that it will not waive timely performance or observance by the Servicer
or the Transferor of their respective duties under the Basic Documents: (i) without the prior
consent of the Insurer (so long as the Insurer is the Controlling Party) or (ii) if the effect
thereof would adversely affect the Noteholders.

     SECTION 3.08 Negative Covenants. Until the Termination Date, the Issuer shall not:

          (i) except as expressly permitted by the Basic Documents, sell, transfer, exchange or
otherwise dispose of any of the properties or assets of the Issuer, including those included
in the Pledged Assets, unless directed to do so by the Indenture Trustee with the prior
written consent of the Insurer (so long as the Insurer is the Controlling Party);

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

          (iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien created by this Indenture to be amended, hypothecated, subordinated,
terminated or discharged, or permit any Person to be released from any covenants or
obligations with respect to the Notes under this Indenture except as may be expressly
permitted hereby, (B) permit any lien, charge, excise, claim, security interest, mortgage or
other encumbrance (other than the lien of this Indenture) to be created on or extend to or
otherwise arise upon or burden the Pledged Assets or any part thereof or any interest
therein or the proceeds thereof (other than tax liens, mechanics’ liens and other liens that
arise by operation of law, in each case on a Financed Vehicle and arising solely as a result
of an action or omission of the related Obligor), (C) permit the lien created by this
Indenture not to constitute a valid first priority security interest (other than with
respect to any such tax, mechanics’ or other lien) in the Pledged Assets, or (D) amend,
modify or fail to comply with the provisions of the Basic Documents, prior to the
Termination Date, without the prior written consent of the Insurer, so long as the Insurer
is the Controlling Party;

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

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

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

     SECTION 3.09 Annual Statement as to Compliance. The Issuer will deliver to the
Indenture Trustee, the Rating Agencies and the Insurer, on or before March 30 of each year,
beginning on March 30, 2006, an Officer’s Certificate dated as of December 31 of the preceding year
stating, as to the Authorized Officer signing such Officer’s Certificate, that:

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

          (ii) to the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has complied with all conditions and covenants under this Indenture throughout such
year, or, if there has been a default in the compliance of any such condition or covenant,
specifying each such default known to such Authorized Officer and the nature and status
thereof.

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

          (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 (A) be a Person organized and existing under the laws of the United States or
any State, (B) shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Indenture Trustee and the Insurer, in form and substance satisfactory to
the Indenture Trustee and the Insurer (so long as the Insurer is the Controlling Party), the
due and punctual payment of the principal of and interest on all Notes and the performance
or observance of every agreement and covenant of this Indenture and each other Basic
Document on the part of the Issuer to be performed or observed, all as provided herein, and
(C) expressly agree by means of such supplemental indenture that such Person (or if a group
of Persons, then one specified person) shall make all filings, with the Commission ( and any
other appropriate Person) required by the Exchange Act in connection with the Notes;

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

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

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          (iv) the Issuer shall have received an Opinion of Counsel which shall be delivered to
and shall be satisfactory to the Indenture Trustee and the Insurer (so long as the Insurer
is the Controlling Party) to the effect that such consolidation or merger will not have any
material adverse tax consequence to the Trust, the Insurer, any Noteholder or any
Certificateholder;

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

          (vi) the Issuer shall have delivered to the Indenture Trustee and the Insurer (so long
as the Insurer is the Controlling Party) an Officer’s Certificate and an Opinion of Counsel
(which shall describe the actions taken as required by clause (v) above or that no such
actions will be taken) each stating that such consolidation or merger and such supplemental
indenture comply with this Article III and that all conditions precedent herein provided for
relating to such transaction have been compiled with (including any filings required by the
Exchange Act); and

          (vii) so long as the Insurer is the Controlling Party, the Issuer shall have given the
Insurer and the Indenture Trustee written notice of such consolidation or merger at least 20
Business Days prior to the consummation of such action and shall have received the prior
written approval of the Insurer of such consolidation or merger and the Issuer or the Person
(if other than the Issuer) formed by or surviving such consolidation or merger has a net
worth, immediately after such consolidation or merger, that is (A) greater than zero and (B) not less than the net worth of the Issuer immediately prior
to giving effect to such consolidation or merger.

          (b) The Issuer shall not convey or transfer all or substantially all of its properties or
assets, including those included in the Pledged Assets, to any Person (except as expressly
permitted by the Basic Documents), unless:

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

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

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

          (iv) the Issuer shall have received an Opinion of Counsel which shall be delivered to
and shall be satisfactory to the Controlling Party (with a copy to the Insurer so long as it
is the Controlling Party) to the effect that such conveyance or transfer will not have any
material adverse tax consequence to the Trust, the Insurer, any Noteholder or any
Certificateholder;

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

          (vi) the Issuer shall have delivered to the Indenture Trustee and the Insurer (so long
as the Insurer is the Controlling Party) an Officer’s Certificate and an Opinion of Counsel
(which shall describe the actions taken as required by clause (v) above or that no such
actions will be taken) each stating that such conveyance or transfer and such supplemental
indenture comply with this Article Three and that all conditions precedent herein provided
for relating to such transaction have been complied with (including any filings required by
the Exchange Act); and

          (vii) so long as the Insurer is the Controlling Party, the Issuer shall have given the
Insurer written notice of such conveyance or transfer of properties or assets at least 20
Business Days prior to the consummation of such action and shall have received the prior
written approval of the Insurer of such conveyance or transfer and the Person acquiring by
conveyance or transfer the properties or assets of the Issuer has a net worth, immediately
after such conveyance or transfer, that is (A) greater than zero and (B) not less than the
net worth of the Issuer immediately prior to giving effect to such conveyance or transfer.

     SECTION 3.11 Successor Transferee.

          (a) Upon any consolidation or merger of the Issuer in accordance with Section 3.10(a) hereof,
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 or substantially all the assets or properties of the
Issuer pursuant to Section 3.10(b) hereof, the Issuer will be released from every covenant and
agreement of this Indenture to be observed or performed on the part of the Issuer with respect to
the Notes immediately upon the delivery of written notice to the Indenture Trustee and the Insurer
stating that the Issuer is to be so released.

     SECTION 3.12 No Other Business. The Issuer shall not engage in (i) any business other
than financing, purchasing, owning, selling and managing the Receivables in the

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manner contemplated
by this Indenture and the other Basic Documents and activities incidental thereto or (ii) any other
business or activities as contemplated by Section 1.03 of the Trust Agreement.

     SECTION 3.13 No Borrowing. The Issuer shall not issue, incur, assume, guarantee or
otherwise become liable, directly or indirectly, for any Indebtedness except for (i) the Notes,
(ii) obligations owing from time to time to the Insurer under the Insurance Agreement and the other
Basic Documents, and (iii) any other Indebtedness permitted by or arising under the Basic
Documents. The proceeds of the Notes shall be used exclusively to fund the Issuer’s purchase of
the Receivables and the other assets specified in the Trust Agreement, to fund the required deposit
in the Spread Account, and to pay the Issuer’s organizational, transactional and start-up expenses.

     SECTION 3.14 Servicer’s Obligations. The Issuer shall cause the Servicer to comply
with the Servicer’s obligations under the Trust Agreement.

     SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities . Except as contemplated by the Trust Agreement or this Indenture, the Issuer shall not make
any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having
the effect of assuring another’s payment or performance on any obligation or capability of so doing
or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in
connection with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire
(or agree contingently to do so) any stock, obligations, assets or securities of, or any other
interest in, or make any capital contribution to, any other Person.

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

     SECTION 3.17 Restricted Payments. Except as expressly permitted by the Basic
Documents, 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 Owner Trustee or any owner of a beneficial interest in the Issuer or
otherwise with respect to any ownership or equity interest or security in or of the Issuer or to
the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value any such ownership or
equity interest or security or (iii) set aside or otherwise segregate any amounts for any such
purpose; provided, however, that the Issuer may make, or cause to be made, (A)
distributions to the Servicer, the Back-up Servicer, the Indenture Trustee, the Owner Trustee, the
Insurer, each Certificateholder and the Noteholders as contemplated by, and to the extent funds are
available for such purpose under, Section 8.05(a) hereof, the Trust Agreement or the Spread Account
Agreement and (B) payments to the Indenture Trustee and the Owner Trustee pursuant to the
Administration Agreement. The Issuer will not, directly or indirectly, make payments to or
distributions from the Collection Account or any other Trust Account except in accordance with this
Indenture and the other Basic Documents.

     SECTION 3.18 Notice of Events of Default. The Issuer agrees to give the Indenture
Trustee, the Insurer (so long as the Insurer is the Controlling Party) and each Rating Agency
prompt written notice of each Event of Default hereunder (but no later than five (5) days

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after the
Issuer obtains actual knowledge of such Event of Default) and each default on the part of the
Servicer, the Back-up Servicer or the Transferor of their respective obligations under the Trust
Agreement.

     SECTION 3.19 Further Instruments and Acts. Upon request of the Indenture Trustee or,
so long as it is the Controlling Party, the Insurer, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or proper to carry out
more effectively the purpose of this Indenture.

     SECTION 3.20 Compliance with Laws . The Issuer shall comply with the requirements of all applicable laws, the non-compliance
with which would, individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any other Basic Document.

     SECTION 3.21 Amendments of Trust Agreement. The Issuer shall not agree to any
amendment to Section 16.01 of the Trust Agreement to eliminate the requirements thereunder that the
Insurer (so long as it is the Controlling Party) and/or the Noteholders, as applicable, consent to
any amendment to the Trust Agreement to the extent provided therein.

     SECTION 3.22 Certain Representations, Warranties and Covenants Related to Receivables.
The Issuer hereby represents and warrants that this Agreement creates a valid and continuing
security interest (as defined in the applicable UCC) in the Receivables in favor of the Indenture
Trustee, for the benefit of the Noteholders and the Insurer, which security interest is prior to
all other Liens, and is enforceable as such as against creditors of and purchasers from Issuer.
Issuer has taken all steps necessary to perfect its security interest against each Obligor in the
property securing the Receivables. The Receivables constitute “tangible chattel paper” within the
meaning of the applicable UCC. Issuer owns and has good and marketable title to the Receivables
free and clear of any Lien, claim or encumbrance of any Person. All original executed copies of
each written agreement that constitute or evidence the Receivables will be delivered to the
Custodian on or prior to the Closing Date. Issuer has not authorized the filing of and is not
aware of any financing statements against Issuer that includes a description of collateral covering
the Receivables other than any financing statement (i) relating to the security interest granted to
the Indenture Trustee, for the benefit of the Noteholders and the Insurer, under this Indenture or
(ii) that has been terminated. None of the documents that constitute or evidence the Receivables
has any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to
any Person other than to the Indenture Trustee, for the benefit of the Noteholders and the Insurer,
other than certain Receivables that will be re-marked on or prior to the Closing Date to reflect
the interests of the Indenture Trustee, for the benefit of the Noteholders and the Insurer, under
this Indenture. The representations and warranties contained in this Section 3.22 shall survive
the execution and delivery of this Indenture. Compliance with the representations and warranties
contained in this Section 3.22 may not be waived without the consent of Standard & Poor’s and the
Indenture Trustee.

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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, 3.07, 3.08, 3.10, 3.11, 3.12, 3.17 and 3.18 hereof,
(v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights
of the Indenture Trustee under Section 6.07 hereof and the obligations of the Indenture Trustee
under Section 4.02 hereof), (vi) the rights of Noteholders as beneficiaries hereof with respect to
the property so deposited with the Indenture Trustee payable to all or any of them and (vii) the
obligation of the Indenture Trustee to make claims under the Policy, which shall survive the Final
Maturity Date of the Class A Notes and extend through any preference period applicable with respect
to the Notes or any payments made in respect of the Notes, and the Indenture Trustee, on demand of
and at the expense of the Issuer, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture with respect to the Notes, when

          (A) either

          1. all Notes theretofore authenticated and delivered (other than (i) Notes that
have been destroyed, lost or stolen and that have been replaced or paid as provided
in Section 2.05 hereof and (ii) Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust, as provided in Section 3.03
hereof) have been delivered to the Indenture Trustee for cancellation and the Policy
has expired and been returned to the Insurer for cancellation; or

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

          (i) have become due and payable,

          (ii) will become due and payable at the respective Final Maturity Date
of the Class A Notes within one year, or

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

and the Issuer, in the case of clauses (i), (ii) or (iii) above, has irrevocably deposited
or caused to be irrevocably deposited with the Indenture Trustee cash or Eligible
Investments 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 to the Final Maturity Date of the Class A-4 Notes or Redemption

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Date (if Notes shall have been called for redemption pursuant to Section 11.01 hereof), as the
case may be;

          (B) the Issuer has paid or performed or caused to be paid or performed all amounts and
obligations which the Issuer may owe to or on behalf of (1) the Indenture Trustee for the
benefit of the Noteholders under this Indenture or the Notes and (2) the Insurer to the
extent expressly set forth under this Indenture and/or the Basic Documents;

          (C) the Issuer has delivered to the Indenture Trustee and the Insurer (so long as the
Insurer is the Controlling Party) an Officer’s Certificate, an Opinion of Counsel and (if
required by the Trust Indenture Act) an Independent Certificate from a firm of certified
public accountants, each meeting the applicable requirements of Section 12.01(a) hereof and,
subject to Section 12.02 hereof, each stating that all conditions precedent herein provided
for relating to the satisfaction and discharge of this Indenture have been complied with;
and

          (D) upon the satisfaction and discharge of the Indenture pursuant to this Section 4.01,
the Indenture Trustee shall deliver to the Owner Trustee and the Insurer (so long as the
Insurer is the Controlling Party) a certificate of a Responsible Officer stating (i) that
the Insurer (based on a certificate delivered to the Indenture Trustee by the Issuer),
Noteholders and the Indenture Trustee have been paid all amounts owed to them, and (ii)
either (a) stating that to the actual knowledge of such Responsible Officer, no claims
remain against the Issuer, or (b) stating that the only pending or threatened claims
actually known to such Responsible Officer (including contingent and unliquidated claims)
are those listed on a schedule to such certificate.

     SECTION 4.02 Application of Trust Money. All monies deposited with the Indenture
Trustee pursuant to Section 4.01 hereof shall be held in trust and applied by it, in accordance
with the provisions of the Notes and this Indenture, to the payment, either directly or through any
Paying Agent, as the Indenture Trustee may determine, to the Holders of the particular Notes for
the payment or redemption of which such monies have been deposited with the Indenture Trustee, of
all sums due and to become due thereon for principal and interest; but such monies need not be
segregated from other funds except to the extent required herein or in the Trust Agreement or
required by law.

     SECTION 4.03 Repayment of Monies Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all monies 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 hereof and thereupon such Paying Agent shall be released from all
further liability with respect to such monies.

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ARTICLE V

EVENTS OF DEFAULT; REMEDIES

     SECTION 5.01 Events of Default.

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

          (i) default in the payment of any interest on any Note when the same becomes due and
payable and such default shall continue for a period of five days (solely for purposes of
this clause, a payment on the Notes funded from the Spread Account shall be deemed to be a
payment made by the Issuer);

          (ii) default in the payment of any principal of or any installment of the principal of
the Class A Notes on the Final Maturity Date for such Class of Notes (solely for purposes of
this clause, a payment on the Class A Notes funded from the Spread Account shall be deemed
to be a payment made by the Issuer);

          (iii) default in the observance or performance of any covenant or agreement of the
Issuer made in this Indenture (other than a covenant or agreement, a default in the
observance or performance of which is elsewhere in this Section specifically dealt with), or
any representation or warranty of the Issuer made in this Indenture, in any Basic Document
or in any certificate or any other writing delivered pursuant hereto or in connection
herewith or therewith proving to have been incorrect in any material respect as of the time
when the same shall have been made, and such default shall (A) materially and adversely
affect the Noteholders or the Insurer and (B) 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 60 days after there shall have been
given to the Issuer by the Indenture Trustee or to the Issuer and the Indenture Trustee by
the Majority Noteholders or the Insurer, a written notice by registered or certified mail,
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;

          (iv) the filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of the Issuer or any substantial part of the Pledged Assets in an
involuntary case under any applicable federal or State bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any substantial
part of the Pledged Assets, 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 60
consecutive days;

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

          (vi) the Issuer becoming taxable as an association (or publicly traded partnership)
taxable as a corporation for federal or State income tax purposes;

          (vii) the Issuer or the Transferor being treated as an investment company pursuant to
the Investment Company Act of 1940, as amended; or

          (viii) the Insurer makes a payment under the Policy.

          (b) The Issuer shall deliver to the Indenture Trustee, the Rating Agencies and the Insurer (so
long as the Insurer is the Controlling Party), within five days after obtaining knowledge of the
occurrence thereof, written notice in the form of an Officer’s Certificate of any event which with
the giving of notice or the lapse of time would become an Event of Default, its status and what
action the Issuer is taking or proposes to take with respect thereto.

     SECTION 5.02 Rights Upon Event of Default.

          (a) So long as the Insurer is the Controlling Party, if an Event of Default shall have
occurred and is continuing, then the Insurer shall have the right, but not the obligation, upon
prior written notice to each Rating Agency, to declare by written notice to the Issuer, the
Servicer and the Indenture Trustee that the entire principal amount of the Class A Notes, together
with interest accrued on the Class A Notes and Class I Notes, become immediately due and payable,
and upon any such declaration the unpaid principal amount of the Class A Notes, together with
accrued and unpaid interest on the Class A and Class I Notes, shall become immediately due and
payable. The Indenture Trustee will have no discretion with respect to the acceleration of the
Notes under the foregoing circumstances. In the event of any such acceleration of the Notes, the
Indenture Trustee shall continue to make claims under the Policy with respect to the Notes.

          (b) If the Insurer is no longer the Controlling Party, and an Event of Default shall have
occurred and be continuing, the Indenture Trustee shall, if so requested in writing by the Majority
Noteholders, upon prior written notice to each Rating Agency, declare that the entire principal
amount of the Class A Notes, together with interest accrued on the Class A Notes and Class I Notes,
become immediately due and payable, and upon any such declaration the unpaid principal amount of
the Class A Notes, together with accrued and unpaid interest on the Class A and Class I Notes,
shall become immediately due and payable.

          (c) If an Event of Default occurs and the Notes have been accelerated, the Indenture Trustee
may exercise any of the remedies specified in Section 5.04(a) hereof.

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Payments following
acceleration of any Notes shall be applied by the Indenture Trustee pursuant to Section 8.05(g)
hereof.

          (d) In the event any Notes are accelerated due to an Event of Default, the Insurer shall have
the right (in addition to its obligation to pay Insured Payments on the Notes in accordance with
the Policy), but not the obligation, to make payments under the Policy or otherwise of interest and
principal due on such Notes, in whole or in part, on any date or dates following such acceleration
as the Insurer, in its sole discretion, shall elect. In addition, if an Event of Default occurs
and the Insurer accelerates the Notes whether in full or in part (including, without limitation, as
a result of the sale of any Receivable), the Insurer will from and after such acceleration
guarantee pursuant to the Policy the continued payment of Class I Monthly Interest to the Class I
Noteholders based on the Planned Notional Principal Amount Schedule for all remaining Payment Dates included in the Planned Notional Principal Amount
Schedule.

          (e) At any time after 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 Insurer, so long as it is the Controlling Party, and
otherwise, the Majority Noteholders, by written notice to the Issuer and the Indenture Trustee, may
rescind and annul such declaration and its consequences if:

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

          (A) all payments of principal on the Class A Notes and interest on all Notes
and all other amounts that would then be due hereunder or upon such Notes if the
Event of Default giving rise to such acceleration had not occurred, which funds
shall be deposited into the Collection Account;

          (B) all sums paid or advanced by the Indenture Trustee hereunder and the
reasonable compensation, expenses and disbursements of the Indenture Trustee and its
agents and counsel, which funds shall be deposited into the Collection Account; and

          (C) all sums paid or advanced by or due to the Insurer and any unpaid Insurance
Premium, which funds shall be paid to the Insurer; and

          (ii) all Events of Default, other than the nonpayment of the interest on or the
principal of the Notes that has become due solely by such acceleration, have been cured or
waived as provided in Section 5.13 hereof.

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

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

          (a) The Issuer covenants that, if the Notes are accelerated following the occurrence of an
Event of Default, the Issuer will, upon demand of the Indenture Trustee, pay to the Indenture
Trustee, for the benefit of the Noteholders, the whole amount then due and payable on such Notes
for principal and interest, with interest upon the overdue principal, and, to the extent payment at
such rate of interest shall be legally enforceable, upon overdue installments of interest, at the
applicable interest rates and in addition thereto such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable compensation, expenses and
disbursements of the Insurer and the Indenture Trustee and their respective agents and counsel. In
furtherance of the foregoing, the Issuer hereby irrevocably and unconditionally appoints the
Indenture Trustee as the true and lawful attorney-in-fact of the Issuer, with full power of
substitution, to execute, acknowledge and deliver any notice, document, certificate, paper,
pleading or instrument and to do in the name of the Indenture Trustee as well as in the name, place
and stead of the Issuer such acts, things and deeds for or on behalf of and in the name of the Issuer under this Indenture (including specifically under Section 5.04 hereof) and
under the Basic Documents which the Issuer could or might do or which may be necessary, desirable
or convenient in the Indenture Trustee’s sole discretion to effect the purposes contemplated
hereunder and under the Basic Documents and, without limitation, following the occurrence of an
Event of Default, so long as the Insurer is the Controlling Party, acting at the instruction or
with the consent of the Insurer, and thereafter acting at the instruction or with the consent of
the Majority Noteholders, exercise full right, power and authority to take, or defer from taking,
any and all acts with respect to the administration, maintenance or disposition of the Pledged
Assets.

          (b) If an Event of Default shall have occurred and be continuing, the Indenture Trustee shall
(i) if the Insurer is the Controlling Party, at the direction of the Insurer, or (ii) if the
Insurer is not the Controlling Party, at the direction of the Majority Noteholders, as more
particularly provided in Section 5.04 hereof, proceed to protect and enforce the rights of the
Noteholders, by such appropriate Proceedings as the Indenture Trustee shall deem most effective to
protect and enforce any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce
any other proper remedy or legal or equitable right vested in the Indenture Trustee by this
Indenture or by law.

          (c) 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 Pledged Assets, Proceedings under
Title 11 of the United States Code or any other applicable federal or State bankruptcy, insolvency
or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or taken possession of
the Issuer or its property or such other obligor or Person, or in case of any other comparable
judicial Proceedings relative to the Issuer, Insurer or Servicer or other obligor upon the Notes,
or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee,
irrespective of whether the principal of any Notes shall then be due and payable as therein
expressed or by declaration or otherwise and irrespective of whether the

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

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

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

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

          (iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the Noteholders allowed in
any judicial Proceedings relative to the Issuer, the Insurer or the Servicer, or any of
their respective creditors and their respective properties; and any trustee, receiver,
liquidator, custodian or other similar official in any such Proceeding is hereby authorized
by each of such Noteholders to make payments to the Indenture Trustee, and, in the event
that the Indenture Trustee shall consent to the making of payments directly to such
Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and
their respective agents, attorneys and counsel, and all other reasonable expenses and
liabilities incurred by the Indenture Trustee and each predecessor Indenture Trustee except
as a result of willful misconduct, negligence, or bad faith.

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

          (e) 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

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reasonable 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 Noteholders.

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

       SECTION 5.04 Remedies.

          (a) If (i) an Event of Default shall have occurred and be continuing and the Notes have been
declared due and payable under Section 5.02 hereof, the Indenture Trustee shall (subject to
Sections 5.04(b) and 5.05 hereof), if the Insurer is the Controlling Party, at the direction of the
Insurer, or (ii) if an Event of Default shall have occurred and be continuing and the Notes have
been declared due and payable under Section 5.02 hereof, the Indenture Trustee shall (subject to
Sections 5.04(b) and 5.05 hereof), if the Insurer is no longer the Controlling Party, at the direction of the Majority Noteholders, take one or more of the following actions
as so directed:

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

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

          (iii) exercise any remedies of a secured party under the UCC and any other remedy
available to the Indenture Trustee and take any other appropriate action to protect and
enforce the rights and remedies of the Indenture Trustee on behalf of the Noteholders and
the Insurer under this Indenture or the Notes;

          (iv) sell or otherwise liquidate the Pledged Assets or any portion thereof or rights or
interests therein, at one or more public or private sales called and conducted in any manner
permitted by law and deliver the proceeds of such sale or liquidation to the Indenture
Trustee for distribution in accordance with the terms of this Indenture; and

          (v) maintain possession of the Pledged Assets

          (b) Notwithstanding the foregoing, in the event that the Indenture Trustee is acting at the
direction of the Majority Noteholders (in the event that the Insurer is no longer the Controlling
Party), the Noteholders shall not have the right to direct the Indenture Trustee or the Servicer
to, and neither the Indenture Trustee nor the Servicer shall, liquidate the Pledged Assets in whole
or in part unless an Event of Default as specified in Sections 5.01(a)(iv) or (v) hereof shall have
occurred and be continuing.

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          (c) In determining the sufficiency or insufficiency of the proceeds of a sale or liquidation
of the Pledged Assets to pay all amounts required pursuant to Section 5.04(b)(i) hereof, the
Indenture Trustee may, but need not, at the sole expense of the Issuer 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 Pledged Assets for such
purpose.

     SECTION 5.05 Optional Preservation of the Receivables. If the Notes have been
declared to be due and payable under Section 5.02 hereof following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the Indenture Trustee shall,
absent direction to the contrary from the Insurer or the Noteholders pursuant to Section 5.04
hereof, maintain possession of the Pledged Assets.

     SECTION 5.06 Priorities.

          (i) If the Notes have been declared to be due and payable under Section 5.02 hereof
following an Event of Default and such declaration and its consequences have not been
rescinded and annulled, any money collected by the Indenture Trustee with respect to the
Pledged Assets, the Notes or a Certificate pursuant to this Article or otherwise and any
money that may then be held or thereafter received by the Indenture Trustee with respect to
the Pledged Assets, the Notes or such Certificate (excluding any payments made under the
Policy), shall be applied pursuant to Section 8.05(g) hereof.

          (ii) 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 record
date, the payment date and the amount to be paid.

     SECTION 5.07 Limitation of Suits.

          (a) 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:

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

          (ii) the Holders of not less than 25% of the Note Balances have made written request to
the Indenture Trustee to institute such Proceeding in respect of such Event of Default in
its own name as Indenture Trustee hereunder;

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

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

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          (v) no direction inconsistent with such written request shall have been given to the
Indenture Trustee during such 60-day period by the Holders of a majority of the Class A Note
Balances, voting together as a single class; and

          (vi) the Insurer is no longer the Controlling Party.

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

          (b) In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Noteholders, each representing less than a majority of the
Note Balances (voting as a single Class), the Indenture Trustee in its sole discretion may
determine that action, if any, shall be taken, notwithstanding any other provisions of this
Indenture and any such action shall be binding on all parties.

     SECTION 5.08 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 payments of Monthly Interest and (in the
case of Class A Notes) Monthly Principal on such Note on or after the respective due dates thereof
expressed in such Note or in this Indenture (or, in the case of redemption, on or after the
Redemption Date) and to institute suit for the enforcement of any such payment, and such right
shall not be impaired without the consent of such Holder.

     SECTION 5.09 Restoration of Rights and Remedies. If the Indenture Trustee, the
Insurer or any Noteholder shall have instituted any Proceeding to enforce any right or remedy under
this Indenture and such Proceeding shall have been discontinued or abandoned for any reason or
shall have been determined adversely to the Indenture Trustee, the Insurer or to such Noteholder,
then and in every such case the Issuer, the Indenture Trustee, the Insurer and the Noteholders
shall, subject to any determination in such Proceeding, be restored severally and respectively to
their former positions hereunder, and thereafter all rights and remedies of the Indenture Trustee
and the Noteholders shall continue as though no such Proceeding had been instituted.

     SECTION 5.10 Rights and Remedies Cumulative. No right or remedy herein conferred upon
or reserved to the Indenture Trustee, the Insurer 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 5.11 Delay or Omission Not a Waiver. No delay or omission of the Indenture
Trustee, the Insurer 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

 
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constitute a waiver of any
such Default or Event of Default or an acquiescence therein. Every right and remedy given by this
Article Five or by law to the Indenture Trustee, the Insurer or to the Noteholders may be exercised
from time to time, and as often as may be deemed expedient, by the Indenture Trustee, the Insurer
or by the Noteholders, as the case may be.

     SECTION 5.12 Control by Controlling Party.The Insurer, if the Insurer is the Controlling Party, and otherwise the Indenture Trustee
at the direction of the Majority Noteholders shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect
to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that:

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

          (ii) any direction to the Indenture Trustee to sell or liquidate the Pledged Assets
shall be subject to the terms of Section 5.04 hereof; and

          (iii) the Indenture Trustee shall have been provided with indemnification satisfactory
to it in connection with such direction.

Notwithstanding the rights of Noteholders set forth in this Section, subject to Section 6.01
hereof, the Indenture Trustee need not take any action that it determines, in its sole discretion,
might involve it in liability or might materially adversely affect the rights of any Noteholders
not consenting to such action.

     SECTION 5.13 Waiver of Past Defaults.

          (a) Prior to the declaration of the acceleration of the maturity of the Notes as provided in
Section 5.02 hereof, the Insurer so long as it is the Controlling Party and otherwise the Indenture
Trustee, at the direction of Holders holding in the aggregate more than 50% of the outstanding
Class A Note Balance, may waive any past Default and/or Event of Default and its consequences
except a Default (a) in the payment of principal of or interest on any of the Notes or (b) in
respect of a covenant or provision hereof that cannot be modified or amended without the consent of
the Holder of each Note, as applicable. In the case of any such waiver, the Issuer, the Indenture
Trustee, the Insurer and the Noteholders shall be restored to their former positions and rights
hereunder, respectively; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereto.

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

     SECTION 5.14 Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Indenture Trustee for any action taken,

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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 and expenses, against any party litigant in such suit, in the
manner and to the extent provided by the Trust Indenture Act; but the provisions of this Section shall not apply to (i) any suit
instituted by the Indenture Trustee, (ii) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the Note Balances or (iii) any
suit instituted by any Noteholder for the enforcement of the payment of principal of or interest on
any Note on or after the respective due dates expressed in such Note and in this Indenture (or, in
the case of redemption, on or after the Redemption Date).

     SECTION 5.15 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner
whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantages of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

     SECTION 5.16 Action on Notes. The Indenture Trustee’s right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or
application of any other relief under or with respect to this Indenture. Neither the lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired
by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Pledged Assets 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 5.06 hereof.

     SECTION 5.17 Performance and Enforcement of Certain Obligations.

          (a) Promptly following a request from the Indenture Trustee or, so long as it is the
Controlling Party, the Insurer, to do so and at the Administrator’s expense, the Issuer shall take
all such lawful action as the Indenture Trustee or the Insurer may request to compel or secure the
performance and observance by the Transferor and the Servicer as applicable, of each of their
obligations to the Issuer under or in connection with the Trust Agreement in accordance with the
terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Trust Agreement to the extent and in the
manner directed by the Indenture Trustee or, the Insurer (so long as the Insurer is the Controlling
Party), including the transmission of notices of default on the part of the Transferor, the
Servicer or the Back-up Servicer thereunder and the institution of legal or administrative actions
or Proceedings to compel or secure performance by the Transferor, the Servicer or the Back-up
Servicer of each of their obligations under the Trust Agreement.

          (b) If the Indenture Trustee is the Controlling Party and if an Event of Default has occurred
and is continuing, the Indenture Trustee may, and at the direction (which direction shall be given
in writing and may include a facsimile) of the Majority Noteholders shall, exercise

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all rights, remedies, powers, privileges and claims of the Issuer against the Transferor or
the Servicer under or in connection with the Trust Agreement, including the right or power to take
any action to compel or secure performance or observance by the Transferor, the Servicer or the
Back-up Servicer of each of their obligations to the Issuer thereunder and to give any consent,
request, notice, direction, approval, extension or waiver under the Trust Agreement, and any right
of the Issuer to take such action shall be suspended.

     SECTION 5.18 Optional Deposits by the Insurer. The Insurer shall at any time, and
from time to time, with respect to a Payment Date, have the option to deliver amounts (any such
amount, an “Insurer Optional Deposit”) to the Indenture Trustee for deposit into the Collection
Account for any of the following purposes: (i) to provide funds in respect of the payment of
reasonable fees or expenses of any provider of services to the Trust with respect to such Payment
Date, (ii) to pay Class A Monthly Principal or (iii) to include such amount as part of the Monthly
Interest for such Payment Date to the extent that without such amount a draw would be required to
be made on the Policy.

ARTICLE VI

THE INDENTURE TRUSTEE

     SECTION 6.01 Duties of Indenture Trustee.

          (a) If an Event of Default shall have occurred and be continuing, and of which the Indenture
Trustee shall have actual knowledge, the Indenture Trustee shall exercise the rights and powers
vested in it by this Indenture and with the same degree of care and skill in its exercise as a
prudent person would exercise or use under the circumstances in the conduct of such person’s own
affairs.

          (b) Except during the continuance of an Event of Default of which a Responsible Officer of the
Indenture Trustee shall have actual knowledge or written notice:

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

          (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to
the requirements of this Indenture; provided, however, the Indenture Trustee
shall examine the certificates and opinions to determine whether or not they conform on
their face to the requirements of this Indenture and the other Basic Documents to which the
Indenture Trustee is a party; provided, however, that the Indenture Trustee
shall not be responsible for the accuracy or content of any of the aforementioned documents
and the Indenture Trustee shall have no obligation to verify, re-compute or recalculate any
numerical information provided to it pursuant to the Basic Documents.

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

          (i) this paragraph does not limit the effect of Section 6.01(b) hereof;

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

          (iii) the Indenture Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it pursuant to
Section 5.12 hereof.

          (d) Every provision of this Indenture that in any way relates to the Indenture Trustee is
subject to paragraphs (a), (b) and (c) of this Section.

          (e) The Indenture Trustee shall not be liable for interest on any money received by it.

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

          (g) No provision of this Indenture shall require the Indenture Trustee to expend or risk its
own funds or otherwise incur financial liability in the performance of any of its duties hereunder
or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe
that repayments of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it.

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

          (i) The Indenture Trustee shall, and hereby agrees that it will hold the Policy in trust, and
will hold any proceeds of any claim on the Policy in trust solely for application as provided in
the Trust Agreement and this Indenture.

          (j) The Indenture Trustee shall not be liable in its individual capacity with respect to any
action taken, suffered or omitted to be taken by it in good faith in accordance with this Indenture
or at the direction of the Majority Noteholders, relating to the time, method and place of
conducting any Proceeding for any remedy available to the Indenture Trustee, or exercising or
omitting to exercise any trust or power conferred upon the Indenture Trustee, under this Indenture.

          (k) The Indenture Trustee shall not be required to take notice or be deemed to have notice or
knowledge of any Default, Insurer Default, Servicer Default or Event of Default unless a
Responsible Officer of the Indenture Trustee shall have received written notice thereof.

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In the absence of receipt of such notice, the Indenture Trustee may conclusively assume that
there is no Default, Insurer Default, Servicer Default or Event of Default.

          (l) Subject to the other provisions of this Indenture, the Indenture Trustee shall have no
duty (i) to see to any recording, filing, or depositing of this Indenture or any agreement referred
to herein or any financing statement or continuation statement evidencing a security interest, or
to see to the maintenance of any such recording or filing or depositing or to any rerecording,
refiling or redepositing of any thereof, (ii) to see to any insurance, (iii) to see to the payment
or discharge of any tax, assessment, or other governmental charge or any lien or encumbrance of any
kind owing with respect to, assessed or levied against, any part of the Pledged Assets, or (iv) to
confirm or verify the contents of any reports or certificates delivered to the Indenture Trustee
pursuant to this Indenture believed by the Indenture Trustee to be genuine and to have been signed
or presented by the proper party or parties.

          (m) Anything in this Indenture to the contrary notwithstanding, in no event shall the
Indenture Trustee be liable for special, indirect or consequential loss or damage of any kind
whatsoever (including but not limited to lost profits), even if the Indenture Trustee has been
advised of the likelihood of such loss or damage regardless of the form of action.

     SECTION 6.02 Rights of Indenture Trustee.

          (a) Except as otherwise provided in the second succeeding sentence, the Indenture Trustee may
conclusively rely and shall be protected in acting upon or refraining from acting upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order,
note, direction, demand, election or other paper or document believed by it to be genuine and to
have been signed or presented by the proper person. The Indenture Trustee need not investigate any
fact or matter stated in the document. Notwithstanding the foregoing, the Indenture Trustee,
subject to Section 6.01(b)(ii) hereof 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 comply as to form to the requirements of this Indenture.

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

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

          (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers; provided,

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however, that the Indenture Trustee’s conduct does not constitute negligence, willful
misconduct or bad faith.

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

          (f) Subject to Section 6.01(a) hereof, the Indenture Trustee shall be under no obligation to
exercise any of the trusts or powers vested in it by this Indenture or to institute, conduct or
defend any litigation hereunder or in relation hereto at the request, order or direction of any of
the Noteholders, or Controlling Party, as the case may be, pursuant to the provisions of this
Indenture, unless such Noteholders shall have offered to the Indenture Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities which may be incurred
therein or thereby.

          (g) The Indenture Trustee shall not be bound to make any investigation into the facts or
matters stated in any resolution, certificate, statement, instrument, opinion, report, notice,
request, consent, order, approval, bond or other paper or document, unless requested in writing to
do so by the Majority Noteholders or the Insurer; provided, however, that if the
payment within a reasonable time to the Indenture Trustee of the reasonable 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 taking any such action.

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

          (i) The rights and privileges pertaining to the Indenture Trustee set forth in Sections 6.01
and 6.02 hereof shall apply to the Indenture Trustee in all of the Basic Documents.

          (j) The Indenture Trustee or its Affiliates are permitted to receive additional compensation
that could be deemed to be in the Indenture Trustee’s economic self-interest and which are not
contemplated by this Indenture for (i) serving as investment adviser, administrator, shareholder
servicing agent, custodian or sub-custodian with respect to certain of the Eligible Investments,
(ii) using Affiliates to effect transactions in certain Permitted Investments and (iii) effecting
transactions in certain Eligible Investments; provided that this Section 6.02(j) shall not
entitle the Indenture Trustee or any of its Affiliates to any such additional compensation or
permit the payment of any such additional compensation pursuant to Section 8.05(a) hereof or any
other provision of this Indenture unless, in each case, otherwise expressly permitted pursuant to
the terms of this Indenture or the Trust Agreement.

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     SECTION 6.03 Individual Rights of Indenture Trustee. The Indenture Trustee in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with the Issuer or its Affiliates with the same rights it
would have if it were not Indenture Trustee. Any Paying Agent, Note Registrar, co-registrar or
co-paying agent may do the same with like rights. However, the Indenture Trustee is required to
comply with Sections 6.11 and 6.12 hereof.

     SECTION 6.04 Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture, the
Pledged Assets or the Notes, it shall not be accountable for the Issuer’s use of the proceeds from
the Notes, and it shall not be responsible for any statement of the Issuer in this Indenture or in
any document issued in connection with the sale of the Notes or in the Notes other than the
Indenture Trustee’s certificate of authentication.

     SECTION 6.05 Notice of Defaults. If a Default shall have occurred and be continuing
and a Responsible Officer of the Indenture Trustee shall have actual knowledge or shall have
received written notice thereof, the Indenture Trustee shall mail to each Noteholder, the Insurer
and the Rating Agency notice of the Default within 5 days after such knowledge or notice occurs.

     SECTION 6.06 Reports by Indenture Trustee to Holders. The Indenture Trustee shall
deliver to each Noteholder such information as may be required to enable such holder to prepare its
federal and State income tax returns.

     SECTION 6.07 Compensation and Indemnity. Pursuant to Section 8.05(a) hereof, the
Indenture Trustee shall receive compensation on each Payment Date for its services, in its
capacities as Indenture Trustee and Collateral Agent under the Basic Documents. The Indenture
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. Pursuant to Section 8.05(a) hereof, the Indenture Trustee shall also be entitled to receive
reimbursement for all reasonable out-of-pocket expenses incurred or made by it in its capacities as
Indenture Trustee and Collateral Agent, including costs of collection, in addition to the
compensation for its services. Such expenses shall include the reasonable compensation and
expenses and disbursements and advances of the Indenture Trustee’s agents, counsel, accountants and
experts. The Issuer shall, or shall cause the Administrator to, indemnify the Indenture Trustee
and its officers, directors, employees, representatives and agents against any and all loss,
liability or expense (including 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 Issuer, the Administrator and the Insurer promptly of any claim for which it may
seek indemnity but failure to do so shall not constitute a waiver of any rights hereunder. Failure
by the Indenture Trustee to so notify the Issuer and the Administrator shall not relieve the Issuer
or the Administrator of its obligations hereunder. The Issuer shall, or shall cause the
Administrator to, defend any such claim, and the Indenture Trustee may have separate counsel and
the Issuer shall, or shall cause the Administrator to, pay the reasonable fees and expenses of such
counsel. Neither the Issuer nor the Administrator 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.

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     The Issuer’s obligations to the Indenture Trustee pursuant to this Section shall survive the
resignation or removal of the Indenture Trustee and Collateral Agent and the discharge of this
Indenture. When the Indenture Trustee incurs reasonable expenses after the occurrence of an Event
of Default specified in Sections 5.01(a)(iv) or (v) hereof with respect to the Issuer, such
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. The Indenture
Trustee shall have a lien prior to the Noteholders on the Pledged Assets for amounts due to it
under this Section 6.07; provided, however, the Indenture Trustee agrees that no amounts owed or
paid under the Policy shall be paid to the Indenture Trustee.

     SECTION 6.08 Replacement of Indenture Trustee.

          (a) The Indenture Trustee may resign at any time by so notifying the Issuer, the Servicer and
the Insurer. The Issuer, may, with the consent of the Insurer (so long as the Insurer is the
Controlling Party), and, at the request of the Insurer shall, remove the Indenture Trustee, if:

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

          (ii) a court having jurisdiction in the premises in respect of the Indenture Trustee in
an involuntary case or proceeding under federal or State banking or bankruptcy laws, as now
or hereafter constituted, or any other applicable federal or State bankruptcy, insolvency or
other similar law, shall have entered a decree or order granting relief or appointing a
receiver, liquidator, assignee, custodian, trustee, conservator, sequestrator (or similar
official) for the Indenture Trustee or for any substantial part of the Indenture Trustee’s
property, or ordering the winding-up or liquidation of the Indenture Trustee’s affairs,
provided any such decree or order shall have continued unstayed and in effect for a period
of 30 consecutive days;

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

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

          (b) The Insurer, so long as it is the Controlling Party, may remove the Indenture Trustee for
any reason upon 30 days’ prior written notice.

          (c) 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 Issuer shall promptly appoint a successor
Indenture Trustee acceptable to the Insurer (so long as the Insurer is the Controlling Party).

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          (d) A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee, the Insurer and to the Issuer. 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 Issuer
or the successor Indenture Trustee shall mail a notice of its succession to Noteholders, the
Insurer and the Rating Agencies. The retiring Indenture Trustee shall promptly transfer all
property held by it as Indenture Trustee to the successor Indenture Trustee.

          (e) 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 Issuer or the Majority
Noteholders may petition any court of competent jurisdiction for the appointment of a successor
Indenture Trustee that is acceptable to the Insurer so long as the Insurer is the Controlling
Party.

          (f) If the Indenture Trustee fails to comply with Section 6.11 hereof, any Noteholder may
petition any court of competent jurisdiction for the removal of the Indenture Trustee and the
appointment of a successor Indenture Trustee.

          (g) Any resignation or removal of the Indenture Trustee and appointment of a successor
Indenture Trustee pursuant to the provisions of this Section shall not become effective until
acceptance of appointment by the successor Indenture Trustee pursuant to this Section and payment
of all reasonable fees and expenses owed to the outgoing Indenture Trustee. Notwithstanding the
replacement of the Indenture Trustee pursuant to this Section, the retiring Indenture Trustee shall
be entitled to payment or reimbursement of such amounts as such Person is entitled pursuant to
Section 6.07 hereof.

          (h) Any resignation or removal of the Indenture Trustee hereunder shall also result in the
resignation or removal of such Person as Collateral Agent in accordance with the same terms and
conditions unless otherwise directed by the Controlling Party.

     SECTION 6.09 Successor Indenture Trustee by Merger.

          (a) If the Indenture Trustee consolidates with, merges or converts into, or transfers all or
substantially all of its corporate trust business or assets to, another corporation or banking
association, the resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee; provided, that such corporation or banking association shall be
otherwise qualified and eligible under Section 6.11 hereof. The Indenture Trustee shall provide
the Insurer and each Rating Agency prompt notice of any such transaction.

          (b) In case at the time such successor 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

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cases such certificates shall have the full force and effect of the certificate of the
Indenture Trustee pursuant to the Notes or this Indenture.

     SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee.

          (a) Notwithstanding any other provision of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Pledged Assets may at
the time be located, the Indenture Trustee, with the consent of the Insurer (so long as the Insurer
is the Controlling Party), 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, jointly with the Indenture
Trustee, 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 and to the extent
expressly set forth herein or the other Basic Documents, and the Insurer, such title to the Pledged
Assets, 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 successor Indenture Trustee under Section 6.11 hereof 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 the Indenture
Trustee shall be conferred or imposed upon and exercised or performed by the Indenture
Trustee and such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without the Indenture
Trustee joining in such act), except to the extent that under any law of any jurisdiction in
which any particular act or acts are to be performed the Indenture Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such rights, powers,
duties and obligations (including the holding of title to the Trust or any portion thereof
in any such jurisdiction) shall be exercised and performed singly by such separate trustee
or co-trustee, but solely at the direction of the Indenture Trustee;

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

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

          (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to
have been given to each of the then separate trustees and co-trustees, as effectively as if given
to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to
this Indenture and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property
specified

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in its instrument of co-appointment, either jointly with the Indenture Trustee or
separately, as may be provided therein, subject to all the provisions of this Indenture,
specifically including every provision relating to the conduct of, affecting the liability of, or
affording protection to, the Indenture Trustee. Every such instrument shall be filed with the
Indenture Trustee.

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

     SECTION 6.11 Eligibility. The Indenture Trustee shall at all times satisfy the
requirements of Trust Indenture Act Section 310(a) and the Investment Company Act of 1940. The
Indenture Trustee hereunder shall at all times be a financial institution, acceptable to the
Insurer (so long as the Insurer is the Controlling Party), organized and doing business under the
laws of the United States of America or any State, authorized under such laws to exercise corporate
trust powers, whose long term unsecured debt is rated at least A2 by Moody’s and A by Standard &
Poor’s and shall have a combined capital and surplus of at least $50,000,000 or shall be a member
of a bank holding system to the aggregate combined capital and surplus of which is $50,000,000 and
subject to supervision or examination by federal or State authority, provided that the Indenture
Trustee’s separate capital and surplus shall at all times be at least the amount required by
Section 310(a) (2) of the Trust Indenture Act. If such Person publishes reports of condition at
least annually, pursuant to law or to the requirements of a supervising or examining authority,
then for the purposes of this Section 6.11, the combined capital and surplus of such Person shall
be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. In case at any time the Indenture Trustee shall cease to be eligible in
accordance with the provisions of this Section 6.11, the Indenture Trustee shall resign immediately
in the manner and with the effect specified in Section 6.08 hereof. The Indenture Trustee shall
comply with Trust Indenture Act Section 310(b); provided, however, that there shall
be excluded from the operation of Trust Indenture Act 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 Trust Indenture Act Sections 310(b)(1) are met.

     SECTION 6.12 Collateral Agent to Follow Indenture Trustee’s Instructions. The
Indenture Trustee hereby authorizes the Collateral Agent to take such action on its behalf, and to
exercise such rights, remedies, powers and privileges hereunder, as the Indenture Trustee may
direct and as are specifically authorized to be exercised by the Collateral Agent by the terms
hereof, together with such actions, rights, remedies, powers and privileges as are reasonably
incidental thereto.

     SECTION 6.13 Preferential Collection of Claims Against Issuer. The Indenture Trustee
shall comply with Trust Indenture Act Section 311(a), excluding any creditor

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relationship listed in
Trust Indenture Act Section 311(b). An Indenture Trustee who has resigned or been removed shall be
subject to Trust Indenture Act Section 311(a) to the extent indicated.

     SECTION 6.14 Representations and Warranties of Indenture Trustee. The Indenture
Trustee hereby makes the following representations and warranties on which the Issuer and
Noteholders shall rely:

          (a) the Indenture Trustee is a corporation duly organized, validly existing and in good
standing under the laws of its place of incorporation;

          (b) the Indenture Trustee has full power, authority and legal right to execute, deliver, and
perform this Indenture and has taken all necessary action to authorize the execution, delivery and
performance by it of this Indenture;

          (c) this Indenture shall have been duly executed and delivered by the Indenture Trustee; and

          (d) this Indenture is a legal, valid and binding obligation of the Indenture Trustee
enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency,
reorganization, or other similar laws affecting the enforcement of creditors’ rights generally and
to general principles of equity; and

          (e) the Indenture Trustee or its appointed agents are licensed and qualified in any state or
jurisdiction in which a Receivable is located or is otherwise not required under applicable law to
effect such qualification to the extent necessary to ensure its ability to enforce each Receivable.

     SECTION 6.15 Disqualification of the Indenture Trustee. If the Indenture Trustee has
or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, as amended,
the Indenture Trustee shall either eliminate such interest or resign, to the extent and in the
manner provided by and subject to, the provisions of this Indenture.

     SECTION 6.16 Waiver of Setoffs. The Indenture Trustee hereby expressly waives any and
all rights of setoff that the Indenture Trustee may otherwise at any time have under applicable law
with respect to any of the Collection Account, Payahead Account, Spread Account or Lock-Box Account
and agrees that amounts in the Collection Account, Payahead Account and Lock-Box Account shall at
all times be held and applied solely in accordance with the provisions hereof and the Trust
Agreement.

     SECTION 6.17 Control by the Controlling Party. The Indenture Trustee shall comply with notices and instructions given by the Issuer only
if accompanied by the written consent of the Controlling Party, except that if any Event of Default
shall have occurred and be continuing, the Indenture Trustee shall act upon and comply with notices
and instructions given by the Controlling Party alone in the place and stead of the Issuer.

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ARTICLE VII

NOTEHOLDERS’ LISTS AND REPORTS

     SECTION 7.01 Issuer to Furnish Indenture Trustee Names and Addresses of Noteholders.
The Issuer will furnish or cause to be furnished to the Indenture Trustee (i) not more than five
days after the earlier of (a) each Record Date and (b) three months after the last Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of
the Noteholders as of such Record Date (the “Noteholder List”) and (ii) at such other times as the
Indenture Trustee may request in writing, within 15 days after receipt by the Issuer of any such
request, a list of similar form and content as of a date not more than ten days prior to the time
such Noteholder List is furnished; provided, however, that so long as the Indenture
Trustee is the Note Registrar, no such Noteholder List shall be required to be furnished. The
Indenture Trustee or, if the Indenture Trustee is not the Note Registrar, the Issuer shall furnish
to the Insurer the Noteholder List in writing at such times as the Insurer may reasonably request a
copy thereof.

     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 Noteholders contained in the most recent list furnished to the
Indenture Trustee as provided in Section 7.01 hereof and the names and addresses of Noteholders
received by the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.01 hereof upon receipt of a new list
so furnished.

          (b) Noteholders may communicate pursuant to Trust Indenture Act 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
Trust Indenture Act Section 312(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)
which the Issuer may be required to file with the Commission pursuant to Sections 13 or
15(d) of the Exchange Act;

          (ii) file with the Indenture Trustee and the Commission in accordance with rules and
regulations prescribed from time to time by the Commission such additional information,
documents and reports with respect to compliance by the Issuer

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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 Trust Indenture Act 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) as may be required by rules and regulations prescribed
from time to time by the Commission.

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

     SECTION 7.04 Reports by Indenture Trustee. To the extent that any of the events
described in Trust Indenture Act Section 313(a) shall have occurred, the Indenture Trustee shall,
within 60 days after each December 15 beginning with December 15, 2006, mail to the Issuer, the
Insurer and each Noteholder as required by Trust Indenture Act Section 313(c) a brief report dated
as of such date that complies with Trust Indenture Act Section 313(a). The Indenture Trustee also
shall comply with Trust Indenture Act Section 313(b).

ARTICLE VIII

DISTRIBUTIONS; STATEMENTS TO THE NOTEHOLDERS

     SECTION 8.01 Lock-Box Account. The Issuer shall cause BVAC, as initial Servicer, to
establish the Lock-Box Account as an Eligible Account with the Lock-Box Bank, in accordance with
Section 9.01 of the Trust Agreement.

     SECTION 8.02 Collection Account. The Issuer shall cause BVAC, as initial Servicer to
establish the Collection Account with the Indenture Trustee or another Eligible Bank as a
segregated non-interest bearing trust account in the name of the Indenture Trustee for the benefit
of the Secured Parties. The amounts in the Collection Account shall be invested upon receipt of
written direction from the Servicer (provided that, if the Back-up Servicer is then acting as
Servicer, such direction shall be made by the Transferor) in Eligible Investments that mature not
later than the Business Day prior to the next succeeding Payment Date and such Eligible Investments
shall be held to maturity. The Indenture Trustee (or its custodian) shall (i) maintain possession
of any negotiable instruments or securities evidencing Eligible Investments until the time of sale or maturity and each
certificated security or negotiable instrument evidencing an Eligible Investment shall be endorsed
in blank or to the Indenture Trustee or registered in the name of the Indenture Trustee and (ii)
cause any Eligible Investment represented by an uncertificated security to be registered in the
name of the Indenture Trustee.

     SECTION 8.03 Collections.

          (a) The Indenture Trustee shall review the Servicer’s Certificate prepared by the Servicer
immediately upon receipt thereof pursuant to Section 8.12 of the Trust Agreement for purposes of
making the distributions under Section 8.05 hereof.

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          (b) For any Payment Date on which there will not be sufficient Available Funds to make the
distributions required pursuant to Sections 8.05(a) (i) through (vii) hereof, the Indenture Trustee
shall deliver to the Collateral Agent, the Insurer and the Servicer, by hand delivery or facsimile
transmission, a written notice (a “Deficiency Notice”) specifying the Deficiency Claim
Amount for such Distribution Date. Any Deficiency Notice shall be delivered on or as promptly as
reasonably possible after the Determination Date and in no event later than 11:00 am., Eastern
time, on the fourth Business Day preceding such Payment Date. Such Deficiency Notice shall direct
the Collateral Agent to remit such Deficiency Claim Amount (to the extent funds are available to be
distributed pursuant to the Spread Account Agreement) to the Indenture Trustee for deposit of such
amount in the Collection Account. If such deficiency exceeds the Available Spread Amount, the
Indenture Trustee shall submit, concurrently with the delivery of the Deficiency Notice or promptly
thereafter but in no event later than the Draw Date, a claim under the Policy to the Insurer and
the Fiscal Agent (as defined in the Insurance Agreement) pursuant to Section 9.03 hereof and shall
comply with the requirements under the Policy and the Insurance Agreement for the making of a claim
under the Policy.

          (c) The Indenture Trustee shall, immediately upon receipt, deposit in the Collection Account
for application in accordance with the Policy any funds received by the Indenture Trustee in
respect of funds drawn under the Policy from the Insurer.

     SECTION 8.04 Purchase Amounts. Pursuant to the Trust Agreement, the Servicer and the
Transferor have agreed to remit to the Collection Account not later than the Determination Date,
the aggregate Purchase Amount for such Collection Period pursuant to Sections 7.02 and 8.10 of the
Trust Agreement.

     SECTION 8.05 Distributions to Parties.

          (a) On each Payment Date (unless the Notes shall have been declared to be due and payable
under Section 5.02 hereof following an Event of Default), the Indenture Trustee, solely in reliance
on the Servicer’s Certificate, shall apply or cause to be applied the Available Funds in the
Collection Account for the prior Collection Period, (plus any amounts withdrawn from the Spread
Account or drawn on the Policy pursuant to Sections 8.03 and 9.03 hereof for application in
accordance with the terms hereof and the Policy), to make the following payments in the listed
order of priority:

          (i) the monthly Indenture Trustee Fee (which Indenture Trustee Fee shall not exceed
$50,000 in the aggregate) including any overdue monthly Indenture Trustee Fee, to the
Indenture Trustee, as well as reasonable expense reimbursements and indemnities owed to the
Indenture Trustee and the Collateral Agent (subject to the foregoing limitation);

          (ii) without duplication, an amount equal to the sum of (y) Outstanding Advances on all
Receivables that became Charged-off Receivables during the prior Collection Period, plus (z)
Outstanding Advances which the Servicer determines to be unrecoverable pursuant to Section
9.07(b) of the Trust Agreement, to the Servicer;

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          (iii) the monthly Servicing Fee, including any overdue monthly Servicing Fee, to the
Servicer, to the extent not previously distributed to the Servicer, the monthly Back-up
Servicing Fee, (which Back-up Servicing Fee shall not exceed $10,000 on any one Payment
Date) including any overdue monthly Back-up Servicing Fee to the Back-up Servicer to the
extent not previously distributed to the Back-up Servicer, the monthly Owner Trustee Fee
(which Owner Trustee Fee shall not exceed $10,000 in the aggregate), including any overdue
monthly Owner Trustee Fee, to the Owner Trustee, as well as expense reimbursements and
indemnities owed to the Servicer, Back-up Servicer and Owner Trustee (subject to the
foregoing limitations), and, to any successor Servicer, Transition Costs (which Transition
Costs shall not exceed $150,000 in the aggregate without the prior written consent of the
Insurer and prior written notice to the Rating Agencies), and, to the extent Available Funds
are insufficient on any Payment Date to make all such payments, such Available Funds shall
be distributed pro rata with respect to the foregoing payments;

          (iv) Class A Monthly Interest (including any overdue amounts) to the Class A
Noteholders and Class I Monthly Interest (including any overdue amounts) to the Class I
Noteholders;

          (v) the Insurance Premium, including any overdue Insurance Premium;

          (vi) Monthly Principal (including any overdue amounts) to the Class A Noteholders, in
accordance with the Principal Payment Sequence;

          (vii) the aggregate amount of all unreimbursed draws made on the Policy, and any other
amounts payable to the Insurer under the Insurance Agreement, plus accrued interest thereon
at the rate provided in the Insurance Agreement, to the Insurer;

          (viii) the Spread Account, up to the Requisite Amount;

          (ix) the Servicing Fee, Back-up Servicer Fee, Indenture Trustee Fee, and Owner Trustee
Fee, as well as expense reimbursements and indemnities owed to the Servicer, Back-up
Servicer, Indenture Trustee and Owner Trustee and Transition Costs incurred by any successor
Servicer (to the extent not paid pursuant to (i) or (iii) above), to the Servicer, Back-up Servicer, Indenture Trustee, Owner Trustee and any successor
Servicer, respectively;

          (x) the amount of Recoveries of Advances, to the Servicer (to the extent not applied
pursuant to (ii) above on or prior to such Payment Date); and

          (xi) as the Owner Trustee or as the Owner Trustee shall otherwise direct in accordance
with the Trust Agreement, for payments to the Certificateholder.

provided, however, that in no event shall any amounts received pursuant to the Policy be paid to
any party other than pursuant to clauses (iv) and (vi) above.

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          (b) (i) If on any Payment Date there are not sufficient Available Funds (together with amounts
withdrawn from the applicable Spread Account and/or the Policy) to pay the distributions required
by Sections 8.05(a)(iv) and (vi) hereof, the Available Funds payable under Sections 8.05(a)(iv) and
(vi) hereof shall be allocated first to Class A and Class I Noteholders pari passu for the payment
of Class A and Class I Monthly Interest, and second for Class A Monthly Principal in accordance
with the proviso to the definition of Principal Payment Sequence. The amount of Monthly Interest
allocated to Class A and Class I Noteholders shall be based upon the amount of interest due each
class of Class A Noteholders and the Class I Noteholders and the amount of Monthly Principal
allocated to Class A Noteholders shall be based upon the relative outstanding Note Balance of each
class of Class A Notes then Outstanding.

          (ii) Notwithstanding the foregoing, if on any Payment Date, the Servicer exercises its
option to cause a disposition of the remaining corpus of the Trust pursuant to Section 16.02
of the Trust Agreement: (A) the Available Funds and amounts withdrawn from the Spread
Account or drawn on the Policy in respect only of Monthly Interest and principal payable on
any class of Class A Notes equal to the Outstanding Note Balance on the Final Maturity Date
of such class of Class A Notes with respect to the immediately preceding Payment Date as
determined in accordance with Sections 8.03 and 8.05 hereof shall be distributed to the
Noteholders on such Payment Date; (B) the Policy will not be available to pay any shortfall
of Monthly Interest or Monthly Principal after a prepayment of the Note Balances pursuant to
this Section 8.05(b)(ii); and (C) any remaining Pledged Assets (including all remaining
Available Spread Amounts) shall be paid first to the Noteholders and then the Insurer on
such Payment Date until the Note Balances shall have been reduced to zero and all amounts
due and owing to the Insurer under the Insurance Agreement have been paid in full. Any
amounts in excess thereof shall be remitted to the Spread Account for application in
accordance with the terms thereof.

          (c) On each Payment Date, if the Servicer has reported to the Indenture Trustee in the
Servicer’s Certificate for any Collection Period that an Obligor or an Obligor’s representative or
successor successfully shall have asserted a claim or defense under bankruptcy law or similar laws
for the protection of creditors generally (including the avoidance of a preferential transfer under
bankruptcy law) that results in a liability to such Obligor for monies previously collected and
remitted to the Indenture Trustee and not otherwise netted against collections pursuant to this Section 8.05, the Indenture Trustee shall make all payments in
respect of such claims or defenses out of the amounts on deposit in the Collection Account with
respect to such Collection Period before making the distributions required by paragraph (a) of this
Section 8.05.

          (d) If the Servicer has failed to provide the Indenture Trustee with Servicer’s Certificate
required pursuant to Section 8.03 hereof, the Indenture Trustee may calculate Monthly Interest and
Monthly Principal and apply funds, if any, in the Collection Account as of the last day of the
Collection Period, to make a distribution of Monthly Interest and Monthly Principal to the
Noteholders.

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          (e) In making such payments under this Section 8.05, the Indenture Trustee shall be entitled
to solely rely (without investigation, confirmation or recalculation) upon all information and
calculations contained in the Servicer’s Certificate delivered to the Indenture Trustee pursuant to
Section 8.12 of the Trust Agreement.

          (f) All monthly payments shall be made by wire transfer of immediately available funds to the
Noteholder of record on the preceding Record Date. Notwithstanding the foregoing, the final
payment on the Notes shall be made only against presentation and surrender of the Notes at the
office or agency then maintained by the Indenture Trustee in accordance with Section 3.02 hereof.

          (g) If an Event of Default occurs and the Notes have been accelerated, the Indenture Trustee
may exercise any of the remedies specified in Section 5.04(a) hereof. Payments following
acceleration of any Notes, including any amounts withdrawn from the Spread Account by the Indenture
Trustee pursuant to the Spread Account Agreement, shall be applied by the Indenture Trustee:

          (i) first, to pay any unpaid monthly Indenture Trustee Fee and expense reimbursements
and indemnities owed to the Indenture Trustee, Collateral Agent and Backup Servicer;

          (ii) second, pro rata, to pay any unpaid monthly Servicing Fee, Back-up Servicing Fee
and Owner Trustee Fee, as well as reasonable expense reimbursements and indemnities owed to
the Servicer, Back-up Servicer and Owner Trustee;

          (iii) third, to pay accrued interest on each class of Class A and Class I Notes on a
pro rata basis based on the interest accrued (including interest accrued on past due
interest) on each class of Class A Notes and on Class I Notes based on the interest accrued
on the Class I Notes;

          (iv) fourth, to pay principal on each class of Class A Notes, on a pro rata basis based
on the Class A Note Balance, until the Note Balance of each Class of Class A Notes is
reduced to zero;

          (v) fifth, to pay the Insurance Premium and all other amounts owing the Insurer under
the Insurance Agreement; and

          (vi) sixth, to the Spread Account to be applied in accordance with the Spread Account
Agreement;

provided, however, that in no event shall any amounts received pursuant to
the Policy be paid to any party other than pursuant to clauses (iii) and (iv) above.

     SECTION 8.06 Servicer Advances. The Servicer is required to make certain Advances
pursuant to Section 9.07 of the Trust Agreement. If the Servicer shall determine that an
Outstanding Advance with respect to any Receivable shall not be recoverable, the Servicer shall be
entitled to reimbursement from any collections made on other Receivables pursuant to

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Section 8.05(a)(ii) hereof and Outstanding Advances with respect to such Receivable shall be reduced
accordingly.

     SECTION 8.07 Payahead Account. The Servicer shall establish the Payahead Account with
the Indenture Trustee or another Eligible Bank in the name of the Indenture Trustee on behalf of
the Obligors and the Noteholders as their interests may appear pursuant to Section 9.10 of the
Trust Agreement. Investment income or interest earned on the Payahead Account during each
Collection Period shall be included as Available Funds. On or prior to each Payment Date, the
Indenture Trustee (as instructed in the Servicer’s Certificate) shall transfer (a) from the
Collection Account to the Payahead Account, in immediately available funds, all Payaheads received
by the Servicer and previously deposited to the Collection Account during the Collection Period as
described in Section 8.05 of the Trust Agreement; and (b) from the Payahead Account to the
Collection Account, in immediately available funds, the aggregate amount of previously deposited
Payaheads to be applied to the related Scheduled Receivable Payments on Precomputed Receivables for
the related Collection Period or prepayments for the related Collection Period, pursuant to Section
8.05(b) of the Trust Agreement, each in the amounts set forth in the Servicer’s Certificate
delivered on the related Determination Date. A single, net transfer between the Payahead Account
and the Collection Account may be made. Any amount deposited in any Payahead Account other than
interest income shall not constitute Available Funds under Section 8.03 hereof. Any amount
deposited to the Collection Account from a Payahead Account pursuant to this Section 8.07 shall be
included in Available Funds under Section 8.03 hereof. On the last scheduled payment date, for any
non-delinquent Precomputed Receivable, any remaining balance on the loan based on the actuarial
method shall be transferred (as instructed by the Servicer) from the Payahead Account to Available
Funds to be distributed as principal. On the Final Distribution Date, any remaining money in the
Payahead Account shall be released from the Lien of this Indenture and transferred to the Servicer.

     SECTION 8.08 Reserved.

     SECTION 8.09 Release of Pledged Assets.

          (a) Subject to the payment of its reasonable fees and expenses pursuant to Section 6.07
hereof, 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 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 monies.

     (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums
due the Indenture Trustee pursuant to Section 6.07 hereof and to the Insurer pursuant to the
Insurance Agreement have been paid, release any remaining portion of the Pledged Assets that
secured the Notes from the lien of this Indenture and release to the Issuer or any other Person
entitled thereto any funds then on deposit in the Trust Accounts. The Indenture Trustee shall
release property from the lien of this Indenture pursuant to this

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Section 8.09(b) only upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel and (if
required by the Trust Indenture Act) Independent Certificates in accordance with Trust Indenture
Act Sections 314(c) and 314(d)(1) meeting the applicable requirements of Section 12.01 hereof.

     SECTION 8.10 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 8.09(a) hereof,
accompanied by copies of any instruments involved, and the Indenture Trustee shall also require, as
a condition to such action, an Opinion of Counsel, in form and substance satisfactory to the
Indenture Trustee (and not at the expense of the Indenture Trustee), stating the legal effect of
any such action, outlining the steps required to complete the same, and concluding that all
conditions precedent to the taking of such action have been complied with and such action will not
materially and adversely impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair value of the Pledged
Assets. 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.

SECTION 8.11 Calculation of Notional Principal Amount.

          (a) Solely for the purpose of calculating the Class I Monthly Interest, the aggregate Class A
Note Balance will be divided into, and equal the sum of, two principal components: (i) the “PAC
Component” and (ii) the “Companion Component.” The PAC Component shall initially equal the
Original Notional Principal Amount.

          (b) On each Payment Date, solely for the purposes of calculating the Notional Principal
Amount, the Monthly Principal will be allocated (i) first, to the PAC Component up to the amount
necessary to reduce the PAC Component to its Planned Notional Principal Amount for such Payment
Date, as specified on the Planned Notional Principal Amount Schedule attached as Schedule B, (ii)
second, to the Companion Component until the balance thereof is reduced to zero, and (iii) third,
to the PAC Component without regard to the Planned Notional Principal Amount for such Payment Date,
until reduced to zero. If the amount of Available Funds (together with amounts withdrawn from the Spread Account) are not sufficient on any
Payment Date to pay the required payment of Class A Monthly Principal to the Class A Noteholders in
full on any Payment Date at any time after the occurrence and during the continuance of an Insurer
Default, any shortfall in the principal payments on the Class A Notes will be allocated to reduce
the PAC Component and the Companion Component on a pro rata basis. To the extent there are any
recoveries on the Receivables creating such shortfall, such recoveries, to the extent of any
portion thereof allocable to Class I Monthly Interest, shall be allocated to pay Class I Monthly
Interest.

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ARTICLE IX

CREDIT ENHANCEMENT

     SECTION 9.01 Subordination. The rights of the Certificateholder shall be subordinated
to the rights of Class A Noteholders and the Class I Noteholders.

     SECTION 9.02 Spread Account.

          (a) On or prior to the Closing Date, the Indenture Trustee shall establish and maintain a
segregated trust account with the Indenture Trustee or in the corporate trust department of another
Eligible Bank referred to herein as the “Spread Account”, and the Transferor will deposit the
Spread Account Initial Deposit in the Spread Account pursuant to the terms of the Trust Agreement.
The Spread Account shall be maintained in the name of the Indenture Trustee.

          (b) If on any Payment Date, as set forth in the Servicer’s Certificate, the amount of
Available Funds is insufficient to make the distributions required by Sections 8.05(a)(i) through
(vii) hereof, the Indenture Trustee shall notify the Collateral Agent, in accordance with Section
9.05(b) of the Trust Agreement to withdraw from the Spread Account, for deposit in the Collection
Account the lesser of (i) the entire Available Spread Amount and (ii) the Deficiency Claim Amount.

          (c) On each Payment Date, all distributions made pursuant to Sections 8.05(a)(viii) and (xi)
hereof shall be deposited into the Spread Account.

          (d) Subject to the terms of the Spread Account Agreement, if the amount on deposit in the
Spread Account, after giving effect to the distributions set forth in Section 8.05 hereof
(including, without limitation, payment of amounts due and owing to the Insurer) is greater than
the Requisite Amount on such Payment Date, the amount of such excess shall be distributed by the
Indenture Trustee to the Owner Trustee, or as the Owner Trustee shall direct in writing in
accordance with the Trust Agreement to the Certificateholder. Amounts properly distributed to the
Owner Trustee or Certificateholder pursuant to this Section 9.02(e) either directly without deposit
in the Spread Account or from excess amounts in the Spread Account shall be deemed released from
the security interest of the Indenture Trustee on behalf of the Secured Parties.

          (e) Subject to the terms of the Spread Account Agreement, upon discharge and satisfaction of
this Indenture pursuant to Section 4.01 hereof, amounts remaining in the Spread Account, after
payment of any amounts due and owing to the Noteholders and to the Insurer, shall be distributed by
the Indenture Trustee to the Owner Trustee, or as the Owner Trustee shall direct in writing in
accordance with the Trust Agreement to the Certificateholder and such amounts shall not be subject
to any claims or rights of any Noteholder.

          (f) Provided that investments are made in compliance with the terms of this Indenture and the
other Basic Documents, the Indenture Trustee shall not be liable for investments losses, including
without limitation, losses incurred as a result of the liquidation at any investment prior to its
stated maturity.

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SECTION 9.03 Policy.

          (a) In the event that the Indenture Trustee has delivered a Deficiency Notice with respect to
any Determination Date, the Indenture Trustee shall determine on the Determination Date for the
related Draw Date whether the sum of (i) the Available Funds with respect to such Determination
Date (as stated in the Servicer’s Certificate with respect to such Determination Date) plus (ii)
the amount of the Deficiency Claim Amount, if any, available to be distributed pursuant to the
Spread Account Agreement by the Collateral Agent to the Indenture Trustee pursuant to such
Deficiency Notice plus (iii) the Insurer Optional Deposit, if any, with respect to such
Determination Date, would be insufficient, after giving effect to the payments required by Sections
8.05(a)(i), (ii) and (iii) hereof to pay the Deficiency Amount (as defined in the Policy), for the
related Payment Date, then in such event the Indenture Trustee shall furnish to the Insurer no
later than 12:00 noon New York City time on the Determination Date and in no event later than the
Draw Date a completed Notice of Claim in the amount of the shortfall in amounts so available to pay
the Insured Payments with respect to such Payment Date (the amount of such shortfall being
hereinafter referred to as the “Policy Claim Amount”). Amounts paid by the Insurer under the
Policy shall be deposited by the Indenture Trustee into the Collection Account for payment to
Noteholders on the related Payment Date (or promptly following payment by the Insurer on a later
date as set forth in the Policy) solely in accordance with the terms of the Policy.

          (b) Any notice delivered by the Indenture Trustee to the Insurer pursuant to Section 9.03(b)
hereof shall specify the Policy Claim Amount claimed under the Policy and shall constitute a
“Notice” under the Policy (a “Notice of Claim”). In accordance with the provisions of the Policy,
the Insurer is required to pay to the Indenture Trustee the Policy Claim Amount properly claimed
thereunder by 12:00 noon, New York City time, on the later of (i) the third Business Day (as
defined in the Policy) following receipt on a Business Day (as defined in the Policy) of such
Notice of Claim, and (ii) the applicable Payment Date. Any payment made by the Insurer under the
Policy shall be applied solely to the payment of Insured Payments on the Notes, and for no other
purpose.

          (c) The Indenture Trustee shall (i) receive as attorney-in-fact of each Noteholder any Policy
Claim Amount from the Insurer and (ii) deposit the same in the Collection Account for distribution to the Noteholders solely in accordance with the terms of the Policy.
Any and all Policy Claim Amounts disbursed by the Indenture Trustee from claims made under the
Policy shall not be considered payment by the Trust or from the Spread Account with respect to such
Notes, and shall not discharge the obligations of the Trust with respect thereto. The Insurer
shall, to the extent it makes any payment with respect to the Notes, become subrogated to the
rights of the recipients of such payments to the extent of such payments. Subject to and
conditioned upon any payment with respect to the Notes by or on behalf of the Insurer, each
Noteholder shall be deemed without further action, to have directed the Indenture Trustee to assign
to the Insurer all rights to the payment of interest or principal with respect to the Notes which
are then due for payment to the extent of all payments made by the Insurer, and the Insurer may
exercise any option, vote, right, power or the like with respect to the Notes to the extent that it
has made payment pursuant to the Policy. Notwithstanding the foregoing, the order of priority of
payments to be made pursuant to Section 8.05(a) hereof shall not be modified by this Section 9.03
hereof. To evidence such subrogation, the Note Registrar shall note the

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Insurer’s rights as
subrogee upon the register of Noteholders upon receipt from the Insurer of proof of payment by the
Insurer of any Insured Payments. The foregoing subrogation shall in all cases be subject to the
rights of the Noteholders to receive all Insured Payments in respect of the Notes.

          (d) The Indenture Trustee shall keep a complete and accurate record of all funds received by
it from the Insurer, amounts deposited by the Indenture Trustee into the Collection Account and the
allocation of such funds to payment of interest on and principal paid in respect of any Note. The
Insurer shall have the right to inspect such records at reasonable times upon one Business Day’s
prior notice to the Indenture Trustee.

          (e) The Indenture Trustee shall be entitled, but not obligated, to enforce on behalf of the
Noteholders the obligations of the Insurer under the Policy. Notwithstanding any other provision
of this Agreement or any Basic Document, the Noteholders are not entitled to institute proceedings
directly against the Insurer.

          (f) In the event that the Indenture Trustee has received a certified copy of an order of the
appropriate court that any principal or interest paid on a Note has been avoided in whole or in
part as a preference payment under applicable bankruptcy law, the Indenture Trustee shall so notify
the Insurer, shall comply with the provisions of the Policy to obtain payment by the Insurer of
such avoided payment, and shall, at the time it provides notice to the Insurer, notify Holders of
the Notes by mail that, in the event that any Noteholder’s payment is so recoverable, such
Noteholder will be entitled to payment pursuant to the terms of the Policy. The Indenture Trustee
shall furnish to the Insurer its records evidencing the payments of principal and interest on
Notes, if any, which have been made by the Indenture Trustee and subsequently recovered from
Noteholders, and the dates on which such payments were made. Pursuant to the terms of the Policy,
the Insurer will make such payment on behalf of the Noteholder to the receiver, conservator,
debtor-in-possession or trustee in bankruptcy named in the Order (as defined in the Policy) and not
to the Indenture Trustee or any Noteholder directly (unless a Noteholder has previously paid such
payment to the receiver, conservator, debtor-in-possession or trustee in bankruptcy, in which case
the Insurer will make such payment to the Indenture Trustee for distribution in accordance with the
instructions to be provided by the Insurer, to such Noteholder upon proof of such payment
reasonably satisfactory to the Insurer).

          (g) Each Notice of Claim shall provide that the Indenture Trustee, on its behalf and on behalf
of the Noteholders, thereby appoints the Insurer as agent and attorney-in-fact for the Indenture

Trustee and each Noteholder in any legal proceeding with respect to the Notes. The Indenture
Trustee shall promptly notify the Insurer of any proceeding or the institution of any action (of
which a Responsible Officer of the Indenture Trustee has actual knowledge) seeking the avoidance as
a preferential transfer under applicable bankruptcy, insolvency, receivership, rehabilitation or
similar law (a “Preference Claim”) of any distribution made with respect to the Notes. Each
Holder, by its purchase of Notes, and the Indenture Trustee hereby agree, that so long as the
Insurer is the Controlling Party, the Insurer may at any time during the continuation of any
proceeding relating to a Preference Claim direct all matters relating to such Preference Claim,
including, without limitation, (i) the direction of any appeal of any order relating to any
Preference Claim and (ii) the posting of any surety, supersedeas or performance bond pending any
such appeal at the expense of the Insurer, but subject to

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reimbursement as provided in the
Insurance Agreement. In addition, and without limitation of the foregoing, as set forth in Section
9.03(c) hereof, the Insurer shall be subrogated to, and each Noteholder and the Indenture Trustee
hereby delegate and assign, to the fullest extent permitted by law, the rights of the Indenture
Trustee and each Noteholder in the conduct of any proceeding with respect to a Preference Claim,
including, without limitation, all rights of any party to an adversary proceeding action with
respect to any court order issued in connection with any such Preference Claim. Any right of the
Insurer to receive payments in respect of the subrogation resulting from payments made pursuant to
the Policy shall be subject in every case to (i) the priority of payment set forth in the Indenture
and (ii) the prior payment in full to Noteholders of all payments by the Policy that are then due.

     SECTION 9.04 Surrender of the Policy. The Indenture Trustee shall surrender the
Policy to the Insurer for cancellation upon its expiration in accordance with the terms thereof and
payment of all amounts due thereunder.

ARTICLE X

SUPPLEMENTAL INDENTURES

     SECTION 10.01 Supplemental Indentures Without Consent of Noteholders.

          (a) Without the consent of the Holders of any Notes but with the consent of the Insurer (so
long as it is the Controlling Party) and with prior notice to each Rating Agency, the Issuer and
the Indenture Trustee, when authorized by an Issuer Order, and the other parties hereto at any time
and from time to time, may enter into one or more indentures supplemental hereto (which shall
conform to the provisions of the Trust Indenture Act as in force at the date of the execution
thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes:

          (i) to correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the Indenture Trustee
any property subject or required to be subjected to the lien created by this Indenture, or
to subject to the lien created by this Indenture additional property;

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

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

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

          (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision herein or in any
supplemental indenture or the Basic Documents or to make any other provisions with respect
to matters or questions arising under this Indenture or in any

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supplemental indenture; provided that such action shall not adversely
affect the interests of the Noteholders;

          (vi) to evidence and provide for the acceptance of the appointment hereunder by
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 Trust Indenture
Act or under any similar federal statute hereafter enacted and to add to this Indenture such
other provisions as may be expressly required by the Trust Indenture Act.

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

          (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Noteholders but with the consent of the Insurer (so long as the
Insurer is the Controlling Party) and with prior notice to each Rating Agency, 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 Noteholders under this Indenture; provided, however,
that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect the interests of any Noteholder.

     SECTION 10.02 Supplemental Indentures With Consent of Noteholders.

          (a) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with
prior notice to each Rating Agency, with the consent of the Insurer (so long as the Insurer is the
Controlling Party) and with the consent of the Holders of not less than a majority of the Note
Balances, by Act 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 Noteholders under this Indenture;
provided, however, that, subject to the express rights of the Insurer under the
Basic Documents, no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

          (i) change the date of payment of any installment of principal of or interest on any
Note, or reduce the principal amount thereof, the interest rate thereon or the Redemption
Price with respect thereto, or change any place of payment where, or the coin or currency in
which, any Note or the interest thereon is payable;

          (ii) impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in Article V,
to the payment of any such amount due on the Notes on or after

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the respective due dates
thereof (or, in the case of redemption, on or after the Redemption Date);

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

          (iv) modify or alter the provisions of the second proviso to the definition of the term
“Outstanding”;

          (v) reduce the percentage of the Note Balances, the consent of the Holders of which is
required to direct the Indenture Trustee to sell or liquidate the Pledged Assets pursuant to
Section 5.04 hereof;

          (vi) decrease the percentage of the Note Balances required to amend this Indenture or
the other Basic Documents;

          (vii) permit the creation of any lien ranking prior to or on a parity with the lien
created by this Indenture with respect to any part of the Pledged Assets or, except as
otherwise permitted or contemplated herein, terminate the lien created by this Indenture on
any property at any time subject hereto or deprive the Holder of any Note of the security
provided by the lien created by this Indenture.

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

          (c) It shall not be necessary for any act of Noteholders under this Section 10.02 to approve
the particular form of any proposed supplemental indenture, but it shall be sufficient if such act
shall approve the substance thereof.

          (d) Promptly after the execution by the parties hereto of any supplemental indenture pursuant
to this Section 10.02, the Indenture Trustee shall mail to the Noteholders 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 10.03 Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Insurer and the Indenture
Trustee shall be entitled to receive, and subject to Sections 6.01 and 6.02 hereof shall be fully
protected in relying upon, an Opinion of Counsel and an Officers’ Certificate stating that the
execution of such supplemental indenture is authorized or permitted by this Indenture. The

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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. No supplemental indenture shall affect in any material respects, the
rights, duties, liabilities or immunities of the Back-up Servicer, including in its capacity as
successor Servicer, without its consent.

     SECTION 10.04 Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to
be modified and amended in accordance therewith with respect to the Notes affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the parties hereto and the Noteholders shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and amendments, and all the
terms and conditions of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

     SECTION 10.05 Conformity with Trust Indenture Act. Every amendment of this Indenture
and every supplemental indenture executed pursuant to this Article 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 10.06 Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article 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 XI

REDEMPTION OF NOTES

     SECTION 11.01 Redemption. In the event that the Servicer exercises its right to
require disposition of the corpus of the Trust pursuant to Section 16.02 of the Trust Agreement,
the Notes are subject to redemption in whole, but not in part, on the Payment Date on which such
repurchase occurs, for a purchase price equal to the Redemption Price; provided,
however, that the Issuer has available funds sufficient to pay the Redemption Price. The
Servicer or the Issuer shall furnish the Insurer and each Rating Agency notice of such redemption.
If the Notes are to be redeemed pursuant to this Section 11.01, the Servicer or the Issuer shall
furnish notice of such election to the Insurer and Indenture Trustee not later than ten (10) days
prior to the Redemption Date and the Issuer shall deposit with the Indenture Trustee in the
Collection Account the Redemption Price of the Notes to be redeemed whereupon all such Notes shall
be due and payable on the Redemption Date upon the furnishing of a notice complying with Section
11.02 hereof to each Holder of the Notes.

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     SECTION 11.02 Form of Redemption Notice. Notice of redemption under Section 11.01
hereof shall be given by the Indenture Trustee by first-class mail, postage prepaid, mailed not
less than five days prior to the applicable Redemption Date to each Holder of Notes, as of the
close of business on the Record Date preceding the applicable Redemption Date, at such Holder’s
address appearing in the Note Register. In addition, the Administrator shall notify the Insurer
and Rating Agencies upon the redemption of any Class of Notes, pursuant to Section 2.06(b) hereof.

     All notices of redemption shall state:

          (i) the Redemption Date;

          (ii) the Redemption Price;

          (iii) CUSIP numbers; and

          (iv) the place where such Notes are to be surrendered for payment of the Redemption
Price (which shall be the office or agency of the Issuer to be maintained as provided in
Section 3.02 hereof).

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

     SECTION 11.03 Notes Payable on Redemption Date. The Notes or portions thereof to be
redeemed shall, following notice of redemption (if any) as required by Section 11.02 hereof, on the
Redemption Date become due and payable at the Redemption Price and (unless the Issuer shall default in the payment of the Redemption
Price) no interest shall accrue on the Redemption Price for any period after the date to which
accrued interest is calculated for purposes of calculating the Redemption Price.

ARTICLE XII

MISCELLANEOUS

     SECTION 12.01 Compliance Certificates and Opinions, etc.

          (a) Upon any application or request by the Issuer or the Insurer (so long as the Insurer is
the Controlling Party) to the Indenture Trustee to take any action under any provision of this
Indenture, the Issuer or the Insurer, as applicable, shall furnish to the Indenture Trustee (i) an
Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture
relating to the proposed action have been complied with, (ii) an Opinion of Counsel stating that in
the opinion of such counsel all such conditions precedent, if any, have been complied with and
(iii) (if required by the Trust Indenture Act) an Independent Certificate from a firm of certified
public accountants meeting the applicable requirements of this Section and Trust Indenture Act
Sections 314(c) and 314(d) (1). Notwithstanding the foregoing, in the case of any such

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application
or request as to which the furnishing of such documents is specifically required by any provision
of this Indenture, no additional certificate or opinion need be furnished.

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

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

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

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

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

          (b) (i) Prior to the deposit of any Pledged Assets or other property or securities with the
Indenture Trustee that is to be made the basis for the release of any property subject to the lien
created by this Indenture, the Issuer shall, in addition to any obligation imposed in Section
12.01(a) hereof or elsewhere in this Indenture, furnish to the Indenture Trustee and the Insurer an
Officer’s Certificate certifying or stating the opinion of the signer thereof as to the fair value
(within 90 days of such deposit) to the Issuer of the Pledged Assets or other property or
securities to be so deposited.

          (ii) Whenever the Issuer is required to furnish to the Indenture Trustee and the Insurer
an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the
matters described in clause (i) above, the Issuer shall also deliver to the Indenture
Trustee and the Insurer an Independent Certificate as to the named matters, if the fair
value to the Issuer of the property to be so deposited and of all other such property made
the basis of any such withdrawal or release since the commencement of the then-current
fiscal year of the Issuer, as set forth in the Officer’s Certificates delivered pursuant to
clause (i) above and this clause (ii), is 10% or more of the Note Balances, but such
Officer’s Certificate need not be furnished with respect to any property 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 Note Balances.

          (iii) Whenever any property or securities are to be released from the lien created by
this Indenture, the Issuer shall also furnish to the Indenture Trustee and the Insurer an
Officer’s Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days of such release) of the property or
securities proposed to be released and stating that in the opinion of such

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person the
proposed release will not impair the security created by this Indenture in contravention of
the provisions hereof.

          (iv) Whenever the Issuer is required to furnish to the Indenture Trustee and the
Insurer an Officer’s Certificate certifying or stating the opinion of any signer thereof as
to the matters described in clause (iii) above, the Issuer shall also furnish to the
Indenture Trustee and the Insurer an Independent Certificate as to the same matters if the
fair value of the property or securities and of all other property or securities released
from the lien created by this Indenture since the commencement of the then current fiscal
year, as set forth in the Officer’s Certificate required by clause (iii) above and this
clause (iv), equals 10% or more of the Note Balances, but such Officer’s Certificate need
not be furnished in the case of any release of property or securities if the fair value
thereof as set forth in the related Officer’s Certificate is less than $25,000 or less than
one percent of the then Note Balances.

     SECTION 12.02 Form of Documents Delivered to Indenture Trustee.

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

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

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

          (d) Whenever in this Indenture, in connection with any application or certificate or report to
the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of
the granting of such application, or as evidence of the Issuer’s compliance with any term hereof,
it is intended that the truth and accuracy, at the time of the granting of such application or at
the effective date of such certificate or report (as the case may be), of the facts and opinions
stated in such document shall in such case be conditions precedent to the right of the Issuer to
have such application granted or to the sufficiency of such certificate

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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 Six.

     SECTION 12.03 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 “Act” of the
Noteholders signing such instrument or instruments. Proof of execution of any such instrument or
of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 6.01 hereof) conclusive in favor of the Indenture Trustee and the Issuer, if
made in the manner provided in this Section 12.03 hereof.

          (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 and the record date applicable
to any solicitation for an Act of the Noteholders shall comply with Trust Indenture Act Section
316(c).

          (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 12.04 Notices, etc., to Indenture Trustee, Issuer, Insurer and Rating
Agencies.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or Act of
Noteholders or other documents provided or permitted by this Indenture shall be in writing and if
such request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders is to
be made upon, given or furnished to or filed with:

          (i) the Indenture Trustee by any Noteholder, the Insurer or by the Issuer shall be
sufficient for every purpose hereunder if in writing, personally delivered or sent by
facsimile or electronic transmission and confirmed or mailed by overnight service, to or
with the Indenture Trustee at its Corporate Trust Office;

          (ii) the Issuer by the Indenture Trustee, the Insurer or by any Noteholder shall be
sufficient for every purpose hereunder if in writing, personally delivered or sent by
facsimile or electronic transmission and confirmed or mailed by

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74

 

overnight service, to the
Issuer addressed to: Bay View 2005-LJ-1 Owner Trust in care of Wilmington Trust Company, as
Owner Trustee, Plaza Building, 1st Floor, 301 West 11th Street,
Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration or at any other
address furnished in writing to the Indenture Trustee by the Issuer; or

          (iii) the Insurer by the Issuer or the Indenture Trustee shall be sufficient for any
purpose hereunder if in writing, personally delivered or sent by facsimile or electronic
transmission and confirmed or mailed by overnight service, to the Insurer addressed to:

MBIA Insurance Corporation

113 King Street

Armonk, New York 10504

Attention: IPM-SF (Bay View 2005-LJ-1)

Re: Auto Receivables Trust 2005-LJ-1

Telex No:           (914) 765-3787

Telecopy Nos.:    (914) 765-3810

          (b) 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 sent by facsimile or electronic
transmission and confirmed or mailed by overnight service (except as otherwise indicated below), to
(i) in the case of Moody’s, all notices via electronic delivery to ServicerReports@moodys.com,
except for any information not available in electronic format then to the following address in
accordance with the instructions set forth above:

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 all notices via electronic delivery to
Servicer_reports@sandp.com, except for any information not available in electronic format then to
the following address in accordance with the instructions set forth above:

Standard & Poor’s Ratings Services

55 Water Street (41st Floor)

New York, New York 10041-0003

Attention:      ABS Surveillance Group

or as to each of the foregoing, at such other address as shall be designated by written notice to
the other parties.

     SECTION 12.05 Notices to Noteholders; Waiver.

          (a) Where this Indenture provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class, postage prepaid to each Noteholder affected by such event, at his address as it

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appears on the Note Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to Noteholders is given
by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any
particular Noteholder shall affect the sufficiency of such notice with respect to other
Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be
presumed to have been duly given.

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

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

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

     SECTION 12.06 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 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 12.07 Conflict With Trust Indenture Act.

          (a) 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.

          (b) The provisions of Trust Indenture Act 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 12.08 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 12.09 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

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or not. All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees
and agents.

     SECTION 12.10 Separability. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

     SECTION 12.11 Benefits of Indenture. The Insurer and its successors and assigns shall
be a third-party beneficiary to the provisions of this Indenture, and shall be entitled to rely
upon and directly to enforce such provisions of this Indenture so long as the Insurer is the
Controlling Party. 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 Pledged Assets, any benefit or any legal or equitable right, remedy or claim under this
Indenture. The Insurer may disclaim any of its rights and powers under this Indenture, but not its
duties and obligations under the Policy, upon delivery of a written notice to the Indenture
Trustee.

     SECTION 12.12 Legal Holidays. In any case where the date on which any payment is due shall not be a Business Day, then
(notwithstanding any other provision of the Notes or this Indenture) payment need not be made on
such date, but may be made on the next succeeding Business Day with the same force and effect as if
made on the date on which nominally due, and no interest shall accrue for the period from and after
any such nominal date.

     SECTION 12.13 Governing Law. This Indenture shall be construed in accordance with the
laws of the State of New York, without regard to the conflict of laws principles thereof, (except
with regard to the UCC) and the obligations, rights, and remedies of the parties under this
Indenture shall be determined in accordance with such laws.

     SECTION 12.14 Counterparts. This Indenture may be executed in several counterparts,
each of which shall be an original and all of which shall constitute but one and the same
instrument.

     SECTION 12.15 Recording of Indenture. If this Indenture is subject to recording in
any appropriate public recording offices, such recording is to be effected by the Issuer and at its
expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
other counsel reasonably acceptable to the Indenture Trustee and the Insurer) to the effect that
such recording is necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee
under this Indenture.

     SECTION 12.16 Trust Obligation. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under this Indenture or any certificate or other writing delivered in connection herewith
or therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual capacity,
(ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director, employee or agent of the Indenture Trustee or the Owner

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Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer 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 Articles Six, Seven and Eight of the Trust Agreement.

     SECTION 12.17 No Petition. The parties hereto, by entering into this Indenture, and each Noteholder, by accepting a
Note or a beneficial interest in a Note, hereby covenant and agree that they will not at any time
institute against the Transferor or the Issuer, or join in any institution against the Transferor
or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any United States Federal or State bankruptcy or similar
law in connection with any obligations relating to the Notes, this Indenture or any of the other
Basic Documents.

     SECTION 12.18 Inspection. The Issuer agrees that, on reasonable prior notice, it will
permit any representative of the Indenture Trustee or of the Insurer (so long as the Insurer is the
Controlling Party), during the Issuer’s normal business hours, to examine all the books of account,
records, reports and other papers of the Issuer, to make copies and extracts therefrom, to cause
such books to be audited by independent certified public accountants, and to discuss the Issuer’s
affairs, finances and accounts with the Issuer’s officers, employees and independent certified
public accountants, all at such reasonable times and as often as may be reasonably requested. The
Indenture Trustee and the Insurer shall and shall cause their respective 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 or the Insurer may reasonably determine that such disclosure is consistent
with its obligations hereunder.

     SECTION 12.19 Limitation of Liability of Owner Trustee. Notwithstanding anything
contained herein to the contrary, this instrument has been countersigned by the Owner Trustee not
in its individual capacity but solely in its capacity as Owner Trustee of the Issuer and in no
event shall the Owner Trustee in its individual capacity or any beneficial owner of the Issuer have
any liability for the representations, warranties, covenants, agreements or other obligations of
the Issuer hereunder, as to all of which recourse shall be had solely to the assets of the Issuer.
For all purposes of this 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 Articles VIII, XIII and XV of the Trust Agreement.

     SECTION 12.20 Certain Matters Regarding the Insurer. So long as the Insurer is the
Controlling Party, the Insurer shall have the right to exercise all rights (other than to receive
payments), including voting rights, which the Noteholders or each Certificateholder are entitled to
exercise pursuant to this Indenture, without any consent of such Noteholders or Certificateholder;
provided, however, that without the consent of each Noteholder and

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Certificateholder affected thereby, the Insurer shall not exercise such rights to amend this
Indenture in any manner that would (i) reduce the amount of, or delay the timing of, collections of
payments on the Receivables or distributions which are required to be made on any Note or
Certificate, (ii) adversely affect in any material respect the interests of the Holders of any
Notes or Certificates, or (iii) alter the rights of any such Holder to consent to such amendment.

     SECTION 12.21 No Legal Title in Holders. No Holder of a Note shall have legal title
to any part of the Trust Property. No transfer, by operation of law or otherwise, of any Note or
other right, title and interest of any Holder of a Note in and to the Trust Property or hereunder
shall operate to terminate this Indenture or the trusts hereunder or entitle any successor or
transferee of such Holder to an accounting or to the transfer to it of legal title to any part of
the Trust Property.

     SECTION 12.22 Effect of Termination Date. Notwithstanding anything to the contrary
set forth herein, all references to any right of the Insurer to direct, appoint, consent to,
accept, approve of, take or omit to take any action under this Indenture or any other Basic
Document shall be inapplicable at all times after the Termination Date or Insurer Default, and (i)
if such reference provides for another party or parties to take or omit to take such action
following an Insurer Default, such party or parties shall also be entitled to take or omit to take
such action following the Termination Date or Insurer Default and (ii) if such reference does not
provide for another party or parties to take or omit to take such action following an Insurer
Default, then the Indenture Trustee acting at the direction of the Majority Noteholders shall have
the right to take or omit to take any such action following the Termination Date or Insurer
Default. In addition, any other provision of this Indenture or any other Basic Document which is
operative based in whole or in part on whether an Insurer Default has or has not occurred shall, at
all times on or after the Termination Date or Insurer Default, be deemed to refer to whether or not
the Termination Date has occurred.

     SECTION 12.23 Sarbanes-Oxley Certifications. The certifications required by the
Sarbanes-Oxley Act of 2002 and the rules of the Securities and Exchange Commission promulgated
thereunder to be included in filings with respect to the Issuer pursuant to the Securities Exchange
Act of 1934, as amended, shall be made by BVAC, so long as BVAC is the Servicer; if BVAC is no
longer the Servicer, such certifications shall be made by the Transferor. If BVAC is no longer the
Servicer, the successor Servicer shall provide to the Transferor all information as the Transferor
may reasonably request in order to fulfill its obligations to make such certifications. In
addition, the Indenture Trustee shall provide to BVAC or the Transferor (whichever of the two is
then required to make such certifications) with a certification signed by a Responsible Officer
stating that such Responsible Officer is not actually aware (without any independent duty of
inquiry or investigation) of any matters which would cause the certification to be made by BVAC or
the Transferor, as the case may be, to be incorrect.

[remainder of page intentionally left blank; signature pages follow]

Indenture

79

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed and
delivered as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	BAY VIEW 2005-LJ-1 OWNER TRUST
	 
	 	 	 	 	 	 
	

	 	By:
	 	Wilmington Trust Company	 	 
	

	 	 	 	not in its individual capacity but solely on	 	 
	

	 	 	 	behalf of the Issuer as Owner Trustee under	 	 
	

	 	 	 	the Trust Agreement	 	 
	 
	 	 	 	 	 	 
	

	 	 	 	By:                                                                 	 	 
	

	 	 	 	Name:                                                             	 	 
	

	 	 	 	Title:                                                                	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS

not in its individual capacity but solely as Indenture Trustee
 	 

	 	 	 	 	 	 	 
	 	 	By:                                                                                     
	 	 	Name:                                                                                 
	 	 	Title:                                                                                    

Indenture

 

 

	 	 	 	 	 

SCHEDULE A

FORM OF DEPOSITORY AGREEMENT

Schedule A To Indenture

 

 

EXHIBIT A-1

[FORM OF CLASS A-l NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-l NOTE IS DISTRIBUTABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN
THE ORIGINAL PRINCIPAL AMOUNT SET FORTH HEREIN.

     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
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
thereof, Cede & Co., has an interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

BAY VIEW 2005-LJ-1 OWNER TRUST

% CLASS A-l AUTOMOBILE RECEIVABLE BACKED NOTE

Evidencing the indebtedness of the Bay View 2005-LJ-1 Owner Trust, a Delaware
statutory trust, secured by the Pledged Assets, as defined below, including a pool
of simple and precomputed interest installment loan and security agreements and
installment sales contracts secured by new and used automobiles, light-duty trucks,
sport utility vehicles and vans.

(This Note does not represent an interest in Bay View Deposit Corporation nor an
interest in or obligation of any of its affiliates. Neither this Note nor the
underlying Receivables, as defined below, are insured or guaranteed by any
government agency).

			
	
NUMBER
	 	$                    
CUSIP                     

     Bay View 2005-LJ-1 Owner Trust, a Delaware statutory trust, for value received, hereby
promises to pay to the order of [___] (“the Noteholder”) or its registered assigns, the
principal sum of [___dollars ($___)], which amount shall be payable in the amounts
and at the times set forth in the Indenture dated as of February 1, 2005 (the “Indenture”; such
term to include any amendment, restatement, supplement or other modification thereof or thereto);
provided, however, that the entire unpaid amount of this Note shall be due and
payable on or before [___]. However, principal with respect to the Notes may be paid
earlier or

Exhibit A-1 To Indenture

1

 

later under certain limited circumstances under the Indenture. The Issuer will pay interest
on this Note at the Class A-1 Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined herein, the capitalized
terms used herein have the meanings assigned to them in the Indenture. This Note is issued under
and is subject to the terms, provisions, and conditions of the Indenture, to which the holder of
this Note by virtue of the acceptance hereof assents and by which such holder is bound.

     This Note is secured by the Pledged Assets. The Pledged Assets consist of (i) the Receivables
listed on Schedule A to the Trust Agreement, (ii) the security interests in the Financed Vehicles
or in any other property granted by Obligors pursuant to the Receivables, (iii) any proceeds from
claims and other amounts relating to Insurance Policies and other items financed under the
Receivables or otherwise covering an Obligor or a Financed Vehicle, (iv) any Liquidation Proceeds,
(v) all property (including the right to receive future Liquidation Proceeds) that secures a
Receivable and that has been or may be acquired pursuant to the liquidation of the Receivable, (vi)
the interest of the Issuer in any proceeds from recourse to Dealers relating to the Receivables,
(vii) all documents contained in the Receivable Files relating to the Receivables, (viii) all
monies paid on the Receivables, and all monies due thereon after the Cut-off Date, (ix) the rights
of the Transferor pursuant to the Purchase Agreement and the Trust Agreement and the rights of the
Issuer pursuant to the Trust Agreement, including, without limitation, a direct right to cause BVAC
to purchase Receivables from the Transferor upon the occurrence of a breach of any of the
representations and warranties contained in Section 3.02 of the Purchase Agreement or the failure
of BVAC to timely comply with its obligations pursuant to Section 5.06 of the Purchase Agreement
and (x) all proceeds (including, without limitation, “proceeds” as defined in the UCC of the
jurisdiction the law of which governs the perfection of the interest in such Receivables and such
other property so transferred) of any of the foregoing. Pledged Assets shall also include (a) any
and all other right, title and interest, including any beneficial interest the Issuer may have in
the Collection Account, the Payahead Account and the Lock-Box Account (to the extent such amounts
and property in the Lock-Box Account relate to the Receivables), (b) the funds deposited in and
financial assets credited to and from time to time on deposit in such accounts (to the extent such
amounts and property in the Lock-Box account relate to the Receivables), and all Eligible
Investments and other securities, instruments and other investments purchased from such funds.

     Under the Indenture, the Issuer will pay, on the twenty-fifth calendar day of each month, or
if such day is not a Business Day, on the first Business Day thereafter (the “Payment Date”),
commencing March 25, 2005, to the person in whose name this Note is registered on the Record Date,
the portion of Monthly Interest and Monthly Principal to which the Noteholder is entitled pursuant
to the Indenture.

     Payments on this Note will be made by the Indenture Trustee by wire transfer through the
facilities of the Depository Trust Company if this note is held by Cede & Co. and otherwise by
check mailed to the Person entitled thereto without the presentation or surrender of this Note or
the making of any notation hereon. Except as otherwise provided in the Indenture and
notwithstanding the above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by the Indenture
Trustee.

Exhibit A-1 To Indenture

2

 

     Unless the certificate of authentication hereon shall have been executed by a Responsible
Officer of the Indenture Trustee, by manual or facsimile signature, this Note shall not entitle the
holder hereof to any benefit under the Indenture or be valid for any purpose.

     This Note constitutes an obligation of the Issuer. The Note does not represent an interest in
the Issuer nor an interest in or obligation of any affiliate of the Issuer, including Bay View
Deposit Corporation or Bay View Acceptance Corporation. The Note is limited in right of payment to
certain collections and recoveries respecting the Receivables, all as more specifically set forth
in the Indenture. In addition to the Class A-1 Notes, the Issuer has also issued Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes and Class I Notes. The Indenture provides for certain amounts to
be deposited into the Spread Account. In the event amounts available for withdrawal from the
Spread Account are insufficient to make payments relating to this Note and the other notes issued
by the Issuer, the Indenture Trustee will draw on the Policy to pay such deficiency to the extent
provided therein.

     The Indenture permits, with certain exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the Noteholder under the
Indenture at any time by the Issuer and the Indenture Trustee with the consent of the Insurer and
the Noteholder. Any such consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

     This Note is transferable solely in accordance with Section 2.04 of the Indenture.

     The obligations and responsibilities to the Noteholder created by the Indenture shall
terminate upon the payment to Noteholder of all amounts required to be paid to it pursuant to the
Indenture. The Servicer may at its option cause the Indenture Trustee to sell the Pledged Assets
at a price not to be less than the price specified in the Indenture, and such sale of the
Receivables and other property may effect early retirement of the Note.

     Although this Note summarizes certain provisions of the Indenture, this Note does not purport
to summarize the Indenture and reference is made to the Indenture for information with respect to
the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Indenture Trustee. In the event of any inconsistency or conflict
between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall
control.

     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.

Exhibit A-1 To Indenture

3

 

     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

Dated:                     

	 	 	 	 	 	 	 
	 	 	BAY VIEW 2005-LJ-1 OWNER TRUST
	 
	 	 	 	 	 	 
	

	 	By:
	 	Wilmington Trust Company,	 	 
	

	 	 	 	not in its individual capacity but
solely as Owner Trustee	 	 
	 
	 	 	 	 	 	 
	 	 	By:                                                                                     
	 	 	Name:                                                                                 
	 	 	Title:                                                                                    

Exhibit A-1 To Indenture

4

 

CERTIFICATE OF AUTHENTICATION

     This is the Note referred to in the within-mentioned Indenture.

Deutsche Bank Trust Company Americas, solely in its capacity as Indenture Trustee,

	 	 	 	 	 	 	 
	 	 	By:                                                                                     
	 	 	Name:                                                                                 
	 	 	Title:                                                                                    

Dated:                     , 2005

Exhibit A-1 To Indenture

5

 

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.

Exhibit A-1 To Indenture

6

 

EXHIBIT A-2

[FORM OF CLASS A-2 NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-2 NOTE IS DISTRIBUTABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN
THE ORIGINAL PRINCIPAL AMOUNT SET FORTH HEREIN.

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
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
thereof, Cede & Co., has an interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

BAY VIEW 2005-LJ-1 OWNER TRUST

% CLASS A-2 AUTOMOBILE RECEIVABLE BACKED NOTE

Evidencing the indebtedness of the Bay View 2005-LJ-1 Owner Trust, a Delaware
statutory trust, secured by the Pledged Assets, as defined below, including a pool
of simple and precomputed interest installment loan and security agreements and
installment sales contracts secured by new and used automobiles, light-duty trucks,
sport utility vehicles and vans.

(This Note does not represent an interest in Bay View Deposit Corporation nor an
interest in or obligation of any of its affiliates. Neither this Note nor the
underlying Receivables, as defined below, are insured or guaranteed by any
government agency).

			
	NUMBER
	 	$                    
CUSIP                     

     Bay View 2005-LJ-1 Owner Trust, a Delaware statutory trust, for value received, hereby
promises to pay to the order of [___] (“the Noteholder”) or its registered assigns, the
principal sum of ___dollars ($___), which amount shall be payable in the amounts and
at the times set forth in the Indenture dated as of February 1, 2005 (the “Indenture”; such term to
include any amendment, restatement, supplement or other modification thereof or thereto);
provided, however, that the entire unpaid amount of this Note shall be due and
payable on or before ___. However, principal with respect to the Notes may be paid earlier
or

Exhibit A-2 To Indenture

1

 

later under certain limited circumstances under the Indenture. The Issuer will pay interest
on this Note at the Class A-2 Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined herein, the capitalized
terms used herein have the meanings assigned to them in the Indenture. This Note is issued under
and is subject to the terms, provisions, and conditions of the Indenture, to which the holder of
this Note by virtue of the acceptance hereof assents and by which such holder is bound.

     This Note is secured by the Pledged Assets. The Pledged Assets consist of (i) the Receivables
listed on Schedule A to the Trust Agreement, (ii) the security interests in the Financed Vehicles
or in any other property granted by Obligors pursuant to the Receivables, (iii) any proceeds from
claims and other amounts relating to Insurance Policies and other items financed under the
Receivables or otherwise covering an Obligor or a Financed Vehicle, (iv) any Liquidation Proceeds,
(v) all property (including the right to receive future Liquidation Proceeds) that secures a
Receivable and that has been or may be acquired pursuant to the liquidation of the Receivable, (vi)
the interest of the Issuer in any proceeds from recourse to Dealers relating to the Receivables,
(vii) all documents contained in the Receivable Files relating to the Receivables, (viii) all
monies paid on the Receivables, and all monies due thereon after the Cut-off Date, (ix) the rights
of the Transferor pursuant to the Purchase Agreement and the Trust Agreement and the rights of the
Issuer pursuant to the Trust Agreement, including, without limitation, a direct right to cause BVAC
to purchase Receivables from the Transferor upon the occurrence of a breach of any of the
representations and warranties contained in Section 3.02 of the Purchase Agreement or the failure
of BVAC to timely comply with its obligations pursuant to Section 5.06 of the Purchase Agreement
and (x) all proceeds (including, without limitation, “proceeds” as defined in the UCC of the
jurisdiction the law of which governs the perfection of the interest in such Receivables and such
other property so transferred) of any of the foregoing. Pledged Assets shall also include (a) any
and all other right, title and interest, including any beneficial interest the Issuer may have in
the Collection Account, the Payahead Account and the Lock-Box Account (to the extent such amounts
and property in the Lock-Box Account relate to the Receivables), (b) the funds deposited in and
financial assets credited to and from time to time on deposit in such accounts (to the extent such
amounts and property in the Lock-Box account relate to the Receivables), and all Eligible
Investments and other securities, instruments and other investments purchased from such funds.

     Under the Indenture, the Issuer will pay, on the twenty-fifth calendar day of each month, or
if such day is not a Business Day, on the first Business Day thereafter (the “Payment Date”),
commencing March 25, 2005, to the person in whose name this Note is registered on the Record Date,
the portion of Monthly Interest and Monthly Principal to which the Noteholder is entitled pursuant
to the Indenture.

     Payments on this Note will be made by the Indenture Trustee by wire transfer through the
facilities of the Depository Trust Company if this note is held by Cede & Co. and otherwise by
check mailed to the Person entitled thereto without the presentation or surrender of this Note or
the making of any notation hereon. Except as otherwise provided in the Indenture and
notwithstanding the above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by the Indenture
Trustee.

Exhibit A-2 To Indenture

2

 

     Unless the certificate of authentication hereon shall have been executed by a Responsible
Officer of the Indenture Trustee, by manual or facsimile signature, this Note shall not entitle the
holder hereof to any benefit under the Indenture or be valid for any purpose.

     This Note constitutes an obligation of the Issuer. The Note does not represent an interest in
the Issuer nor an interest in or obligation of any affiliate of the Issuer, including Bay View
Deposit Corporation or Bay View Acceptance Corporation. The Note is limited in right of payment to
certain collections and recoveries respecting the Receivables, all as more specifically set forth
in the Indenture. In addition to the Class A-2 Notes, the Issuer has also issued Class A-1 Notes,
Class A-3 Notes, Class A-4 Notes and Class I Notes. The Indenture provides for certain amounts to
be deposited into the Spread Account. In the event amounts available for withdrawal from the
Spread Account are insufficient to make payments relating to this Note and the other notes issued
by the Issuer, the Indenture Trustee will draw on the Policy to pay such deficiency to the extent
provided therein.

     The Indenture permits, with certain exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the Noteholder under the
Indenture at any time by the Issuer and the Indenture Trustee with the consent of the Insurer and
the Noteholder. Any such consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

     This Note is transferable solely in accordance with Section 2.04 of the Indenture.

     The obligations and responsibilities to the Noteholder created by the Indenture shall
terminate upon the payment to Noteholder of all amounts required to be paid to it pursuant to the
Indenture. The Servicer may at its option cause the Indenture Trustee to sell the Pledged Assets
at a price not to be less than the price specified in the Indenture, and such sale of the
Receivables and other property may effect early retirement of the Note.

     Although this Note summarizes certain provisions of the Indenture, this Note does not purport
to summarize the Indenture and reference is made to the Indenture for information with respect to
the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Indenture Trustee. In the event of any inconsistency or conflict
between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall
control.

     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.

Exhibit A-2 To Indenture

3

 

     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

Dated:                     

	 	 	 	 	 	 	 
	 	 	BAY VIEW 2005-LJ-1 OWNER TRUST
	 
	 	 	 	 	 	 
	

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

Exhibit A-2 To Indenture

4

 

CERTIFICATE OF AUTHENTICATION

     This is the Note referred to in the within-mentioned Indenture.

Deutsche Bank Trust Company Americas, solely in its capacity as Indenture Trustee,

	 	 	 	 	 	 	 
	 	 	By:                                                                                     
	 	 	Name:                                                                                 
	 	 	Title:                                                                                    

 Dated:                  

Exhibit A-2 To Indenture

5

 

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.

Exhibit A-2 To Indenture

6

 

EXHIBIT A-3

[FORM OF CLASS A-3 NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-3 NOTE IS DISTRIBUTABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN
THE ORIGINAL PRINCIPAL AMOUNT SET FORTH HEREIN.

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
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
thereof, Cede & Co., has an interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

BAY VIEW 2005-LJ-1 OWNER TRUST

% CLASS A-3 AUTOMOBILE RECEIVABLE BACKED NOTE

Evidencing the indebtedness of the Bay View 2005-LJ-1 Owner Trust, a Delaware
statutory trust, secured by the Pledged Assets, as defined below, including a pool
of simple and precomputed interest installment loan and security agreements and
installment sales contracts secured by new and used automobiles, light-duty trucks,
sport utility vehicles and vans.

(This Note does not represent an interest in Bay View Deposit Corporation nor an
interest in or obligation of any of its affiliates. Neither this Note nor the
underlying Receivables, as defined below, are insured or guaranteed by any
government agency).

			
	NUMBER
	 	$                    
CUSIP                     

     Bay View 2005-LJ-1 Owner Trust, a Delaware statutory trust, for value received, hereby
promises to pay to the order of [___] (“the Noteholder”) or its registered assigns, the
principal sum of [___dollars ($___)], which amount shall be payable in the amounts
and at the times set forth in the Indenture dated as of February 1, 2005 (the “Indenture”; such
term to include any amendment, restatement, supplement or other modification thereof or thereto);
provided, however, that the entire unpaid amount of this Note shall be due and
payable on or before [___]. However, principal with respect to the Notes may be paid
earlier or

Exhibit A-3 To Indenture

1

 

later under certain limited circumstances under the Indenture. The Issuer will pay interest
on this Note at the Class A-3 Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined herein, the capitalized
terms used herein have the meanings assigned to them in the Indenture. This Note is issued under
and is subject to the terms, provisions, and conditions of the Indenture, to which the holder of
this Note by virtue of the acceptance hereof assents and by which such holder is bound.

     This Note is secured by the Pledged Assets. The Pledged Assets consist of (i) the Receivables
listed on Schedule A to the Trust Agreement, (ii) the security interests in the Financed Vehicles
or in any other property granted by Obligors pursuant to the Receivables, (iii) any proceeds from
claims and other amounts relating to Insurance Policies and other items financed under the
Receivables or otherwise covering an Obligor or a Financed Vehicle, (iv) any Liquidation Proceeds,
(v) all property (including the right to receive future Liquidation Proceeds) that secures a
Receivable and that has been or may be acquired pursuant to the liquidation of the Receivable, (vi)
the interest of the Issuer in any proceeds from recourse to Dealers relating to the Receivables,
(vii) all documents contained in the Receivable Files relating to the Receivables, (viii) all
monies paid on the Receivables, and all monies due thereon after the Cut-off Date, (ix) the rights
of the Transferor pursuant to the Purchase Agreement and the Trust Agreement and the rights of the
Issuer pursuant to the Trust Agreement, including, without limitation, a direct right to cause BVAC
to purchase Receivables from the Transferor upon the occurrence of a breach of any of the
representations and warranties contained in Section 3.02 of the Purchase Agreement or the failure
of BVAC to timely comply with its obligations pursuant to Section 5.06 of the Purchase Agreement
and (x) all proceeds (including, without limitation, “proceeds” as defined in the UCC of the
jurisdiction the law of which governs the perfection of the interest in such Receivables and such
other property so transferred) of any of the foregoing. Pledged Assets shall also include (a) any
and all other right, title and interest, including any beneficial interest the Issuer may have in
the Collection Account, the Payahead Account and the Lock-Box Account (to the extent such amounts
and property in the Lock-Box Account relate to the Receivables), (b) the funds deposited in and
financial assets credited to and from time to time on deposit in such accounts (to the extent such
amounts and property in the Lock-Box account relate to the Receivables), and all Eligible
Investments and other securities, instruments and other investments purchased from such funds.

     Under the Indenture, the Issuer will pay, on the twenty-fifth calendar day of each month, or
if such day is not a Business Day, on the first Business Day thereafter (the “Payment Date”),
commencing March 25, 2005, to the person in whose name this Note is registered on the Record Date,
the portion of Monthly Interest and Monthly Principal to which the Noteholder is entitled pursuant
to the Indenture.

     Payments on this Note will be made by the Indenture Trustee by wire transfer through the
facilities of the Depository Trust Company if this note is held by Cede & Co. and otherwise by
check mailed to the Person entitled thereto without the presentation or surrender of this Note or
the making of any notation hereon. Except as otherwise provided in the Indenture and
notwithstanding the above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by the Indenture
Trustee.

Exhibit A-3 To Indenture

2

 

     Unless the certificate of authentication hereon shall have been executed by a Responsible
Officer of the Indenture Trustee, by manual or facsimile signature, this Note shall not entitle the
holder hereof to any benefit under the Indenture or be valid for any purpose.

     This Note constitutes an obligation of the Issuer. The Note does not represent an interest in
the Issuer nor an interest in or obligation of any affiliate of the Issuer, including Bay View
Deposit Corporation or Bay View Acceptance Corporation. The Note is limited in right of payment to
certain collections and recoveries respecting the Receivables, all as more specifically set forth
in the Indenture. In addition to the Class A-3 Notes, the Issuer has also issued Class A-1 Notes,
Class A-2 Notes, Class A-4 Notes and Class I Notes. The Indenture provides for certain amounts to
be deposited into the Spread Account. In the event amounts available for withdrawal from the
Spread Account are insufficient to make payments relating to this Note and the other notes issued
by the Issuer, the Indenture Trustee will draw on the Policy to pay such deficiency to the extent
provided therein.

     The Indenture permits, with certain exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the Noteholder under the
Indenture at any time by the Issuer and the Indenture Trustee with the consent of the Insurer and
the Noteholder. Any such consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

     This Note is transferable solely in accordance with Section 2.04 of the Indenture.

     The obligations and responsibilities to the Noteholder created by the Indenture shall
terminate upon the payment to Noteholder of all amounts required to be paid to it pursuant to the
Indenture. The Servicer may at its option cause the Indenture Trustee to sell the Pledged Assets
at a price not to be less than the price specified in the Indenture, and such sale of the
Receivables and other property may effect early retirement of the Note.

     Although this Note summarizes certain provisions of the Indenture, this Note does not purport
to summarize the Indenture and reference is made to the Indenture for information with respect to
the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Indenture Trustee. In the event of any inconsistency or conflict
between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall
control.

     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.

Exhibit A-3 To Indenture

3

 

     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

Dated:                     

	 	 	 	 	 	 	 
	 	 	BAY VIEW 2005-LJ-1 OWNER TRUST
	 
	 	 	 	 	 	 
	

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

Exhibit A-3 To Indenture

4

 

CERTIFICATE OF AUTHENTICATION

     This is the Note referred to in the within-mentioned Indenture.

Deutsche Bank Trust Company Americas, solely in its capacity as Indenture Trustee,

	 	 	 	 	 	 	 
	 	 	By:                                                                                     
	 	 	Name:                                                                                 
	 	 	Title:                                                                                

 Dated:                  

Exhibit A-3 To Indenture

5

 

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.

Exhibit A-3 To Indenture

6

 

EXHIBIT A-4

[FORM OF CLASS A-4 NOTE]

PRINCIPAL IN RESPECT OF THIS CLASS A-4 NOTE IS DISTRIBUTABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
UNPAID PRINCIPAL AMOUNT OF THE FRACTIONAL INTEREST EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN
THE ORIGINAL PRINCIPAL AMOUNT SET FORTH HEREIN.

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
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
thereof, Cede & Co., has an interest herein.

PRINCIPAL IN RESPECT OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN.

BAY VIEW 2005-LJ-1 OWNER TRUST

% CLASS A-4 AUTOMOBILE RECEIVABLE BACKED NOTE

Evidencing the indebtedness of the Bay View 2005-LJ-1 Owner Trust, a Delaware
statutory trust, secured by the Pledged Assets, as defined below, including a pool
of simple and precomputed interest installment loan and security agreements and
installment sales contracts secured by new and used automobiles, light-duty trucks,
sport utility vehicles and vans.

(This Note does not represent an interest in Bay View Deposit Corporation nor an
interest in or obligation of any of its affiliates. Neither this Note nor the
underlying Receivables, as defined below, are insured or guaranteed by any
government agency).

			
	
NUMBER
	 	$                    
CUSIP                     

     Bay View 2005-LJ-1 Owner Trust, a Delaware statutory trust, for value received, hereby
promises to pay to the order of [___] (“the Noteholder”) or its registered assigns, the
principal sum of [___] dollars ($___), which amount shall be payable in the amounts
and at the times set forth in the Indenture dated as of February 1, 2005 (the “Indenture”; such
term to include any amendment, restatement, supplement or other modification thereof or thereto);
provided, however, that the entire unpaid amount of this Note shall be due and
payable on or before [___]. However, principal with respect to the Notes may be paid
earlier or

Exhibit A-4 To Indenture

1

 

later under certain limited circumstances under the Indenture. The Issuer will pay interest
on this Note at the Class A-4 Interest Rate. Such interest shall be payable in the manner and at
the times set forth in the Indenture. To the extent not otherwise defined herein, the capitalized
terms used herein have the meanings assigned to them in the Indenture. This Note is issued under
and is subject to the terms, provisions, and conditions of the Indenture, to which the holder of
this Note by virtue of the acceptance hereof assents and by which such holder is bound.

     This Note is secured by the Pledged Assets. The Pledged Assets consist of (i) the Receivables
listed on Schedule A to the Trust Agreement, (ii) the security interests in the Financed Vehicles
or in any other property granted by Obligors pursuant to the Receivables, (iii) any proceeds from
claims and other amounts relating to Insurance Policies and other items financed under the
Receivables or otherwise covering an Obligor or a Financed Vehicle, (iv) any Liquidation Proceeds,
(v) all property (including the right to receive future Liquidation Proceeds) that secures a
Receivable and that has been or may be acquired pursuant to the liquidation of the Receivable, (vi)
the interest of the Issuer in any proceeds from recourse to Dealers relating to the Receivables,
(vii) all documents contained in the Receivable Files relating to the Receivables, (viii) all
monies paid on the Receivables, and all monies due thereon after the Cut-off Date, (ix) the rights
of the Transferor pursuant to the Purchase Agreement and the Trust Agreement and the rights of the
Issuer pursuant to the Trust Agreement, including, without limitation, a direct right to cause BVAC
to purchase Receivables from the Transferor upon the occurrence of a breach of any of the
representations and warranties contained in Section 3.02 of the Purchase Agreement or the failure
of BVAC to timely comply with its obligations pursuant to Section 5.06 of the Purchase Agreement
and (x) all proceeds (including, without limitation, “proceeds” as defined in the UCC of the
jurisdiction the law of which governs the perfection of the interest in such Receivables and such
other property so transferred) of any of the foregoing. Pledged Assets shall also include (a) any
and all other right, title and interest, including any beneficial interest the Issuer may have in
the Collection Account, the Payahead Account and the Lock-Box Account (to the extent such amounts
and property in the Lock-Box Account relate to the Receivables), (b) the funds deposited in and
financial assets credited to and from time to time on deposit in such accounts (to the extent such
amounts and property in the Lock-Box account relate to the Receivables), and all Eligible
Investments and other securities, instruments and other investments purchased from such funds.

     Under the Indenture, the Issuer will pay, on the twenty-fifth calendar day of each month, or
if such day is not a Business Day, on the first Business Day thereafter (the “Payment Date”),
commencing March 25, 2005, to the person in whose name this Note is registered on the Record Date,
the portion of Monthly Interest and Monthly Principal to which the Noteholder is entitled pursuant
to the Indenture.

     Payments on this Note will be made by the Indenture Trustee by wire transfer through the
facilities of the Depository Trust Company if this note is held by Cede & Co. and otherwise by
check mailed to the Person entitled thereto without the presentation or surrender of this Note or
the making of any notation hereon. Except as otherwise provided in the Indenture and
notwithstanding the above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by the Indenture
Trustee.

Exhibit A-4 To Indenture

2

 

     Unless the certificate of authentication hereon shall have been executed by a Responsible
Officer of the Indenture Trustee, by manual or facsimile signature, this Note shall not entitle the
holder hereof to any benefit under the Indenture or be valid for any purpose.

     This Note constitutes an obligation of the Issuer. The Note does not represent an interest in
the Issuer nor an interest in or obligation of any affiliate of the Issuer, including Bay View
Deposit Corporation or Bay View Acceptance Corporation. The Note is limited in right of payment to
certain collections and recoveries respecting the Receivables, all as more specifically set forth
in the Indenture. In addition to the Class A-4 Notes, the Issuer has also issued Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes and Class I Notes. The Indenture provides for certain amounts to
be deposited into the Spread Account. In the event amounts available for withdrawal from the
Spread Account are insufficient to make payments relating to this Note and the other notes issued
by the Issuer, the Indenture Trustee will draw on the Policy to pay such deficiency to the extent
provided therein.

     The Indenture permits, with certain exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the Noteholder under the
Indenture at any time by the Issuer and the Indenture Trustee with the consent of the Insurer and
the Noteholder. Any such consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

     This Note is transferable solely in accordance with Section 2.04 of the Indenture.

     The obligations and responsibilities to the Noteholder created by the Indenture shall
terminate upon the payment to Noteholder of all amounts required to be paid to it pursuant to the
Indenture. The Servicer may at its option cause the Indenture Trustee to sell the Pledged Assets
at a price not to be less than the price specified in the Indenture, and such sale of the
Receivables and other property may effect early retirement of the Note.

     Although this Note summarizes certain provisions of the Indenture, this Note does not purport
to summarize the Indenture and reference is made to the Indenture for information with respect to
the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Indenture Trustee. In the event of any inconsistency or conflict
between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall
control.

     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.

Exhibit A-4 To Indenture

3

 

     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

Dated:                     

	 	 	 	 	 	 	 
	 	 	BAY VIEW 2005-LJ-1 OWNER TRUST
	 
	 	 	 	 	 	 
	

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

Exhibit A-4 To Indenture

4

 

CERTIFICATE OF AUTHENTICATION

     This is the Note referred to in the within-mentioned Indenture.

Deutsche Bank Trust Company Americas, solely in its capacity as Indenture Trustee,

	 	 	 	 	 	 	 
	 	 	By:                                                                                     
	 	 	Name:                                                                                 
	 	 	Title:                                                                                

Dated:                  ,
2005

Exhibit A-4 To Indenture

5

 

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.

Exhibit A-4 To Indenture

6

 

EXHIBIT A-5

[FORM OF CLASS I NOTE]

THIS NOTE DOES NOT ENTITLE THE HOLDER TO RECEIVE ANY PRINCIPAL BUT ONLY INTEREST ON THE NOTIONAL
PRINCIPAL AMOUNT PAYABLE MONTHLY AS SET FORTH HEREIN. ACCORDINGLY, THE NOTIONAL PRINCIPAL AMOUNT
EVIDENCED HEREBY AT ANY TIME MAY BE LESS THAN THE INITIAL NOTIONAL PRINCIPAL AMOUNT SET FORTH
BELOW.

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
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
thereof, Cede & Co., has an interest herein.

BAY VIEW 2005-LJ-1 OWNER TRUST

% CLASS I AUTOMOBILE RECEIVABLE BACKED NOTE

Evidencing the indebtedness of the Bay View 2005-LJ-1 Owner Trust, a Delaware
statutory trust, secured by the Pledged Assets, as defined below, including a pool
of simple and precomputed interest installment loan and security agreements and
installment sales contracts secured by new and used automobiles, light-duty trucks,
sport utility vehicles and vans.

(This Note does not represent an interest in Bay View Deposit Corporation nor an
interest in or obligation of any of its affiliates. Neither this Note nor the
underlying Receivables, as defined below, are insured or guaranteed by any
government agency).

			
	
NUMBER
	 	$                    
CUSIP                     

     Bay View 2005-LJ-1 Owner Trust, a Delaware statutory trust, for value received, hereby
promises to pay to the order of [___] (“the Noteholder”) or its registered assigns, the
initial Notional principal amount of [___dollars ($___)], which amount shall be
payable in the amounts and at the times set forth in the Indenture dated as of February 1, 2005
(the “Indenture”; such term to include any amendment, restatement, supplement or other modification
thereof or thereto). The Issuer will pay interest on this Note at the Class I Interest Rate. Such
interest shall be payable in the manner and at the times set forth in the Indenture. To the extent
not otherwise defined herein, the capitalized terms used herein have the meanings

Exhibit A-5 To Indenture

1

 

assigned to them in the Indenture. This Note is issued under and is subject to the terms,
provisions, and conditions of the Indenture, to which the holder of this Note by virtue of the
acceptance hereof assents and by which such holder is bound.

     This Note is secured by the Pledged Assets. The Pledged Assets consist of (i) the Receivables
listed on Schedule A to the Trust Agreement, (ii) the security interests in the Financed Vehicles
or in any other property granted by Obligors pursuant to the Receivables, (iii) any proceeds from
claims and other amounts relating to Insurance Policies and other items financed under the
Receivables or otherwise covering an Obligor or a Financed Vehicle, (iv) any Liquidation Proceeds,
(v) all property (including the right to receive future Liquidation Proceeds) that secures a
Receivable and that has been or may be acquired pursuant to the liquidation of the Receivable, (vi)
the interest of the Issuer in any proceeds from recourse to Dealers relating to the Receivables,
(vii) all documents contained in the Receivable Files relating to the Receivables, (viii) all
monies paid on the Receivables, and all monies due thereon after the Cut-off Date, (ix) the rights
of the Transferor pursuant to the Purchase Agreement and the Trust Agreement and the rights of the
Issuer pursuant to the Trust Agreement, including, without limitation, a direct right to cause BVAC
to purchase Receivables from the Transferor upon the occurrence of a breach of any of the
representations and warranties contained in Section 3.02 of the Purchase Agreement or the failure
of BVAC to timely comply with its obligations pursuant to Section 5.06 of the Purchase Agreement
and (x) all proceeds (including, without limitation, “proceeds” as defined in the UCC of the
jurisdiction the law of which governs the perfection of the interest in such Receivables and such
other property so transferred) of any of the foregoing. Pledged Assets shall also include (a) any
and all other right, title and interest, including any beneficial interest the Issuer may have in
the Collection Account, the Payahead Account and the Lock-Box Account (to the extent such amounts
and property in the Lock-Box Account relate to the Receivables), (b) the funds deposited in and
financial assets credited to and from time to time on deposit in such accounts (to the extent such
amounts and property in the Lock-Box account relate to the Receivables), and all Eligible
Investments and other securities, instruments and other investments purchased from such funds.

     Under the Indenture, the Issuer will pay, on the twenty-fifth calendar day of each month, or
if such day is not a Business Day, on the first Business Day thereafter (the “Payment Date”),
commencing March 25, 2005, to the person in whose name this Note is registered on the Record Date,
the portion of Monthly Interest to which the Noteholder is entitled pursuant to the Indenture.

     Payments on this Note will be made by the Indenture Trustee by wire transfer through the
facilities of the Depository Trust Company if this note is held by Cede & Co. and otherwise by
check mailed to the Person entitled thereto without the presentation or surrender of this Note or
the making of any notation hereon. Except as otherwise provided in the Indenture and
notwithstanding the above, the final payment on this Note will be made only upon presentation and
surrender of this Note at the office or agency maintained for that purpose by the Indenture
Trustee.

     Unless the certificate of authentication hereon shall have been executed by a Responsible
Officer of the Indenture Trustee, by manual or facsimile signature, this Note shall not entitle the
holder hereof to any benefit under the Indenture or be valid for any purpose.

Exhibit A-5 To Indenture

2

 

     This Note constitutes an obligation of the Issuer. The Note does not represent an interest in
the Issuer nor an interest in or obligation of any affiliate of the Issuer, including Bay View
Deposit Corporation or Bay View Acceptance Corporation. The Note is limited in right of payment to
certain collections and recoveries respecting the Receivables, all as more specifically set forth
in the Indenture. In addition to the Class I Notes, the Issuer has also issued Class A-1 Notes,
Class A-2 Notes, Class A-3 Notes and Class A-4 Notes. The Indenture provides for certain amounts
to be deposited into the Spread Account. In the event amounts available for withdrawal from the
Spread Account are insufficient to make payments relating to this Note and the other notes issued
by the Issuer, the Indenture Trustee will draw on the Policy to pay such deficiency to the extent
provided therein.

     The Indenture permits, with certain exceptions therein provided, the amendment thereof and the
modification of the rights and obligations of the Issuer and the rights of the Noteholder under the
Indenture at any time by the Issuer and the Indenture Trustee with the consent of the Insurer and
the Noteholder. Any such consent by the holder of this Note shall be conclusive and binding on the
Noteholder.

     This Note is transferable solely in accordance with Section 2.04 of the Indenture.

     The obligations and responsibilities to the Noteholder created by the Indenture shall
terminate upon the payment to Noteholder of all amounts required to be paid to it pursuant to the
Indenture. The Servicer may at its option cause the Indenture Trustee to sell the Pledged Assets
at a price not to be less than the price specified in the Indenture, and such sale of the
Receivables and other property may effect early retirement of the Note.

     Although this Note summarizes certain provisions of the Indenture, this Note does not purport
to summarize the Indenture and reference is made to the Indenture for information with respect to
the interests, rights, benefits, obligations, proceeds and duties evidenced hereby and the rights,
duties and obligations of the Indenture Trustee. In the event of any inconsistency or conflict
between the terms of this Note and the terms of the Indenture, the terms of the Indenture shall
control.

     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.

Exhibit A-5 To Indenture

3

 

     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

Dated:                     , 2005

	 	 	 	 	 	 	 
	 	 	BAY VIEW 2005-LJ-1 OWNER TRUST
	 
	 	 	 	 	 	 
	

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

Exhibit A-5 To Indenture

4

 

CERTIFICATE OF AUTHENTICATION

     This is the Note referred to in the within-mentioned Indenture.

Deutsche Bank Trust Company Americas, solely in its capacity as Indenture Trustee,

	 	 	 	 	 	 	 
	 	 	By:                                                                                     
	 	 	Name:                                                                                 
	 	 	Title:                                                                                

Dated:                  ,
2005

Exhibit A-5 To Indenture

5

 

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.

Exhibit A-5 To Indenture

6

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