Document:

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                                                                     EXHIBIT 4.2

                                FORM OF INDENTURE
                                     between
                   TOYOTA AUTO RECEIVABLES 200_-_ OWNER TRUST,
                                    as Issuer
                                       and
                                  ___________,
                              as Indenture Trustee
                                Dated as of _____

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                                                         TABLE OF CONTENTS

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                                                                                                               PAGE

<S>      <C>               <C>                                                                                  <C>
ARTICLE I                  Definitions and Incorporation by Reference.

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

ARTICLE II                 The Notes.

         Section 2.01      Form.................................................................................11
         Section 2.02      Execution, Authentication and Delivery...............................................11
         Section 2.03      Temporary Notes......................................................................12
         Section 2.04      Registration; Registration of Transfer and Exchange..................................12
         Section 2.05      Mutilated, Destroyed, Lost or Stolen Notes...........................................14
         Section 2.06      Persons Deemed Owners................................................................14
         Section 2.07      Payments of Principal and Interest...................................................14
         Section 2.08      Cancellation.........................................................................16
         Section 2.09      Release of Collateral................................................................16
         Section 2.10      Book-Entry Notes.....................................................................16
         Section 2.11      Notices to Clearing Agency...........................................................17
         Section 2.12      Definitive Notes.....................................................................17
         Section 2.13      Tax Treatment........................................................................18

ARTICLE III                Covenants.

         Section 3.01      Payments to Noteholders, Certificateholders, [Holder of the Revolving
                           Liquidity Note,] [Swap Counterparty,] Servicer and Seller............................18
         Section 3.02      Maintenance of Office or Agency......................................................19
         Section 3.03      Money for Payments To Be Held in Trust...............................................19
         Section 3.04      Existence............................................................................21
         Section 3.05      Protection of Trust Estate...........................................................21
         Section 3.06      Opinions as to Trust Estate..........................................................21
         Section 3.07      Performance of Obligations; Servicing of Receivables.................................22
         Section 3.08      Negative Covenants...................................................................24
         Section 3.09      Annual Statement as to Compliance....................................................25
         Section 3.10      Issuer May Consolidate, etc., Only on Certain Terms..................................25
         Section 3.11      Successor or Transferee..............................................................27
         Section 3.12      No Other Business....................................................................27
         Section 3.13      No Borrowing.........................................................................27
         Section 3.14      Servicer's Notice Obligations........................................................27
         Section 3.15      Guarantees, Loans, Advances and Other Liabilities....................................27
         Section 3.16      Capital Expenditures.................................................................28
         Section 3.17      Removal of Administrator.............................................................28
         Section 3.18      Restricted Payments..................................................................28

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<S>      <C>               <C>                                                                                  <C>
         Section 3.19      Notice of Events of Default..........................................................28
         Section 3.20      Further Instruments and Actions......................................................28

ARTICLE IV                 Satisfaction and Discharge.

         Section 4.01      Satisfaction and Discharge of Indenture..............................................29
         Section 4.02      Application of Trust Money...........................................................29
         Section 4.03      Repayment of Moneys Held by Paying Agent.............................................30

ARTICLE V                  Remedies.

         Section 5.01      Events of Default....................................................................30
         Section 5.02      Acceleration of Maturity; Rescission and Annulment...................................32
         Section 5.03      Collection of Indebtedness and Suits for Enforcement by Indenture Trustee............33
         Section 5.04      Remedies; Priorities; Insolvency of Seller...........................................35
         Section 5.05      Optional Preservation of the Receivables.............................................37
         Section 5.06      Limitation of Suits..................................................................38
         Section 5.07      Unconditional Rights of Noteholders To Receive Principal and Interest................38
         Section 5.08      Restoration of Rights and Remedies...................................................38
         Section 5.09      Rights and Remedies Cumulative.......................................................38
         Section 5.10      Delay or Omission Not a Waiver.......................................................39
         Section 5.11      Control by Noteholders...............................................................39
         Section 5.12      Waiver of Past Defaults..............................................................39
         Section 5.13      Undertaking for Costs................................................................40
         Section 5.14      Waiver of Stay or Extension Laws.....................................................40
         Section 5.15      Action on Notes......................................................................40
         Section 5.16      Performance and Enforcement of Certain Obligations...................................41

ARTICLE VI                 The Indenture Trustee.

         Section 6.01      Duties of Indenture Trustee..........................................................41
         Section 6.02      Rights of Indenture Trustee..........................................................43
         Section 6.03      Individual Rights of Indenture Trustee...............................................44
         Section 6.04      Indenture Trustee's Disclaimer.......................................................44
         Section 6.05      Notice of Defaults...................................................................45
         Section 6.06      Reports by Indenture Trustee to Holders..............................................45
         Section 6.07      Compensation and Indemnity...........................................................45
         Section 6.08      Replacement of Indenture Trustee.....................................................46
         Section 6.09      Successor Indenture Trustee by Merger................................................47
         Section 6.10      Appointment of Co-Indenture Trustee or Separate Indenture Trustee....................47
         Section 6.11      Eligibility; Disqualification........................................................48

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         Section 6.12      Preferential Collection of Claims Against Issuer.....................................49
         Section 6.13      [Revolving Liquidity Note Provisions.................................................49
         Section 6.14      [Interest Rate Swap Provisions.......................................................50

ARTICLE VII                Noteholders' Lists and Reports.

         Section 7.01      Note Registrar To Furnish Names and Addresses of Noteholders.........................51
         Section 7.02      Preservation of Information; Communications to Noteholders...........................51
         Section 7.03      Reports by Issuer....................................................................52
         Section 7.04      Reports by Indenture Trustee.........................................................52

ARTICLE VIII               Accounts, Disbursements and Releases.

         Section 8.01      Collection of Money..................................................................53
         Section 8.02      Trust Accounts.......................................................................53
         Section 8.03      [Reserved]...........................................................................53
         Section 8.04      General Provisions Regarding Accounts................................................53
         Section 8.05      Release of Trust Estate..............................................................55
         Section 8.06      Opinion of Counsel...................................................................55

ARTICLE IX                 Supplemental Indentures.

         Section 9.01      Supplemental Indentures Without Consent of Noteholders...............................56
         Section 9.02      Supplemental Indentures with Consent of Noteholders..................................56
         Section 9.03      Limitations on Supplemental Indentures...............................................57
         Section 9.04      Execution of Supplemental Indentures.................................................58
         Section 9.05      Effect of Supplemental Indenture.....................................................58
         Section 9.06      Conformity with Trust Indenture Act..................................................59
         Section 9.07      Reference in Notes to Supplemental Indentures........................................59

ARTICLE X                  Termination of the Trust.

         Section 10.01     Termination of the Trusts Created by Indenture.......................................59
         Section 10.02     Optional Purchase of All Receivables.................................................60

ARTICLE XI                 Miscellaneous.

         Section 11.01     Compliance Certificates and Opinions, etc............................................60
         Section 11.02     Form of Documents Delivered to Indenture Trustee.....................................62
         Section 11.03     Acts of Noteholders..................................................................62
         Section 11.04     Notices, etc., to Indenture Trustee, Issuer and Rating Agencies......................63
         Section 11.05     Notices to Noteholders; Waiver.......................................................63
         Section 11.06     Alternate Payment and Notice Provisions..............................................64
         Section 11.07     Conflict with Trust Indenture Act....................................................64

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<S>      <C>               <C>                                                                                  <C>
         Section 11.08     Effect of Headings and Table of Contents.............................................64
         Section 11.09     Successors and Assigns...............................................................64
         Section 11.10     Severability.........................................................................65
         Section 11.11     Benefits of Indenture................................................................65
         Section 11.12     Governing Law........................................................................65
         Section 11.13     Counterparts.........................................................................65
         Section 11.14     Recording of Indenture...............................................................65
         Section 11.15     Trust Obligation.....................................................................65
         Section 11.16     No Petition..........................................................................66
         Section 11.17     Inspection...........................................................................66

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         INDENTURE dated as of _______, between TOYOTA AUTO RECEIVABLES 200_-_
OWNER TRUST, a [Delaware] [business] [statutory] trust (the "Issuer"), and
______, a [Delaware banking corporation], as trustee and not in its individual
capacity (the "Indenture Trustee").

         Each party agrees as follows for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Issuer's Class A-1 __% Asset
Backed Notes (the "Class A-1 Notes"), Class A-2 __% Asset Backed Notes (the
"Class A-2 Notes") and Class A-3 __% Asset Backed Notes (the "Class A-3 Notes"
and, together with the Class A-1 Notes and the Class A-2 Notes, the "Notes"):

                                 GRANTING CLAUSE

         The Issuer hereby Grants to the Indenture Trustee at the Closing Date,
as Indenture Trustee for the benefit of the Holders of the Notes and the
Certificates [and the Swap Counterparty], all of the Issuer's right, title and
interest in and to, in each case whether now or hereafter existing or in which
Issuer now has or hereafter acquires an interest and wherever the same may be
located: (i) all right, title and interest of the Issuer in and to the
Receivables and all monies due thereon or paid thereunder or in respect thereof
(including proceeds of the repurchase of Receivables by the Seller pursuant to
Section 3.02 or the purchase of Receivables by the Servicer pursuant to Section
4.08 or 9.01 of the Sale and Servicing Agreement) on or after the Cutoff Date;
(ii) the interest of the Issuer in the security interests in the Financed
Vehicles granted by the Obligors pursuant to the Receivables and any accessions
thereto; (iii) the interest of the Issuer in any proceeds of any physical damage
insurance policies covering Financed Vehicles and in any proceeds of any credit
life or credit disability insurance policies relating to the Receivables or the
Obligors; (iv) the interest of the Issuer in any Dealer Recourse; (v) the
interest of the Issuer under [the Collateral Security Agreement] [, the Yield
Maintenance Agreement] and the Sale and Servicing Agreement; (vi) the right of
the Issuer to realize upon any property (including the right to receive future
Liquidation Proceeds) that shall have secured a Receivable and have been
repossessed by or on behalf of the Issuer; (vii) the rights and interests of the
Issuer under the Sale and Servicing Agreement and as assignee (pursuant to the
Sale and Servicing Agreement) of the rights and interests of TAFR LLC under the
Receivables Purchase Agreement; [(viii) all rights, title and interest of the
Issuer in and to the Interest Rate Swap Agreement]; (ix) all other assets
comprising the Owner Trust Estate (which do not include the Sub-Trust Assets);
(x) all proceeds of the foregoing and (xi) all present and future claims,
demands, causes of action and choses in action in respect of any or all of the
foregoing and all payments on or under of every kind and nature whatsoever in
respect of any or all of the foregoing, including all proceeds of the conversion
thereof, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, tangible
chattel paper, checks, deposit accounts, insurance proceeds, condemnation
awards, rights to payment of any and every kind and other forms of obligations
and receivables, instruments and other property which at any time constitute all
or part of or are included in the proceeds of any of the foregoing
(collectively, the "Collateral").

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

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to the subordinate claims thereon of the Holders of the Certificates, all as
provided in this Indenture.

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

                                    ARTICLE I

                   Definitions and Incorporation by Reference

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

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

         "Administration Agreement" means the Administration Agreement dated as
of __________, among the Administrator, the Issuer, the Owner Trustee and the
Indenture Trustee.

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

         ["Amortization Period" means, with respect to any class of Notes, a
period following a Revolving Period, as applicable, during which collections of
principal and other amounts treated as collections of principal are distributed
to the holders of such class of Notes.]

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

         "Basic Documents" means the Receivables Purchase Agreement, the Trust
Agreement, the Certificate of Trust, the Sale and Servicing Agreement, this
Indenture, [the Administration Agreement], the Securities Account Control
Agreement, the Note Depository Agreement, [the Revolving Liquidity Note
Agreement, the Revolving Liquidity Note] and the other documents and
certificates delivered in connection herewith and therewith.

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          "Book-Entry Notes" means a beneficial interest in the Class A-2 Notes,
Class A-3 Notes and Class A-4 Notes, ownership and transfers of which shall be
made through book entries by a Clearing Agency as described in Section 2.10.

         "Business Day" means any day other than a Saturday, a Sunday or a day
on which banking institutions or trust companies in [New York, New York],
[Chicago, Illinois] [Wilmington, Delaware] or [San Francisco, California] are
authorized or obligated by law, regulation or executive order to remain closed.

         "Class A-1 Rate" means ____% per annum (computed on the basis of the
actual number of days elapsed during the relevant Interest Period and a 360-day
year).

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

         "Class A-2 Rate" means ____% per annum (computed on the basis of the
actual number of days elapsed during the relevant Interest Period and a 360-day
year).

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

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

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

         "Class A-4 Rate" means ____% per annum (computed on the basis of a 360
day year consisting of twelve 30 day months).

         "Class A-4 Notes" means the ____% Asset Backed Notes, Class A-4,
substantially in the form attached hereto as Exhibit A.

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

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

         "Closing Date" means _______, 200_.

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

         "Collateral" has the meaning specified in the Granting Clause of this
Indenture.

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

         "Cutoff Date" means _______, 200_.

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

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

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

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

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

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

         "Holder" or "Noteholder" means the Person in whose name a Note is
registered on the Note Register [or, as indicated by the context, the holder of
the Revolving Liquidity Note].

         "Indenture Trustee" means ______, a [Delaware banking corporation] [a
New York State banking institution], as Indenture Trustee under this Indenture,
or any successor Indenture Trustee under this Indenture.

         "Independent" means, when used with respect to any specified Person,
that the Person is in fact independent of the Seller, the Servicer, the
Administrator, the Issuer or any other obligor on the Notes or any Affiliate of
any of the foregoing Persons because, among other things, such Person (a) is not
an employee, officer or director or otherwise controlled thereby or under common
control therewith, (b) does not have any direct financial interest or any
material indirect

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financial interest therein (whether as holder of securities thereof or party to
contract therewith or otherwise) and (c) is not and has not within the preceding
twelve months been a promoter, underwriter, trustee, partner, director or person
performing similar functions therefor or otherwise had legal, contractual or
fiduciary or other duties to act on behalf of or for the benefit thereof.

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

         "Insolvency Event" with respect to the Seller means the filing of a
decree or order for relief by a court having jurisdiction in the premises in
respect of the Seller 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 Seller, or ordering the winding-up or liquidation of the
Seller's affairs, and such decree or order shall remain unstayed and in effect
for a period of 60 consecutive days; or the commencement by the Seller 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 Seller to
the entry of an order for relief in an involuntary case under any such law, or
the consent by the Seller to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of
the Seller, or the making by the Seller of any general assignment for the
benefit of creditors, or the failure by the Seller generally to pay its debts as
such debts become due, or the taking of any action by the Seller in furtherance
of any of the foregoing.

         "Interest Period" means, with respect to any Payment Date and (i) the
Class A-__ Notes, the period from (and including) a Payment Date to (but
excluding) the next Payment Date, except that the first interest accrual period
will be from (and including) the Closing Date to (but excluding) __________ __,
20__ and (ii) the Class A-__ Notes, the period from (and including) the 15th day
of each calendar month to (but excluding) the 15th day of the succeeding
calendar month, except that the first interest accrual period will be from (and
including) the Closing Date to (but excluding) _________ __, 20__.

         "Interest Rate" means the Class A-1 Rate, the Class A-2 Rate, the Class
A-3 Rate or the Class A-4 Rate, as indicated by the context.

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

         ["Interest Rate Swap Agreement" means 1992 ISDA Master Agreement dated
as of                         (the "1992 ISDA Master Agreement"), including all
schedules and confirmations thereto, between the Issuer and the Swap
Counterparty, as the same may be amended, supplemented, renewed, extended or
replaced from time to time.]

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         "Issuer" means Toyota Auto Receivables 200_-_ Owner Trust unless and
until a successor replaces it and, thereafter, means the successor and, for
purposes of any provision contained herein and required by the TIA, each other
obligor on the Notes, if any.

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

         ["LIBOR" means the rate for deposits in U.S. dollars for a one-month
period which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on
the Interest Determination Date; provided that, the following procedures will be
followed if LIBOR cannot be determined as described above:

         (a) With respect to an Interest Determination Date on which no rate
appears on Telerate Page 3750, LIBOR for the applicable Interest Determination
Date will be the rate calculated by the Calculation Agent (as defined in the
Interest Rate Swap Agreement) as the arithmetic mean of at least two quotations
obtained by the Calculation Agent after requesting the principal London offices
of each of four major reference banks in the London interbank market, which may
include the Calculation Agent and its affiliates, as selected by the Calculation
Agent, to provide the Calculation Agent with its offered quotation for deposits
in U.S. dollars for a one-month period, commencing on the second London Banking
Day immediately following the applicable Interest Determination Date, to prime
banks in the London interbank market at approximately 11:00 a.m., London time,
on such Interest Determination Date and in a principal amount that is
representative for a single transaction in U.S. dollars in that market at that
time. If at least two such quotations are provided, LIBOR determined on the
applicable Interest Determination Date will be the arithmetic mean of the
quotations.

         (b) If fewer than two quotations referred to in clause (a) above are
provided, LIBOR determined on the applicable Interest Determination Date will be
the rate calculated by the Calculation Agent as the arithmetic mean of the rates
quoted at approximately 11:00 a.m. in New York on the applicable Interest
Determination Date by three major banks, which may include the Calculation Agent
and its affiliates, in New York, selected by the Calculation Agent for loans in
U.S. dollars to leading European banks, having a maturity of one-month and in a
principal amount that is representative for a single transaction in U.S. dollars
in that market at that time.

         (c) If the banks so selected by the Calculation Agent are not quoting
as mentioned in clause (b) above, LIBOR for the applicable Interest
Determination Date will be LIBOR in effect on the applicable Interest
Determination Date.]

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

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

         "Note Owner" means, with respect to a Book-Entry Note, any Person who
is the beneficial owner of such Book-Entry Note, as reflected on the books of
the Clearing Agency or on the books of a Person maintaining an account with such
Clearing Agency (directly as a

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Clearing Agency Participant or as an indirect participant, in each case in
accordance with the rules of such Clearing Agency).

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

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

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

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

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

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

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

         Notes in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture unless proof satisfactory
to the Indenture Trustee is presented that any such Notes are held by a bona
fide purchaser; provided, that in determining whether the Holders of the
requisite percentage of the Outstanding Amount of the Notes, or any Class of
Notes, have given any request, demand, authorization, direction, notice,
consent, or waiver hereunder or under any Basic Document, Notes owned by the
Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of
the foregoing Persons shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Indenture Trustee shall be protected in
relying upon any such request, demand, authorization, direction, notice,
consent, or waiver, only Notes that the Indenture Trustee knows to be so owned
shall be so disregarded. Notes so owned that have been pledged in good faith may
be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Indenture Trustee the pledgee's right so to act with respect to such Notes and
that the pledgee is not the Issuer, any other obligor upon the Notes, the Seller
or any Affiliate of any of the foregoing Persons.

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

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

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         "Owner Trust Estate" means all right, title and interest of the Issuer
in and to the property and rights assigned to the Issuer pursuant to Article II
of the Sale and Servicing Agreement, all funds on deposit from time to time in
the accounts created pursuant to Section 5.01 of the Sale and Servicing
Agreement (excluding any net investment income with respect to amounts held in
such accounts) and all other property of the Issuer from time to time, including
any rights of the Owner Trustee and the Issuer pursuant to the Sale and
Servicing Agreement and the Administration Agreement, [rights of the Owner
Trustee and the Issuer pursuant to the Revolving Liquidity Note Agreement and
Revolving Liquidity Note,] and as assignee of the rights and interests of the
Depositor under the Receivables Purchase Agreement. [The Owner Trust Estate does
not include the Sub-Trust Assets, as described in the Amended and Restated Trust
Agreement and the Sub-Trust Supplement.]

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

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

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

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

         ["Revolving Liquidity Note" means the Revolving Liquidity Note issued
pursuant to the Revolving Liquidity Note Agreement.]

         ["Revolving Liquidity Note Agreement" means the Revolving Liquidity
Note Agreement dated as of __________, 200__, between the Issuer and TMCC as the
initial Holder of the Revolving Liquidity Note].

         ["Revolving Period" means, with respect to any class of Notes, a period
during which collections of principal and other amounts treated as collections
of principal are accumulated in an account utilized for the purpose of acquiring
additional Receivables for the benefit of such class of Notes.]

         "Sale and Servicing Agreement" means the Sale and Servicing Agreement
dated as of __________, 200__, among the Issuer, Toyota Auto Finance Receivables
LLC, as Seller, and Toyota Motor Credit Corporation, as Servicer, and as to
which the Indenture Trustee is a third party beneficiary of certain provisions.

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

                                       8
<PAGE>

         "Securities Account Control Agreement" means the Securities Account
Control Agreement dated _________, 200_, among the Seller, ______________, as
Securities Intermediary thereunder, and ______________, as Indenture Trustee.

         "Seller" shall mean Toyota Auto Finance Receivables LLC, in its
capacity as seller under the Sale and Servicing Agreement, and its successor in
interest.

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

         "Successor Servicer" has the meaning specified in Section 3.07(e).

         ["Swap Counterparty" shall mean Toyota Motor Credit Corporation, as
swap counterparty under the Interest Rate Swap Agreement, or any successor or
replacement swap counterparty from time to time under the Interest Rate Swap
Agreement.]

         ["Swap Event of Default" means (i) the failure of the Issuer or the
Swap Counterparty to pay any amount when due under the Interest Rate Swap
Agreement after giving effect to any applicable grace period; (ii) the
occurrence of certain events of insolvency or bankruptcy of the Issuer or the
Swap Counterparty as specified in the Interest Rate Swap Agreement and (iii)
certain other standard events of default under the 1992 ISDA Master Agreement as
specified in the Interest Rate Swap Agreement including "Breach of Agreement"
(not applicable to the Issuer), "Misrepresentation" (not applicable to the
Issuer) and "Merger without Assumption," as described in Sections 5(a)(ii),
5(a)(iv) and 5(a)(viii) of the 1992 ISDA Master Agreement.]

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

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

         ["Swap Termination Event" means (i) certain events of insolvency or
bankruptcy of the Issuer or the Swap Counterparty as specified in the Interest
Rate Swap Agreement; (ii) any Event of Default under the Indenture that results
in the acceleration of the Notes or involving an uncured payment default; (iii)
the Issuer or Swap Counterparty becomes subject to registration as an
"investment company" under the Investment Company Act of 1940; and (iv) certain
standard termination events under the 1992 ISDA Master Agreement as specified in
the Interest Rate Swap Agreement including "Illegality," "Tax Event" and "Tax
Event Upon Merger," each as more fully described in Sections 5(b)(i), 5(b)(ii)
and 5(b)(iii) of the 1992 ISDA Master Agreement.]

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

         "Trust Agreement" means the Trust Agreement dated as of _______, 200_,
as amended and restated by the Amended and Restated Trust Agreement dated as of
_______, 200_, by and between Toyota Auto Finance Receivables LLC, as depositor,
and _____, as Owner Trustee.

                                       9
<PAGE>

         "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
this Indenture for the benefit of the Noteholders (including, without
limitation, all property and interests Granted to the Indenture Trustee pursuant
to the Granting Clause), including all proceeds thereof[, it being understood
and agreed that the Sub-Trust Assets are not subject to the lien and security
interest of this Indenture].

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

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

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

         SECTION 1.02 Usage of Terms. With respect to all terms in this
Agreement, the singular includes the plural and the plural the singular; words
importing any gender include the other genders; references to "writing" include
printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all
subsequent amendments 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 1.03 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:

         "Commission" means the Securities and Exchange Commission.

         "indenture securities" means the Notes.

         "indenture security holder" means a Noteholder.

         "indenture to be qualified" means this Indenture.

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

                                       10
<PAGE>

         "obligor" on the indenture securities means the Issuer and any other
obligor on the indenture securities.

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

                                   ARTICLE II

                                    The Notes

         SECTION 2.01 Form. The Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes, in each case together with the Indenture
Trustee's certificate of authentication, shall be in substantially the form set
forth in Exhibit A, with such appropriate insertions, omissions, substitutions
and other variations as are required or permitted by this Indenture, and may
have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may, consistently herewith, be determined by the
officers executing such Notes, as evidenced by their execution thereof. Any
portion of the text of any Note may be set forth on the reverse thereof, with an
appropriate reference thereto on the face of the Note.

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

         Each Note shall be dated the date of its authentication. The terms of
the Notes set forth in Exhibit A are part of the terms of this Indenture.

         SECTION 2.02 Execution, Authentication and Delivery. The Notes shall be
executed on behalf of the Issuer by any of its Authorized Officers. The
signature of any such Authorized Officer on the Notes may be manual or
facsimile. Notes bearing the manual or facsimile signature of individuals who
were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Notes or did not hold
such offices at the date of such Notes. The Indenture Trustee shall upon Issuer
Order authenticate and deliver Class A-1 Notes for original issue in an
aggregate principal amount of $__________, Class A-2 Notes for original issue in
an aggregate principal amount of $__________, Class A-3 Notes for original issue
in an aggregate principal amount of $__________and Class A-4 Notes for original
issue in an aggregate principal amount of $__________. The aggregate principal
amount of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the
Class A-4 Notes outstanding at any time may not exceed such respective amounts
except as provided in Section 2.05. The Notes shall be issuable as registered
Notes in the minimum denomination $1,000. Each Note shall be dated the date of
its authentication.

         No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form included in Exhibit A,
executed by the Indenture Trustee by the manual or facsimile

                                       11
<PAGE>

signature of one of its authorized signatories, and such certificate upon any
Note shall be conclusive evidence, and the only evidence, that such Note has
been duly authenticated and delivered hereunder.

         SECTION 2.03 Temporary Notes. Pending the preparation of definitive
Notes, the Issuer may execute, and upon receipt of an Issuer Order the Indenture
Trustee shall authenticate and deliver, temporary Notes that are printed,
lithographed, typewritten, mimeographed or otherwise produced, of the tenor of
the definitive Notes in lieu of which they are issued and with such variations
not inconsistent with the terms of this Indenture as the officers executing such
Notes may determine, as evidenced by their execution of such Notes. If temporary
Notes are issued, the Issuer will cause definitive Notes to be prepared without
unreasonable delay. After the preparation of definitive Notes, the temporary
Notes shall be exchangeable for definitive Notes upon surrender of the temporary
Notes at the office or agency of the Issuer to be maintained as provided in
Section 3.02, without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Notes, the Issuer shall execute, and the Indenture
Trustee shall authenticate and deliver in exchange therefor, a like principal
amount of definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under
this Indenture as definitive Notes.

         SECTION 2.04 Registration; Registration of Transfer and Exchange.

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

         If a Person other than the Indenture Trustee is appointed by the Issuer
as Note Registrar, the Issuer will give the Indenture Trustee prompt written
notice of the appointment of such Note Registrar and of the location, and any
change in the location, of the Note Register, and the Indenture Trustee shall
have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely
upon a certificate executed on behalf of the Note Registrar by an Executive
Officer thereof as to the names and addresses of the Holders of the Notes and
the principal amounts and number of such Notes.

         (b) No transfer of any Class A-1 Note shall be made unless such resale
or transfer is made (i) pursuant to an effective Registration Statement under
the Securities Act, (ii) in a transaction (other than a transaction in clause
(iv) below) exempt from the registration requirements of the Securities Act and
applicable state and foreign securities laws, (iii) to any Affiliate of TMCC or
(iv) to a Person who the transferor of such Class A-1 Note reasonably believes
is a qualified institutional buyer within the meaning of Rule 144A under the
Securities Act and that is aware that the resale or other transfer is being made
in reliance on Rule 144A or

                                       12
<PAGE>

to an institutional "accredited investor" as defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act (an "Institutional Accredited Investor"). In the
event that a transfer is to be made as described in clause (ii) of the preceding
sentence, the prospective transferee shall deliver or cause to be delivered an
Opinion of Counsel in the form and substance satisfactory to the Issuer to the
effect that such transfer may be made without registration under the Securities
Act or any applicable state or foreign securities laws. In the event that a
transfer is to be made to an institutional accredited investor as described in
clause (iv), the Indenture Trustee shall require that the transferee execute a
representation letter acceptable to and in form and substance satisfactory to
the Issuer certifying to the Indenture Trustee the facts surrounding such
transfer, which representation shall not be an expense of the Indenture Trustee
or the Servicer. In the case of a transfer under either clause (ii) or clause
(iv), the Holder of a Class A-1 Note desiring to effect such transfer, shall and
does hereby agree to, indemnify the Indenture Trustee, the Issuer and the
Servicer against any liability that may result if the transfer is not so exempt
or is not made in accordance with the Securities Act and such state and foreign
securities laws. Neither the Servicer, the Issuer nor the Indenture Trustee is
under any obligation to register any Class A-1 Notes under the Securities Act or
any applicable state or foreign securities laws. Prospective purchasers of the
Class A-1 Notes are hereby notified that the seller of any Class A-1 Notes may
be relying on the exemption from the registration requirements of Section 5 of
the Act provided by Rule 144A under the Act.

         The Class A-1 Notes, this Indenture and related documents may be
amended or supplemented from time to time without the consent of any Noteholder
to modify restrictions on and procedures for resale and other transfer of such
Class A-1 Notes to reflect any change in applicable law or regulation (or the
interpretation thereof) or practices relating to the resale or transfer of
restricted securities generally.

         (c) Upon the proper surrender for registration of transfer of any Note
at the office or agency of the Issuer to be maintained as provided in Section
3.02, the Issuer shall execute, and the Indenture Trustee shall authenticate in
the name of the designated transferee or transferees, one or more new Notes of
the same Class in 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. Every Note presented or surrendered for registration of
transfer or exchange shall be accompanied by a written instrument of transfer in
form satisfactory to the Indenture Trustee and the Note Registrar duly executed
by the Holder thereof or his attorney duly authorized in writing.

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

                                       13
<PAGE>

         (f) All Notes surrendered for registration of transfer or exchange
shall be canceled and subsequently destroyed pursuant to Section 2.08.

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

         If, after the delivery of such replacement Note or payment of a
destroyed, lost or stolen Note, a bona fide purchaser of the original Note in
lieu of which such replacement Note was issued presents for payment such
original Note, the Issuer and the Indenture Trustee shall be entitled to recover
such replacement Note (or such payment) from the Person to whom it was delivered
or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a 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 or the Indenture Trustee in connection therewith.

         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 of the same Class duly issued
hereunder.

         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.

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

         SECTION 2.07 Payments of Principal and Interest.

         (a) The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and
the Class A-4 Notes shall accrue interest during each Interest Period at the
Class A-1 Rate, the Class A-2 Rate,

                                       14
<PAGE>

the Class A-3 Rate and the Class A-4 Rate, respectively, and such interest shall
be payable on each related Payment Date as specified in such Notes, pursuant to
Section 5.06 of the Sale and Servicing Agreement and Section 3.01 hereof. Any
installment of interest or principal payable on any Note that is punctually paid
or duly provided for by the Issuer on the applicable Payment Date shall be paid
to the Person in whose name such Note (or one or more Predecessor Notes) is
registered on the Record Date 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 2.12,
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 or on the applicable Final
Scheduled Payment Date, which shall be payable as provided below. The funds
represented by any such checks returned undelivered shall be held in accordance
with Section 3.03.] [wire transfer in immediately available funds to the account
designated by such Person.

         (b) [During a Revolving Period, the principal of each Note shall be
payable to a principal collection account for the purchase of additional
Receivables pursuant to Section __ of the Sale and Servicing Agreement.] [During
an Amortization Period, the principal of each Note [and, as applicable, the
Subordinated Seller's Interest,] shall be payable in installments on each
Payment Date pursuant to Section 5.06 of the Sale and Servicing Agreement and
subject to the availability of funds therefor.] [Notwithstanding the foregoing,
the entire unpaid principal amount of the Notes shall be due and payable, if not
previously paid, on the date on which an Event of Default shall have occurred
and be continuing, if the Indenture Trustee or the Holders of Notes representing
not less than a majority of the Outstanding Amount of the Notes have declared
the Notes to be immediately due and payable in the manner provided in Section
5.02.] All principal payments on each Class of Notes shall be made pro rata to
the Noteholders of such Class entitled thereto. In accordance with Section
10.01, 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 final installment of principal of and interest on such Note
will be paid. Such notice shall be mailed or transmitted by facsimile not less
than 15 nor more than 30 days prior to such final Payment Date, shall specify
that such final installment will be payable only upon presentation and surrender
of such Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment.

         (c) In the event that any withholding tax is imposed on the Trust's
payment (or allocations of income) to the Noteholders, such tax shall reduce the
amount otherwise distributable to the Noteholders in accordance with this
Section. The Issuer will instruct the Indenture Trustee regarding the imposition
of such withholding tax and, upon receiving such instruction, the Indenture
Trustee is hereby authorized and directed to retain from amounts otherwise
distributable to the Noteholders sufficient funds for the payment of any tax
that is legally owed by the Trust (but such authorization shall not prevent the
Indenture Trustee from contesting any such tax in appropriate proceedings, and
withholding payment of such tax, if permitted by law, pending the outcome of
such proceedings). The amount of any withholding tax imposed with respect to the
Noteholders shall be treated as cash distributed to the Noteholders at the time
it is withheld by the Trust and remitted to the appropriate taxing authority. If
there is a possibility that withholding tax is payable with respect to any
distribution

                                       15
<PAGE>

(such as any distribution to a Non-U.S. Person), the Indenture Trustee may in
its sole discretion withhold such amounts in accordance with this paragraph (c).
In the event that any Noteholder wishes to apply for a refund of any such
withholding tax, the Indenture Trustee shall reasonably cooperate with the
Noteholder in making such claim so long as the Noteholder agrees to reimburse
the Indenture Trustee for any out-of-pocket expenses incurred.

         SECTION 2.08 Cancellation. All Notes surrendered for payment,
registration of transfer or exchange shall, if surrendered to any Person other
than the Indenture Trustee, be delivered to the Indenture Trustee and shall be
promptly canceled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated and
delivered hereunder which the Issuer may have acquired in any manner whatsoever,
and all Notes so delivered shall be promptly canceled by the Indenture Trustee.
No Notes shall be authenticated in lieu of or in exchange for any Notes canceled
as provided in this Section, except as expressly permitted by this Indenture.
All canceled Notes may be held or disposed of by the Indenture Trustee in
accordance with its standard retention or disposal policy as in effect at the
time unless the Issuer shall direct by an Issuer Order that they be destroyed or
returned to it; provided, that such Issuer Order is timely and the Notes have
not been previously disposed of by the Indenture Trustee.

         SECTION 2.09 Release of Collateral. Subject to Sections 10.01 and 11.01
and the terms of the Basic Documents, the Indenture Trustee shall release
property from the lien of this Indenture only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion of Counsel and Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(l) or an Opinion
of Counsel in lieu of such Independent Certificates to the effect that the TIA
does not require any such Independent Certificates.

         SECTION 2.10 Book-Entry Notes. The Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes, upon original issuance, will be issued in the form of
typewritten Notes representing the Book-Entry Notes, to be delivered to The
Depository Trust Company, the initial Clearing Agency, or a custodian therefor,
by, or on behalf of, the Issuer. The Book-Entry Notes shall be registered
initially on the Note Register in the name of Cede & Co., the nominee of the
initial Clearing Agency, and no Note Owner thereof will receive a definitive
Note representing such Note Owner's interest in such Note, except as provided in
Section 2.12. Unless and until definitive, fully registered Notes (the
"Definitive Notes") have been issued to such Note Owners pursuant to Section
2.12:

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

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

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

                                       16
<PAGE>

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

         (e) whenever this Indenture requires or permits actions to be taken
based upon instructions or directions of Holders of the Class A-1 Notes, the
Class A-2 Notes, the Class A-3 Notes and/or the Class A-4 Notes evidencing a
specified percentage of the Outstanding Amount of the Notes or of any such Class
or of two or more of such Classes, 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 of Book-Entry Notes and/or Clearing Agency
Participants owning or representing, respectively, such required percentage of
the beneficial interest in such Notes and has delivered such instructions to the
Indenture Trustee.

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

         SECTION 2.12 Definitive Notes. The Class A-1 Notes, upon original
issuance, will be issued as Definitive Notes. In the case of the Book-Entry
Notes, if (i) the Owner Trustee or the Administrator advises the Indenture
Trustee in writing that the Clearing Agency is no longer willing or able to
properly discharge its responsibilities with respect to the Book-Entry Notes and
the Owner Trustee and the Administrator are unable to locate a qualified
successor (and if the Administrator has made such determination, the
Administrator has given written notice thereof to the Indenture Trustee), (ii)
the Seller or the Administrator or the Indenture Trustee at its option advises
each other such party in writing that it elects to terminate the book-entry
system through the Clearing Agency or (iii) after the occurrence of an Event of
Default or a Servicer Default, owners of the Book-Entry Notes representing
beneficial interests aggregating at least 51% of the Outstanding Amount of the
Book-Entry Notes, advise the Indenture Trustee and the Clearing Agency in
writing that the continuation of a book-entry system through the Clearing Agency
or a successor thereto is no longer in the best interests of the Note Owners
acting together as a single Class, then the Clearing Agency shall notify all
Note Owners and the Indenture Trustee of the occurrence of such event and of the
availability of Definitive Notes to Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Notes representing the
Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Indenture Trustee shall
authenticate the Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the
Holders of the Definitive Notes as Noteholders. The Indenture Trustee, Issuer
and

                                       17
<PAGE>

Administrator shall not be liable for any inability to locate a qualified
successor Clearing Agency. From and after the date of issuance of Definitive
Notes, all notices to be given to Noteholders will be mailed thereto at their
addresses of record in the Note Register as of the relevant Record Date. Such
notices will be deemed to have been given as of the date of mailing.

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

                                   ARTICLE III

                                    Covenants

         SECTION 3.01 Payments to Noteholders, Certificateholders, [Holder of
the Revolving Liquidity Note,] [Swap Counterparty,] Servicer and Seller. In
accordance with the terms of this Indenture, the Issuer will duly and punctually
(i) pay the principal of and interest, if any, on the Notes in accordance with
the terms of the Notes, [(ii) pay to the Swap Counterparty any Swap Payments
Outgoing and Swap Termination Payment when due,] [(iii) pay to the Holder of the
Revolving Liquidity Note payments under the Revolving Liquidity Note when due,]
(vi) pay the principal of the Certificate in accordance with the terms of the
Certificate, and (v) release from the Collection Account, Principal Distribution
Account and Payahead Account all other amounts distributable or payable from the
Owner Trust Estate (including distributions to be made to the Certificateholders
on any Payment Date) under the Trust Agreement, Sale and Servicing Agreement,
[the Revolving Liquidity Note Agreement] and Administration Agreement. Without
limiting the foregoing, and in order to fulfill such obligations, pursuant to
Sections 8.02 and 8.04 hereof, the Issuer will cause the Servicer to direct the
Indenture Trustee to apply all amounts on deposit in the Collection Account,
Payahead Account and Reserve Account on a Payment Date deposited therein
pursuant to the Sale and Servicing Agreement (i) (a) for the benefit of the
Class A-1 Notes, to the Class A-1 Noteholders, (b) for the benefit of the Class
A-2 Notes, to the Class A-2 Noteholders, (c) for the benefit of the Class A-3
Notes, to the Class A-3 Noteholders and (d) for the benefit of the Class A-4
Notes, to the Class A-4 Noteholders, in each case as set forth in Sections 5.06
and 5.07 of the Sale and Servicing Agreement, [(ii) for the benefit of the Swap
Counterparty, to or as directed by the Servicer pursuant to Section 5.06 of the
Sale and Servicing Agreement;] [(iii) for the benefit of the Holder of the
Revolving Liquidity Note, as set forth in Section 5.06 and 5.07 of the Sale and
Servicing Agreement;] (iv) for the benefit of the Servicer, to or as directed by
the Servicer pursuant to Section 5.06 of the Sale and Servicing Agreement; (v)
for the benefit of the Certificateholders, to or as directed by the Owner
Trustee or the Administrator, as set forth in Sections 5.06 and 5.07 of the Sale
and Servicing Agreement; (vi) for the benefit of the Seller, to or as directed
by the Seller pursuant to Section 5.07 of the Sale and Servicing Agreement.
Amounts properly withheld under the Code by any Person from a payment to any
Noteholder or the Certificateholders of interest and/or principal shall be
considered as having been paid by the Issuer to such Noteholder or the
Certificateholders for all purposes of this Indenture.

                                       18
<PAGE>

         SECTION 3.02 Maintenance of Office or Agency. The Issuer will maintain
in the Borough of Manhattan, The City of New York, an office or agency where
Notes may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Indenture
Trustee to serve as its agent for the foregoing purposes. The Issuer will give
prompt written notice to the Indenture Trustee of the location, and of any
change in the location, of any such office or agency. If at any time the Issuer
shall fail to maintain any such office or agency or shall fail to furnish the
Indenture Trustee with the address thereof, such surrenders, notices and demands
may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Indenture Trustee as its agent to receive all such surrenders,
notices and demands.

         SECTION 3.03 Money for Payments To Be Held in Trust. All payments of
amounts due and payable with respect to any Notes, [the Revolving Liquidity Note
or the Certificate,] or [to the Swap Counterparty (to the extent such payments
to the Swap Counterparty were not deducted from amounts remitted to the
Collection Account by the Servicer pursuant to Section 5.04(e) of the Sale and
Servicing Agreement)] that are to be made from amounts withdrawn from the
Collection Account, Principal Distribution Account or Reserve Fund [(provided
that only the Collection Account is available for any amounts payable to the
Swap Counterparty)] pursuant to Sections 2.07, 3.01, 4.02 and 4.03 shall be made
on behalf of the Issuer by the Indenture Trustee or by a Paying Agent, and no
amounts so withdrawn from such accounts for payments of Notes, [the Revolving
Liquidity Note,] the Certificates [or to the Swap Counterparty (provided that
such amounts payable to the Swap Counterparty were not deducted from amounts
remitted to the Collection Account by the Servicer pursuant to Section 5.04(e)
of the Sale and Servicing Agreement)] shall be paid over to the Issuer, the
Owner Trustee or the Administrator except as provided in this Section.

         On or before each Payment Date, the Issuer shall deposit in the
Collection Account or, in accordance with the Sale and Servicing Agreement,
cause to be deposited (including the provision of instructions to the Indenture
Trustee to make any required [draws on the Revolving Liquidity Note or]
withdrawals from the Payahead Account or Reserve Account and to deposit such
amounts in the Collection Account) to the extent of funds available therefor, an
aggregate sum sufficient to pay the amounts then becoming due under the Notes
and the Certificates, such sum to be held in trust for the benefit of the
Persons entitled thereto, and (unless the Paying Agent is the Indenture Trustee)
shall promptly notify the Indenture Trustee of its action or failure so to act.

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

         (a) hold all sums held by it for the payment of amounts due with
respect to the Notes, [the Revolving Liquidity Note,] the Certificates [or to
the Swap Counterparty] or for release to the Issuer for payment to the
Certificateholders in trust for the benefit of the Persons entitled

                                       19
<PAGE>

thereto until such sums shall be paid to such Persons or otherwise disposed of
as herein provided and pay or release such sums to such Persons as herein
provided;

         (b) give the Indenture Trustee notice of any default by the Issuer (or
any other obligor upon the Notes) of which it has actual knowledge in the making
of any payment required to be made with respect to the Notes [or to the Swap
Counterparty] or the release of any amounts to the Issuer to be paid to the
Certificateholders;

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

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

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

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

         Subject to applicable laws with respect to escheat of funds, any money
held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed after such
amount has become due and payable and after the Indenture Trustee has taken the
steps described in the next paragraph shall be discharged from such trust and be
paid to the California Special Olympics upon presentation thereto of an Issuer
Request; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the
Indenture Trustee or such Paying Agent with respect to such trust money shall
thereupon cease.

         In the event that any Noteholder shall not surrender its Notes for
retirement within six months after the date specified in the written notice of
final payment described in Section 2.07, the Indenture will give a second
written notice to the registered Noteholders that have not surrendered their
Notes for final payment and retirement. If within one year after such second
notice any Notes have not been surrendered, the Indenture Trustee shall, at the
expense and direction of the Issuer, cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day
and of general circulation in The City of New York, notice that such money
remains unclaimed and that, after a date specified therein,

                                       20
<PAGE>

which shall not be less than 30 days from the date of such publication, any
unclaimed balance of such money then remaining will be paid to California
Special Olympics. The Indenture Trustee shall also adopt and employ, at the
expense and direction of the Issuer, any other reasonable means of notification
of such repayment specified by the Issuer or the Administrator.

         SECTION 3.04 Existence. The Issuer will keep in full effect its
existence, rights and franchises as a statutory trust under the laws of the
State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other State or of the United States of
America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and
preserve its qualification to do business in each jurisdiction in which such
qualification is or shall be necessary to protect the validity and
enforceability of this Indenture, the Notes, the Collateral and each other
instrument or agreement included in the Trust Estate or the Owner Trust Estate.

         SECTION 3.05 Protection of Trust Estate. The Issuer will from time to
time execute and deliver all such supplements and amendments hereto and all such
financing statements, continuation statements, instruments of further assurance
and other instruments, and will take such other action necessary or advisable
to:

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

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

         (c) enforce any of the Collateral [(including all rights under the
Interest Rate Swap Agreement] and [Revolving Liquidity Note Agreement)];

         (d) [make draw requests pursuant to the terms of the Revolving
Liquidity Note Agreement under any circumstance in which the Issuer or the
Indenture Trustee has the right to make such draws pursuant to the terms of the
Revolving Liquidity Note Agreement;] or

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

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

         SECTION 3.06 Opinions as to Trust Estate.

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

                                       21
<PAGE>

         (b) As and when specified in Section 10.02(h) of the Sale and Servicing
Agreement, the Issuer shall furnish to the Indenture Trustee an Opinion of
Counsel either stating that, in the opinion of such counsel, such action has
been taken with respect to the execution, recording, filing or re-recording and
refiling of this Indenture, any indentures supplemental hereto, any financing
statements and continuation statements and any other requisite documents
necessary to maintain the lien and security interest created by this Indenture
or stating that in the opinion of such counsel no such action is necessary to
maintain such lien and security interest. Such Opinion of Counsel shall also
describe the execution, recording, filing or re-recording and refiling of this
Indenture, any indentures supplemental hereto, any financing statements and
continuation statements and any other documents that will, in the opinion of
such counsel, be required to maintain the lien and security interest of this
Indenture until the date in the following calendar year on which such Opinion of
Counsel must again be delivered.

         SECTION 3.07 Performance of Obligations; Servicing of Receivables.

         (a) The Issuer will not take any action and will use its best efforts
not to permit any action to be taken by others that would release any Person
from any of such Person's material covenants or obligations under any instrument
or agreement included in the Trust Estate or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the
validity or effectiveness of, any such instrument or agreement, except [in each
case] as expressly provided in the Basic Documents [and the Interest Rate Swap
Agreement].

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

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

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

         (e) As promptly as possible after the giving of notice of termination
to the Servicer of the Servicer's rights and powers pursuant to Section 8.01 of
the Sale and Servicing Agreement, or if the Servicer resigns in accordance with
the terms of the Sale and Servicing Agreement, the

                                       22
<PAGE>

Indenture Trustee shall give prompt written notice of such event to the
Noteholders and each Rating Agency and shall act to appoint a successor servicer
(the "Successor Servicer"). Any such Successor Servicer shall accept its
appointment by a written assumption in a form acceptable to the Indenture
Trustee. In the event that a Successor Servicer has not been appointed and
accepted its appointment as set forth in Section 8.02 of the Sale and Servicing
Agreement, the Indenture Trustee without further action shall automatically be
appointed the Successor Servicer and shall thereafter be entitled to the
Servicing Fee. Notwithstanding the above, the Indenture Trustee shall, if it
shall be unwilling or legally unable so to act, appoint or petition a court of
competent jurisdiction to appoint any established institution having a net worth
of not less than $50,000,000 and whose regular business shall include the
servicing of automobile and/or light-duty truck receivables, as the successor to
the Servicer under the Sale and Servicing Agreement, in accordance with the
provisions of Section 8.02 of the Sale and Servicing Agreement. Upon such
appointment, the Indenture Trustee will be released from the duties and
obligations of acting as Successor Servicer, such release effective upon the
effective date of the servicing agreement entered into between the Successor
Servicer and the Issuer.

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

         (f) Without derogating from the absolute nature of the assignment
granted to the Indenture Trustee under this Indenture or the rights of the
Indenture Trustee hereunder, the Issuer agrees that it will not enter into any
amendment, modification, supplement or waiver with respect to any Basic Document
[and the Interest Rate Swap Agreement] except (i) to cure any ambiguity, to
correct or supplement any provisions in this Agreement or for the purpose of
adding any provisions to or changing in any manner or eliminating any of the
provisions in this Agreement or of modifying in any manner the rights of the
Noteholders[, the Holder of the Revolving Liquidity Note,] [the Swap
Counterparty] or the Certificateholders, and in each case with the consent of
the Indenture Trustee (but without the consent of any of the Noteholders or the
Certificateholders) and delivery of an Opinion of Counsel delivered to the Owner
Trustee and the Indenture Trustee, to the effect that such action will not
adversely affect in any material respect the interests of any Noteholder[, the
Holder of the Revolving Liquidity Note,] [the Swap Counterparty] or the
Certificateholders; (ii) for the purpose of changing the formula for determining
the Specified Reserve Account Balance, the manner in which the Reserve Account
is funded, changing the remittance schedule for the deposit of collections with
respect to the Receivables in the Collection Account or Payahead Account
pursuant to Section 5.02 of the Sale and Servicing Agreement or changing the
definition of Eligible Investment, in each case with the

                                       23
<PAGE>

consent of the Indenture Trustee (but without the consent of any of the
Noteholders[, the Holder of the Revolving Liquidity Note,] [the Swap
Counterparty] or the Certificateholders) if the Indenture Trustee and/or the
Owner Trustee, as the case may be, has received a letter from each Rating Agency
to the effect that such Rating Agency will not qualify, reduce or withdraw the
rating it has currently assigned to any Class of Notes as a result of such
amendment (provided that no such amendment may increase or reduce in any manner
or accelerate or delay the timing of collections on the Receivables or payments
required to be made to any Class of Notes or the Certificate without the consent
of all Holders of each affected Class); or (iii) with the consent of the
Indenture Trustee and satisfaction of all other conditions precedent to such
action set forth in the related Basic Document [and the Interest Rate Swap
Agreement]. If any such amendment, modification, supplement or waiver shall be
so consented to by the Indenture Trustee or such Holders, as applicable, the
Issuer agrees, promptly following a request by the Indenture Trustee to agree to
such amendment and to execute and deliver, in its own name and at its own
expense, such agreements, instruments, consents and other documents as the
Indenture Trustee may deem necessary or appropriate in the circumstances to
implement such amendment and to cause the relevant Basic Documents [and the
Interest Rate Swap Agreement], as amended, to be enforceable against the Issuer.

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

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

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

         (c) except as may be expressly permitted hereby and by the Basic
Documents, (A) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated,
subordinated, terminated or discharged, or permit any Person to be released from
any covenants or obligations with respect to the Notes under this Indenture, (B)
permit any lien, charge, excise, claim, security interest, mortgage or other
encumbrance (other than the liens of this Indenture[, the Interest Rate Swap
Agreement] or [the Revolving Liquidity Note Agreement]) to be created on or
extend to or otherwise arise upon or burden the Trust Estate or any part thereof
or any interest therein or the proceeds thereof (other than tax liens,
mechanics' liens and other liens that arise by operation of law, in each case on
any of the Financed Vehicles and arising solely as a result of an action or
omission of the related Obligor), (C) permit the lien of this Indenture not to
constitute a valid first priority (other than with respect to any such tax,
mechanics' or other lien) security interest in the Trust Estate or (D) dissolve
or liquidate in whole or in part; or

         (d) assume or incur any indebtedness other than the Notes[, the
Interest Rate Swap Agreement] or [the Revolving Liquidity Note] or as expressly
contemplated by this Indenture (in

                                       24
<PAGE>

connection with the obligation to reimburse Advances from the Trust Estate, or
to pay expenses from the Trust Estate) or by the Basic Documents as in effect on
the date hereof.

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

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

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

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

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

              (i) the Person (if other than the Issuer) formed by or surviving
         such consolidation or merger shall be a Person organized and existing
         under the laws of the United States of America or any State or the
         District of Columbia and shall expressly assume, by an indenture
         supplemental hereto, executed and delivered to the Indenture Trustee,
         in form satisfactory to the Indenture Trustee, the duty to make due and
         punctual payments of the principal of and interest on all Notes in
         accordance with the terms thereof and the performance or observance of
         every agreement and covenant of this Indenture on the part of the
         Issuer to be performed or observed, all as provided herein;

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

              (iii) each Rating Agency shall have notified the Indenture Trustee
         and the Owner Trustee that such transaction would not result in the
         removal or reduction of the rating then assigned thereby to any Class
         of Notes;

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

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

                                       25
<PAGE>

              (vi) the Issuer shall have delivered to the Indenture Trustee an
         Officer's Certificate and an Opinion of Counsel each stating that such
         consolidation or merger and any related supplemental indenture complies
         with this Section 3.10 and that all conditions precedent provided for
         in this Indenture relating to such transaction have been complied with
         (including any filing required by the Exchange Act).

         (b) Except as expressly provided in this Indenture or in the Basic
Documents, the Issuer shall not convey or transfer its properties or assets,
including those included in the Trust Estate, to any Person, unless:

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

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

              (iii) each Rating Agency shall have notified the Indenture Trustee
         and the Owner Trustee that such transaction might or would result in
         the removal or reduction of the rating then assigned thereby to any
         Class of Notes;

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

                                       26
<PAGE>

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

              (vi) the Issuer shall have delivered to the Indenture Trustee an
         Officer's Certificate and an Opinion of Counsel each stating that such
         conveyance or transfer and such supplemental indenture comply with this
         Section 3.10 and that all conditions precedent herein provided for
         relating to such transaction have been complied with (including any
         filing required by the Exchange Act).

         SECTION 3.11 Successor or Transferee.

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

         (b) Upon a conveyance or transfer of all the assets and properties of
the Issuer pursuant to Section 3.10(b), Toyota Auto Receivables 200_-_ Owner
Trust will be released from every covenant and agreement of this Indenture to be
observed or performed on the part of the Issuer with respect to the Notes
immediately upon the delivery of written notice to the Indenture Trustee stating
that Toyota Auto Receivables 200_-_ Owner Trust is to be so released.

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

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

         SECTION 3.14 Servicer's Notice Obligations. The Issuer shall cause the
Servicer to comply with all of its duties and obligations with respect to the
preparation of reports, the delivery of Officer's Certificates and Opinions of
Counsel and the giving of instructions and notices under the Sale and Servicing
Agreement (including, but not limited to, under Sections 3.02, 4.08, 4.10, 4.11,
4.12, 4.15, 5.08 and Article X thereof).

         SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities. Unless
and until the Issuer shall have been released from its duties and obligations
hereunder, except as contemplated by the Sale and Servicing Agreement [the
Revolving Liquidity Note Agreement,] this Indenture or the other Basic
Documents, the Issuer shall not make any loan or advance or credit to, or
guarantee (directly or indirectly or by an instrument having the effect of
assuring

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<PAGE>

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. Unless and until the Issuer shall
have been released from its duties and obligations hereunder, the Issuer shall
not make any expenditure (by long-term or operating lease or otherwise) for
capital assets (either realty or personalty).

         SECTION 3.17 Removal of Administrator. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless
so instructed by the Owner Trustee or the Indenture Trustee and unless each
Rating Agency shall have received 10 days' written notice thereof and shall not
have notified the Indenture Trustee, the Administrator or the Owner Trustee that
such removal might or would result in the removal or reduction of the rating
then assigned thereby to any Class of Notes.

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

         SECTION 3.19 Notice of Events of Default. The Issuer shall give the
Indenture Trustee and the Rating Agencies prompt written notice of each Event of
Default hereunder, each default on the part of the Servicer or the Seller of its
obligations under the Sale and Servicing Agreement[,] [and] each default on the
part of TMCC of its obligations under the Receivables Purchase Agreement[, each
Swap Event of Default] and [any default by the Holder of the Revolving Liquidity
Note of its obligations under the Revolving Liquidity Note Agreement]. The
Indenture Trustee shall notify each Noteholder of record in writing of any Event
of Default promptly upon a Trust Officer obtaining actual knowledge thereof.
Such notices will be provided in accordance with Section 2.11 or 2.12, as
applicable.

         SECTION 3.20 Further Instruments and Actions. Upon request of the
Indenture Trustee, the Issuer will execute and deliver such further instruments
and do such further acts as may be reasonably necessary or proper to carry out
more effectively the purpose of this Indenture.

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<PAGE>

                                   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) Section 3.03, (v) the rights,
obligations and immunities of the Indenture Trustee hereunder (including the
rights of the Indenture Trustee under Section 6.07 and the obligations of the
Indenture Trustee under Sections 3.03 and 4.02), and (vi) the rights of
Noteholders[,] [and] the Certificateholders[, the Holder of the Revolving
Liquidity Note] and [the Swap Counterparty] as beneficiaries hereof with respect
to the property so deposited with the Indenture Trustee payable to all or any of
them, and the Indenture Trustee, on demand of and at the expense of the Issuer,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture with respect to the Notes, when:

         (a) either (1) all Notes [and the Revolving Liquidity Note] theretofore
authenticated and delivered (other than Notes that have been destroyed, lost or
stolen and that have been replaced or paid as provided in Section 2.05 and Notes
for whose payment money has theretofore been deposited in trust or segregated
and held in trust by the Issuer and thereafter repaid to the Issuer or
discharged from such trust, as provided in Section 3.03) have been delivered to
the Indenture Trustee for cancellation [and the Interest Rate Swap Agreement]
and [the Revolving Liquidity Note Agreement have been terminated and all Swap
Payments Outgoing and, if applicable, any Swap Termination Payments owed by the
Issuer to the Swap Counterparty have been paid and all payments owed under the
Revolving Liquidity Note Agreement have been paid] or (2) all Notes not
theretofore delivered to the Indenture Trustee for cancellation have become due
and payable or will become due and payable within one year (either because the
Class A-4 Final Scheduled Payment Date is within one year or because the
Indenture Trustee has received notice of the exercise of the option granted
pursuant to Section 9.01 of the Sale and Servicing Agreement) and the Issuer has
irrevocably deposited or caused to be irrevocably deposited with the Indenture
Trustee cash or direct obligations of or obligations guaranteed by the United
States of America (which will mature prior to the date such amounts are
payable), in trust for such purpose, in an amount sufficient to pay and
discharge the entire indebtedness on such Notes not theretofore delivered to the
Indenture Trustee for cancellation when due[, the Revolving Liquidity Note when
due] and [all amounts due to the Swap Counterparty];

         (b) the Issuer has paid or caused to be paid all other sums payable
hereunder by the Issuer; and

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

         SECTION 4.02 Application of Trust Money. All moneys deposited with the
Indenture Trustee pursuant to Section 4.01 hereof shall be held in trust and (a)
applied by it in accordance with the provisions of the Notes, the Sale and
Servicing Agreement and this Indenture to the payment, either directly or
through any Paying Agent, as the Indenture Trustee may determine, to the Holders
of the particular Notes for the payment of which such moneys

                                       29
<PAGE>

have been deposited with the Indenture Trustee, of all sums due and to become
due thereon for principal and interest, [(b) applied by it in accordance with
the provisions of the Revolving Liquidity Note Agreement to payment for amounts
due to the Holder of the Revolving Liquidity Note,] [(c) applied by it in
accordance with the provisions of the Interest Rate Swap Agreement, the Sale and
Servicing Agreement and this Indenture to the payment, either directly or
through any Paying Agent, as the Indenture Trustee may determine, to the Swap
Counterparty any Swap Payments Outgoing or Swap Termination Payment due
(provided that such amounts were not deducted from amounts remitted to the
Collection Account by the Servicer pursuant to Section 5.04(e) of the Sale and
Servicing Agreement),] or (d) released to the Owner Trustee for distribution to
the Certificateholders or application pursuant to the Trust Agreement or Sale
and Servicing Agreement; but such moneys need not be segregated from other funds
except to the extent required herein or in the Sale and Servicing Agreement or
required by law.

         SECTION 4.03 Repayment of Moneys Held by Paying Agent. In connection
with the satisfaction and discharge of this Indenture with respect to the Notes,
all moneys then held by any Paying Agent other than the Indenture Trustee under
the provisions of this Indenture with respect to such Notes shall, upon demand
of the Issuer, be paid to the Indenture Trustee to be held and applied according
to Section 3.03 or 4.02 and thereupon such Paying Agent shall be released from
all further liability with respect to such moneys.

                                    ARTICLE V

                                    Remedies

         SECTION 5.01 Events of Default. "Event of Default," wherever used
herein, means any one of the following events (whatever the reason for such
Event of Default and whether it shall be voluntary or involuntary or be effected
by operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

         (a) default in the payment of any interest on any Note when the same
becomes due and payable, and such default shall continue for a period of five
days; or

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

         (c) default in the observance or performance of any covenant or
agreement of the Issuer made in this Indenture (other than a covenant or
agreement, a default in the observance or performance of which is elsewhere in
this Section specifically dealt with) which shall continue or not be cured for a
period of 90 days after there shall have been given, by registered or certified
mail, to the Issuer by the Indenture Trustee or to the Issuer and the Indenture
Trustee by the Holders of at least 25% of the Outstanding Amount of the Notes
acting together as a single class, a written notice specifying such default and
requiring it to be remedied and stating that such notice is a notice of Default
hereunder;

         (d) any representation or warranty of the Issuer made in this Indenture
or in any certificate or other writing delivered pursuant hereto or in
connection herewith shall prove to

                                       30
<PAGE>

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

         (e) the filing of a decree or order for relief by a court having
jurisdiction in the premises in respect of the Issuer or any substantial part of
the Trust Estate in an involuntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Issuer or for any substantial part of the Trust Estate,
or ordering the winding-up or liquidation of the Issuer's affairs, and such
decree or order shall remain unstayed and in effect for a period of 90
consecutive days;

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

         (g) [termination of the Interest Rate Swap Agreement on the Early
Termination Date (as defined in the Interest Rate Swap Agreement), without the
execution by the Trust and a replacement Swap Counterparty of a replacement
Interest Rate Swap Agreement with substantially the same terms as the Interest
Rate Swap Agreement and acceptable to the Issuer and the Indenture Trustee and
the assignment of such replacement Interest Rate Swap Agreement to the Indenture
Trustee; or]

         (h) [default in the payment by the Holder of the Revolving Liquidity
Note of its funding obligations under the Revolving Liquidity Note Agreement.]

         For purposes of determining whether an Event of Default pursuant to
Section 5.01(b) has occurred, the amount of principal required to be paid to the
Holders of any Class of Notes on any Payment Date is the amount available to be
paid thereto as principal pursuant to Sections 5.06(c) and (d) of the Sale and
Servicing Agreement; provided however that (i) the Class A-1 Notes are required
to be paid in full on or before the Class A-1 Final Scheduled Payment Date,
meaning that Holders of Class A-1 Notes are entitled to have received on or
before such date payments in respect of principal in an aggregate amount equal
to the Class A-1 Initial Principal Balance together with all interest accrued
thereon through such date; (ii) the Class A-2 Notes are required to be paid in
full on or before the Class A-2 Final Scheduled Payment Date, meaning that
Holders of Class A-2 Notes are entitled to have received on or before such date
payments in respect of principal in an aggregate amount equal to the Class A-2
Initial Principal Balance

                                       31
<PAGE>

together with all interest accrued thereon through such date, (iii) the Class
A-3 Notes are required to be paid in full on or before the Class A-3 Final
Scheduled Payment Date, meaning that Holders of Class A-3 Notes are entitled to
have received on or before such date payments in respect of principal in an
aggregate amount equal to the Class A-3 Initial Principal Balance together with
all interest accrued thereon through such date and (iv) the Class A-4 Notes are
required to be paid in full on or before the Class A-4 Final Scheduled Payment
Date, meaning that Holders of Class A-4 Notes are entitled to have received on
or before such date payments in respect of principal in an aggregate amount
equal to the Class A-4 Initial Principal Balance together with all interest
accrued thereon through such date.

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

         SECTION 5.02 Acceleration of Maturity; Rescission and Annulment. If an
Event of Default should occur and be continuing, then and in every such case the
Indenture Trustee or the Holders of at least 51% of the Outstanding Amount of
the Class A Notes acting together as a single Class (excluding for such purposes
the outstanding principal amount of any Notes held of record or beneficially
owned by TMCC, TAFR LLC or any of their Affiliates), may, without the consent of
the Certificateholders, declare all the Notes to be immediately due and payable,
by a notice in writing to the Issuer (and to the Indenture Trustee if given by
Noteholders), and upon any such declaration the unpaid principal amount of such
Notes, together with accrued and unpaid interest thereon through the date of
acceleration, shall become immediately due and payable.

         At any time after such declaration of acceleration of maturity has been
made and before a judgment or decree for payment of the money due has been
obtained by the Indenture Trustee as hereinafter in this Article V provided, the
Holders of Notes representing at least 51% of the Outstanding Amount of the
Notes (excluding for such purposes the outstanding principal amount of any Notes
held of record or beneficially owned by TMCC, TAFR LLC or any of their
Affiliates), acting together as a single Class, without the consent of the
Certificateholders, in each case, by written notice to the Issuer and the
Indenture Trustee, may rescind and annul such declaration and its consequences
if:

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

              (i) all payments of principal of and interest on the respective
         Class of Notes and all other amounts that would then be due hereunder
         [(including all payments payable to the Holder of the Revolving
         Liquidity Note under the Revolving Liquidity Note Agreement] and [the
         Swap Counterparty under the Interest Rate Swap Agreement)] or in
         accordance with the terms of the Notes if the Event of Default giving
         rise to such acceleration had not occurred; and

                                       32
<PAGE>

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

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

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

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

         (a) The Issuer covenants that if (i) Default is made in the payment of
any interest on any Note, so long as any amounts remain unpaid with respect to
the Notes, when the same becomes due and payable, and such default continues for
a period of five days, or (ii) default is made in the payment of the principal
of or any installment of the principal of any Note when the same becomes due and
payable (as described in the penultimate paragraph of Section 5.01 hereof), the
Issuer will, upon demand of the Indenture Trustee, pay to the Indenture Trustee,
for the benefit of the Holders of the Notes, the whole amount then due and
payable on such Class of Notes for principal and interest, with interest upon
the overdue principal and, to the extent payment at such rate of interest shall
be legally enforceable, upon overdue installments of interest at the rate borne
by the Notes and in addition thereto such further amount as shall be sufficient
to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and
its agents and counsel.

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

         (c) If an Event of Default occurs and is continuing, the Indenture
Trustee may, as more particularly provided in Section 5.04, in its discretion,
proceed to protect and enforce its rights and the rights of the Noteholders and,
incidentally thereto, the Certificateholders, by such appropriate Proceedings as
the Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

         (d) In case there shall be pending, relative to the Issuer or any other
obligor upon the Notes or any Person having or claiming an ownership interest in
the Trust Estate, Proceedings under Title 11 of the United States Code or any
other applicable federal or state bankruptcy, insolvency or other similar law,
or in case a receiver, assignee or trustee in bankruptcy or

                                       33
<PAGE>

reorganization, liquidator, sequestrator or similar official shall have been
appointed for or taken possession of the Issuer or its property or such other
obligor or Person, or in case of any other comparable judicial Proceedings
relative to the Issuer or other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, then, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, the Indenture
Trustee shall be entitled and empowered, by intervention in such Proceedings or
otherwise:

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

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

              (iii) to collect and receive any moneys or other property payable
         or deliverable on any such claims and to distribute all amounts
         received with respect to the claims of the Noteholders[, the Holder of
         the Revolving Liquidity Note,] [the Swap Counterparty] or the
         Certificateholders and of the Indenture Trustee on their behalf; and

              (iv) to file such proofs of claim and other papers or documents as
         may be necessary or advisable in order to have the claims of the
         Indenture Trustee or the Holders of Notes[, the Swap Counterparty] or
         [the Holder of the Revolving Liquidity Note] allowed in any judicial
         proceedings relative to the Issuer, its creditors and its property; and
         any trustee, receiver, liquidator, custodian or other similar official
         in any such Proceeding is hereby authorized by each of such Noteholders
         to make payments to the Indenture Trustee and, in the event that the
         Indenture Trustee shall consent to the making of payments directly to
         such Noteholders, [the Swap Counterparty] and [the Holder of the
         Revolving Liquidity Note,] to pay to the Indenture Trustee such amounts
         as shall be sufficient to cover reasonable compensation to the
         Indenture Trustee, each predecessor Indenture Trustee and their
         respective agents, attorneys and counsel, and all other expenses and
         liabilities incurred, and all advances made, by the Indenture Trustee
         and each predecessor Indenture Trustee except as a result of negligence
         or bad faith.

         (e) Nothing herein contained shall be deemed to authorize the Indenture
Trustee to authorize or consent to or vote for or accept or adopt on behalf of
any Noteholder [or the Holder of the Revolving Liquidity Note] 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 [or the Holder of the Revolving

                                       34
<PAGE>

Liquidity Note] in any such proceeding except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar Person.

         (f) All rights of action and of asserting claims under this Indenture,
or under any of the Notes, [the Revolving Liquidity Note Agreement] or [the
Interest Rate Swap Agreement,] may be enforced by the Indenture Trustee without
the possession of any of the Notes or the production thereof in any trial or
other Proceedings relative thereto, and any such action or Proceedings
instituted by the Indenture Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment, subject to the payment of the
expenses, disbursements and compensation of the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents and attorneys, shall
be for the ratable benefit of the Holders of the Notes [and the Holder of the
Revolving Liquidity Note] and, incidentally thereto, for the benefit of the
Certificateholders.

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

         SECTION 5.04 Remedies; Priorities; Insolvency of Seller.

         (a) If an Event of Default under Section 5.01 shall have occurred and
be continuing which results in the acceleration of the Notes (whether or not the
Trust Estate is sold in one or more public or private sales as provided in
Section 5.04(c)(iv)), and unless and until such acceleration has been rescinded,
the Indenture Trustee will make payments on the Notes[, the Revolving Liquidity
Note] and the Certificates as set forth in Section 5.06(d) of the Sale and
Servicing Agreement, rather than pursuant to Section 5.06(c).

         (b) [If the Indenture Trustee, in compliance with Section 5.04(a), is
deemed to have a conflict of interest under the TIA and is required to resign as
Indenture Trustee hereunder, the Indenture Trustee, pursuant to Section 6.10,
may appoint an indenture trustee to act separately hereunder for the Class A
Notes. In the event a separate indenture trustee is appointed for the Class A
Notes, so long as any amounts remain unpaid with respect to the Class A Notes,
only the Indenture Trustee for the Class A Noteholders shall be entitled to
waive any Event of Default or Servicer Default or exercise any remedies under
this Indenture.]

         (c) In accordance with Section 5.03, if an Event of Default shall have
occurred and be continuing, the Indenture Trustee may do one or more of the
following (subject to Section 5.05):

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

                                       35
<PAGE>

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

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

              (iv) sell the Trust Estate or any portion thereof or rights or
         interest therein, at one or more public or private sales called and
         conducted in any manner permitted by law; provided, however, that,
         notwithstanding anything in this Indenture to the contrary, the
         Indenture Trustee may not sell or otherwise liquidate the Trust Estate
         following an Event of Default, other than an Event of Default described
         in Section 5.01(a), (b), (g) [or (h)], unless (A) the Holders of 100%
         of the Outstanding Amount of the Notes consent thereto or (B) the
         proceeds of such sale or liquidation distributable to the Noteholders
         are sufficient to discharge in full all amounts then due and unpaid
         upon such Notes for principal and interest or (C) the Indenture Trustee
         determines that the Trust Estate will not continue to provide
         sufficient funds on an ongoing basis to make all payments of principal
         of and interest on the Notes as they would have become due if the Notes
         had not been declared due and payable, and the Indenture Trustee
         obtains the consent of Holders of 66-2/3% of the Outstanding Amount of
         the Notes (acting together as a single class). In determining such
         sufficiency or insufficiency with respect to clause (B) and (C), the
         Indenture Trustee may, but need not, obtain and rely upon an opinion of
         an Independent investment banking or accounting firm of national
         reputation as to the feasibility of such proposed action and as to the
         sufficiency of the Trust Estate for such purpose. In connection with
         any such sale, the Indenture Trustee will afford the Holders of each
         Class of Notes adequate advance notice and information as to the
         conduct of such sale such that any such Holders (acting individually,
         as Classes, as a single Class or otherwise) will be reasonably able to
         submit bids for the purchase of the assets to be liquidated, and that
         the Indenture Trustee will consider any and all such bids on the same
         basis that it considers any other bids submitted by any other party or
         parties. The proceeds of such sale or liquidation (net of the expenses
         incurred by the Indenture Trustee in connection with the conduct
         thereof, which will be retained by the Indenture Trustee from such
         proceeds) will be treated as collections and deposited into the
         Collection Account by the Indenture Trustee for distribution to the
         Noteholders[, the Swap Counterparty,] [the Holder of the Revolving
         Liquidity Note Agreement] and the Certificateholders in accordance with
         the priorities specified in Section 5.06(d) of the Sale and Servicing
         Agreement. The Indenture Trustee will have no liability with respect to
         the amount of such proceeds or the adequacy thereof to make payments in
         full of any Class of Notes [the Revolving Liquidity Note] or the
         Certificate.

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

         (d) If an Insolvency Event occurs with respect to the Seller, the
Indenture Trustee (or the Indenture Trustee for the Class A Notes, pursuant to
Section 5.04(c)) will sell the Trust

                                       36
<PAGE>

Estate or any portion thereof or rights or interest therein, at one or more
public or private sales called and conducted in any manner permitted by law and
in a commercially reasonable manner and on commercially reasonable terms in
accordance with the provisions of Section 9.02 of the Trust Agreement; provided,
however, that the Indenture Trustee (or the Indenture Trustee for the Class A
Notes, pursuant to Section 5.04(c)) may not sell or otherwise liquidate the
Trust Estate in connection with such event if, prior to the termination of the
Trust Agreement pursuant to Section 9.02 of the Trust Agreement, the Holders of
at least 51% of the Outstanding Amount of the Class A Notes so long as any
amounts remain unpaid with respect to such Notes (excluding from such action and
calculation all Notes held by TMCC, TAFR LLC or any of their Affiliates) notify
the Indenture Trustee in writing that they disapprove of such sale or
liquidation and the termination of trusts created hereby in connection
therewith; and provided, further, that in connection with any such sale the
Indenture Trustee will afford the Holders of each Class of Notes adequate
advance notice and information as to the conduct of such sale such that any such
Holders (acting individually, as Classes, as a single Class or otherwise) will
be reasonably able to submit bids for the purchase of the assets to be
liquidated, and that the Indenture Trustee will consider any and all such bids
on the same basis that it considers any other bids submitted by any other party
or parties. The proceeds of such sale or liquidation (net of the expenses
incurred by the Indenture Trustee in connection with the conduct thereof, which
will be retained by the Indenture Trustee from such proceeds) will be treated as
collections and deposited into the Collection Account by the Indenture Trustee
for distribution to the Noteholders[, the Swap Counterparty,] [the Holder of the
Revolving Liquidity Note] and Certificateholders in accordance with the
priorities specified in Section 5.06(d) of the Sale and Servicing Agreement. The
Indenture Trustee will have no liability with respect to the amount of such
proceeds or the adequacy thereof to make payments in full of any Class of
Notes[, the Revolving Liquidity Note] or the Certificates. The Indenture Trustee
may, but need not, obtain and rely upon an opinion of an Independent investment
banking or accounting firm of national reputation as to the commercial
reasonableness of the conduct of any such sale or liquidation and as to the
expenses incurred by the Indenture Trustee in connection therewith, the costs of
which may be retained by the Indenture Trustee from the proceeds of such sale or
liquidation.

         SECTION 5.05 Optional Preservation of the Receivables. Except as
provided in Section 5.04(c)(iv), if the Notes have been declared to be due and
payable under Section 5.02 following an Event of Default and such declaration
and its consequences have not been rescinded and annulled, the Indenture Trustee
may, unless otherwise directed by the Holders of at least 51% of the Outstanding
Amount of the Notes, acting together as a single class (excluding from such
action and calculation all Notes held by TMCC, TAFR LLC or any of their
Affiliates), but need not, elect to maintain possession of the Trust Estate and
direct the Issuer, Servicer and Administrator not to take steps to liquidate the
Receivables. It is the desire of the parties hereto[, the Swap Counterparty,]
[the Holder of the Revolving Liquidity Note] and the Noteholders that there be
at all times sufficient funds for the payment of [any obligations under the
Interest Rate Swap Agreement to the Swap Counterparty and] principal of and
interest on the Notes, [payment of amounts due to the Holder of the Revolving
Liquidity Note,] and the Indenture Trustee shall take such desire into account
when determining whether or not to maintain possession of the Trust Estate. In
determining whether to maintain possession of the Trust Estate, the Indenture
Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Trust
Estate for such purpose.

                                       37
<PAGE>

         SECTION 5.06 Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless such Holder has previously given written notice to the
Indenture Trustee of a continuing Event of Default, and:

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

         (b) the Holders of not less than 25% of the Outstanding Amount of the
Class A Notes, acting together as a single class, have made written request to
the Indenture Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Indenture Trustee hereunder and have offered to the
Indenture Trustee reasonable indemnity against the costs, expenses and
liabilities to be incurred in complying with such request and the Indenture
Trustee for 30 days after its receipt of such notice, request and offer of
indemnity has failed to institute such Proceedings.

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

         SECTION 5.07 Unconditional Rights of Noteholders To Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note [and the Holder of the Revolving Liquidity Note (subject to the
terms of the Sale and Servicing Agreement)] shall have the right, which is
absolute and unconditional, to receive payment of the principal of and interest,
if any, on such Note on or after the respective due dates thereof expressed in
such Note and in this Indenture (in each case with reference to the calculations
to be made pursuant to the Sale and Servicing Agreement [and in the case of the
Revolving Liquidity Note, only to the extent amounts are available therefor
under the terms of the Sale and Servicing Agreement]) and to institute suit for
the enforcement of any such payment, and such right shall not be impaired
without the consent of such Holder.

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

         SECTION 5.09 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee or to the Noteholders [or
the Holder of the Revolving Liquidity Note] 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

                                       38
<PAGE>

otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

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

         SECTION 5.11 Control by Noteholders. The Holders of at least 51% of the
Outstanding Amount of the Notes, acting together as a single class, 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 Trust Estate shall be by Holders of Notes representing not less
         than percentages of the Outstanding Amount of the Notes of the relevant
         Class set forth in Section 5.04 or 5.05, as applicable (excluding for
         such purposes the outstanding principal amount of any Notes held of
         record or beneficially owned by TMCC, TAFR LLC or any of their
         Affiliates); and

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

         Notwithstanding the rights of Noteholders set forth in this Section,
subject to Sections 5.07 and 6.01, the Indenture Trustee need not take any
action that it determines would be illegal or may not lawfully be taken, might
subject it to personal liability or would be unduly prejudicial to the rights of
any Noteholders not consenting to such action.

         SECTION 5.12 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02 or the
liquidation or sale of the Trust Estate pursuant to Section 5.04, the Holders of
Notes representing at least 51% of the Outstanding Amount of the Notes (acting
together as a single Class)[, without the consent of the Holder of the
Certificate or the Revolving Liquidity Note] (excluding for such purposes the
outstanding principal amount of any Notes held of record or beneficially owned
by TMCC, TAFR LLC or any of their Affiliates); may waive any past Default, Event
of Default or Servicer Default and its consequences except a (a) Servicer
Default in the deposit of collections or other required amounts into the
Collection Account, Principal Distribution Account, Payahead Account or Reserve
Fund, or (b) Default in respect of a covenant or provision hereof that cannot be
modified or amended without the consent of the Holder of each Note. In the case
of any such waiver, the Issuer, the Indenture Trustee and the Holders of the
Notes shall be restored to their

                                       39
<PAGE>

former positions and rights hereunder, respectively; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereto.

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

         SECTION 5.13 Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note or Note Owner by such Holder's acceptance of
such Note or beneficial interest therein, as the case may be, [and the Holder of
the Revolving Liquidity Note by such Holder's acceptance of the Revolving
Liquidity Note Agreement,] shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Indenture Trustee for any
action taken, suffered or omitted by it as Indenture Trustee, the filing by any
party litigant in such suit of an undertaking to pay the costs of such suit, and
that such court may in its discretion assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in such suit, having due
regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to (a) any suit
instituted by the Indenture Trustee, (b) any suit instituted by any Noteholder,
or group of Noteholders, in each case holding in the aggregate more than 25% of
the Outstanding Amount of Notes, or (c) any suit instituted by any Noteholder
[or the Holder of the Revolving Liquidity Note] for the enforcement of the
payment of principal of or interest on any Note [or Revolving Liquidity Note] on
or after the respective due dates expressed in such Note[, the Revolving
Liquidity Note] and in this Indenture.

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

         SECTION 5.15 Action on Notes. The Indenture Trustee's right to seek and
recover judgment on the Notes[, the Interest Rate Swap Agreement,] [the
Revolving Liquidity Note] or under this Indenture shall not be affected by the
seeking, obtaining or application of any other relief under or with respect to
this Indenture. Neither the lien of this Indenture nor any rights or remedies of
the Indenture Trustee or the Noteholders shall be impaired by the recovery of
any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any
of the assets of the Issuer. Any money or property collected by the Indenture
Trustee shall be applied in accordance with Section 5.06.

                                       40
<PAGE>

         SECTION 5.16 Performance and Enforcement of Certain Obligations.

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

         (b) If an Event of Default has occurred and is continuing, the
Indenture Trustee may, and at the direction (which direction shall be in writing
or by telephone, confirmed in writing promptly thereafter) of the Holders of
66-2/3% of the Outstanding Amount of the Notes (acting together as a single
class but excluding for such purposes the outstanding principal amount of any
Notes held of record or beneficially owned by TMCC, TAFR LLC or any of their
Affiliates), shall exercise all rights, remedies, powers, privileges and claims
of the Issuer against the Seller[,] [or] the Servicer[, the Holder of the
Revolving Liquidity Note] or [the Swap Counterparty] under or in connection with
the Sale and Servicing Agreement[, the Revolving Liquidity Note Agreement] and
[the Interest Rate Swap Agreement], against the Seller under or in connection
with the Receivables Purchase Agreement, [or against the Administrator under the
Administration Agreement,] including the right or power to take any action to
compel or secure performance or observance by the Seller[,] [or] the Servicer
[or the Administrator], of each of their obligations to the Issuer thereunder
and to give any consent, request, notice, direction, approval, extension, or
waiver thereunder and any right of the Issuer to take such action shall be
suspended.

                                   ARTICLE VI

                              The Indenture Trustee

         SECTION 6.01 Duties of Indenture Trustee.

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

         (b) The Indenture Trustee, upon receipt of all resolutions,
certificates, statements, opinions, reports, documents, orders or other
instruments furnished to the Indenture Trustee that shall be specifically
required to be furnished pursuant to any provision of this Indenture, shall
examine them to determine whether they conform on their face to the requirements
of this Indenture.

                                       41
<PAGE>

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

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

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

              (iii) the Indenture Trustee shall not be personally liable with
         respect to any action taken, suffered or omitted to be taken in good
         faith in accordance with the direction of the Holders of at least 51%
         of the Outstanding Amount of the Notes (acting together as a single
         class but excluding for such purposes the outstanding principal amount
         of any Notes held of record or beneficially owned by TMCC, TAFR LLC or
         any of their Affiliates) relating to the time, method and place of
         conducting any proceeding for any remedy available to the Indenture
         Trustee, or exercising any trust or power conferred upon the Indenture
         Trustee under this Indenture. Moreover, if more than one Indenture
         Trustee has been appointed, each Indenture Trustee shall owe any and
         all fiduciary duties only to the Class or Classes of Notes on whose
         behalf it shall have been appointed.

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

         (e) All information obtained by the Indenture Trustee regarding the
Obligors and the Receivables contained in the Trust, whether upon the exercise
of its rights under this Indenture or otherwise, shall be maintained by the
Indenture Trustee in confidence and shall not be disclosed to any other Person,
unless such disclosure is required by any applicable law or regulation or
pursuant to subpoena.

         (f) Pursuant to Sections 3.02 and 4.08 of the Sale and Servicing
Agreement, in the event that a Trust Officer of the Indenture Trustee discovers
that a representation or warranty with respect to a Receivable was incorrect as
of the time specified with respect to such

                                       42
<PAGE>

representation and warranty or that a covenant of the Servicer has been
breached, and such incorrectness or breach materially and adversely affects the
interests of the Issuer, the Indenture Trustee shall give prompt written notice
to the Servicer and the Owner Trustee of such incorrectness.

         SECTION 6.02 Rights of Indenture Trustee.

         (a) Except as otherwise provided in Section 6.01:

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

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

              (iii) the Indenture Trustee shall be under no obligation to
         exercise any of the rights or powers vested in it by this Indenture[,
         the Revolving Liquidity Note Agreement (except as specified in Section
         3.05(d) herein)] or the Sale and Servicing Agreement, or to institute,
         conduct or defend any litigation under this Indenture, or in relation
         to this Indenture[, the Revolving Liquidity Note Agreement] or the Sale
         and Servicing Agreement, at the request, order or direction of any of
         the Noteholders pursuant to the provisions of this Indenture[, the
         Revolving Liquidity Note Agreement] or the Sale and Servicing
         Agreement, unless such Noteholders shall have offered to the Indenture
         Trustee reasonable security or indemnity against the costs, expenses
         and liabilities that may be incurred therein or thereby;

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

              (v) the Indenture Trustee shall not be bound to recalculate,
         reverify, or make any investigation into the facts of matters stated in
         any resolution, certificate, statement, instrument, opinion, report,
         notice, request, consent, order, approval, bond or other paper or
         document, unless requested in writing to do so by Holders of Notes
         evidencing not less than 25% of the aggregate Outstanding Amount of the
         Notes (acting together as a single class but excluding for such
         purposes the outstanding principal amount of any Notes held of record
         or beneficially owned by TMCC, TAFR LLC or any of their Affiliates);
         provided, -------- however, that if the payment within a reasonable
         time to the Indenture Trustee of the costs, expenses or -------
         liabilities likely to be incurred by it in the making of such
         investigation is, in the opinion of the Indenture Trustee, not
         reasonably assured to the Indenture Trustee by the security afforded to
         it by the terms of this Indenture, the

                                       43
<PAGE>

         Indenture Trustee may require reasonable indemnity against such cost,
         expense or liability as a condition to so proceeding; the reasonable
         expense of every such examination shall be paid by the Administrator
         or, if paid by the Indenture Trustee, shall be reimbursed by the
         Administrator upon demand; and nothing in this clause shall derogate
         from the obligation of the Servicer to observe any applicable law
         prohibiting disclosure of information regarding the Obligors; and

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

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

         SECTION 6.03 Individual Rights of Indenture Trustee. The Indenture
Trustee in its individual or any other capacity may become the Holder,
beneficial owner or pledgee of Notes and may otherwise deal with the Issuer or
its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may
do the same with like rights. However, in so doing the Indenture Trustee must
comply with Sections 6.11 and 6.12.

         SECTION 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee
makes no representations as to the validity or sufficiency of this Indenture[,
the Revolving Liquidity Note Agreement,] [the Interest Rate Swap Agreement] or
the Notes (other than the execution by the Indenture Trustee on behalf of the
Trust of, and the certificate of authentication on, the Notes), or of the
Certificates. The Indenture Trustee shall have no obligation to perform any of
the duties of the Servicer or the Administrator unless explicitly set forth in
this Indenture or the Sale and Servicing Agreement. The Indenture Trustee shall
at no time have any responsibility or liability for or with respect to the
legality, validity and enforceability of the Notes[, the Interest Rate Swap
Agreement, the Revolving Liquidity Note Agreement] or any Receivable, any
ownership interest in any Financed Vehicle, or the maintenance of any such
ownership interest, or for or with respect to the efficacy of the Trust or its
ability to generate the payments to be distributed to Noteholders under this
Indenture[, to the Holder of the Revolving Liquidity Note under the Revolving
Liquidity Note Agreement] or [to the Swap Counterparty under the Interest Rate
Swap Agreement], including without limitation the validity of the assignment of
the Receivables to the Trust or of any intervening assignment; the existence,
condition, location and ownership of any Receivable or Financed Vehicle; the
existence and enforceability of any physical damage or credit life or credit
disability insurance; the existence and contents of any retail installment sales
contract or any computer or other record thereof; the completeness of any retail
installment sales contract; the performance or enforcement of any retail
installment sales contract; the compliance by the Issuer with any covenant or
the breach by the Issuer, Seller or Servicer of any warranty or representation
made under this Indenture or in any Basic Document or other related document and
the accuracy of any such warranty or representation prior to the Indenture
Trustee's receipt of notice or other discovery of any noncompliance therewith or
any breach thereof; the acts or omissions of the Issuer, Seller or the Servicer;
or any action by the Indenture Trustee taken at the instruction of the Servicer;
provided, however, that the foregoing shall not relieve the Indenture Trustee of
its obligation to perform its duties under this Indenture. Except with respect
to a

                                       44
<PAGE>

claim based on the failure of the Indenture Trustee to perform its duties under
this Indenture or based on the Indenture Trustee's willful misconduct, bad faith
or negligence, no recourse shall be had for any claim based on any provision of
this Indenture[, the Interest Rate Swap Agreement,] [the Revolving Liquidity
Note Agreement], the Notes or the Certificates or assignment thereof against the
institution serving as the Indenture Trustee in its individual capacity. The
Indenture Trustee shall not have any personal obligation, liability or duty
whatsoever to any Noteholder[, the Holder of the Revolving Liquidity Note,] [the
Swap Counterparty] or any other Person with respect to any such claim, and any
such claim shall be asserted solely against the Issuer or any indemnitor who
shall furnish indemnity as provided in this Indenture. The Indenture Trustee
shall not be accountable for the use or application by the Issuer of any of the
Notes or of the proceeds of such Notes, or for the use or application of any
funds paid to the Servicer in respect of the Notes. 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 and regardless
of the form of action.

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

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

         SECTION 6.07 Compensation and Indemnity. The Issuer shall pay or shall
cause the Servicer to pay to the Indenture Trustee from time to time reasonable
compensation for its services. The Indenture Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Issuer
shall cause the Servicer to reimburse the Indenture Trustee for all reasonable
out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the
Indenture Trustee's agents, counsel, accountants and experts. The [Issuer]
[Administrator] shall indemnify or shall cause the Servicer to indemnify the
Indenture Trustee against any and all loss, liability or expense (including
reasonable attorneys' fees) incurred by it in connection with the administration
of this trust and the performance of its duties hereunder. The Indenture Trustee
shall notify the [Issuer] [Administrator] and the Servicer promptly of any claim
for which it may seek indemnity. Failure by the Indenture Trustee to so notify
the [Issuer] [Administrator] and the

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<PAGE>

[Servicer] shall not relieve the [Issuer] [Administrator] or the [Servicer] of
its obligations hereunder. In case any such action is brought against the
Indenture Trustee under this Section 6.07 and it notifies the [Issuer]
[Administrator] of the commencement thereof, the Administrator will assume the
defense thereof, with counsel reasonably satisfactory to the Indenture Trustee
(who may, unless there is, as evidenced by an opinion of counsel to the
Indenture Trustee stating that there is an unwaivable conflict of interest, be
counsel to the Administrator), and neither the [Issuer] [Administrator] nor the
[Servicer] will be liable to the Indenture Trustee under this Section for any
legal or other expenses subsequently incurred by the Indenture Trustee in
connection with the defense thereof, other than reasonable costs of
investigation. Neither the [Issuer] [Administrator] nor the [Servicer] need
reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

         The Administrator's, the Issuer's and the Servicer's payment
obligations to the Indenture Trustee pursuant to this Section shall survive the
discharge of this Indenture and shall extend to any co-trustee or separate
trustee appointed pursuant to Section 6.10. When the Indenture Trustee incurs
expenses after the occurrence of a Default specified in Section 5.01(e) or (f)
or the Seller incurs expenses after the occurrence of an Insolvency Event with
respect to the Seller, the expenses are intended to constitute expenses of
administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law.

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

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

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

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

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

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

         A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee, to the Servicer and to the
Administrator. Thereupon the resignation or removal of the retiring Indenture
Trustee shall become effective, and the successor Indenture Trustee shall have
all the rights, powers and duties of the Indenture Trustee under this Indenture.
The successor Indenture Trustee shall mail a notice of its succession to
Noteholders [and the

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<PAGE>

Swap Counterparty]. The retiring Indenture Trustee shall promptly transfer all
property held by it as Indenture Trustee to the successor Indenture Trustee.

         If a successor Indenture Trustee does not take office within 30 days
after the retiring Indenture Trustee resigns or is removed, the retiring
Indenture Trustee, the Administrator or the Holders of a majority in Outstanding
Amount of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Indenture Trustee.

         If the Indenture Trustee fails to comply with Section 6.11, any
Noteholder may at any time thereafter petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

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

         SECTION 6.09 Successor Indenture Trustee by Merger. If the Indenture
Trustee consolidates with, merges or converts into, or transfers all or
substantially all its corporate trust business or assets to, another Person, the
resulting, surviving or transferee corporation without any further act shall be
the successor Indenture Trustee if such surviving Person or transferee
corporation or bank shall be otherwise qualified and eligible under Section
6.11. The Indenture Trustee shall provide the Issuer, the Servicer and the
Rating Agencies reasonable prior written notice of any such transaction.

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

         SECTION 6.10 Appointment of Co-Indenture Trustee or Separate Indenture
Trustee.

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

                                       47
<PAGE>

successor trustee under Section 6.11 and no notice to Noteholders of the
appointment of any co-trustee or separate trustee shall be required under
Section 6.08 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 and/or directing such act), except to the
         extent that under any law of any jurisdiction in which any particular
         act or acts are to be performed the Indenture Trustee shall be
         incompetent or unqualified to perform such act or acts, in which event
         such rights, powers, duties and obligations (including the holding of
         title to the Trust Estate or any portion thereof in any such
         jurisdiction) shall be exercised and performed singly by such separate
         trustee or co-trustee, but solely at the direction of the Indenture
         Trustee;

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

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

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

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

         SECTION 6.11 Eligibility; Disqualification. The Indenture Trustee shall
at all times satisfy the requirements of TIA Section 310(a). The Indenture
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition and it or its
parent shall have a long-term debt rating of Baa3 or better

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<PAGE>

by Moody's or shall otherwise be acceptable to Moody's. The Indenture Trustee
shall comply with TIA Section 310(b), including the optional provision permitted
by the second sentence of TIA Section 310(b)(9); provided, however, that there
shall be excluded from the operation of TIA Section 310(b)(1) any indenture or
indentures under which other securities of the Issuer are outstanding if the
requirements for such exclusion set forth in TIA Section 310(b)(1) are met.

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

         SECTION 6.13 [Revolving Liquidity Note Provisions. The Issuer has
entered into the Revolving Liquidity Note Agreement, in a form satisfactory to
the Rating Agencies, as a credit and liquidity enhancement arrangement that will
provide funding for certain required payments of principal and interest on the
Notes in the event that Available Collection and any amounts on deposit in the
Reserve Account that are available therefore are insufficient to fund such
required payments. All payments owed by the Issuer to the Holder of the
Revolving Liquidity Note will be fully subordinated to payments of principal and
interest on the Class A Notes.

                   (a) As provided in Sections 5.06 and 5.07 of the Sale and
              Servicing Agreement, the Indenture Trustee will be responsible for
              remitting all payments to the Holder of the Revolving Liquidity
              Note.

                   (b) Upon the occurrence of a default by the Holder of the
              Revolving Liquidity Note of its funding obligations pursuant to
              Sections 2.1 and 2.2 of the Revolving Liquidity Note Agreement, if
              the Notes are accelerated pursuant to Section 5.02 hereof, the
              priority of payments relating to the Class A Notes shall change to
              those set forth in Section 5.06(d) of the Sale and Servicing
              Agreement.

                   (c) Prior to the termination of this Indenture, the Revolving
              Liquidity Note Agreement may be amended by the Issuer and the
              Holder of the Revolving Liquidity Note, with the consent of the
              Indenture Trustee, but without the consent of any of the
              Noteholders or the Certificateholder, to cure any ambiguity, to
              correct or supplement any provisions in this Agreement or for the
              purpose of adding any provisions to or changing in any manner or
              eliminating any of the provisions in this Agreement or of
              modifying in any manner the rights of the Noteholders or the
              Certificateholder; provided, however, that such action shall not,
              as evidenced by an Opinion of Counsel delivered to the Indenture
              Trustee, adversely affect in any material respect the interests of
              any Noteholder or Certificateholder. Prior to the termination of
              this Indenture, the Revolving Liquidity Note Agreement may also be
              amended by the Issuer and the Holder of the Revolving Liquidity
              Note, with the consent of the Indenture Trustee, but without the
              consent of any of the Noteholders or the Certificateholder only if
              the Indenture Trustee (i) has received a letter from Standard &
              Poor's to the effect that Standard & Poor's will not qualify,
              reduce or withdraw the rating it has currently assigned to any
              Class of Notes as a result of such amendment and (ii)

                                       49
<PAGE>

              has provided Moody's with 10 days prior written notice of such
              amendment and Moody's shall not have notified the Indenture
              Trustee that such amendment might or would result in the
              qualification, reduction or withdrawal of the rating it has
              currently assigned to any Class of Notes. After the termination of
              this Indenture, the Revolving Liquidity Note Agreement may be
              amended in writing by the Issuer and the Holder without notice to
              or consent of any other Person.]

         SECTION 6.14 [Interest Rate Swap Provisions. The Issuer has entered
into the Interest Rate Swap Agreement, in a form satisfactory to the Rating
Agencies, to hedge the floating rate interest expense on the Class A-3 Notes.
The Issuer may, from time to time, enter into one or more replacement Interest
Rate Swap Agreements in the event that any Interest Rate Swap Agreement is
terminated prior to its scheduled expiration pursuant to a Swap Event of Default
or a Swap Termination Event. All Swap Payments Outgoing and Swap Termination
Payments owed by the Issuer to the Swap Counterparty will rank senior to
interest payments on the Class A Notes.

                   (a) Except as provided in Section 5.04(e) of the Sale and
              Servicing Agreement, the Indenture Trustee will be responsible for
              remitting all Swap Payments Outgoing and any Swap Termination
              Payments payable to the Swap Counterparty and for collecting Swap
              Payments Incoming and any Swap Termination Payments payable by the
              Swap Counterparty.

                   (b) Upon the occurrence of (i) any Swap Event of Default
              arising from any action taken, or failure to act, by the Swap
              Counterparty, or (ii) any Swap Termination Event (except as
              described in the following sentence) with respect to which the
              Swap Counterparty is an Affected Party (as defined in the Interest
              Rate Swap Agreement), the Indenture Trustee may and will, at the
              direction of the Holders of at least 51% of the Outstanding Amount
              of the Class A-2 Notes, the Class A-3 Notes and the Class A-4
              Notes, acting together as a single Class (excluding for such
              purposes the outstanding principal amount of any Notes held of
              record or beneficially owned by TMCC, TAFR LLC or any of their
              Affiliates), designate an Early Termination Date (as defined in
              the Interest Rate Swap Agreement) with respect to the Swap
              Agreement. If a Swap Termination Event occurs (i) as a result of
              the insolvency or bankruptcy of the Issuer or the Swap
              Counterparty or (ii) because the Issuer or the Swap Counterparty
              becomes subject to registration as an "investment company" under
              the Investment Company Act of 1940, the Indenture Trustee will
              designate an Early Termination Date.

                   (c) At least five days before the effective date of any
              proposed amendment or supplement to the Interest Rate Swap
              Agreement, the Administrator shall provide the Rating Agencies
              with a copy of such amendment or supplement. Unless the amendment
              or supplement is for the purpose of clarifying any term or
              provision, correcting any inconsistency, curing any ambiguity, or
              correcting any typographical error in the Interest Rate Swap
              Agreement, an amendment or supplement to the Interest Rate Swap
              Agreement will be effective only after satisfaction of the Rating
              Agency Condition.

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<PAGE>

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

                                   ARTICLE VII

                         Noteholders' Lists and Reports

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

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

         SECTION 7.02 Preservation of Information; Communications to
Noteholders.

         (a) The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list

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<PAGE>

furnished to the Indenture Trustee as provided in Section 7.01 and the names and
addresses of Holders of Notes received by the Indenture Trustee in its capacity
as Note Registrar. The Indenture Trustee may destroy any list furnished to it as
provided in such Section 7.01 upon receipt of a new list so furnished.

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

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

         SECTION 7.03 Reports by Issuer.

         (a) The Issuer shall:

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

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

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

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

         SECTION 7.04 Reports by Indenture Trustee. If required by TIA Section
313(a), within 60 days after each March 31 beginning with 2002, the Indenture
Trustee shall mail to each Noteholder as required by TIA Section 313(c) a brief
report dated as of such date that complies with TIA Section 313(a). The
Indenture Trustee also shall comply with TIA Section 313(b).

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

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<PAGE>

                                  ARTICLE VIII

                      Accounts, Disbursements and Releases

         SECTION 8.01 Collection of Money. Except as otherwise expressly
provided herein, the Indenture Trustee may demand payment or delivery of, and
shall receive and collect, directly and without intervention or assistance of
any fiscal agent or other intermediary, all money and other property payable to
or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture
Trustee shall apply all such money received by it as provided in this Indenture.
Except as otherwise expressly provided in this Indenture, if any default occurs
in the making of any payment or performance under any agreement or instrument
that is part of the Trust Estate, the Indenture Trustee may take such action as
may be appropriate to enforce such payment or performance, including the
institution and prosecution of appropriate Proceedings. Any such action shall be
without prejudice to any right to claim a Default or Event of Default under this
Indenture and any right to proceed thereafter as provided in Article V.

         SECTION 8.02 Trust Accounts.

         (a) On or prior to the Closing Date, the Issuer shall cause the
Servicer to establish and maintain, in the name of the Indenture Trustee, for
the benefit of the Noteholders and, to the extent set forth herein, the
Certificateholders, [the Holder of the Revolving Liquidity Note] [and the Swap
Counterparty,] the Collection Account and Payahead Account as provided in
Section 5.01 of the Sale and Servicing Agreement.

         (b) On or prior to the Closing Date, the Seller shall, pursuant to the
Securities Account Control Agreement, establish and maintain with the Indenture
Trustee, for the benefit of the Noteholders, the Reserve Account as provided in
Section 5.07 of the Sale and Servicing Agreement. Upon the execution and
delivery by the parties hereto of this Indenture, the Indenture Trustee will
deliver to the Securities Intermediary the Prohibition Notice provided for in
the Securities Account Control Agreement. In connection with the termination of
this Indenture, the Indenture Trustee will deliver to the Securities
Intermediary the Rescission of Prohibition Notice provided for in the Securities
Account Control Agreement.

         SECTION 8.03 [Reserved].

         SECTION 8.04 General Provisions Regarding Accounts.

         (a) So long as no Default or Event of Default shall have occurred and
be continuing, all or a portion of the funds in the Collection Account and
Payahead Account shall be invested in Eligible Investments and reinvested by the
Indenture Trustee at the written direction of the Servicer, subject to the
provisions of Section 5.01 of the Sale and Servicing Agreement. All income or
other gain from investments of moneys deposited in the Collection Account and
Payahead Account shall be deposited by the Indenture Trustee in the Collection
Account and paid to the Servicer as servicing compensation on each Payment Date,
and any loss resulting from such investments in excess of such income or gain
(against which such losses will first be applied) shall be charged to such
account. The Servicer will not direct the Indenture Trustee to make any
investment of any funds or to sell any investment held in the Collection Account
or

                                       53
<PAGE>

Payahead Account unless the security interest granted and perfected in such
account will continue to be perfected in such investment or the proceeds of such
sale, in either case without any further action by any Person, and, in
connection with any direction to the Indenture Trustee to make any such
investment or sale, if requested by the Indenture Trustee, the Servicer shall
deliver to the Indenture Trustee an Opinion of Counsel, acceptable to the
Indenture Trustee, to such effect.

         (b) So long as no Default or Event of Default shall have occurred and
be continuing, all or a portion of the funds in the Reserve Account shall be
invested in Eligible Investments and reinvested by the Indenture Trustee (by
delivery to the Securities Intermediary of appropriate Entitlement Orders) at
the written direction of the Seller, subject to the provisions of Section 5.07
of the Sale and Servicing Agreement and the provisions of the Securities Account
Control Agreement. All income or other gain from investments of moneys deposited
in the Reserve Account shall be paid by the Indenture Trustee to the Seller on
each Payment Date (by delivery to the Securities Intermediary of appropriate
Entitlement Orders). Subject to the right of the Indenture Trustee to make
withdrawals therefrom, as directed by the Servicer, for the purposes and in the
amounts set forth in Section 5.06 of the Sale and Servicing Agreement, the
Reserve Account and all funds held therein shall be the property of the Seller
and not the property of the Trust, the Owner Trustee or the Indenture Trustee.
The Seller will grant to the Indenture Trustee, for the benefit of the
Noteholders, a security interest in all funds (including Eligible Investments,
but not the income from such investments) in the Reserve Account (including the
Reserve Account Initial Deposit) and the proceeds thereof, and the Indenture
Trustee shall have all of the rights of a secured party under the UCC with
respect thereto; provided that all income from the investment of funds in the
Reserve Account and the right to receive such income are retained by the Seller
and are not transferred, assigned or otherwise conveyed hereunder. The Seller
will not direct the Indenture Trustee to make any investment of any funds or to
sell any investment held in the Reserve Account unless the security interest
granted and perfected in such account will continue to be perfected in such
investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture
Trustee to make any such investment or sale, if requested by the Indenture
Trustee, the Seller shall deliver to the Indenture Trustee an Opinion of
Counsel, acceptable to the Indenture Trustee, to such effect.

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

         (d) If (i) the Servicer or Seller shall have failed to give investment
directions for any funds on deposit in the Collection Account, Payahead Account
and Reserve Account, as the case may be, to the Indenture Trustee by 11:00 a.m.
Eastern Time (or such other time as may be agreed by the Issuer and Indenture
Trustee) on any Business Day or (ii) a Default or Event of Default shall have
occurred and be continuing with respect to the Notes but the Notes shall not
have been declared due and payable pursuant to Section 5.02 or (iii) if such
Notes shall have been declared due and payable following an Event of Default,
but amounts collected or

                                       54
<PAGE>

receivable from the Trust Estate are being applied in accordance with Section
5.05 as if there had not been such a declaration, then the Indenture Trustee
shall, to the fullest extent practicable, invest and reinvest funds in the Trust
Accounts in one or more Eligible Investments specified in clause (h) of the
definition of Eligible Investments provided in the Sale and Servicing Agreement.

         SECTION 8.05 Release of Trust Estate.

         (a) Subject to the payment of its fees and expenses pursuant to Section
6.07, the Indenture Trustee may, and when required by the provisions of this
Indenture shall, execute instruments to release property from the lien of this
Indenture, or convey the Indenture Trustee's interest in such property, in a
manner and under circumstances that are not inconsistent with the provisions of
this Indenture. No party relying upon an instrument executed by the Indenture
Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee's authority, inquire into the satisfaction of any conditions
precedent or see to the application of any moneys.

         (b) The Indenture Trustee shall, at such time as there are no Notes
outstanding[, all sums due to the Swap Counterparty and the Holder of the
Revolving Liquidity Note have been paid] and all sums due the Indenture Trustee
pursuant to Section 6.07 have been paid, release any remaining portion of the
Trust Estate that secured the Notes from the lien of this Indenture and release
to or to the order of the Issuer or, in the case of the Reserve Account, to the
Seller, entitled thereto any funds then on deposit in the Collection Account,
Payahead Account and Reserve Account, as the case may be. The Indenture Trustee
shall release property from the lien of this Indenture pursuant to this Section
8.05(b) only upon receipt of an Issuer Request accompanied by an Officer's
Certificate, an Opinion of Counsel and (if required by the TIA) Independent
Certificates in accordance with TIA Sections 314(c) and 314(d)(1) meeting the
applicable requirements of Section 11.01.

         SECTION 8.06 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days notice when requested by the Issuer to take any action pursuant
to Section 8.05(a), accompanied by copies of any instruments involved, and the
Indenture Trustee shall also require, as a condition to such action, an Opinion
of Counsel, in form and substance satisfactory to the Indenture Trustee, stating
the legal effect of any such action, outlining the steps required to complete
the same, and concluding that all conditions precedent to the taking of such
action have been complied with and such action will not materially and adversely
impair the security for the Notes or the rights of the Noteholders in
contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair
value of the Trust Estate. Counsel rendering any such opinion may rely, without
independent investigation, on the accuracy and validity of any certificate or
other instrument delivered to the Indenture Trustee in connection with any such
action.

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                                   ARTICLE IX

                             Supplemental Indentures

         SECTION 9.01 Supplemental Indentures Without Consent of Noteholders.
Subject to Section 9.03, without the consent of the Holders of any Notes but
with prior notice to the Rating Agencies, the Issuer and the Indenture Trustee,
when authorized by an Issuer Order, at any time and from time to time, may enter
into one or more indentures supplemental hereto (which shall conform to the
provisions of the Trust Indenture Act as in force at the date of the execution
thereof), in form satisfactory to the Indenture Trustee, for any of the
following purposes:

         (a) to correct or amplify the description of any property at any time
subject to the lien of this Indenture, or better to assure, convey and confirm
unto the Indenture Trustee any property subject or required to be subjected to
the lien of this Indenture, or to subject to the lien of this Indenture
additional property;

         (b) 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;

         (c) to add to the covenants of the Issuer, for the benefit of the
Holders of the Notes[, the Holder of the Revolving Liquidity Note or the Swap
Counterparty], or to surrender any right or power herein conferred upon the
Issuer;

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

         (e) to cure any ambiguity, to correct or supplement any provision
herein or in any supplemental indenture that may be inconsistent with any other
provision herein or in any supplemental indenture or to make any other
provisions with respect to matters or questions arising under this Indenture or
in any supplemental indenture to the extent such action shall not adversely
affect the interests of the Holders of the Notes or the Certificates [or the
Swap Counterparty];

         (f) to evidence and provide for the acceptance of the appointment
hereunder by a successor trustee with respect to the Notes [and the Swap
Counterparty] 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

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

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

         SECTION 9.02 Supplemental Indentures with Consent of Noteholders.
Subject to Sections 6.14 and 9.03, the Issuer and the Indenture Trustee, when
authorized by an Issuer Order, also may, with prior notice to the Rating
Agencies and with the consent of the Holders of at least

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51% of the Outstanding Amount of the Notes, acting together as a single Class
(excluding for such purposes the outstanding principal amount of any Notes held
of record or beneficially owned by TMCC, TAFR LLC or any of their Affiliates),
by Action of such Holders delivered to the Issuer and the Indenture Trustee,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture.

         The Indenture Trustee may in its discretion determine whether or not
any Notes [or the Revolving Liquidity Note] would be adversely affected by any
supplemental indenture (which determination will be based on such supplemental
indenture not resulting in a downgrade in the ratings applicable to the Notes)
and any such determination shall be conclusive upon the Holders of all Notes
[and the Revolving Liquidity Note], whether theretofore or thereafter
authenticated and delivered hereunder. The Indenture Trustee shall not be liable
for any such determination made in good faith.

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

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

         SECTION 9.03 Limitations on Supplemental Indentures. The Issuer and the
Indenture Trustee, in accordance with Sections 9.01 and 9.02 above, may enter
into an indenture or indentures supplemental hereto for the purpose of adding
any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the Holder of each
Outstanding Note[, the Holder of the Revolving Liquidity Note or the Swap
Counterparty] if [its] [their respective] interest[s] [is] [are] affected
thereby:

         (a) 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, change the provisions of this Indenture relating to the application of
collections on, or the proceeds of the sale of, the Trust Estate to payment of
principal of or interest on the Notes, or change any place of payment where, or
the coin or currency in which, any Note or the interest thereon is payable, or
impair the right to institute suit for the enforcement of the provisions of this
Indenture, to the extent provided in Article V, requiring the application of
funds available therefor to the payment of any such amount due on the Notes on
or after the respective due dates thereof;

         (b) reduce the percentage of the Outstanding Amount of the Notes (or
the Notes of any Class, as applicable), the consent of the Holders of which is
required for any such

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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;

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

         (d) reduce the percentage of the Outstanding Amount of the Notes (or
the Notes of any Class, as applicable) required to direct the Indenture Trustee
to direct the Issuer to sell or liquidate the Trust Estate pursuant to Section
5.04;

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

         (f) [modify any of the provisions of this Indenture in such manner as
to affect the calculation of the amount of any payment of interest or principal
due on any Note or to the Swap Counterparty or the Holder of the Revolving
Liquidity Note on any Payment Date (including the calculation of any of the
individual components of such calculation); ]

         (g) permit the creation of any lien ranking prior to or on a parity
with the lien of this Indenture with respect to any part of the Trust Estate or,
except as otherwise permitted or contemplated herein, terminate the lien of this
Indenture on any property at any time subject hereto or deprive the Holder of
any Note of the security provided by the lien of this Indenture; or

         (h) modify or alter the provisions hereof regarding the voting of Notes
held by the Indenture Trustee, the Owner Trustee, TMCC or any of its Affiliates
or the Trust.

         SECTION 9.04 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article IX or the modification thereby of the trusts created
by this Indenture, the Indenture Trustee shall be entitled to receive, and
subject to Sections 6.01 and 6.02, shall be fully protected in relying upon, an
Opinion of Counsel stating that the execution of such supplemental indenture is
authorized or permitted by this Indenture. The Indenture Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the
Indenture Trustee's own rights, duties, liabilities or immunities under this
Indenture or otherwise.

         SECTION 9.05 Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and shall be deemed to be modified and amended in accordance therewith
with respect to the Notes affected thereby, and the respective rights,
limitations of rights, obligations, duties, liabilities and immunities under
this Indenture of the Indenture Trustee, the Issuer, the Holders of the Notes,
[the Swap Counterparty,] [the Holder of the Revolving Liquidity Note] and the
Certificateholder 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.

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         SECTION 9.06 Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article IX shall conform to the requirements of the Trust Indenture Act as then
in effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

         SECTION 9.07 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall,
bear a notation in form approved by the Indenture Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Indenture
Trustee shall so determine, new Notes so modified as to conform, in the opinion
of the Indenture Trustee and the Issuer, to any such supplemental indenture may
be prepared and executed by the Issuer and authenticated and delivered by the
Indenture Trustee in exchange for Outstanding Notes.

                                    ARTICLE X

                            Termination of the Trust

         SECTION 10.01 Termination of the Trusts Created by Indenture.

         (a) The trusts created hereby and the respective obligations and
responsibilities of the Issuer, the Administrator and the Indenture Trustee
shall terminate upon (i) the purchase as of any Payment Date by the Servicer, or
any successor to the Servicer, at its option of the Receivables primarily
comprising the corpus of the Owner Trust Estate as described in Section 10.02,
(ii) the payment to the Noteholders of all amounts required to be paid to them
pursuant to this Agreement and the release to the Owner Trustee of all remaining
amounts or investments on deposit in the Collection Account or Payahead Account,
[the payment to the Swap Counterparty all amounts required to be paid to it
pursuant to the Interest Rate Swap Agreement,] [the payment to the Holder of the
Revolving Liquidity Note of all amounts required to be paid to it pursuant to
the Revolving Liquidity Note Agreement] and the release to the Seller of the
amounts held in the Reserve Account or (iii) the maturity or liquidation of the
last Receivable and the disposition of all property held as part of the Owner
Trust Estate; provided, however, that in no event shall the trust created by
this Indenture continue beyond the expiration of 21 years from the death of the
last survivor of the descendants of Joseph P. Kennedy, the late ambassador of
the United States to the Court of St. James, living on the date of this
Indenture. The Owner Trustee shall promptly notify the Indenture Trustee and
each Rating Agency of any prospective termination pursuant to this Section.

         (b) Notice of any termination, specifying the Payment Date upon which
the Noteholders must surrender their Notes to the Indenture Trustee for payment
of the final distribution and retirement of the Notes, shall be given promptly
by the Indenture Trustee (at the written direction of the Administrator) by
letter to Noteholders mailed not later than the _____ day and not earlier than
the ____ day prior to the date on which such final distribution is expected to
occur specifying (i) the Payment Date upon which final payment of the Notes
shall be made upon presentation and surrender of Notes at the office of the
Indenture Trustee therein specified, (ii) the amount of any such final payment
and (iii) if applicable, that the Record Date otherwise applicable to such
Payment Date is not applicable, payments being made only upon

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<PAGE>

presentation and surrender of the Notes at the office of the Indenture Trustee
therein specified. The Indenture Trustee shall give such notice to the Note
Registrar (if other than the Indenture Trustee) at the time such notice is given
to Noteholders. In the event such notice is given, the Seller, the Servicer, or
any successor to the Servicer, or the Indenture Trustee, as the case may be,
shall make deposits into the Collection Account in accordance with Section 5.02
of the Sale and Servicing Agreement, or, in the case of an optional purchase of
Receivables pursuant to Section 10.02, shall deposit the amount specified in
Section 10.02. Upon presentation and surrender of the Notes, the Indenture
Trustee shall cause to be distributed to Noteholders amounts distributable on
such Payment Date pursuant to Section 5.06 of the Sale and Servicing Agreement.

         SECTION 10.02 Optional Purchase of All Receivables. If the Servicer, or
any successor to the Servicer, shall notify [the Swap Counterparty,] [the Holder
of the Revolving Liquidity Note,] the Owner Trustee and the Indenture Trustee of
its intention to exercise the option granted to it in the Sale and Servicing
Agreement to repurchase the outstanding Receivables primarily comprising the
Owner Trust Estate, then the Owner Trustee and Indenture Trustee shall give
written notice thereof to each Securityholder and the Rating Agencies as soon as
practicable after their receipt of notice from the Servicer. Upon deposit by the
Servicer or successor to the Servicer of the amount necessary to effect such
purchase of the corpus of the Owner Trust Estate, the Indenture Trustee shall
make the final distributions to the Noteholders[, the Swap Counterparty] [or to
the Holder of the Revolving Liquidity Note] pursuant to Section 4.01 and
Certificateholders as set forth in Section 5.06 of the Sale and Servicing
Agreement and Section 10.01 hereof and shall promptly transfer all of its right,
title and interest in and to any amounts or investments remaining on deposit in
the Collection Account and all of its rights to make withdrawals from the
Payahead Account and the Reserve Account (excluding any portion thereof
necessary to make distributions to Noteholders described in Section 3.03) to the
Owner Trustee for the benefit of the Certificateholders and release from the
lien of this Indenture all of the remaining Collateral. The Indenture Trustee
shall execute, deliver and file all agreements, certificates, instruments or
other documents necessary or reasonably requested by the Owner Trustee in order
to effect such release and the transfer to the Owner Trustee of the Collateral.

                                   ARTICLE XI

                                  Miscellaneous

         SECTION 11.01 Compliance Certificates and Opinions, etc.

         (a) Upon any application or request by the Issuer to the Indenture
Trustee to take any action under any provision of this Indenture, the Issuer
shall, upon written request therefor from the Indenture Trustee, furnish to the
Indenture Trustee (i) an Officer's Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with and (iii) (if required by the TIA) an Independent Certificate from
a firm of certified public accountants meeting the applicable requirements of
this Section, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision
of this

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Indenture, no such written request from the Indenture Trustee need be furnished
(and only such expressly required documents need be delivered in connection
therewith).

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

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

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

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<PAGE>

         SECTION 11.02 Form of Documents Delivered to Indenture Trustee. In any
case where several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such matters be
certified by, or covered by the opinion of, only one such Person, or that they
be so certified or covered by only one document, but one such Person may certify
or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.

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

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

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

         SECTION 11.03 Acts of Noteholders.

         (a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Noteholders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided
such action shall become effective when such instrument or instruments are
delivered to the Indenture Trustee, and, where it is hereby expressly required,
to the Issuer. Such instrument or instruments (and the action embodied therein
and evidenced thereby) are herein sometimes referred to as the "Action" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section.

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<PAGE>

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

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

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

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

         (a) the Indenture Trustee by any Noteholder or by the Issuer shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Indenture Trustee at its Corporate Trust Office, or (b)
the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for
every purpose hereunder if in writing and mailed first-class, postage prepaid to
the Issuer addressed to: Toyota Auto Receivables 2001-C Owner Trust, 19001 South
Western Avenue, Torrance, California 90509, Attention: Treasury Department, Vice
President, Treasury, or at any other address previously furnished in writing to
the Indenture Trustee by the Issuer or the Administrator. The Issuer shall
promptly transmit any notice received by it from the Noteholders to the
Indenture Trustee.

         Notices required to be given to the Rating Agencies by the Issuer, the
Indenture Trustee or the Owner Trustee shall be in writing, personally delivered
or mailed by certified mail, return receipt requested, to (i) in the case of
Moody's, at the following address: Moody's Investors Service, Inc., ABS
Monitoring Department, 99 Church Street, New York, New York 10007, (ii) in the
case of Standard & Poor's, at the following address: Standard & Poor's Ratings
Group, 26 Broadway (15th Floor), New York, New York 10004, Attention of Asset
Backed Surveillance Department; or as to each of the foregoing, at such other
address as shall be designated by written notice to the other parties.

         SECTION 11.05 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) (a) in the case
of Book-Entry Notes, upon delivery to the Clearing Agency in writing and (b) in
the case of Definitive Notes, when mailed, first-class, postage prepaid to each
Noteholder affected by such event, at his address as it appears on the Note
Register, in each case being delivered or mailed, as the case may be, 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

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<PAGE>

respect to other Noteholders, and any notice that is mailed in the manner herein
provided shall conclusively be presumed to have been duly given.

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

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

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

         SECTION 11.06 Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note [or the Revolving
Liquidity 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 11.07 Conflict with Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this Indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

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

         SECTION 11.08 Effect of Headings and Table of Contents. The Article and
Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

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

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<PAGE>

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

         SECTION 11.11 Benefits of Indenture. Nothing in this Indenture, the
Notes[, the Interest Rate Swap Agreement] [or the Revolving Liquidity Note],
express or implied, shall give to any Person, other than the parties hereto and
their successors hereunder, the Owner Trustee, the Administrator, the Servicer[,
the Swap Counterparty,] [the Holder of the Revolving Liquidity Note] and the
Noteholders, and any other party secured hereunder, and any other Person with an
ownership interest in any part of the Trust Estate, any benefit or any legal or
equitable right, remedy or claim under this Indenture.

         SECTION 11.12 Governing Law. This indenture shall be governed by and
construed in accordance with the laws of the state of New York, without
reference to its conflict of law provisions, and the obligations, rights and
remedies of the parties hereunder shall be determined in accordance with such
laws. Regardless of any provision in any other agreement, for purposes of the
UCC, New York shall be deemed to be the Securities Intermediary's jurisdiction.

         SECTION 11.13 Counterparts. This Indenture may be executed
simultaneously in any number of counterparts, each of which shall be deemed to
be an original, and all of which shall constitute but one and the same
instrument.

         SECTION 11.14 Recording of Indenture. If this Indenture is subject to
recording in any appropriate public recording offices, such recording is to be
effected by the Issuer and at its expense accompanied by an Opinion of Counsel
(which may be counsel to the Indenture Trustee or any other counsel reasonably
acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person
secured hereunder or for the enforcement of any right or remedy granted to the
Indenture Trustee under this Indenture.

         SECTION 11.15 Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of [the Swap Counterparty,] [the
Holder of the Revolving Liquidity Note,] the Issuer, the Owner Trustee or the
Indenture Trustee on the [Interest Rate Swap Agreement,] the Notes[, the
Revolving Liquidity Note Agreement] or the Certificate 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 Certificateholder or other owner of a beneficial
interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer,
director, employee or agent of the Indenture Trustee or the Owner Trustee in its
individual capacity, any Certificateholder or other owner of a beneficial
interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any
successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person

                                       65
<PAGE>

may have expressly agreed (it being understood that the Indenture Trustee and
the Owner Trustee, in their capacities as such, have no such obligations in
their individual capacity) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity. For all purposes of this
Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Article VI, VII and VIII of the Trust Agreement.

         [If insufficient funds are available to make any payments on the Notes
as and when due, no claim for the amount of such shortfall may be made against
the Seller. Each Noteholder, by accepting a Note or interest therein, agrees
that it has no rights in any assets of the Seller other than assets pledged
under this Indenture in order to satisfy any such claims. Notwithstanding the
foregoing, to the extent that any Noteholder is deemed to have any interest in
any assets of the Seller other than the assets pledged under this Indenture,
each Noteholder agrees that its interest is subordinate to claims or rights of
holders of other debts issued by the Seller, and that this agreement constitutes
a subordination agreement for purposes of Section 510(a) of the Bankruptcy
Code.]

         SECTION 11.16 No Petition. The Indenture Trustee, by entering into this
Indenture, and each Noteholder (excluding for such purposes the outstanding
principal amount of any Notes held of record or beneficially owned by TMCC, TAFR
LLC or any of their Affiliates), by accepting a Note, hereby covenant and agree
that they will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States federal or state bankruptcy or similar law
in connection with any obligations relating to the Notes, the Certificate or any
of the Basic Documents.

         SECTION 11.17 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee, during the
Issuer's normal business hours, to examine all the books of account, records,
reports and other papers of the Issuer, to make copies and extracts therefrom,
to cause (at the expense of the requesting party) such books to be audited by
Independent certified public accountants, and to discuss the Issuer's affairs,
finances and accounts with the Issuer's officers, employees, and Independent
certified public accountants, all at such reasonable times and as often as may
be reasonably requested. The Indenture Trustee shall and shall cause its
representatives to hold in confidence all such information except to the extent
disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the
Indenture Trustee may reasonably determine that such disclosure is consistent
with its obligations hereunder.

                                       66
<PAGE>

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

                                  TOYOTA AUTO RECEIVABLES 200_-_ OWNER TRUST

                                   By:
                                       -----------------------------------------
                                       not in its individual capacity but
                                       solely as Owner Trustee

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

                                   --------------------------------------------,
                                   not in its individual capacity but solely as
                                   Indenture Trustee and Securities Intermediary

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

                                      S-1
<PAGE>

STATE OF ____________________

COUNTY OF __________________

         BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared _________, known to me to be
the person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said _______________, not in
its individual capacity but as Owner Trustee of the TOYOTA AUTO RECEIVABLES
200_-_ OWNER TRUST, a [Delaware] [business] [statutory] trust, and that such
person executed the same as the act of said statutory trust for the purpose and
consideration therein expressed, and in the capacities therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this __st day of _____, 200_.

                              __________________________________________________
                              Notary Public in and for the State of ____________

(Seal)

My commission expires:

________________________________

<PAGE>

STATE OF ____________________

COUNTY OF __________________

         BEFORE ME, the undersigned authority, a Notary Public in and for said
county and state, on this day personally appeared ___________, known to me to be
the person and officer whose name is subscribed to the foregoing instrument and
acknowledged to me that the same was the act of the said ____________, not in
its individual capacity but as Indenture Trustee and Securities Intermediary in
connection with the Toyota Auto Receivables 200_-_ Owner Trust, a [Delaware]
[business] [statutory] trust, and that such person executed the same as the act
of said [business] [statutory] trust for the purpose and consideration therein
expressed, and in the capacities therein stated.

         GIVEN UNDER MY HAND AND SEAL OF OFFICE, this __st day of __________,
200_.

                              __________________________________________________
                              Notary Public in and for the State of ____________

(Seal)

My commission expires:

_________________________________

<PAGE>

                                   EXHIBIT A-1

             (FORM OF CLASS A-1 NOTE, CLASS A-2 NOTE, CLASS A-3 NOTE
                               AND CLASS A-4 NOTE)

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

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

         THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, (II) IN A TRANSACTION (OTHER THAN A TRANSACTION IN CLAUSE (IV)
BELOW) EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
APPLICABLE STATE AND FOREIGN SECURITIES LAWS, (III) TO ANY AFFILIATE OF TOYOTA
MOTOR CREDIT CORPORATION OR (IV) TO A PERSON WHO THE TRANSFEROR OF SUCH CLASS
[A-1][A-2][A-3][A-4] NOTE REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT AND THAT IS AWARE THAT
THE RESALE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A OR TO AN
INSTITUTIONAL "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(A)(1), (2), (3) OR
(7) UNDER THE SECURITIES ACT, AND IN ANY CASE MAY BE TRANSFERRED ONLY IN
COMPLIANCE WITH THE PROVISIONS OF THE INDENTURE GOVERNING TRANSFER OF THE CLASS
[A-1][A-2][A-3][A-4] NOTES.

         THIS NOTE IS NOT AN OBLIGATION OF, AND WILL NOT BE INSURED OR
GUARANTEED BY, ANY GOVERNMENTAL AGENCY OR TOYOTA AUTO FINANCE RECEIVABLES LLC,
TOYOTA MOTOR CREDIT CORPORATION, TOYOTA MOTOR SALES, U.S.A., INC., TOYOTA
FINANCIAL SERVICES CORPORATION, THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR ANY
OF THEIR RESPECTIVE AFFILIATES. THE PRINCIPAL AND INTEREST ON THIS NOTE IS
PAYABLE SOLELY FROM PAYMENTS ON THE RECEIVABLES AND AMOUNTS ON DEPOSIT IN THE
RESERVE ACCOUNT.

                                  A-1-1
<PAGE>

No. __                                                              $___________
                                                            CUSIP No. __________
                                                        ISIN No. :______________

                   TOYOTA AUTO RECEIVABLES 200_-_ OWNER TRUST

               CLASS [A-1][A-2][A-3][A-4] ___% ASSET BACKED NOTES

         Toyota Auto Receivables 200_-_ Owner Trust, a statutory trust organized
and existing under the laws of the State of Delaware (herein referred to as the
"Issuer"), for value received, hereby promises to pay to _____________, or
registered assigns, the principal sum of ____________________ DOLLARS
($__________) payable on each Payment Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $[INSERT
INITIAL PRINCIPAL AMOUNT OF NOTE] and the denominator of which is $___________
by (ii) the aggregate amount, if any, payable from the Collection Account or
Principal Distribution Account in respect of principal on the Class
[A-1][A-2][A-3][A-4] Notes pursuant to Section 3.01 of the Indenture dated as of
______, 200_, between the Issuer and ________, a banking corporation, as
Indenture Trustee (the "Indenture Trustee") and Sections 5.06(c) and 5.06(d) of
the Sale and Servicing Agreement dated as of ________, 200_, between the Issuer,
TAFR LLC, as Seller, and TMCC, as Servicer (which amounts will be limited to the
portion of Available Collections available to make the payments specified in
such Sections); provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on the earlier of the Payment Date occurring
in ______ 200_ (the "Class [A-1][A-2][A-3][A-4] Final Scheduled Payment Date")
and the Payment Date described in Section 10.01 of the Indenture. Capitalized
terms used but not defined herein have the meanings ascribed thereto in the
Indenture and the Sale and Servicing Agreement, as the case may be.

         The Issuer will pay interest on this Note at the rate per annum shown
above on each Payment Date until the principal of this Note is paid or made
available for payment, on the principal amount of this Note outstanding on the
preceding Payment Date (after giving effect to all payments of principal made on
the preceding Payment Date), subject to certain limitations contained in Section
3.01 of the Indenture and Sections 5.06(c) and 5.06(d) of the Sale and Servicing
Agreement. Interest on this Note will accrue from, and including, each Payment
Date (or, in the case of the first Payment Date, from, and including, the
Closing Date) to, but excluding, the subsequent Payment Date. Interest will be
computed on the basis specified in the Indenture for each Interest Period. Such
principal of and interest on this Note shall be paid in the manner specified on
the reverse hereof.

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

                                     A-1-2
<PAGE>

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

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

                                     A-1-3
<PAGE>

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

Date:

                                   TOYOTA AUTO RECEIVABLES 200_-_
                                   OWNER TRUST

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

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

                                     A-1-4

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

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

Date:  _____________________

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

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

                                     A-1-5
<PAGE>

         This Note is one of a duly authorized issue of Notes of the Issuer,
designated as its ___% Asset Backed Notes, Class [A-1][A-2][A-3][A-4] (herein
called the "Class [A-1][A-2][A-3][A-4] Notes"), all issued under the Indenture,
to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the
Issuer, the Indenture Trustee and the Holders of the Notes. The Class
[A-1][A-2][A-3][A-4] Notes are subject to all terms of the Indenture.

         The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the
Class A-4 Notes (collectively, the "Notes") are and will be equally and ratably
secured by the collateral pledged as security therefor as provided in the
Indenture.

         Principal of the Class [A-1][A-2][A-3][A-4] Notes will be payable on
each Payment Date in an amount described in the Indenture. "Payment Date" means
the fifteenth day of each month, or, if any such date is not a Business Day, the
next succeeding Business Day, commencing ________, 200_.

         Notwithstanding the foregoing, the entire unpaid principal amount of
the Notes shall be due and payable (i) on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders
of at least 51% of the Outstanding Amount of the Class A Notes, acting together
as a single class (but excluding for such purposes the outstanding principal
amount of any Notes held of record or beneficially owned by TMCC, TAFR LLC or
any of their Affiliates) have declared the Notes to be immediately due and
payable in the manner provided in Section 5.02 of the Indenture, (ii) following
the termination or liquidation of the Trust Estate in connection with the
exercise by the Servicer of its option to purchase the Receivables pursuant to
Section 9.01 of the Sale and Servicing Agreement and Section 10.02 of the
Indenture or (iii) within 90 days of certain Insolvency Events with respect to
TAFR LLC. If any such event occurs, all principal payments on the Class A Notes
shall be made pro rata to the Class A Noteholders entitled thereto.

         Payments of interest on this Note due and payable on each Payment Date,
together with the installment of principal, if any, to the extent not in full
payment of this Note, shall be paid to the Person in whose name such Note (or
one or more Predecessor Notes) is registered in the Note Register on the Record
Date. Such payment will be made by check mailed first-class postage prepaid to
such Person's address as it appears on the Note Register on such Record Date or
by wire transfer to the account specified by the registered holder of any Note
with a face amount of at least $10,000,000. Any reduction in the principal
amount of this Note (or any one or more Predecessor Notes) effected by any
payments made on any Payment Date shall be binding upon all future Holders of
this Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not noted hereon. If funds are
expected to be available, as provided in the Indenture, for payment in full of
the then remaining unpaid principal amount of this Note on a Payment Date, then
the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding
such Payment Date by notice mailed or transmitted by facsimile prior to such
Payment Date, and the amount then due and payable shall be payable only upon
presentation and surrender of this Note at the Indenture Trustee's principal
Corporate Trust Office or at the office of the Indenture Trustee's agent
appointed for such purposes located in The City of New York.

         The Issuer shall pay interest on overdue installments of interest at
the Class [A-1][A-2][A-3][A-4] Rate to the extent lawful.

                                      A-1-6
<PAGE>

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

         Each Noteholder or Note Owner, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under
the Indenture or any certificate or other writing delivered in connection
therewith, against (i) the Indenture Trustee or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or
(iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in its individual capacity, any
holder of a beneficial interest in the Issuer, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee and the Owner
Trustee, in their capacities as such, 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. The Holder of this Note by its
acceptance hereof agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the assets of the Issuer for
any and all liabilities, obligations and undertakings contained in the Indenture
or in this Note.

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

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

         Prior to the due presentment for registration of transfer of this Note,
the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture
Trustee may treat the Person in whose name this Note (as of the day of
determination or as of such other date as may be

                                      A-1-7
<PAGE>

specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and none of the Issuer, the Indenture
Trustee or any such agent shall be affected by notice to the contrary.

         The Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the
Issuer and the rights of the Holders of the Notes under the Indenture, in some
cases without the consent of the Holders of any Class of Notes and in other
cases with the consent of Holders of only certain Classes of Notes. Section 5.12
of the Indenture also contains provisions permitting the Holders of Notes
representing specified percentages of the outstanding principal amount of the
Notes of the Class or Classes specified therein, on behalf of the Holders of all
the Notes of such Classes, to waive compliance by the Issuer with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by the Holder of this Note (or
any one or more Predecessor Notes) shall be conclusive and binding upon such
Holder and upon all future Holders of this Note and of any Note issued upon the
registration of transfer hereof or in exchange hereof or in lieu hereof whether
or not notation of such consent or waiver is made upon this Note. The Indenture
also permits the Indenture Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the
Notes issued thereunder.

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

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

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

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

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

                                      A-1-8

<PAGE>

                                   ASSIGNMENT

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

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

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

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

Dated:                     */
      ---------------------

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

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

                                     A-1-9
<PAGE>

                                    EXHIBIT B

                       (Form of Note Depository Agreement)

                                     B-1-1<PAGE>

                                                                     EXHIBIT 4.3

                          SALE AND SERVICING AGREEMENT

                                      among

                   TOYOTA AUTO RECEIVABLES 200_-_ OWNER TRUST,
                                   as Issuer,

                      TOYOTA AUTO FINANCE RECEIVABLES LLC,
                                   as Seller,

                                       and

                        TOYOTA MOTOR CREDIT CORPORATION,
                                   as Servicer

                            Dated as of _______, 200_

                                        i

<PAGE>

                                    ARTICLE I
                                   DEFINITIONS

SECTION 1.01  Definitions......................................................1
SECTION 1.02  Usage of Terms..................................................27

                                   ARTICLE II
                            CONVEYANCE OF RECEIVABLES

SECTION 2.01  Conveyance of Receivables.......................................27
SECTION 2.02  Custody of Receivables Files....................................29
SECTION 2.03  Acceptance by Owner Trustee.....................................30

                                   ARTICLE III
                                 THE RECEIVABLES

SECTION 3.01  Representations and Warranties of the Seller with Respect
                     to the Receivables.......................................30
SECTION 3.02  Remedies........................................................33
SECTION 3.03  Duties of Servicer as Custodian.................................34
SECTION 3.04  Instructions; Authority To Act..................................35
SECTION 3.05  Custodian's Indemnification.....................................35
SECTION 3.06  Effective Period and Termination................................35

                                   ARTICLE IV
                   ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01  Duties of Servicer..............................................36
SECTION 4.02  Collection and Allocation of Receivable Payments................37
SECTION 4.03  Rebates on Full Prepayments.....................................37
SECTION 4.04  Realization upon Receivables....................................37
SECTION 4.05  Physical Damage Insurance.......................................38
SECTION 4.06  Maintenance of Security Interests in Financed Vehicles..........38
SECTION 4.07  Covenants of Servicer...........................................38
SECTION 4.08  Remedies........................................................39
SECTION 4.09  Servicing Fee and Expenses......................................39
SECTION 4.10  Servicer's Certificate..........................................40
SECTION 4.11  Annual Statement as to Compliance; Notice of Default............40
SECTION 4.12  Annual Accountants' Report......................................41
SECTION 4.13  Access to Certain Documentation and Information Regarding
                     Receivables..............................................41
SECTION 4.14  Appointment of Subservicer......................................41
SECTION 4.15  Amendments to Schedule of Receivables...........................42
SECTION 4.16  Reports to Securityholders and Rating Agencies..................42

                                       i
<PAGE>

                                    ARTICLE V
       ACCOUNTS; PAYMENTS AND DISTRIBUTIONS; STATEMENTS TO SECURITYHOLDERS

SECTION 5.01  Establishment of Collection Account and Payahead Account........42
SECTION 5.02  Collections.....................................................44
SECTION 5.03  Application of Collections......................................45
SECTION 5.04  Advances; [Swap Payments].......................................46
SECTION 5.05  Additional Deposits.............................................47
SECTION 5.06  Payments and Distributions......................................48
SECTION 5.07  [Revolving Liquidity Note and Reserve Account]..................51
SECTION 5.08  [Revolving Liquidity Note]......................................53
SECTION 5.09  Statements to Certificateholder, Noteholders, [and
              Swap Counterparty]..............................................53
SECTION 5.10  Net Deposits....................................................55

                                   ARTICLE VI
                                   THE SELLER

SECTION 6.01  Representations of Seller.......................................55
SECTION 6.02  Company Existence...............................................56
SECTION 6.03  Liability of Seller; Indemnities................................56
SECTION 6.04  Merger or Consolidation of, or Assumption of the
              Obligations of, Seller..........................................57
SECTION 6.05  Limitation on Liability of Seller and Others....................58
SECTION 6.06  Seller May Own Certificates or Notes............................58

                                   ARTICLE VII
                                  THE SERVICER

SECTION 7.01  Representations of Servicer.....................................58
SECTION 7.02  Indemnities of Servicer.........................................59
SECTION 7.03  Merger or Consolidation of, or Assumption of the Obligations
                     of, Servicer.............................................61
SECTION 7.04  Limitation on Liability of Servicer and Others..................61
SECTION 7.05  TMCC Not To Resign as Servicer..................................62

                                  ARTICLE VIII
                                     DEFAULT

SECTION 8.01  Servicer Default................................................62
SECTION 8.02  Appointment of Successor........................................63
SECTION 8.03  Repayment of Advances; Compensation Payable.....................65
SECTION 8.04  Notification....................................................65

                                   ARTICLE IX
                                   TERMINATION

SECTION 9.01  Optional Purchase of All Receivables............................65
SECTION 9.02  Termination of the Trust Agreement..............................66

                                       ii
<PAGE>

                                    ARTICLE X
                                  MISCELLANEOUS

SECTION 10.01  Amendment......................................................66
SECTION 10.02  Protection of Title to Trust...................................68
SECTION 10.03  Notices........................................................70
SECTION 10.04  Assignment by the Seller or the Servicer.......................70
SECTION 10.05  Limitations on Rights of Others................................70
SECTION 10.06  Severability...................................................70
SECTION 10.07  Separate Counterparts..........................................70
SECTION 10.08  Headings.......................................................70
SECTION 10.09  Governing Law..................................................71
SECTION 10.10  Assignment by Issuer...........................................71
SECTION 10.11  Nonpetition Covenants..........................................71
SECTION 10.12  Limitation of Liability of Owner Trustee and Indenture
               Trustee........................................................71

SCHEDULE A     Schedule of Receivables
EXHIBIT A      Form of Servicer's Certificate

                                      iii
<PAGE>

      SALE AND SERVICING AGREEMENT dated as of _______, 200_, among TOYOTA AUTO
RECEIVABLES 200_-_ OWNER TRUST, a Delaware business trust (the "Issuer"), TOYOTA
AUTO FINANCE RECEIVABLES LLC, a Delaware limited liability company ("TAFR LLC"
or the "Seller"), and TOYOTA MOTOR CREDIT CORPORATION, a California corporation
("TMCC" or the "Servicer").

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

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

      WHEREAS the Servicer is willing to service such receivables;

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

                                    ARTICLE I

                                   DEFINITIONS

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

            "Actual Payment" means, with respect to a Receivable and a
Collection Period, all payments received by the Servicer from or for the account
of the related Obligor on such Receivable during such Collection Period (and, in
the case of the first Collection Period, all payments received by the Servicer
from or for the account of such Obligor since the Cutoff Date through the last
day of such Collection Period), net of any Supplemental Servicing Fees
attributable to such Receivable. Actual Payments do not include Applied Payments
Ahead.

            "Actuarial Receivable" means any Receivable which provides for the
allocation of payments according to the "actuarial" method.

            ["Additional Closing Date" means, with respect to any class of Notes
with a Revolving Period, the date on which additional Receivables are sold to
the Issuer as set forth in Section __.]

            ["Additional Yield Maintenance Amount" means, with respect to any
Payment Date, the amount by which the Required Yield Maintenance Amount exceeds
the Yield Maintenance Amount.]

            "Administration Agreement" means the Administration Agreement dated
as of _______, 200_, among the Administrator, the Issuer, the Owner Trustee and
the Indenture Trustee.

                                       1
<PAGE>

            "Administrative Purchase Payment" means, with respect to a Payment
Date and to (1) an Administrative Receivable which is a Precomputed Receivable
purchased by the Servicer as of the close of business on the last day of the
related Collection Period, (a) the sum of (i) all Scheduled Payments on such
Receivable due after the last day of such Collection Period, (ii) an amount
equal to any reimbursement of Outstanding Advances made pursuant to Section
5.04(c) with respect to such Receivable and (iii) all past due Scheduled
Payments for which an Advance has not been made, minus (b) all Payments Ahead
with respect to such Receivable then on deposit in the Payahead Account and the
Rebate, if any, paid to the Obligor on a Precomputed Receivable on or before the
date of such purchase and (2) an Administrative Receivable which is a Simple
Interest Receivable purchased by the Servicer during the related Collection
Period, the sum of (a) the unpaid Principal Balance owed by the Obligor in
respect of such Receivable plus (b) interest on such unpaid Principal Balance at
a rate equal to [the sum of the Class B Pass Through Rate][or specify other
rate] and the related APR to the last day in the related Collection Period.

            "Administrative Receivable" means a Receivable which the Servicer is
required to purchase pursuant to Section 3.02 or 4.08 or which the Servicer has
elected to purchase pursuant to Section 9.01.

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

            "Advance" means a Precomputed Advance or Simple Interest Advance.

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

            "Aggregate Net Losses" means, with respect to a Collection Period,
an amount equal to the aggregate Principal Balance of all Receivables that
became Defaulted Receivables during such Collection Period minus the sum of (x)
all Net Liquidation Proceeds collected during such Collection Period with
respect to Defaulted Receivables and (y) all amounts received during such
Collection Period in respect of the Receivables liquidated in prior Collection
Periods net of any Liquidation Expenses incurred during such Collection Period
in connection with the recovery of such amounts.

            "Agreement" means this Sale and Servicing Agreement among the Toyota
Auto Receivables 200_-_ Owner Trust, as Issuer, TAFR LLC, as seller, and TMCC,
as servicer, as the same may be amended or supplemented from time to time.

            ["Amortization Period" means, with respect to any class of Notes, a
period following a Revolving Period, during which collections of principal and
other amounts treated as collections of principal are distributed to the holders
of such class of Notes.]

                                       2
<PAGE>

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

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

            "Applied Payment Ahead" means, with respect to a Precomputed
Receivable and a Collection Period as to which (a) the Actual Payment is less
than the Scheduled Payment and (b) a Deferred Prepayment is on deposit in the
Payahead Account, an amount equal to the lesser of (i) such Deferred Prepayment
and (ii) the amount by which the Scheduled Payment exceeds the Actual Payment.

            "Available Collections" means, with respect to any Payment Date, the
total of the following amounts received by the Servicer on or in respect of the
Receivables during (or for application with respect to) the related Collection
Period (in the case of the Precomputed Receivables, computed in accordance with
the actuarial method and in the case of the Simple Interest Receivables,
computed in accordance with the simple interest method):

            (a) the sum of all (i) collections on or in respect of all
Receivables other than Defaulted Receivables (including Applied Payments Ahead,
but otherwise excluding Payments Ahead), (ii) Net Liquidation Proceeds, (iii)
Advances made by the Servicer, (iv) all Warranty Purchase Payments, [(v) all
Swap Payments Incoming,] [(vi) all Swap Termination Payments made by the Swap
Counterparty to the Issuer] and (vii) all Administrative Purchase Payments, less

            (b) the sum of all (i) amounts received on or in respect of a
particular Receivable (other than a Defaulted Receivable) to the extent of the
aggregate Outstanding Advances in respect of such Receivable, (ii) Net
Liquidation Proceeds with respect to a particular Receivable to the extent of
the aggregate Outstanding Advances in respect of such Receivable, (iii)
recoveries from collections on other Receivables to the extent of Advances made
by the Servicer on a particular Receivable that the Servicer has determined are
Nonrecoverable Advances, (iv) late fees, extension fees and other administrative
fees and expenses or similar charges (which are payable to the Servicer as
Supplemental Servicing Fees) collected by the Servicer, (v) all Swap Payments
Outgoing, [(vi) all Swap Termination Payments made by the Issuer to the Swap
Counterparty] and (vii) Rebates.

            "Basic Documents" means the Receivables Purchase Agreement, the
Trust Agreement, the Certificate of Trust, this Sale and Servicing Agreement,
the Indenture, the Administration Agreement, the Securities Account Control
Agreement, the Note Depository Agreement, the Certificate Depository Agreement,
[the Collateral Security Agreement,] [the Revolving Liquidity Note Agreement,]
[the Revolving Liquidity Note,] [the Operating Agreement] and the other
documents and certificates delivered in connection herewith and therewith.

                                       3
<PAGE>

            "Basic Servicing Fee" means the fee payable to the Servicer on each
Payment Date, calculated pursuant to Section 4.09, for services rendered during
the related Collection Period, which shall be equal to one-twelfth of the
Servicing Fee Rate multiplied by the Pool Balance as of the first day of the
related Collection Period or, with respect to the first Payment Date, the
Original Pool Balance.

            "Book-Entry Certificates" and Book-Entry Notes" mean, respectively,
beneficial interests in Certificates or Notes, as the case may be, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in the Trust Agreement and the Indenture, respectively.

            "Business Day" means any day other than a Saturday, a Sunday or a
day on which banking institutions in New York, New York, Chicago, Illinois,
Wilmington, Delaware or San Francisco, California are authorized or obligated by
law, executive order or governmental decree to be closed.

            "Certificate" means a certificate evidencing the Subordinated
Seller's Interest.

            "Certificateholders" means the registered holder of the Subordinated
Seller's Interest.

            "Certificateholders' Distributable Amount" means, with respect to a
Distribution Date, the sum of the Certificateholders' Principal Distributable
Amount and the Certificateholders' Interest Distributable Amount with respect to
such Distribution Date.

            "Certificateholder Interest Carryover Shortfall" means, with respect
to any Distribution Date, the excess, if any, of (x) the Certificateholders'
Interest Distributable Amount for such Distribution Date and any outstanding
Certificateholders Interest Carryover Shortfall from the immediately preceding
Distribution Date plus interest on such outstanding Certificateholder Interest
Carryover Shortfall, to the extent permitted by law, at the Pass Through Rate
from such immediately preceding Distribution Date through the current
Distribution Date, over (y) the amount of interest distributed to the
Certificateholders on such Distribution Date.

            "Certificateholders' Interest Distributable Amount", consisting
of one month's interest at the Pass Through Rate on the Certificate Balance
as of the immediately preceding Distribution Date (after giving effect to
distributions of principal made on such immediately preceding Distribution
Date) or, in the case of the first Distribution Date, the Initial Certificate
Balance. "Certificateholders' Principal Distributable Amount"

            "Certificateholder Principal Carryover Shortfall" means, with
respect to any Distribution Date occurring (i) after the Distribution Date on
which the principal amount of the Class A-1 Notes is reduced to zero or (ii) in
____________, will equal the excess of the Certificateholders' Principal
Distributable Amount plus any outstanding Certificateholder Principal Carryover
Shortfall with respect to one or more prior Distribution Dates over the amount
of principal that the holders of the Certificateholders actually received on
such Distribution Date and, with respect to any other Distribution Date, zero.

                                       4
<PAGE>

            "Certificateholders' Percentage" means, with respect to any
Distribution Date, the percentage equivalent of a fraction, (a) the numerator of
which is the Certificate Balance, and (b) the denominator of which is the sum of
the Outstanding Amount plus the Certificate Balance, in each case prior to the
making of any deposits, withdrawals or distributions on such Distribution Date.

            "Certificateholders' Principal Distributable Amount" means, with
respect to any Distribution Date, the Certificateholders' Percentage of the
following items: (a) in the case of Precomputed Receivables, the principal
portion of all Scheduled Payments due during the related Collection Period,
computed in accordance with the actuarial method, (b) in the case of Simple
Interest Receivables, the principal portion of all Scheduled Payments actually
received during the related Collection Period, (c) the principal portion of all
Prepayments on Simple Interest Receivables and prepayments in full of
Precomputed Receivables received during the related Collection Period (to the
extent such amounts are not included in clauses (a) and (b) above) and (d) the
Principal Balance of each Receivable that the Servicer became obligated to
purchase, the Seller became obligated to repurchase or that became a Defaulted
Receivable during the related Collection Period (to the extent such amounts are
not included in clauses (a), (b) and (c) above

            "Certificate Pool Factor" means, as of the close of business on the
last day of a Collection Period, a seven-digit decimal figure equal to the
Certificate Balance (after giving effect to any reductions therein to be made on
the immediately following Distribution Date) divided by the Initial Certificate
Balance. The Certificate Pool Factor will be 1.0000000 as of the Closing Date;
thereafter, the Certificate Pool Factor will decline to reflect reductions in
the Certificate Balance.

            "Charge-off Rate" means, with respect to a Collection Period, the
percentage equivalent of a fraction, the numerator of which is the Aggregate Net
Losses for such Collection Period, and the denominator of which is the average
of (i) the Pool Balance on the last day of the Collection Period immediately
preceding such Collection Period and (ii) the Pool Balance on the last day of
such Collection Period; such quotient is then multiplied by twelve to arrive at
an annualized percentage.

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

            "Class A Note Balance" as of any date of determination, means the
aggregate of the outstanding principal balances of the Class A-1 Notes, Class
A-2 Notes, Class A-3 Notes and Class A-4 Notes.

            "Class A-1 Final Scheduled Payment Date" means the Payment Date in
_______, 200_.

            "Class A-1 Initial Principal Balance" means $__________.

            "Class A-1 Interest Carryover Shortfall" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-1 Interest Distributable
Amount for such Payment Date and any outstanding Class A-1 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-1 Interest Carryover Shortfall at the Class A-1 Rate,
to the extent lawful, calculated on the same basis as interest on the Class

                                       5
<PAGE>

A-1 Notes for the same period), over (y) the amount of interest distributed to
the Class A-1 Noteholders on such Payment Date.

            "Class A-1 Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
the actual number of days in such Interest Period and a year assumed to consist
of 360 days) on the Class A-1 Principal Balance as of the immediately preceding
Payment Date (after giving effect to payments of principal made on such
immediately preceding Payment Date) at the Class A-1 Rate or, in the case of the
first Payment Date, on the Class A-1 Initial Principal Balance.

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

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

            "Class A-1 Principal Balance" as of any date means the Class A-1
Initial Principal Balance less all amounts paid to the holders of Class A-1
Notes in respect of principal pursuant to Section 5.06 hereof.

            "Class A-1 Rate" means __% per annum.

            "Class A-2 Final Scheduled Payment Date" means the Payment Date in
_______, 200_.

            "Class A-2 Initial Principal Balance" means $___________.

            "Class A-2 Interest Carryover Shortfall" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-2 Interest Distributable
Amount for such Payment Date and any outstanding Class A-2 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-2 Interest Carryover Shortfall at the Class A-2 Rate,
to the extent lawful, calculated on the same basis as interest on the Class A-2
Notes for the same period), over (y) the amount of interest distributed to the
Class A-2 Noteholders on such Payment Date.

            "Class A-2 Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
a 360 day year consisting of twelve 30 day months) on the Class A-2 Principal
Balance as of the immediately preceding Payment Date (after giving effect to
payments of principal made on such immediately preceding Payment Date) at the
Class A-2 Rate or, in the case of the first Payment Date, on the Class A-2
Initial Principal Balance.

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

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

                                       6
<PAGE>

            "Class A-2 Notional Balance" means the Class A-2 Principal Balance
as of the first day of the applicable Interest Period.

            ["Class A-2 Notional Fixed Rate" means __%.]

            "Class A-2 Principal Balance" as of any date means the Class A-2
Initial Principal Balance less all amounts paid to the holders of Class A-2
Notes in respect of principal pursuant to Section 5.06 hereof.

            "Class A-2 Rate" means __% per annum.

            "Class A-3 Final Scheduled Payment Date" means the Payment Date in
_______, 200_.

            "Class A-3 Initial Principal Balance" means $__________.

            "Class A-3 Interest Carryover Shortfall" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-3 Interest Distributable
Amount for such Payment Date and any outstanding Class A-3 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-3 Interest Carryover Shortfall at the Class A-3 Rate,
to the extent lawful, calculated on the same basis as interest on the Class A-3
Notes for the same period), over (y) the amount of interest distributed to the
Class A-3 Noteholders on such Payment Date.

            "Class A-3 Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
the actual number of days in such Interest Period and a year assumed to consist
of 360 days) on the Class A-3 Principal Balance as of the immediately preceding
Payment Date (after giving effect to payments of principal made on such
immediately preceding Payment Date) at the Class A-3 Rate or, in the case of the
first Payment Date, on the Class A-3 Initial Principal Balance.

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

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

            "Class A-3 Notional Balance" means the Class A-3 Principal Balance
as of the first day of the applicable Interest Period.

            ["Class A-3 Notional Fixed Rate" means __%.]

            "Class A-3 Principal Balance" as of any date means the Class A-3
Initial Principal Balance less all amounts paid to the holders of Class A-3
Notes in respect of principal pursuant to Section 5.06 hereof.

            "Class A-3 Rate" means __% per annum.

                                       7
<PAGE>

            "Class A-4 Final Scheduled Payment Date" means the Payment Date in
_______, 200_.

            "Class A-4 Initial Principal Balance" means $________.

            "Class A-4 Interest Carryover Shortfall" means, with respect to any
Payment Date, the excess, if any, of (x) the Class A-4 Interest Distributable
Amount for such Payment Date and any outstanding Class A-4 Interest Carryover
Shortfall from the immediately preceding Payment Date (together with interest on
such outstanding Class A-4 Interest Carryover Shortfall at the Class A-4 Rate,
to the extent lawful, calculated on the same basis as interest on the Class A-4
Notes for the same period), over (y) the amount of interest distributed to the
Class A-4 Noteholders on such Payment Date.

            "Class A-4 Interest Distributable Amount" means the amount of
interest accrued during the related Interest Period (calculated on the basis of
a 360 day year consisting of twelve 30 day months) on the Class A-4 Principal
Balance as of the immediately preceding Payment Date (after giving effect to
payments of principal made on such immediately preceding Payment Date) at the
Class A-4 Rate or, in the case of the first Payment Date, on the Class A-4
Initial Principal Balance.

            "Class A-4 Note" means any of the __% Asset Backed Notes, Class A-4,
issued under the Indenture.

            "Class A-4 Noteholder" means any Person in whose name a Class A-4
Note is registered in the Note Register.

            "Class A-4 Principal Balance" as of any date means the Class A-4
Initial Principal Balance less all amounts paid to the holders of Class A-4
Notes in respect of principal pursuant to Section 5.06 hereof.

            "Class A-4 Rate" means __% per annum.

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

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

            "Closing Date" means _______, 200_.

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

            ["Collateral Security Agreement" means the Collateral Security
Agreement dated _______, 200_, by and among the Seller, the Servicer, [third
party] and the Owner Trustee, as collateral agent, pursuant to which [third
party] has conveyed the property and proceeds of the

                                       8
<PAGE>

Yield Maintenance Account to the Owner Trustee in trust for the benefit of the
Certificateholders as described in Section 5.01(a).]

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

            "Collection Period" means, with respect to any Payment Date, the
calendar month immediately preceding the month in which such Payment Date occurs
(and, in the case of the first Collection Period, the period from the Cutoff
Date through the last day of the calendar month immediately preceding the month
in which such Payment Date occurs).

            "Commission" means the Securities and Exchange Commission, and any
successor thereto.

            "Current Receivable" means each Receivable that is not a Defaulted
Receivable or a Liquidated Receivable.

            "Cutoff Date" means _______, 200_ [or, in the case of each
Additional Closing Date, such Additional Closing Date].

            "Dealer" means the dealer of automobile and/or light duty trucks who
sold a Financed Vehicle and who originated and assigned the Receivable relating
to such Financed Vehicle to TMCC under an existing agreement between such dealer
and TMCC.

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

            "Defaulted Receivable" means a Receivable (other than an
Administrative Receivable or a Warranty Receivable) as to which (i) all or any
part of a Scheduled Payment is 150 or more days past due and the Servicer has
not repossessed the related Financed Vehicle, or (ii) the Servicer has, in
accordance with its customary servicing procedures, determined that eventual
payment in full is unlikely and either repossessed and liquidated the related
Financed Vehicle or repossessed and held the related Financed Vehicle in its
repossession inventory for 90 days, whichever occurs first.

            "Definitive Notes" shall have the meaning ascribed thereto in the
Indenture.

            "Deferred Prepayment" means, with respect to a Precomputed
Receivable and a Collection Period, the aggregate amount, if any, of Payments
Ahead remitted to the Servicer in respect of such Receivable during one or more
prior Collection Periods and currently held by the Servicer or in the Payahead
Account.

            ["Delaware Trustee" means the Person acting as Delaware Co-Trustee
under the Trust Agreement, its successors in interest and any successor Delaware
co-trustee under the Trust Agreement.]

            "Delinquency Percentage" means, with respect to a Collection Period,
the percentage equivalent of a fraction, the numerator of which is the number of
(i) all outstanding

                                       9
<PAGE>

Receivables 60 days or more delinquent (after taking into account permitted
extensions) as of the last day of such Collection Period (excluding Receivables
as to which the Financed Vehicle has been liquidated during that Collection
Period), determined in accordance with the Servicer's normal practices, plus
(ii) all repossessed Financed Vehicles that have not been liquidated (to the
extent the related Receivable is not otherwise reflected in clause (i) above),
and the denominator of which is the aggregate number of Current Receivables on
the last day of such Collection Period.

            ["Delivery" means, means, when used with respect to the Reserve
Fund:

            (i) with respect to certificated securities, bankers' acceptances,
commercial paper, negotiable certificates of deposit and other obligations that
constitute "instruments" within the meaning of Section 9-105(1)(i) of the UCC
and are susceptible of physical delivery (collectively, "Physical Property"),
transfer thereof to the Relevant Trustee or its financial intermediary as
defined in Section 8-313(4) of the UCC (a "Financial Intermediary") in
accordance with Sections 8-313(1)(a), 8-313(1)(d)(i) or 8-313(1)(g) of the UCC,
and evidence that any such Physical Property that is in registrable form has
been registered in the name of the Relevant Trustee, its Financial Intermediary,
its custodian or its nominee;

            (ii) with respect to any Reserve Fund property 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: (A)
book-entry registration of such property to an appropriate book-entry account
maintained with a Federal Reserve Bank by the Relevant Trustee or by a custodian
and issuance to the Relevant Trustee or to such custodian, as the case may be,
of a deposit advice or other written confirmation of such book-entry
registration, (B) the making by any such custodian of entries in its books and
records identifying such book-entry security held through the Federal Reserve
System pursuant to federal book-entry regulations as belonging to the Relevant
Trustee and indicating that such custodian holds such Reserve Fund property
solely as agent for the Relevant Trustee, and the making by the Relevant Trustee
of entries in its books and records establishing that it holds such Reserve Fund
property solely as Relevant Trustee pursuant to Section 5.01, and (C) such
additional or alternative procedures as may hereafter become necessary to effect
complete transfer of ownership of any such Reserve Fund property to the Relevant
Trustee, consistent with changes in applicable law or regulations or the
interpretation thereof; and

            (iii) with respect to any Reserve Fund property that is an
uncertificated security under Article 8 of the UCC and that s not governed by
clause (ii) above, registration of the transfer to, and ownership of such
Reserve Fund property by, the Relevant Trustee, its Financial Intermediary, its
custodian or its nominee by the issuer of such Reserve Fund.]

            "Depositor" means the Seller in its capacity as Depositor under the
Trust Agreement.

            "Determination Date" means, with respect to any Payment Date, the
second Business Day preceding such Payment Date.

                                       10
<PAGE>

            "DTC" means The Depository Trust Company, and its successors.

            "Eligible Deposit Account" means either (a) a segregated account
with an Eligible Institution or (b) a segregated trust account with the
corporate trust department of a depository institution organized under the laws
of the United States of America or any one of the states thereof or the District
of Columbia (or any domestic branch of a foreign bank), having corporate trust
powers and acting as trustee for funds deposited in such account, so long as any
of the securities of such depository institution shall have a credit rating from
each Rating Agency in one of its generic rating categories that signifies
investment grade.

            "Eligible Institution" means (a) the corporate trust department of
the Indenture Trustee or the Owner Trustee or (b) a depository institution
organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign
bank), which (i) has either (A) a long-term unsecured debt rating of "AA-" or
better by Standard & Poor's and "Aa3" or better by Moody's or (B) an account or
accounts in which funds will be held therein for 30 days or less which are
maintained with a depository institution or trust company, the short-term
unsecured debt obligations of which are rated "A-1+" or better by Standard &
Poor's or if not rated by Standard & Poor's then otherwise approved by Standard
& Poor's and rated "P-1" or better by Moody's, or if not rated by Moody's then
otherwise approved by Moody's, and (ii) whose deposits are insured by the FDIC.
If so qualified, the Indenture Trustee or the Owner Trustee may be considered an
Eligible Institution for the purposes of clause (b) of this definition.

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

    (a) obligations of, and obligations fully guaranteed as to timely payment of
principal and interest by, the United States or any agency thereof, provided
such obligations are backed by the full faith and credit of the United States;

    (b) general obligations of or obligations guaranteed by FNMA, or (ii) any
state of the United States, the District of Columbia or the Commonwealth of
Puerto Rico then rated the highest available credit rating of each Rating Agency
for such obligations;

    (c) certificates of deposit issued by any depository institution or trust
company (including the Indenture Trustee) incorporated under the laws of the
United States or of any state thereof, the District of Columbia or the
Commonwealth of Puerto Rico and subject to supervision and examination by
banking authorities of one or more of such jurisdictions, provided that the
short-term unsecured debt obligations of such depository institution or trust
company are then rated the highest available rating of each Rating Agency for
such obligations;

    (d) certificates of deposit, demand or time deposits of, bankers'
acceptances issued by, or federal funds sold by, any depository institution or
trust company (including the Indenture Trustee) incorporated under the laws of
the United States or any State and subject to supervision and examination by
federal and/or State banking authorities and the deposits of which are fully
insured by the Federal Deposit Insurance Corporation, so long as at the time of
such investment or contractual commitment providing for such investment either
such depository

                                       11
<PAGE>

institution or trust company is an Eligible Institution (or if such investment
will mature after more than one month, the long-term, unsecured debt of the
issuer has the highest available rating from each Rating Agency) or as to which
the Indenture Trustee shall have received a letter from each Rating Agency to
the effect that such investment would not result in the qualification,
downgrading or withdrawal of the ratings then assigned to any Notes issued by
the Issuer;

    (e) certificates of deposit issued by any bank, trust company, savings bank
or other savings institution that is an Eligible Institution and is fully
insured by the FDIC (or if such investment will mature after more than one
month, the long-term, unsecured debt of the issuer has the highest available
rating from each Rating Agency);

    (f) repurchase obligations held by the Indenture Trustee that are acceptable
to the Indenture Trustee with respect to any security described in clauses (a),
(b) or (g) hereof or any other security issued or guaranteed by any other agency
or instrumentality of the United States, in either case entered into with a
federal agency or a depository institution or trust company (acting as
principal) described in clause (d) above (including the Indenture Trustee);
provided, however, that repurchase obligations entered into with any particular
depository institution or trust company (including the Indenture Trustee) will
not be Eligible Investments to the extent that the aggregate principal amount of
such repurchase obligations with such depository institution or trust company
held by the Indenture Trustee on behalf of the Noteholders or the Seller, as the
case may be, shall exceed 10% of either the Pool Balance or of the principal
balance of all the face amount of all Eligible Investments so held thereby;

    (g) securities bearing interest or sold at a discount issued by any
corporation incorporated under the laws of the United States or any State so
long as at the time of such investment or contractual commitment providing for
such investment (i) the long-term, unsecured debt, or if such securities are
commercial paper, the short-term unsecured debt, of such corporation has the
highest available rating from each Rating Agency or (ii) the Indenture Trustee
shall have received a letter from each Rating Agency to the effect that such
investment would not result in the qualification, downgrading or withdrawal of
the ratings then assigned to any of the Notes;

    (h) money market funds so long as such funds are rated "Aaa" by Moody's (so
long as Moody's is a Rating Agency) and "AAAm" by Standard & Poor's (so long as
Standard & Poor's is a Rating Agency), including any such fund for which the
Indenture Trustee or an Affiliate thereof serves as an investment advisor,
administrator, shareholder servicing agent and/or custodian or subcustodian, and
notwithstanding that (i) such Person charges and collects fees and expenses from
such funds for services rendered, (ii) such Person charges and collects fees and
expenses for services rendered pursuant to the Trust Agreement, the Indenture or
the Securities Account Control Agreement and (iii) services performed for such
funds and pursuant to any such agreement may converge at any time. Each of the
Seller and the Servicer hereby specifically authorizes the Indenture Trustee,
Owner Trustee, Securities Intermediary or an Affiliate thereof to charge and
collect all fees and expenses from such funds for services rendered to such
funds, in addition to any fees and expenses such Person may charge and collect
for services rendered pursuant to any such Agreement; and

                                       12
<PAGE>

    (i) such other investments acceptable to each Rating Agency (as approved in
writing by each Rating Agency) as will not result in the qualification,
downgrading or withdrawal of the ratings then assigned by such Rating Agency to
any of the Notes; provided that each of the foregoing investments shall mature
no later than the Payment Date next succeeding such investment, and shall be
required to be held to such maturity.

         None of the foregoing will be considered a Eligible Investment if:

              (1) it constitutes a certificated security, bankers' acceptance,
    commercial paper, negotiable certificate of deposit or other obligation that
    constitutes "financial assets" within the meaning of Section 8-102(a)(9)(c)
    of the UCC unless a security entitlement with respect to such Eligible
    Investment has been created, in favor of the Indenture Trustee or Owner
    Trustee, as appropriate, in accordance with Section 8-501(b) of the UCC and
    the related securities intermediary has agreed not to comply with
    entitlement orders of any secured party other than the Indenture Trustee,
    Seller or Owner Trustee, as the case may be; or

              (2) it constitutes a book-entry security held through the Federal
    Reserve System pursuant to federal book-entry regulations, unless, in
    accordance with applicable law, (A) a book-entry registration thereof is
    made to an appropriate book-entry account maintained with a Federal Reserve
    Bank by the Indenture Trustee, Securities Intermediary or Owner Trustee, as
    appropriate, or by a custodian therefor, (B) a deposit advice or other
    written confirmation of such book-entry registration is issued to such
    Person, (C) any such custodian makes entries in its books and records
    identifying that such book-entry security is held through the Federal
    Reserve System pursuant to federal book-entry regulations and belongs to
    such trustee and indicating that such custodian holds such Eligible
    Investment solely as agent for the Indenture Trustee, Securities
    Intermediary or Owner Trustee, as appropriate, (D) the Indenture Trustee,
    Securities Intermediary or Owner Trustee, as appropriate, makes entries in
    its books and records establishing that it holds such security solely in
    such capacity, and (E) any additional or alternative procedures as may
    hereafter become necessary to effect complete transfer of ownership thereof
    to such trustee are satisfied, consistent with changes in applicable law or
    regulations or the interpretation thereof.

            Notwithstanding anything to the contrary contained in this
definition, no Eligible Investment may be purchased at a premium and no Eligible
Investment shall be an "interest only" instrument.

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

                                       13
<PAGE>

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

            "Event of Default" shall have the meaning specified in the
Indenture.

            "Excess Payment" means, with respect to a Receivable and a
Collection Period, the amount, if any, by which the Actual Payment exceeds the
sum of (i) the Scheduled Payment, and (ii) any Overdue Payment.

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

            "FDIC" means the Federal Deposit Insurance Corporation, and its
successors.

            "FNMA" means the Federal National Mortgage Association, and its
successors.

            "Final Scheduled Maturity Date" means the Payment Date in
________, 200_.

            ["Financial Intermediary" shall have the meaning specified in the
definition of the term "Delivery."]

            "Financed Vehicle" means, with respect to a Receivable, the related
automobile or light duty truck, as the case may be, together with all accessions
thereto, securing the related Obligor's indebtedness under such Receivable.

            "Holder" or "Securityholder" means the registered holder of any
Certificate or a Note as evidenced by the Note Register or the
Certificateholder, as the case may be, except that, solely for the purposes of
giving certain consents, waivers, requests or demands pursuant to the Trust
Agreement or the Indenture, the interest evidenced by any Certificate or any
Note registered in the name of TAFR LLC or TMCC, or any Person actually known to
a Trust Officer of the Owner Trustee or the Indenture Trustee to be controlling,
controlled by or under common control with TAFR LLC or TMCC, 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.

            "Indenture" means the Indenture dated as of _______, 200_, between
the Issuer and the Indenture Trustee.

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

            "Initial Certificate Balance" shall have the meaning set forth in
the Trust Agreement.

            "Insolvency Event" means, with respect to a specified Person, (a)
the filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of such Person or 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

                                       14
<PAGE>

substantial part of its property, or ordering the winding-up or liquidation of
such Person's affairs, and such decree or order shall remain unstayed and in
effect for a period of 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.

            "Insurance Policy" means, with respect to a Receivable, an insurance
policy covering physical damage, credit life, credit disability, theft,
mechanical breakdown or similar event relating to the related Financed Vehicle
or Obligor.

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

            ["Interest Period" with respect to any Payment Date and (i) the
Class A-1 and Class A-3 Notes means the period from (and including) a Payment
Date to (but excluding) the next Payment Date, except that the first interest
accrual period will be from (and including) the Closing Date to (but excluding)
_______, 200_; and (ii) the Class A-2 and Class A-4 Notes means the period from
(and including) the 15th day of each calendar month to (but excluding) the 15th
day of the succeeding calendar month, except that the first interest accrual
period will be from (and including) the Closing Date to (but excluding) _______,
200_.]

            ["Interest Rate Swap Agreement" means the 1992 ISDA Master Agreement
dated as of _______, 200_, including all schedules and confirmations thereto,
between the Issuer and the Swap Counterparty, as the same may be amended,
supplemented, renewed, extended or replaced from time to time.]

            "Interest Reset Date" means, with respect to the Class A-3 Notes,
the first day of the applicable Interest Period.

            "Investment Company Act" means the Investment Company Act of 1940,
as amended.

            "Issuer" means Toyota Auto Receivables 200_-_ Owner Trust.

            ["LIBOR" means the rate for deposits in U.S. dollars for a one-month
period which appears on the Telerate Page 3750 as of 11:00 a.m., London time, on
the Interest Determination Date; provided that, the following procedures will be
followed if LIBOR cannot be determined as described above:

            (a) With respect to an Interest Determination Date on which no rate
appears on Telerate Page 3750, LIBOR for the applicable Interest Determination
Date will be the rate calculated by the Calculation Agent (as defined in the
Interest Rate Swap Agreement) as the arithmetic mean of at least two quotations
obtained by the Calculation Agent after requesting the

                                       15
<PAGE>

principal London offices of each of four major reference banks in the London
interbank market, which may include the Calculation Agent and its affiliates, as
selected by the Calculation Agent, to provide the Calculation Agent with its
offered quotation for deposits in U.S. dollars for a one-month period,
commencing on the second London Banking Day immediately following the applicable
Interest Determination Date, to prime banks in the London interbank market at
approximately 11:00 a.m., London time, on such Interest Determination Date and
in a principal amount that is representative for a single transaction in U.S.
dollars in that market at that time. If at least two such quotations are
provided, LIBOR determined on the applicable Interest Determination Date will be
the arithmetic mean of the quotations.

            (b) If fewer than two quotations referred to in clause (a) above are
provided, LIBOR determined on the applicable Interest Determination Date will be
the rate calculated by the Calculation Agent as the arithmetic mean of the rates
quoted at approximately 11:00 a.m. in New York on the applicable Interest
Determination Date by three major banks, which may include the Calculation Agent
and its affiliates, in New York, selected by the Calculation Agent for loans in
U.S. dollars to leading European banks, having a maturity of one-month and in a
principal amount that is representative for a single transaction in U.S. dollars
in that market at that time.

            (c) If the banks so selected by the Calculation Agent are not
quoting as mentioned in clause (b) above, LIBOR for the applicable Interest
Determination Date will be LIBOR in effect on the applicable Interest
Determination Date.]

             "Lien" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind other than tax liens, mechanics' liens and any liens
that attach to a Receivable or any property, as the context may require, by
operation of law.

            "Liquidated Receivable" means a Receivable that (i) has been the
subject of a Prepayment in full, or (ii) has been paid in full or as to which
the Servicer has determined that the final amounts in respect of such payment
have been paid with respect to a Defaulted Receivable, regardless of whether all
or any part of such payment has been made by the Obligor under such Receivable,
the Seller pursuant to this Agreement, the Servicer pursuant to this Agreement
or pursuant to the Receivables Purchase Agreement, an insurer pursuant to an
Insurance Policy or otherwise.

            "Liquidation Expenses" means, with respect to a Defaulted
Receivable, the amount charged by the Servicer, in accordance with its customary
servicing procedures, to or for its account for repossessing, refurbishing and
disposing of the related Financed Vehicle and other out-of-pocket costs related
to such liquidation.

            "Liquidation Proceeds" means, with respect to a Defaulted
Receivable, all amounts realized with respect to such Receivable from whatever
sources (including, without limitation, proceeds of any Insurance Policy), net
of amounts that are required by law or such Receivable to be refunded to the
related Obligor.

                                       16
<PAGE>

             "London Banking Day" means any day on which commercial banks in
London are open for general business (including dealings in foreign exchange and
foreign currency deposits).

            "Monthly Remittance Conditions" means, collectively, (i) TMCC is the
Servicer, (ii) either (a) TMCC's short-term unsecured debt is rated P-1 by
Moody's and A-1 by Standard & Poor's (so long as Moody's and Standard & Poor's
are Rating Agencies), or (b) certain arrangements are made that are acceptable
to the Rating Agencies and (iii) no Event of Default or Servicer Default shall
have occurred and be continuing (unless waived by the appropriate Noteholders).

            "Moody's" means Moody's Investors Service, or its successor.

            "Net Liquidation Proceeds" means, with respect to a Defaulted
Receivable, Liquidation Proceeds less Liquidation Expenses.

            "Nonrecoverable Advance" means any Outstanding Advance as to which
the Servicer determines that any recovery from payments made on or with respect
to such Receivable is unlikely; provided that the Servicer cannot deem any
Outstanding Advance made at the option of the Servicer pursuant to Section 4.02
to be a Nonrecoverable Advance unless it delivers to the Indenture Trustee and
Owner Trustee an Officer's Certificate to the effect that such Outstanding
Advance, when made, was reasonably likely to be reimbursed from collections in
respect of interest on the related Receivable representing interest accrued on
such Receivable at the related APR less the Servicing Fee Rate.

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

            "Note Depository Agreement" has the meaning assigned in the
Indenture.

            "Noteholder" means any Holder of a Note.

            "Noteholder's Percentage" for any Payment Date means ___% except
that on the Payment Date following (a) the cessation of a period during which
either the Specified Delinquency Percentage or Specified Charge-off Rate
Percentage exceeded ___% or (b) the rescission of an acceleration of the Notes
after an Event of Default, the Noteholders' Percentage is the lesser of (x) the
percentage equivalent of a fraction the numerator of which is the aggregate of
the outstanding principal balances of the Class A-2, Class A-3 and Class A-4
Notes as of the Payment Date (prior to making any distributions on such Payment
Date) and the denominator of which is the Pool Balance as of the last day of the
related Collection Period and (y) the Noteholders' Percentage for the previous
Payment Date.

            "Note Owner" has the meaning assigned in the Indenture.

            "Note Pool Factor" means, with respect to each Class of Notes as of
the close of business on any Payment Date, a seven-digit decimal figure equal to
the outstanding principal balance of such Class of Notes (after giving effect to
any reductions thereof to be made on such Payment Date) divided by the original
outstanding principal balance of such Class of Notes. The

                                       17
<PAGE>

Note Pool Factor for each Class of Notes will be 1.0000000 as of the Closing
Date; thereafter, the related Note Pool Factor will decline to reflect
reductions in the outstanding principal balance of such Class of Notes.

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

            "Obligor" on a Receivable means the purchaser or co-purchasers of
the related Financed Vehicle purchased in part or in whole by the execution and
delivery of such Receivable or any other Person who owes or may be liable for
payments under such Receivable.

            "Officer's Certificate" means a certificate signed by the President,
any Vice President, the chief financial officer, the chief accounting officer,
the Treasurer or any Assistant Treasurer, or the Secretary or any Assistant
Secretary of the Issuer, the Seller or the Servicer, as the case may be.

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

            "Optional Purchase Percentage" means 10%.

            "Optional Purchase Price" means an amount equal to the aggregate
Administrative Purchase Payments for the Receivables (including Receivables that
became Defaulted Receivables in the Collection Period preceding the Payment Date
on which that purchase is effected), plus the appraised value of any other
property held by the Trust, such value to be determined by an appraiser mutually
agreed upon by the Servicer, the Owner Trustee and the Indenture Trustee, and
shall succeed to all interests in and to the Trust (less liquidated expenses);
provided, however, that the Optional Purchase Price shall be equal to or greater
than the Outstanding Amount plus all accrued and unpaid interest on each Class
of Notes (including, without duplication, any Class A-1 Interest Carryover
Shortfall, Class A-2 Interest Carryover Shortfall, Class A-3 Interest Carryover
Shortfall or Class A-4 Interest Carryover Shortfall) through the Payment Date on
which the Owner Trust Estate is to be purchased by the Servicer, or successor to
the Servicer [plus any amounts payable by the Issuer to the Swap Counterparty
under the Interest Rate Swap Agreement and any amounts due to Toyota Motor
Credit Corporation under the Revolving Liquidity Note.]

            "Original Pool Balance" means $________.

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

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

                                       18
<PAGE>

            "Overdue Payment" means, with respect to any Receivable (other than
an Administrative Receivable or a Warranty Receivable), payments made by or on
behalf of the Obligor which are not Supplemental Servicing Fees and therefor
shall be applied first to reimburse the Servicer for Outstanding Advances made
with respect to such Receivable pursuant to Section 5.03(a).

            "Owner Trust Estate" means all right, title and interest of the
Trust in and to the property and rights assigned to the Trust pursuant to
Article II of this Agreement, all funds on deposit from time to time in the
accounts created pursuant to Section 5.01 of this Agreement (excluding any net
investment income with respect to amounts held in such accounts) and all other
property of the Trust from time to time, including any rights of the Owner
Trustee and the Trust pursuant to this Agreement and the Administration
Agreement[, rights of the Owner Trustee and the Trust pursuant to the Revolving
Liquidity Note Agreement and Revolving Liquidity Note,] and as assignee of the
rights and interests of the Depositor under the Receivables Purchase Agreement.
[The Owner Trust Estate does not include the Sub-Trust Assets, as described in
the Amended and Restated Trust Agreement and the Sub-Trust Supplement.]

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

            "Pass Through Rate" means __% per annum.

            "Payahead Account" means the account or accounts designated as such
and established and maintained pursuant to Section 5.01.

            "Payment Ahead" means, with respect to a Precomputed Receivable and
a Collection Period, any Excess Payment not representing prepayment in full of
such Precomputed Receivable which the Servicer, in accordance with its customary
servicing practices, will apply towards the payment of Scheduled Payments in one
or more future Collection Periods.

            "Payment Date" means, with respect to a Collection Period, the
fifteenth calendar day of the following calendar month, or if such day is not a
Business Day, the next succeeding Business Day, commencing _______, 200_.

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

            "Pool Balance" means, as of any date, the aggregate Principal
Balance of the Receivables (exclusive of all Administrative Receivables for
which the Servicer has paid the Administrative Purchase Payment, Warranty
Receivables for which the Seller has paid the Warranty Purchase Payment and
Defaulted Receivables) as of the close of business on such date.

            "Pool Factor" as of any Payment Date, means a seven-digit decimal
figure equal to the Pool Balance as of such Payment Date divided by the Original
Pool Balance.

                                       19
<PAGE>

            "Precomputed Advance" means an advance in respect of principal or
interest on a Precomputed Receivable in the amount determined as set forth in
Section 5.04(a).

            "Precomputed Receivable" means any Actuarial Receivable or Rule
of 78s Receivable.

            "Prepayment" means (i) with respect to any Precomputed Receivable
and any Collection Period, any prepayment in full or Excess Payment which the
Servicer, in accordance with its customary servicing practices, will apply
towards the payment of Scheduled Payments due during or prior to such Collection
Period or (ii) with respect to any Simple Interest Receivable, any prepayment,
whether in part or in full, in respect of such Simple Interest Receivable.

            "Principal Balance" means, with respect to any Receivable as of any
date, the Amount Financed minus the sum of the following amounts: (i) in the
case of a Precomputed Receivable, that portion of all Scheduled Payments due on
or prior to such date allocable to principal, computed in accordance with the
actuarial method, (ii) in the case of a Simple Interest Receivable, that portion
of all Scheduled Payments actually received on or prior to such date allocable
to principal, (iii) any Warranty Purchase Payment or Administrative Purchase
Payment with respect to such Receivable allocable to principal, and (iv) any
Prepayments or other payments applied to reduce the unpaid principal balance of
such Receivable. The Principal Balance of a Defaulted Receivable is zero.

            "Principal Distribution Amount" means, with respect to any Payment
Date, an amount equal to the excess, if any, of (a) the Pool Balance as of the
end of the Collection Period preceding the related Collection Period, or, as of
the Cutoff Date, in the case of the first Collection Period, over (b) the Pool
Balance as of the end of the related Collection Period together with any portion
of the Principal Distribution Amount that would have been required to be
[deposited into the Principal Distribution Account] paid pursuant to Section
5.06(c)(iii) on any prior Payment Date had there been sufficient funds available
[to make such deposit] therefor; provided, however, [that the Principal
Distribution Amount shall not exceed the outstanding principal amount of all the
Notes on such Payment Date (prior to giving effect to any principal payments
made on such Payment Date), together with any portion of the Principal
Distribution Amount that was to be deposited into the Principal Distribution
Account on any prior Payment Date but was not because sufficient funds were not
available to make the deposit; and provided, further,] that (i) the Principal
Distribution Amount on the Class A-1 Final Scheduled Payment Date shall not be
less than the amount that is necessary to reduce the outstanding principal
amount of the Class A-1 Notes to zero; (ii) the Principal Distribution Amount on
the Class A-2 Final Scheduled Payment Date shall not be less than the amount
that is necessary to reduce the outstanding principal amount of the Class A-2
Notes to zero; (iii), the Principal Distribution Amount on the Class A-3 Final
Scheduled Payment Date shall not be less than the amount that is necessary to
reduce the outstanding principal amount of the Class A-3 Notes to zero; and (iv)
the Principal Distribution Amount on the Class A-4 Final Scheduled Payment Date
shall not be less than the amount that is necessary to reduce the outstanding
principal amount of the Class A-4 Notes to zero.

                                       20
<PAGE>

            "Rating Agency" means either or each of Moody's and Standard &
Poor's, as indicated by the context.

            "Rebate" means, with respect to a Precomputed Receivable and any
date, the rebate, calculated on an actuarial basis, under such Precomputed
Receivable that is or would be payable to the related Obligor for unearned
finance charges or any other charges subject to rebate if such Obligor were to
prepay such Receivable in full on such date.

            "Receivable" means any retail installment sale contract executed by
an Obligor in respect of a Financed Vehicle, and all proceeds thereof and
payments thereunder, which Receivable shall be identified in the Schedule of
Receivables.

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

            "Receivables Purchase Agreement" means that certain Receivables
Purchase Agreement, dated as of _______, 200_, between the Seller and TMCC.

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

            "Recoveries" means, with respect to any Receivable that becomes a
Liquidated Receivable, monies collected in respect thereof, from whatever
source, during any Collection Period following the Collection Period in which
such Receivable became a Liquidated Receivable, net of the sum of any amounts
expended by the Servicer for the account of the Obligor and any amounts required
by law to be remitted to the Obligor.

            "Released Administrative Amount" means, with respect to a Payment
Date and to an Administrative Receivable, the Deferred Prepayment, if any, for
such Administrative Receivable.

            "Released Warranty Amount" means, with respect to a Payment Date and
to a Warranty Receivable, the Deferred Prepayment, if any, for such Warranty
Receivable.

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

                                       21
<PAGE>

control of a co-trustee or separate trustee under the Trust Agreement or the
Indenture, respectively, "Relevant Trustee" shall refer to either or both of the
Owner Trustee and such co-trustee or separate trustee or to either or both of
the Indenture Trustee and such co-trustee or separate trustee, as the case may
be.

            "Required Rate" means, with respect to each Collection Period, [the
sum of the Servicing Fee Rate] and the [Class A-3 Rate][Pass Through Rate][other
rate][or specify other rate].

            "Required Rating" means a rating of Prime-1 by Moody's and A-1+ by
Standard & Poor's.

            "Required Yield Maintenance Amount" means, with respect to any
Distribution Date, an amount equal to [the aggregate amount by which (i) the
aggregate amount of interest that would accrue on the Principal Balance of each
Receivable that is an asset of the Trust Estate (as defined in the Indenture) or
the Owner Trust Estate (as defined in the Trust Agreement), as the case may be,
for the period commencing on the last day of the related Collection Period and
ending on the last day of the Collection Period during which such Receivable is
scheduled to mature if such Receivable bore interest at the Required Rate
(assuming that all subsequent payments on such Receivable are made as scheduled
and no prepayments are made in respect thereof) exceeds (ii) the aggregate
amount of interest that would accrue thereon for the same period at the related
APR][or specify other formula][specify discounting factors].

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

            "Reserve Fund Initial Deposit" means $___.

            ["Revolving Liquidity Note" means the Revolving Liquidity Note
issued pursuant to the Revolving Liquidity Note Agreement.]

            ["Revolving Liquidity Note Agreement" means that certain Revolving
Liquidity Note Agreement, dated as of ________, 200_, between the Seller, TMCC
and the Owner Trustee.]

            ["Revolving Period" means, with respect to any class of Notes, a
period during which collections of principal and other amounts treated as
collections of principal are accumulated in an account utilized for the purpose
of acquiring additional Receivables for the benefit of such class of Notes.]

             "Rule of 78s Receivable" means any Receivable which provides for
the allocation of payments according to the "sum of periodic balances" or "sum
of monthly payments" method.

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

                                       22
<PAGE>

            "Scheduled Payment" means, with respect to any Payment Date and to a
Receivable, the payment set forth in such Receivable as due from the Obligor in
the related Collection Period; provided, however, that in the case of the first
Collection Period, the Scheduled Payment shall include all such payments due
from the Obligor on or after the Cutoff Date.

            "Scheduled Surplus" means, with respect to any Distribution Date for
any Receivable having an APR which exceeds the sum of the [Required Rate][Class
A-3 Rate][Pass Through Rate][specify other rate], the product of (i) the
interest portion of the related Scheduled Payment (in the case of any
Precomputed Receivable, determined in accordance with the actuarial method), and
(ii) the remainder of (a) one minus (b) a fraction, the numerator of which
equals the sum of the [Required Rate][Class A-3 Rate][Pass Through Rate][specify
other rate] and the denominator of which equals such APR.

            "Securities Account Control Agreement" means the Securities Account
Control Agreement dated _______, 200_, among the Seller, __________, as
Securities Intermediary thereunder, and ___________, as Indenture Trustee,
pursuant to which the Reserve Fund will be established and maintained.

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

            "Securityholder" see the definition of "Holder."

            "Seller" means TAFR LLC, and its successors in interest to the
extent permitted hereunder.

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

            "Servicer's Certificate" means an Officer's Certificate of the
Servicer delivered pursuant to Section 4.10, substantially in the form attached
hereto as Exhibit A.

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

            "Servicing Fee Rate" means __% per annum.

            "Simple Interest Advance" means an advance in respect of interest on
any Simple Interest Receivable in the amount determined as set forth in Section
5.04(a).

            "Simple Interest Method" means the method of allocating a fixed
level payment to principal and interest, pursuant to which the portion of such
payment that is allocated to interest is equal to the product of the fixed rate
of interest multiplied by the unpaid principal balance multiplied by the period
of time elapsed since the preceding payment of interest was made and the
remainder of such payment is allocable to principal.

            "Simple Interest Receivable" means any Receivable which provides for
the allocation of payments according to the simple interest method.

                                       23
<PAGE>

            "Specified Charge-off Rate Percentage" means on any Payment Date the
average of the Charge-off Rates for the three preceding Collection periods.

            "Specified Delinquency Percentage" means on any Payment Date the
average of the Delinquency Percentages for the three preceding Collection
Periods.

            "Specified Reserve Account Balance" means with respect to any
Payment Date zero, except (i) for any Payment Date on which the conditions set
forth in Section[s 5.07(a) and] 5.08(b) require deposits into the Reserve
Account, in which case the Specified Reserve Account Balance shall be $__ (__%
of the original outstanding Principal Balance of the Receivables as of the
Cutoff Date), or, (ii) either the Specified Delinquency Percentage or the
Specified Charge-off Rate Percentage exceeds __% on any Payment Date, the
Specified Reserve Account Balance shall be (A) the greater of (a) $__ (__% of
the outstanding principal balance of the Receivables as of the Cutoff Date) and
(c) __% of the Class A Note Balance as of such Payment Date (after giving effect
to any principal payments made on the Notes on such Payment Date), [less (B) so
long as none of the events described in the second paragraph of Section 5.08(b)
has occurred, an amount equal to the principal balance of the Revolving
Liquidity Note that has not been drawn (plus any portion thereof drawn but
reimbursed) on or prior to such date of determination]; provided further, that
(x) if the circumstances described in clauses (i) and (ii) are both applicable,
the provisions of clause (ii) shall apply and (y) the Specified Reserve Balance
with respect to any date shall not exceed the sum of the Class A Note Balance as
of the preceding Payment Date (after giving effect to any principal payments
made on the Notes on such preceding Payment Date).

            "Standard & Poor's" means Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., and its successors.

            "Subordinated Seller's Interest" means the undivided interest in the
Trust evidenced by the certificate issued pursuant to Section 3.02 of the Trust
Agreement that includes the right to receive (to the extent of amounts available
therefor) payments of principal pursuant to Section 5.06(c)(vii) and of certain
additional amounts pursuant to Section 5.06(c)(viii) and Section 5.06(d)(vi)
herein. The Subordinated Seller's Interest shall be deemed to have a principal
balance of $________ as of the Closing Date, which will be reduced by amounts
distributed in respect of the Subordinated Seller's Interest pursuant to Section
5.06(c)(vii) as described herein.

            "Subordinated Seller's Interest Percentage" for any Payment Date is
100% minus the Noteholders' Percentage for such Payment Date.

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

            "Supplemental Servicing Fee" means, with respect to any Payment
Date, all late fees, prepayment charges, extension fees and other administrative
fees and expenses or similar charges allowed by applicable law with respect to
the Receivables received by the Servicer during the related Collection Period.

                                       24
<PAGE>

            ["Swap Counterparty" shall mean Toyota Motor Credit Corporation, as
swap counterparty under the Interest Rate Swap Agreement, or any successor or
replacement swap counterparty from time to time under the Interest Rate Swap
Agreement.]

            ["Swap Event of Default" means (i) the failure of the Issuer or the
Swap Counterparty to pay any amount when due under the Interest Rate Swap
Agreement after giving effect to any applicable grace period; (ii) the
occurrence of certain events of insolvency or bankruptcy of the Issuer or the
Swap Counterparty as specified in the Interest Rate Swap Agreement and (iii)
certain other standard events of default under the 1992 ISDA Master Agreement as
specified in the Interest Rate Swap Agreement including "Breach of Agreement"
(not applicable to the Issuer), "Misrepresentation" (not applicable to the
Issuer) and "Merger without Assumption," as described in Sections 5(a)(ii),
5(a)(iv) and 5(a)(viii) of the 1992 ISDA Master Agreement.]

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

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

            ["Swap Termination Event" means (i) certain events of insolvency of
bankruptcy of the Issuer or the Swap Counterparty as specified in the Interest
Rate Swap Agreement; (ii) any Event of Default under the Indenture that results
in the acceleration of the Notes or involving an uncured payment default; (iii)
the Issuer or Swap Counterparty becomes subject to registration as an
"investment company" under the Investment Company Act of 1940; and (iv) certain
standard termination events under the 1992 ISDA Master Agreement as specified in
the Interest Rate Swap Agreement including "Illegality," "Tax Event" and "Tax
Event Upon Merger," each as more fully described in Sections 5(b)(i), 5(b)(ii)
and 5(b)(iii) of the 1992 ISDA Master Agreement.]

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

            "TAFR LLC" means Toyota Auto Finance Receivables LLC, a Delaware
limited liability company, or its successors.

             "TMCC" means Toyota Motor Credit Corporation, a California
corporation, and its successors and assigns.

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

            "Trust" means the Issuer.

                                       25
<PAGE>

            "Trust Agreement" means the Trust Agreement dated as of ________,
200_, as amended by the Amended and Restated Trust Agreement, dated as of
________, 200_, by and among the Seller, the Owner Trustee[ and the Delaware
Trustee].

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

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

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

            "United States" means the United States of America.

            "Warranty Purchase Payment" means, with respect to a Payment Date
and to (1) a Warranty Receivable which is a Precomputed Receivable repurchased
by the Seller as of the close of business on the last day of the related
Collection Period, (a) the sum of (i) all Scheduled Payments on such Receivable
due after the last day of such Collection Period, (ii) all past due Scheduled
Payments for which an Advance has not been made, (iii) an amount equal to any
reimbursement of Outstanding Advances made pursuant to Section 5.04(b) with
respect to such Receivable and (iv) an amount equal to all other Outstanding
Advances made pursuant to Section 5.04(c) with respect to such Receivable, minus
(b) the sum of (i) the Rebate, if any, paid to the Obligor on a Precomputed
Receivable on or before the date of such purchase (except to the extent
specified in Section 4.03) and (ii) any other proceeds in respect of such
Receivable received during any Collection Period prior to or during such
Collection Period (to the extent applied to reduce the Principal Balance of such
Receivable on such Payment Date), and (2) a Warranty Receivable which is a
Simple Interest Receivable repurchased by the Seller as of the close of business
on the last day of the related Collection Period, the sum of (a) the unpaid
principal balance owed by the Obligor in respect of such Receivable plus (b)
interest on such unpaid principal balance at a rate equal to the related APR to
the last day in the related Collection Period.

            "Warranty Receivable" means a Receivable which the Seller is
required to repurchase pursuant to Section 4.08.

                                       26
<PAGE>

            "Yield Maintenance Account" means the segregated trust account
established and maintained for the benefit of the Certificateholders as a
reserve fund pursuant to Section 5.01(a).

            "Yield Maintenance Agreement" means the Yield Maintenance Agreement
dated     , among the Servicer, the Seller [, third party] and the Issuer,
pursuant to which Additional Yield Maintenance Amounts are to be deposited in
the Yield Maintenance Account on each Distribution Date.

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

            "Yield Maintenance Account Initial Deposit" means an amount equal to
[the aggregate amount by which (i) the aggregate amount of interest that would
accrue on the Principal Balance of each Receivable that is an asset of the Trust
Estate (as defined in the Indenture) or, following the termination of the
Indenture or other release of the Trust Estate from the lien thereof, the Owner
Trust Estate (as defined in the Trust Agreement), for the period commencing on
the last day of the first Collection Period and ending on the last day of the
Collection Period during which such Receivable is scheduled to mature if such
Receivable bore interest at the Required Rate (assuming that all subsequent
payments on such Receivable are made as scheduled and no prepayments are made in
respect thereof) exceeds (ii) the aggregate amount of interest that would accrue
thereon for the same period at the related APR][or specify other
formula][specify discounting factors].

            "Yield Maintenance Deposit" means, with respect to any Distribution
Date, the amount by which (i) the aggregate amount of interest that would have
been due during the related Collection Period on all Receivables that have APRs
less than the Required Rate if such Receivables bore interest at the Required
Rate exceeds (ii) the amount of interest accrued on such receivables at their
respective APRs and due during such Collection Period.

     SECTION 1.02 Usage of Terms. With respect to all terms in this Agreement,
the singular includes the plural and the plural the singular; words importing
any gender include the other genders; references to "writing" include printing,
typing, lithography and other means of reproducing words in a visible form;
references to agreements and other contractual instruments include all
subsequent amendments 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."

                                   ARTICLE II

                            CONVEYANCE OF RECEIVABLES

     SECTION 2.01 Conveyance of Receivables. (a) Upon the execution of this
Agreement by the parties hereto [or on any Additional Closing Date], the Seller,
pursuant to the mutually agreed upon terms contained in this Agreement, shall
sell, transfer, assign and otherwise convey

                                       27
<PAGE>

to the Issuer, without recourse (but subject to the Seller's obligations in this
Agreement), all of its right, title and interest in and to the Receivables and
any proceeds related thereto, including any Dealer Recourse and such other items
as shall be specified in this Agreement. Concurrently therewith and in exchange
therefor, the Issuer shall deliver to, or to the order of, the Seller the Notes
and the Certificates.

      (b) In consideration of the foregoing and other good and valuable
consideration to be delivered to the Seller hereunder, on behalf of the Issuer,
the Seller does hereby sell, transfer, assign and otherwise convey to the
Issuer, in trust for the benefit of the Certificateholders without recourse
(subject to the Seller's obligations herein):

            (i) all right, title and interest of the Seller in and to the
      Receivables and all monies due thereon or paid thereunder or in respect
      thereof (including proceeds of the repurchase of Receivables by the Seller
      pursuant to Section 3.02 or the purchase of Receivables by the Servicer
      pursuant to Section 4.08 or 9.01) on or after the Cutoff Date;

            (ii)  the interest of the Seller in the security interests in the
      Financed Vehicles granted by the Obligors pursuant to the Receivables
      and any accessions thereto;

            (iii) the interest of the Seller in any proceeds of any physical
      damage insurance policies covering Financed Vehicles and in any proceeds
      of any credit life or credit disability insurance policies relating to the
      Receivables or the Obligors;

            (iv)  the interest of the Seller in any Dealer Recourse;

            (v) the right of the Seller to realize upon any property (including
      the right to receive future Liquidation Proceeds) that shall have secured
      a Receivable and have been repossessed pursuant to the terms thereof;

            (vi)  the rights and interests of the Seller under the
      Receivables Purchase Agreement;

            (vii) all other assets comprising the [Owner] Trust [Estate (other
      than the Revolving Liquidity Note and Revolving Liquidity Note Agreement,
      which are assets of the Owner Trust Estate but are not sold by the
      Seller)];

            (viii) all proceeds of the foregoing; and

            (ix) all present and future claims, demands, causes of action and
      choses in action in respect of any or all of the foregoing and all
      payments on or under of every kind and nature whatsoever in respect of any
      or all of the foregoing, including all proceeds of the conversion thereof,
      voluntary or involuntary, into cash or other liquid property, all cash
      proceeds, accounts, accounts receivable, notes, drafts, acceptances,
      tangible chattel paper, checks, deposit accounts, insurance proceeds,
      condemnation awards, rights to payment of any and every kind and other
      forms of obligations and receivables, instruments and other property which
      at any time constitute all or part of or are included in the proceeds of
      any of the foregoing (collectively, the "Collateral").

                                       28
<PAGE>

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

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

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

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

      [During a Revolving Period relating to any class of Notes, the Seller may
designate additional Receivables for sale to the Issuer, and the Owner Trustee
on behalf of the Issuer may agree to purchase such Receivables during the
Revolving Period and subject to the same conditions set forth in this
Agreement.]

     SECTION 2.02 Custody of Receivables Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Owner Trustee
on behalf of the Issuer, upon the execution and delivery of this Agreement,
appoints the Servicer, and the Servicer accepts such appointment, to act as the
agent of the Issuer as custodian of the following documents or instruments (the
parties hereto expressly acknowledging and agreeing that the Servicer may
appoint a third party to act as the agent of the Servicer to maintain possession
of such documents or instruments as contemplated by Sections 3.01(v) and 3.03(b)
of this Agreement) which are hereby constructively delivered to the Issuer with
respect to each Receivable:

            (a)   the fully executed original of the Receivable;

            (b)   documents evidencing or related to any Insurance Policy;

                                       29
<PAGE>

            (c) the original credit application of each Obligor, fully executed
      by such Obligor on TMCC's customary form, or on a form approved by TMCC,
      for such application;

            (d) the original certificate of title (or evidence that such
      certificate of title has been applied for) or such documents that the
      Servicer shall keep on file, in accordance with TMCC's customary
      procedures, evidencing the security interest in the related Financed
      Vehicle; and

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

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

                                  ARTICLE III

                                 THE RECEIVABLES

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

          (a) Characteristics of Receivables. Each Receivable (i) shall have
     been originated in the United States by a Dealer for the retail sale of the
     related Financed Vehicle in the ordinary course of such Dealer's business,
     shall have been fully and properly executed by the parties thereto, shall
     have been purchased by TMCC from such Dealer under an existing agreement
     with TMCC and shall have been validly assigned by such Dealer to TMCC in
     accordance with the terms of such agreement and shall have been
     subsequently sold by TMCC to the Seller pursuant to the Receivables
     Purchase Agreement, (ii) shall have created or shall create a valid,
     subsisting and enforceable first priority security interest in favor of
     TMCC in the related Financed Vehicle, which security interest has been
     assigned by TMCC to the Seller and shall be assignable, and shall be so
     assigned, by the Seller to the Issuer hereby, (iii) shall, except as
     otherwise provided in this Agreement, provide for monthly payments that
     fully amortize the Amount Financed by maturity (except for minimally
     different payments in the first or last month in the life of the
     Receivable) and provide for a finance charge or yield interest at its APR,
     in either case calculated based on the Rule of 78s, the Simple Interest
     Method or the actuarial

                                       30
<PAGE>

     method, (iv) shall contain customary and enforceable provisions, such that
     the rights and remedies of the holder thereof shall be adequate for
     realization against the Collateral of the benefits of the security and (v)
     shall provide for, in the event that such Receivable is prepaid, a
     prepayment that fully pays the Principal Balance and includes accrued but
     unpaid interest.

          (b) Schedule of Receivables. The information set forth in the Schedule
     of Receivables shall be true and correct in all material respects as of the
     opening of business on the Cutoff Date, and no selection procedures adverse
     to the Securityholders shall have been utilized in selecting the
     Receivables from those automobile and light duty truck receivables of TMCC
     which met the selection criteria set forth in this Section and this
     Agreement.

          (c) Compliance with Law. To the knowledge of the Seller, each
     Receivable, including each form of contract used to originate each
     Receivable and each sale of the related Financed Vehicle, shall have
     complied at the time such form of contract was used or such sale was
     originated or made, and shall comply at the time of execution of this
     Agreement, in all material respects with all requirements of applicable
     federal, state and local laws, and regulations thereunder, including usury
     laws, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act,
     the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt
     Collection Practices Act, the Federal Trade Commission Act, the
     Magnuson-Moss Warranty Act, Federal Reserve Board Regulations B, M and Z
     (to the extent applicable), state adaptations of the National Consumer Act
     and of the Uniform Consumer Credit Code and other consumer credit, equal
     credit opportunity and disclosure laws, except with respect to applicable
     Florida documentary stamp taxes and applicable Texas Finance Code form of
     contract provisions as to which the effect of noncompliance will not have a
     material adverse effect on such Receivable.

          (d) Binding Obligation. Each Receivable shall constitute the legal,
     valid and binding payment obligation in writing of the related Obligor,
     enforceable by the holder thereof in accordance with its terms, except as
     enforceability may be limited by bankruptcy, insolvency, reorganization,
     moratorium and other similar laws affecting the enforcement of creditors'
     rights in general and by general principles of equity, regardless of
     whether such enforceability shall be considered in a proceeding in equity
     or at law.

          (e) No Bankrupt Obligors. None of the Receivables shall be due, to the
     best knowledge of the Seller, from any Obligor who is presently the subject
     of a bankruptcy proceeding or is bankrupt or is insolvent.

          (f) No Government Obligors. None of the Receivables shall be due from
     the United States or any state, or from any agency, department or
     instrumentality of the United States or any state or local government.

          (g) Employee Obligors. None of the Receivables shall be due from any
     employee of the Seller, TMCC or any of their respective Affiliates.

                                       31
<PAGE>

          (h) Security Interest in Financed Vehicles. Immediately prior to the
     sale, assignment and transfer thereof, each Receivable shall be secured by
     a validly perfected first priority security interest in the related
     Financed Vehicle in favor of TMCC as secured party or all necessary and
     appropriate action with respect to such Receivable shall have been taken to
     perfect a first priority security interest in such Financed Vehicle in
     favor of TMCC as secured party.

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

          (j) No Waivers. No provision of a Receivable shall have been waived in
     such a manner that such Receivable fails to meet all of the other
     representations and warranties made by the Seller herein with respect
     thereto.

          (k) No Amendments. No Receivable shall have been amended or modified
     in such a manner that the total number of Scheduled Payments has been
     increased or that the related Amount Financed has been increased or that
     such Receivable fails to meet all of the other representations and
     warranties made by the Seller herein with respect thereto.

          (l) No Defenses. No facts shall be known to the Seller which would
     give rise to any right of rescission, setoff, counterclaim or defense, nor
     shall the same have been asserted or threatened, with respect to any
     Receivable.

          (m) No Liens. To the knowledge of the Seller, no liens or claims shall
     have been filed as of the date of this Agreement, including liens for work,
     labor or materials relating to a Financed Vehicle, that shall be liens
     prior to, or equal or coordinate with, the security interest in such
     Financed Vehicle granted by the related Receivable, which Liens shall not
     have been released or satisfied as of the Closing Date [or Additional
     Closing Date].

          (n) No Default; No Repossession. Except for payment defaults that, as
     of the Cutoff Date, have been continuing for a period of not more than 30
     days, no default, breach, violation or event permitting acceleration under
     the terms of any Receivable shall have occurred as of the Cutoff Date; no
     continuing condition that with notice or the lapse of time would constitute
     a default, breach, violation or event permitting acceleration under the
     terms of any Receivable shall have arisen; the Seller shall not have waived
     any of the foregoing; and no Financed Vehicle has been repossessed without
     reinstatement as of the Cutoff Date.

          (o) Insurance. The terms of each Receivable require the Obligor to
     obtain and maintain physical damage insurance covering the related Financed
     Vehicle in accordance with TMCC's normal requirements. The terms of each
     Receivable allow, but do not require TMCC to (and TMCC, in accordance with
     its current normal servicing procedures, does not) obtain any such coverage
     on behalf of the Obligor.

          (p) Good Title. It is the intention of the Seller that the transfer
     and assignment herein contemplated, taken as a whole, constitute a sale of
     the Receivables from the Seller to the Issuer and that the beneficial
     interest in and title to the Receivables not be

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     part of the debtor's estate in the event of the filing of a bankruptcy
     petition by or against the Seller under any bankruptcy law. No Receivable
     has been sold, transferred, assigned or pledged by the Seller to any Person
     other than the Issuer, and no provision of a Receivable shall have been
     waived, except for a waiver that would not violate clause (j) above;
     immediately prior to the transfer and assignment herein contemplated, the
     Seller had good and marketable title to each Receivable free and clear of
     all Liens and rights of others; immediately upon the transfer and
     assignment thereof, the Issuer shall have good and marketable title to each
     Receivable, free and clear of all Liens and rights of others; and the
     transfer and assignment herein contemplated has been perfected under the
     UCC.

          (q) Lawful Assignment. No Receivable shall have been originated in, or
     shall be subject to the laws of, any jurisdiction under which the sale,
     transfer and assignment of such Receivable under this Agreement or pursuant
     to a transfer of the related certificate of title shall be unlawful, void
     or voidable.

          (r) All Filings Made. As of the Closing Date [or any Additional
     Closing Date], all filings (including UCC filings) necessary in any
     jurisdiction to provide third parties with notice of the transfer and
     assignment herein contemplated, to perfect the sale of the Receivables from
     the Seller to the Issuer and to give the Issuer a first priority perfected
     security interest in the Receivables shall have been made.

          (s) One Original. There shall be only one original executed copy of
     each Receivable.

          (t) Chattel Paper. Each Receivable constitutes "tangible chattel
     paper" as defined in the UCC.

          (u) Additional Representations and Warranties. (i) Each Receivable
     shall have an original number of Scheduled Payments of not less than __ nor
     more than __ and, as of the Cutoff Date, a remaining number of Scheduled
     Payments of not less than __ nor more than __; (ii) each Receivable
     provides for the payment of a finance charge based on an APR ranging from
     __% to __%; (iii) each Receivable shall have had an original principal
     balance of not less than $__ and not more than $__ and, as of the Cutoff
     Date, an unpaid principal balance of not less than $__ nor more than $__;
     (iv) no Receivable was originated under a special financing program; (v) no
     Receivable shall have a Scheduled Payment that is more than __ days past
     due as of the Cutoff Date; (vi) no Financed Vehicle was subject to
     force-placed insurance as of the Cutoff Date; (vii) there is no Receivable
     as to which payments ahead of more than __ Scheduled Payments have been
     received from or on behalf of the related Obligor; and (viii) each
     Receivable is being serviced by Toyota Motor Credit Corporation.

          (v) Location of Receivable Files. Each Receivable File shall be kept
     at one of the locations listed in the Schedule of Receivables or at such
     other office as shall be specified to the Owner Trustee and the Indenture
     Trustee as provided in Section 3.03(b).

     SECTION 3.02 Remedies. The Seller, the Servicer or the Owner Trustee, as
the case may be, shall inform the other parties to this Agreement and the
Indenture Trustee promptly, in

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<PAGE>

writing, upon the discovery of any breach of the Seller's representations and
warranties made pursuant to Section 3.01 or 6.01 that materially and adversely
affects the interests of the Issuer in any Receivable. As of the last day of the
second Collection Period following the Collection Period in which it discovers
or receives notice of such breach (or, at the Seller's election, the last day of
the first Collection Period following the Collection Period in which it
discovers or receives notice of such breach), the Seller shall, unless such
breach shall have been cured in all material respects, repurchase such
Receivable and, if necessary, the Seller shall enforce the obligation of TMCC
under the Receivables Purchase Agreement to repurchase such Receivable from the
Seller. Notwithstanding the foregoing, the obligation of the Seller to
repurchase a Receivable shall not be conditioned on the performance by TMCC of
its obligation to repurchase such Receivable from the Seller pursuant to the
Receivables Purchase Agreement. This repurchase obligation shall obtain for all
representations and warranties of the Seller contained in this Agreement whether
or not the Seller has knowledge of the breach at the time of the breach or at
the time the representations and warranties were made. In consideration of the
repurchase of any such Receivable, on the Business Day immediately preceding the
related Payment Date, the Seller shall remit the Warranty Purchase Payment of
such Receivable to the Collection Account in the manner specified in Section
5.05 and shall be entitled to receive the Released Warranty Amount. Except as
described below, the sole remedy of the Owner Trustee, the Issuer, the Indenture
Trustee (by operation of the assignment of the Owner Trustee's rights hereunder
pursuant to the Indenture) or any Securityholder with respect to a breach of the
Seller's representations and warranties pursuant to this Agreement shall be to
require the Seller to repurchase the related Receivable pursuant to this Section
and to enforce TMCC's obligation to the Seller to repurchase such Receivables
pursuant to the Receivables Purchase Agreement. The 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.
In connection with such repurchase, the Owner Trustee and Indenture Trustee
shall take all steps necessary to effect a transfer of such Receivable as set
forth in Section 9.01(d). [The Seller hereby indemnifies the Issuer for any
civil liabilities that arise under Texas Finance Code [ss.]349.003 as a result
of the use of the Law 9/99R and Lexus 10/99 forms of contract to originate the
Receivables in Texas, and for any civil liabilities relating to a determination
that the disclosures in the forms of contracts used to originate Receivables in
Massachusetts violate Massachusetts General Laws Chapter 255B, Section 14, or
Massachusetts General Laws Chapter 140D and the regulations promulgated by the
Division of Banks thereunder with respect to Truth-in-Lending appearing at 209
CMR 32.00.]

     SECTION 3.03 Duties of Servicer as Custodian.

     (a) Safekeeping. The Servicer shall hold the Receivable Files as custodian
for the benefit of the Issuer and maintain such accurate and complete accounts,
records and computer systems pertaining to each Receivable File as shall enable
the Issuer to comply with this Agreement. In performing its duties as custodian
the Servicer shall act with reasonable care, using that degree of skill and
attention that the Servicer exercises with respect to the receivable files
relating to comparable automotive receivables that the Servicer services for
itself or others. The Servicer shall promptly report to the Issuer and the
Indenture Trustee any failure on its part to hold the Receivable Files and
maintain its accounts, records and computer systems as herein provided and shall
promptly take appropriate action to remedy any such failure. Nothing herein

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<PAGE>

shall be deemed to require an initial review or any periodic review by the
Issuer, the Owner Trustee or the Indenture Trustee of the Receivable Files.

     (b) Maintenance of and Access to Records. The Servicer shall maintain each
Receivable File at one of its offices specified in Schedule B or at such other
office of the Servicer or a third party agent retained by the Servicer as shall
be specified to the Issuer and the Indenture Trustee by written notice not later
than 90 days after any change in location. The Servicer shall make available to
the Issuer[, the Swap Counterparty] and the Indenture Trustee or their
respective duly authorized representatives, attorneys or auditors a list of
locations of the Receivable Files and the related accounts, records and computer
systems maintained by the Servicer at such times during normal business hours as
the Issuer or the Indenture Trustee shall instruct with reasonable advance
notice.

     (c) Release of Documents. Upon instruction from the Indenture Trustee, the
Servicer shall release any Receivable File to the Indenture Trustee, the
Indenture Trustee's agent or the Indenture Trustee's designee, as the case may
be, at such place or places as the Indenture Trustee may designate, as soon as
practicable.

     SECTION 3.04 Instructions; Authority To Act. The Servicer shall be deemed
to have received proper instructions with respect to the Receivable Files upon
its receipt of written instructions signed by a Trust Officer of the Owner
Trustee or the Indenture Trustee. A certified copy of a bylaw or of a resolution
of the board of directors of the Owner Trustee or of the Indenture Trustee shall
constitute conclusive evidence of the authority of such Trust Officer to act,
and shall be considered conclusive evidence of the authority of such Trust
Officer to act until receipt by the Servicer of written notice to the contrary
given by the Owner Trustee or Indenture Trustee, as the case may be.

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

     SECTION 3.06 Effective Period and Termination. The Servicer's appointment
as custodian shall become effective as of the date hereof, and shall continue in
full force and effect until terminated pursuant to this Section. If TMCC shall
resign as Servicer in accordance with the provisions of this Agreement or if all
of the rights and obligations of any Servicer shall have been terminated under
Section 8.01, the appointment of TMCC (as Servicer) as custodian shall be
terminated hereunder without further action by the Indenture Trustee, Owner
Trustee, Noteholders or the Certificateholders. The Indenture Trustee or, with
the consent of the Indenture Trustee, the Owner Trustee may terminate the
Servicer's appointment as custodian,

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<PAGE>

with cause, at any time upon written notification to the Servicer, and without
cause upon 30 days' prior written notification to the Servicer. The Owner
Trustee, Indenture Trustee or Noteholders may terminate the Servicer as
custodian hereunder in the same manner as the Owner Trustee, Indenture Trustee
or Noteholders may terminate the rights and obligations of the Servicer under
Section 8.01. As soon as practicable after any termination of such appointment,
the Servicer shall deliver the Receivable Files to the Relevant Trustee or the
agent thereof at such place or places as the Relevant Trustee may reasonably
designate.

                                   ARTICLE IV

                   ADMINISTRATION AND SERVICING OF RECEIVABLES

     SECTION 4.01 Duties of Servicer. The Servicer, for the benefit of the
Issuer and the Securityholders (to the extent provided herein), shall manage,
service, administer and make collections on the Receivables with reasonable
care, using that degree of skill and attention that the Servicer exercises with
respect to comparable automotive receivables that it services for itself or
others. The Servicer's duties shall include collection and posting of all
payments, responding to inquiries of Obligors or by federal, state or local
government authorities with respect to the Receivables, investigating
delinquencies, sending payment information to Obligors, reporting tax
information to Obligors in accordance with its customary practices, accounting
for collections, furnishing monthly and annual statements to the Owner Trustee
and the Indenture Trustee with respect to payments and distributions and making
Advances and performing the other duties specified herein. The Servicer shall
follow its customary standards, policies and procedures as in effect from time
to time and shall have full power and authority, acting alone, to do any and all
things in connection with such managing, servicing, administration and
collection that it may deem necessary or desirable. Nothing in the foregoing or
in any other section of this Agreement shall be construed to prevent the
Servicer from implementing new programs, whether on an intermediate, pilot or
permanent basis, or on a regional or nationwide basis, or from modifying its
standards, policies and procedures as long as, in each case, the Servicer does
or would implement such programs or modify its standards, policies and
procedures in respect of comparable assets serviced for itself in the ordinary
course of business.

      Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the
Issuer, the Owner Trustee, the Indenture Trustee, the Securityholders or any of
them, any and all instruments of satisfaction or cancellation, or partial or
full release or discharge, and all other comparable instruments, with respect to
such Receivables and the Financed Vehicles. The Servicer is hereby authorized to
communicate with Obligors in the ordinary course of its servicing of the
Receivables and Financed Vehicles in its own name. The Servicer is hereby
authorized to commence, in its own name or in the name of the Issuer, a legal
proceeding to enforce a Defaulted Receivable or to commence or participate in a
legal proceeding (including without limitation a bankruptcy proceeding) relating
to or involving a Receivable, including a Defaulted Receivable. If the Servicer
shall commence or participate in a legal proceeding to enforce a Receivable, the
Issuer shall thereupon be deemed to have automatically assigned to the Servicer,
solely for the purpose of collection on behalf of the party retaining an
interest in such Receivable, such Receivable and the other property conveyed to
the Issuer hereby with respect to such Receivable for purposes of

                                       36
<PAGE>

commencing or participating in any such proceeding as a party or claimant, and
the Servicer is authorized and empowered by the Owner Trustee to execute and
deliver in the Servicer's name any notices, demands, claims, complaints,
responses, affidavits or other documents or instruments in connection with any
such proceeding. If in any enforcement suit or legal proceeding it shall be held
that the Servicer may not enforce a Receivable on the ground that it shall not
be a real party in interest or a holder entitled to enforce such Receivable, the
Owner Trustee on behalf of the Issuer shall, at the Servicer's expense and
direction, take steps to enforce such Receivable, including bringing suit in its
name or the name of the Owner Trustee, the Indenture Trustee, the
Certificateholders and/or the Noteholders. The Owner Trustee shall furnish the
Servicer with any powers of attorney and other documents and take any other
steps which the Servicer may deem necessary or appropriate to enable the
Servicer to carry out its servicing and administrative duties under this
Agreement.

     SECTION 4.02 Collection and Allocation of Receivable Payments. The Servicer
shall make reasonable efforts to collect all payments called for under the terms
and provisions of the Receivables as and when the same shall become due and
shall follow such customary collection procedures as it follows with respect to
comparable automotive receivables that it services for itself or others. The
Servicer shall be authorized to grant extensions, rebates or adjustments on a
Receivable in accordance with the customary servicing standards of the Servicer
without the prior consent of the Owner Trustee, Indenture Trustee or any
Securityholder; provided, however, that if, as a result of any change in the
related APR or the Amount Financed, any increase in the total number of
Scheduled Payments or any extension of payments such that the Receivable will be
outstanding later than the Class A-4 Final Scheduled Payment Date, the amount of
any Scheduled Payment due in a subsequent Collection Period is reduced, the
Servicer shall be obligated to either repurchase such Receivable pursuant to
Section 4.08 or to make an Advance in respect of such Receivable in each
subsequent Collection Period equal to the amount by which such Scheduled Payment
has been reduced. In addition, in the event that any such rescheduling or
extension of a Receivable modifies the terms of such Receivable in such a manner
as to release the security interest in the related Financed Vehicle or
constitute a cancellation of such Receivable and the creation of a new
automobile or light duty truck receivable, the Servicer shall purchase such
Receivable pursuant to Section 4.08, and the receivable created shall not be
included as an asset of the Issuer. The Servicer may, in accordance with its
customary servicing procedures, waive any prepayment charge, late payment charge
or any other fees that may be collected in the ordinary course of servicing the
Receivables.

     SECTION 4.03 Rebates on Full Prepayments. In the event that the amount of a
full Prepayment by an Obligor under a Precomputed Receivable, after adjustment
for the applicable Rebate, is less than the amount that would be payable under
the actuarial method if a full Prepayment were made at the end of the billing
month under such Precomputed Receivable, either because the Rebate calculated
under the terms of such Precomputed Receivable is greater than the amount
calculable under the actuarial method or because the Servicer's customary
servicing procedure is to credit a greater Rebate, the Servicer, as part of its
servicing duties, shall remit such difference by deposit into the Collection
Account pursuant to Section 5.05.

     SECTION 4.04 Realization upon Receivables. On behalf of the Issuer, the
Servicer shall use its best efforts, consistent with its customary servicing
procedures, to repossess or otherwise comparably convert the ownership of any
Financed Vehicle that it has reasonably determined

                                       37
<PAGE>

should be repossessed or otherwise converted following a default under the
Receivable secured by the Financed Vehicle (and shall specify such Receivables
to the Relevant Trustee no later than the Determination Date following the end
of the Collection Period in which the Servicer shall have made such
determination). The Servicer shall follow such practices and procedures as it
shall deem necessary or advisable and as shall be customary and usual in its
servicing of automobile and light duty truck receivables, which practices and
procedures may include reasonable efforts to realize upon any Dealer Recourse,
selling the related Financed Vehicle at public or private sale and other actions
to realize upon such a Receivable. The Servicer shall be entitled to recover its
Liquidation Expenses with respect to each Defaulted Receivable. All Net
Liquidation Proceeds realized in connection with any such action with respect to
a Receivable shall be deposited by the Servicer in the Collection Account in the
manner specified in Section 5.02. The foregoing is subject to the proviso that,
in any case in which the Financed Vehicle shall have suffered damage, the
Servicer shall not expend funds in connection with any repair or towards the
repossession of such Financed Vehicle unless it shall determine in its
discretion that such repair and/or repossession shall increase the Liquidation
Proceeds of the related Receivable by an amount greater than the amount of such
expenses.

     SECTION 4.05 Physical Damage Insurance. The Servicer shall, in accordance
with its customary servicing procedures, require that each Obligor shall have
delivered proof that it has obtained physical damage insurance covering the
related Financed Vehicle at the date of origination of the related Receivable,
but shall not obtain any such coverage on behalf of any Obligor. The Servicer
shall be required to monitor the maintenance by any Obligor of such insurance
only to the same extent, if any, that the Servicer monitors such maintenance by
obligors with respect to retail automobile sales contracts that are held for the
account of TMCC.

     SECTION 4.06 Maintenance of Security Interests in Financed Vehicles. The
Servicer shall, in accordance with its customary servicing procedures and at its
own expense, take such steps as are necessary to maintain perfection of the
security interest created by each Receivable in the related Financed Vehicle.
The Issuer hereby authorizes the Servicer to take such steps as are necessary to
again perfect such security interest on behalf of the Issuer and the Indenture
Trustee in the event of the relocation of a Financed Vehicle or for any other
reason. In the event that the assignment of a Receivable to the Issuer is
insufficient, without a notation on the related Financed Vehicle's certificate
of title, to grant to the Issuer a first priority perfected security interest in
the related Financed Vehicle, the Servicer hereby agrees to serve as the agent
of the Issuer for the purpose of perfecting the security interest of the Issuer
in such Financed Vehicle and agrees that the Servicer's listing as the secured
party on the certificate of title is in this capacity as agent of the Issuer.

     SECTION 4.07 Covenants of Servicer. The Servicer hereby makes the following
covenants to the Issuer on which the Issuer has relied in purchasing the
Receivables and issuing the Certificates, and on which the Indenture Trustee
will rely in undertaking the trusts set forth in the Indenture and acting for
the Noteholders.

          (a) Liens in Force. Except as contemplated by this Agreement, the
     Servicer shall not release in whole or in part any Financed Vehicle from
     the security interest securing the related Receivable.

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<PAGE>

          (b) No Impairment. The Servicer shall do nothing to impair the rights
     of the Securityholders in the Receivables.

          (c) No Amendments. Except as provided in Section 4.02, the Servicer
     shall not amend or otherwise modify any Receivable such that the total
     number of Scheduled Payments, the Amount Financed or the APR is altered, or
     extend the maturity of such Receivable beyond the Final Scheduled Payment
     Date.

          (d) Enforcement of Contractual Provisions. The Servicer will not seek
     to enforce against any obligor under any retail installment contract or
     interpose as a defense to any claim by any obligor the provision in any
     Texas contract relating to Texas Finance Code ss.348.412, in which the
     obligor agreed not to assert against a subsequent holder or assignee of the
     contract any claims or defenses the obligor may have against the seller or
     manufacturer of the vehicle.

     SECTION 4.08 Remedies. The Servicer shall inform the Owner Trustee and
Indenture Trustee promptly, in writing, upon the actual knowledge of one of its
officers of, and the Owner Trustee shall inform the Servicer and the Indenture
Trustee promptly, in writing, upon the actual knowledge of one of its Trust
Officers of, any breach pursuant to Section 4.06 or 4.07 that materially and
adversely affects the interests of the Issuer in a Receivable, or if an
extension, rescheduling or modification of a Receivable is made by the Servicer
as described in Section 4.02 and the Servicer does not elect to make Advances to
cover resulting reductions in interest accruals as provided in Section 4.02, the
party discovering such event shall give prompt written notice to the others. As
of the last day of the second Collection Period following the Collection Period
in which it discovers or receives notice of such event (or, at the Servicer's
election, the last day of the first Collection Period following the Collection
Period in which it discovers or receives notice of such breach), the Servicer
shall, unless such event shall have been cured in all material respects or such
modification has been rescinded or the Servicer has elected to and does make all
required Advances, purchase from the Issuer such Receivable. In consideration of
the purchase of any such Receivable, on the Business Day immediately preceding
the related Payment Date the Servicer shall remit the Administrative Purchase
Payment to the Collection Account in the manner specified in Section 5.05, and
shall be entitled to receive the Released Administrative Amount. Upon such
deposit of the Administrative Purchase Payment, the Servicer shall for all
purposes of this Agreement be deemed to have released all claims for
reimbursement of Outstanding Advances made in respect of such Receivable. Except
as otherwise provided in Section 7.02, the sole remedy of the Owner Trustee, the
Issuer, the Indenture Trustee or any Securityholders against the Servicer with
respect to a breach pursuant to Section 4.02, 4.06 or 4.07 shall be to require
the Servicer to purchase the related Receivables pursuant to this Section. The
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. In connection with such repurchase, the Owner Trustee
and Indenture Trustee shall take all steps necessary to effect a transfer of
such Receivable to the Servicer as set forth in Section 9.01(d). The Servicer
hereby indemnifies the Purchaser for any civil liabilities that arise for breach
of the covenant set forth in Section 4.07(d).

     SECTION 4.09 Servicing Fee and Expenses. As compensation for the
performance of its obligations hereunder, the Servicer shall be entitled to
receive on each Payment Date, out of

                                       39
<PAGE>

Available Collections, the Total Servicing Fee. The Basic Servicing Fee in
respect of a Collection Period shall be calculated based on a 360 day year
comprised of twelve 30-day months. Except to the extent otherwise provided
herein, the Servicer shall be required to pay all expenses incurred by it in
connection with its activities under this Agreement (including fees and
disbursements of the Owner Trustee, the Indenture Trustee, the Delaware Trustee,
the Administrator and the independent accountants, taxes imposed on the
Servicer, expenses incurred by the Servicer in connection with its preparation
of reports hereunder, expenses incurred by the Indenture Trustee in connection
with a sale or liquidation of the Trust Estate under Section 5.04(c) of the
Indenture and all other fees and expenses not expressly stated under this
Agreement to be for the account of the Certificateholders).

     SECTION 4.10 Servicer's Certificate. On or before each Determination Date,
the Servicer shall deliver to the Owner Trustee, each Paying Agent, [the Swap
Counterparty (unless TMCC or an Affiliate thereof is the Servicer and the Swap
Counterparty at the time of delivery),] the Indenture Trustee and the Seller,
with a copy to each Rating Agency, a Servicer's Certificate substantially in the
form of Exhibit A hereto, containing the information necessary to make the
payments to be made on the related Payment Date and the information necessary
for the Owner Trustee and the Indenture Trustee to send statements to the
Securityholders pursuant to the Trust Agreement or Indenture, as the case may
be. The Servicer shall also specify therein the identity of any Receivable that
the Servicer or the Seller became obligated to repurchase or that the Servicer
has determined to be a Defaulted Receivable during the related Collection
Period. Receivables purchased or to be purchased by the Servicer or the Seller
and Receivables that the Servicer has determined during such Collection Period
to be Defaulted Receivables and with respect to which payment of the
Administrative Purchase Payment or Warranty Purchase Payment has been provided
from whatever source as of last day of such Collection Period shall be
identified by the related Obligor's account number (as specified in the Schedule
of Receivables).

     SECTION 4.11 Annual Statement as to Compliance; Notice of Default. (a)
Within 120 days after March 31 of each calendar year (commencing with the fiscal
year ended March 31, 2003), the Servicer shall deliver an Officer's Certificate
to the Owner Trustee, [the Swap Counterparty (unless TMCC or an Affiliate
thereof is the Servicer and the Swap Counterparty at the time of delivery)] and
the Indenture Trustee to the effect that a review of the activities of the
Servicer during the prior fiscal year (or since the Closing Date in the case of
the first such Officer's Certificate) has been made under the supervision of the
officer executing such Officer's Certificate with a view to determining whether
during such period the Servicer has performed and observed all of its
obligations under this Agreement, and either (i) stating that, to the best of
his or her knowledge, no default by the Servicer under this Agreement has
occurred and is continuing, or (ii) if such a default has occurred and is
continuing, specifying such default and the nature and status thereof.

      (b) The Servicer shall deliver to the Owner Trustee, the Indenture
Trustee, [the Swap Counterparty (unless TMCC or an Affiliate thereof is the
Servicer and the Swap Counterparty at the time of delivery)] and the Rating
Agencies, promptly after having obtained knowledge thereof, but in no event
later than five Business Days thereafter, written notice in an Officer's
Certificate of any event which with the giving of notice or lapse of time, or
both, would become a Servicer Default under Section 8.01(a) or (b).

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<PAGE>

     SECTION 4.12 Annual Accountants' Report. Within 120 days after March 31 of
each fiscal year for the Servicer (commencing with the fiscal year ended March
31, 2003), the Servicer shall deliver to the Owner Trustee and the Indenture
Trustee a report prepared by the Independent Accountants of the Servicer
concerning their review of the activities of the Servicer during the preceding
12-month period ended March 31 (or other applicable period in the case of the
first such report or letter) to the effect that such accountants have reviewed
certain records and documents relating to the servicing of the Receivables under
this Agreement (using procedures specified in such report or letter) and as a
result of such review, and in connection with such procedures, they are
reporting such exceptions, if any, as shall be set forth therein. Such report or
letter shall also indicate that the firm is independent with respect to the
Seller and the Servicer within the meaning of the Code of Professional Ethics of
the American Institute of Certified Public Accountants.

            In the event such Independent Accountants require the Owner Trustee
or Indenture Trustee to agree to the procedures performed by such firm, the
Servicer shall direct the Owner Trustee or Indenture Trustee in writing to so
agree; it being understood and agreed that the Owner Trustee or Indenture
Trustee will deliver such letter of agreement in conclusive reliance upon the
direction of the Servicer, and the Owner Trustee and Indenture Trustee need make
no independent inquiry or investigation as to, and shall have no obligation or
liability in respect of, the sufficiency, validity or correctness of such
procedures.

     SECTION 4.13 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to [the Swap Counterparty,] the Owner
Trustee and Indenture Trustee reasonable access to the documentation regarding
the Receivables as provided in Section 3.03(b). The Servicer will provide such
access to any Securityholder only in such cases where the Certificateholder or
Noteholders shall be required by applicable statutes or regulations to review
such documentation. In each case, such access shall be afforded without charge,
but only upon reasonable request and during the normal business hours at the
respective offices of the Servicer. Nothing in this Section shall derogate from
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.

     SECTION 4.14 Appointment of Subservicer. The Servicer may at any time
appoint a subservicer to perform all or any portion of its obligations as
Servicer hereunder if each Rating Agency has received reasonable advance notice
of the Servicer's intention to do so and has not notified the Servicer that such
an appointment would or might result in the qualification, reduction or
withdrawal of a rating then assigned by such rating Agency to any Class of
Notes; provided, however, that the Servicer shall remain obligated and be liable
to the Issuer, the Owner Trustee, the Indenture Trustee, [the Swap
Counterparty,] the Certificateholders and the Noteholders for the servicing and
administering of the Receivables in accordance with the provisions hereof
without diminution of such obligation and liability by virtue of the appointment
of such subservicer and to the same extent and under the same terms and
conditions as if the Servicer alone were servicing and administering the
Receivables. The Servicer has appointed such a subservicer to perform its title
and administration services. The fees and expenses of the subservicer shall be
as agreed between the Servicer and its subservicer from time

                                       41
<PAGE>

to time, and none of the Issuer, the Owner Trustee, the Indenture Trustee, [the
Swap Counterparty,] the Certificateholders or the Noteholders shall have any
responsibility therefor.

     SECTION 4.15 Amendments to Schedule of Receivables. If the Servicer, during
a Collection Period, assigns to a Receivable an account number that differs from
the original account number identifying such Receivable on the Schedule of
Receivables, the Servicer shall deliver to the Issuer, the Owner Trustee and the
Indenture Trustee, on or before the Payment Date relating to such Collection
Period, an amendment to the Schedule of Receivables reporting the newly assigned
account number, together with the old account number of each such Receivable.
The first such delivery of amendments to the Schedule of Receivables shall
include monthly amendments reporting account numbers appearing on the Schedule
of Receivables with the new account numbers assigned to such Receivables during
any prior Collection Period. [The Schedule of Receivables shall be updated upon
the purchase of any additional Receivables pursuant to Section __.]

     SECTION 4.16 Reports to Securityholders and Rating Agencies. The Owner
Trustee shall send a copy of each Officer's Certificate delivered pursuant to
Section 4.11 and each report of independent accountants delivered pursuant to
Section 4.12 to the Rating Agencies within five days of its receipt thereof from
the Servicer or accountants. A copy of any such Officer's Certificate or
accountants report may be obtained by any Certificateholder, Noteholder or Note
Owner by a request in writing to the Owner Trustee addressed as set forth in
Section 10.03 hereof. Upon the telephone request of the Owner Trustee, the
Indenture Trustee will promptly furnish the Owner Trustee a list of Noteholders
as of the date specified by the Owner Trustee.

                                    ARTICLE V

                      ACCOUNTS; PAYMENTS AND DISTRIBUTIONS;
                          STATEMENTS TO SECURITYHOLDERS

     SECTION 5.01 Establishment of Collection Account and Payahead Account.

     (a) The Servicer on behalf of the Owner Trustee and the Indenture Trustee,
shall establish the Collection Account and Payahead Account in the name of the
Indenture Trustee for the benefit of the Securityholders. Except as otherwise
provided in this Agreement, each such account shall be an account initially
established with the Indenture Trustee and maintained with the Indenture Trustee
so long as (i) the commercial paper or other short-term unsecured debt
obligations of the Indenture Trustee are rated "P-1" or better by Moody's, or if
not so rated by Moody's then otherwise approved by Moody's, and "A-1+" or better
by Standard & Poor's if rated by Standard & Poor's, or if not so rated by
Standard & Poor's then otherwise approved by Standard & Poor's, in each case at
the time of any deposit therein, or (ii) such account is a segregated trust
account located in the corporate trust department of the Indenture Trustee
bearing a designation clearly indicating that the funds deposited therein (other
than interest or investment earnings thereon) are held in trust for the benefit
of the Securityholders, and the Indenture Trustee has a long-term deposit rating
from Moody's (so long as Moody's is a Rating Agency) of at least "A1" (or such
lower rating as Moody's shall approve in writing) and corporate trust powers
under applicable federal and state laws and is organized under the laws of the
United States or any state thereof, the District of Columbia or the Commonwealth
of Puerto

                                       42
<PAGE>

Rico. Except as otherwise provided in this Agreement, in the event that the
Indenture Trustee no longer meets either of the foregoing requirements, then the
Servicer shall, with the Indenture Trustee's assistance as necessary, cause the
Collection Account and Payahead Account to be moved to a bank or trust company
that satisfies either of such requirements.

     (b) For so long as the depository institution or trust company then
maintaining the Collection Account and Payahead Account meets the requirements
of Section 5.01(a)(i) or (a)(ii), all amounts held in these accounts shall, to
the extent permitted by applicable laws, rules and regulations, be invested, as
directed in writing by the Servicer, in Eligible Investments; otherwise such
amounts shall be maintained in cash. Earnings on investment of funds in these
accounts (net of losses and investment expenses) shall be paid to the Servicer
on each Payment Date as servicing compensation, and any losses and investment
expenses shall be charged against the funds on deposit in the related account.

     (c) For so long as __________ or ___________ is the Relevant Trustee, the
Collection Account and Payahead Account shall be maintained with __________ as
described in clause (ii) of the second sentence of Section 5.01(a). In the event
that the long-term debt rating of the Relevant Trustee does not satisfy clause
(ii) of the second sentence of Section 5.01(a), the Servicer shall, with the
assistance of the Relevant Trustee as necessary, cause the Collection Account
and the Payahead Account to be moved to an institution or an account otherwise
satisfying the requirements of Section 5.01(a).

     (d) Subject to the foregoing, the Servicer, on behalf of the Owner Trustee
and the Indenture Trustee, shall establish and maintain as the Collection
Account an Eligible Deposit Account in the name of and under the exclusive
control of the Indenture Trustee, bearing a designation clearly indicating that
the funds deposited therein are held for the benefit of the Noteholders and the
Certificateholder. On the Closing Date, the Owner Trustee will transfer, or
cause to be transferred, to such Collection Account all funds or investments on
deposit in the Collection Account established pursuant to the Trust Agreement
for the benefit of the Certificateholder, and all of the proceeds thereof, and
will transfer all of its right, title and interest in the Collection Account,
all funds or investments held or to be held therein and all proceeds thereof,
whether or not on behalf of the Certificateholder, to the Indenture Trustee for
the benefit of the [Swap Counterparty,] the Noteholders, [the holder of the
Revolving Liquidity Note] and Certificateholder. The Indenture Trustee will be
obligated to transfer all amounts remaining on deposit in the Collection Account
on the Payment Date on which the Notes of all Classes have been paid in full[,
the Revolving Liquidity Note has been paid in full and the Interest Rate Swap
Agreement has been terminated and all Swap Payments Outgoing and all Swap
Termination Payments payable to the Swap Counterparty have been paid] (or
substantially all of the Trust Estate is otherwise released from the lien of the
Indenture) to the Collection Account established pursuant to the Trust Agreement
for the benefit of the Certificateholder, and to take all necessary or
appropriate actions to transfer all of its right, title and interest in the
Collection Account, all funds or investments held or to be held therein and all
proceeds thereof, whether or not on behalf of [the Swap Counterparty,] [the
holder of the Revolving Liquidity Note or] the Noteholders and the
Certificateholder, to the Owner Trustee for the benefit of the
Certificateholder, subject to the limitations set forth in the Indenture with
respect to amounts held for payment [to the Swap Counterparty,] [the holder of
the Revolving Liquidity Note or] Noteholders that do not promptly deliver a Note
for payment on such Payment Date.

                                       43
<PAGE>

     (e) With respect to the Collection Account and all property held therein,
the Owner Trustee agrees, by its acceptance hereof that, on the terms and
conditions set forth in the Indenture, for so long as Notes of any Class[, the
Revolving Liquidity Note] [or the Interest Rate Swap Agreement] remain
outstanding, the Indenture Trustee shall possess all right, title and interest
therein (excluding interest or investment income thereon payable to the
Servicer), and that such account shall be under the sole dominion and control of
the Indenture Trustee for the benefit of [the Swap Counterparty,] [the holder of
the Revolving Liquidity Note and] the Noteholders and the Certificateholder, as
the case may be, as set forth in the Indenture. Subject to the right of the
Indenture Trustee to make withdrawals therefrom, as directed by the Servicer,
for the purposes and in the amounts set forth in Section 5.06, the Payahead
Account and all funds held therein shall be the property of the Servicer and not
the property of the Issuer, the Owner Trustee or the Indenture Trustee. The
Issuer, Owner Trustee, Seller and Indenture Trustee will treat the Payahead
Account, all funds therein and all net investment income with respect thereto as
assets of the Servicer for federal income tax and all other purposes. The
parties hereto agree that the Servicer shall have the power, revocable by the
Indenture Trustee or by the Owner Trustee with the consent of the Indenture
Trustee, to instruct the Indenture Trustee to make withdrawals and payments from
the Collection Account and the Payahead Account for the purpose of permitting
the Servicer, Indenture Trustee or the Owner Trustee to carry out its respective
duties hereunder or under the Indenture or the Trust Agreement, as the case may
be.

            [In the case of any class of Notes issued with a Revolving Period,
the Servicer on behalf of the Owner Trustee and the Indenture Trustee shall
establish an account for the accumulation of principal and purchase of
additional Receivables.]

     SECTION 5.02 Collections. (a) Except as otherwise provided in this
Agreement, the Servicer shall remit daily to the Collection Account all payments
received by or on behalf of the Obligors on or in respect of the Receivables
(other than, in the case of Precomputed Receivables, payments constituting
Payments Ahead) and all Net Liquidation Proceeds within two Business Days after
receipt thereof. Notwithstanding the foregoing, for so long as the Monthly
Remittance Conditions are satisfied, the Servicer shall not be required to remit
such collections to the Collection Account on the foregoing daily basis but
shall be entitled to retain such collections, without segregation from its other
funds, until the Business Day before each Payment Date at which time the
Servicer shall remit all such collections in respect of the related Collection
Period to the Collection Account in immediately available funds. Commencing with
the first day of the first Collection Period that begins at least two Business
Days after the day on which any Monthly Remittance Condition ceases to be
satisfied and for so long as any Monthly Remittance Condition is not satisfied,
all collections then held by the Servicer shall be immediately deposited into
the Collection Account and all future collections on or in respect of the
Receivables and all Net Liquidation Proceeds shall be remitted by the Servicer
to the Collection Account on a daily basis within two Business Days after
receipt thereof.

     (b) Except as otherwise provided in this Agreement, the Servicer shall
deposit all Payments Ahead in the Collection Account within two Business Days
after receipt thereof, which Payments Ahead shall be transferred to the Payahead
Account pursuant to Section 5.06(a)(ii). Notwithstanding the foregoing, so long
as all Monthly Remittance Conditions are satisfied, the Servicer will not be
required to deposit Payments

                                       44
<PAGE>

Ahead in the Payahead Account within two Business Days after receipt thereof but
shall be entitled to retain such Payments Ahead, without segregation from its
other funds, until such time as the Servicer shall be required to remit Applied
Payments Ahead to the Collection Account pursuant to Section 5.06(a)(i).
Commencing with the first day of the first Collection Period that begins at
least two Business Days after the day on which any Monthly Remittance Condition
ceases to be satisfied and for so long as all Monthly Remittance Conditions are
not satisfied, all Payments Ahead then held by the Servicer shall be immediately
deposited into the Payahead Account and all future Payments Ahead shall be
remitted by the Servicer to the Payahead Account within two Business Days after
receipt thereof.

      (c) The Servicer shall give the Owner Trustee, the Indenture Trustee and
each Rating Agency written notice of the failure of any Monthly Remittance
Condition (and any subsequent curing of a failed Monthly Remittance Condition)
as soon as practical after the occurrence thereof. Notwithstanding the failure
of any Monthly Remittance Condition, the Servicer may utilize an alternative
collection or Payment Ahead remittance schedule (which may be the remittance
schedule previously utilized prior to the failure of such Monthly Remittance
Condition), if the Servicer provides to the Owner Trustee and Indenture Trustee
written confirmation from each Rating Agency that such alternative remittance
schedule will not result in the qualification, reduction or withdrawal of the
rating then assigned to any Class of Notes.

      [In the event that any class of Notes is issued with a Revolving Period,
Collections designated for payment of principal on such class of Notes shall be
deposited in an account established by the Servicer pursuant to Section 5.1 for
the purpose of purchase of additional Receivables.]

     SECTION 5.03 Application of Collections. As of the Business Day immediately
preceding the related Payment Date, all collections for the related Collection
Period shall be applied by the Servicer as follows:

     (a) With respect to each Receivable (other than an Administrative
Receivable or a Warranty Receivable), payments made by or on behalf of the
Obligor which are not Supplemental Servicing Fees shall be applied first to
reimburse the Servicer for Outstanding Advances made with respect to such
Receivable (each such payment, an "Overdue Payment"). Next, the amount of any
payment in excess of Supplemental Servicing Fees and Outstanding Advances with
respect to such Receivable shall be applied to the Scheduled Payment with
respect to such Receivable. If the amount of such payment remaining after the
applications described in the two preceding sentences (i) equals (together with
any Deferred Prepayment) the unpaid principal balance of such Receivable, it
shall be applied to prepay the principal balance of such Receivable, or (ii) is
less than the unpaid principal balance of such Receivable, it shall constitute
an Excess Payment with respect to such Receivable.

     (b) With respect to each Administrative Receivable and Warranty Receivable,
payments made by or on behalf of the Obligor shall be applied in the same
manner, except that any Released Administrative Amount or Released Warranty
Amount shall be remitted to the Servicer or the Seller, as applicable. A
Warranty Purchase Payment or an Administrative Purchase Payment with respect to
any Receivable shall be applied, first, to reduce Outstanding Advances with
respect to such Receivable and then to the Scheduled Payment, in each case to

                                       45
<PAGE>

the extent that the payments by the Obligor shall be insufficient, and then to
prepay the unpaid principal balance of such Receivable in full.

      [In the event that any class of Notes is issued with a Revolving Period,
Collections designated for payment of principal on such class of Notes and
deposited in an account established by the Servicer pursuant to Section 5.1
shall be applied by the Issuer to the purpose of purchase of additional
Receivables.]

     SECTION 5.04 Advances; Swap Payments.

     (a) As of the close of business on the last day of each Collection Period,
if the payments by or on behalf of the Obligor on a Precomputed Receivable
(other than an Administrative Receivable or a Warranty Receivable) after
application under Section 5.03(a) shall be less than the Scheduled Payment
(determined as of the Closing Date), whether as a result of any modification or
extension granted to the Obligor or otherwise, then the Deferred Prepayment, if
any, with respect to such Precomputed Receivable shall be applied by the
Servicer to the extent of the shortfall, and such Deferred Prepayment shall be
reduced accordingly. Subject to the provisions of the last sentence of this
paragraph, the Servicer shall deposit an amount equal to such shortfall (each, a
"Precomputed Advance") in the Collection Account on the Business Day immediately
preceding the related Payment Date. In addition, as of the last day of a
Collection Period, if the payments during such Collection Period by or on behalf
of the Obligor on or in respect of a Simple Interest Receivable (other than an
Administrative Receivable or a Warranty Receivable) after application under
Section 5.03(a) shall be less than the Scheduled Payment (determined as of the
Closing Date), whether as a result of any modification or extension granted to
the Obligor or otherwise, then an amount equal to the product of the principal
balance of such Receivable as of the first day of the related Collection Period
and one-twelfth of its Annual Percentage Rate minus the amount of interest
actually received on such Receivable during the Collection Period (each, a
"Simple Interest Advance") shall be deposited by the Servicer into the
Collection Account on the Business Day immediately preceding the related Payment
Date. If such a calculation in respect of a Simple Interest Receivable results
in a negative number, an amount equal to such negative amount shall be paid to
the Servicer in reimbursement of any outstanding Simple Interest Advances made
with respect to such Receivable. In addition, in the event that a Simple
Interest Receivable becomes a Liquidated Receivable, the amount of accrued and
unpaid interest thereon (but not including interest for the current Collection
Period) shall, up to the amount of any outstanding Simple Interest Advances made
with respect to such Receivable, be withdrawn from the Collection Account and
paid to the Servicer in reimbursement of such outstanding Simple Interest
Advances. No Advances will be made with respect to the Principal Balance of
Simple Interest Receivables. The Servicer shall not be required to make an
Advance (other than a Simple Interest Advance in respect of an interest
shortfall arising from the Prepayment of a Simple Interest Receivable) to the
extent that the Servicer, in its sole discretion, shall determine that such
Advance is unlikely to be recovered from subsequent payments made by or on
behalf of the related Obligor, Liquidation Proceeds, by the Administrative
Purchase Payment or by the Warranty Purchase Payment with respect to such
Receivable or otherwise.

     (b) The Servicer shall be entitled to reimbursement for Outstanding
Advances, without interest, with respect to a Receivable from the following
sources with respect to such

                                       46
<PAGE>

Receivable: (i) subsequent payments made by or on behalf of the related Obligor,
(ii) Liquidation Proceeds and (iii) the Warranty Purchase Payment; provided,
however, that in the case of Advances made pursuant to Section 4.02, the
Servicer shall be entitled to reimbursement only from amounts received in
respect of such Receivable that are in excess of the amount of the Scheduled
Payment in the related Collection Period.

     (c) To the extent that the Servicer has determined that any Outstanding
Advance is a Nonrecoverable Advance, the Servicer may, in the relevant
Servicer's Certificate, set forth the amount of such Nonrecoverable Advance, and
on the related Payment Date, the Relevant Trustee shall promptly remit to the
Servicer from Actual Payments on deposit in the Collection Account an amount
equal to the amount of such Nonrecoverable Advance. The Servicer's determination
of Available Collections for any Collection Period shall take into account the
amount of Nonrecoverable Advances specified in any such Officer's Certificate.

     (d) For so long as the Monthly Remittance Conditions are satisfied, in lieu
of causing the Servicer first to deposit and then the Relevant Trustee to remit
to the Servicer the amounts described in clauses (i) through (iii) in Section
5.04(b) reimbursable in respect on Outstanding Advances, or the amounts
described in Section 5.04(c) applicable in respect of Nonrecoverable Advances,
the Servicer may deduct such amounts from deposits otherwise to be made into the
Collection Account.

     (e) [In addition, for so long as the Monthly Remittance Conditions are
satisfied and TMCC or an Affiliate thereof is both the Servicer and the Swap
Counterparty, the Servicer may (i) deduct any Swap Payments Outgoing and Swap
Termination Payments owed by the Issuer to the Swap Counterparty from deposits
otherwise to be made into the Collection Account by the Servicer and (ii) add
any Swap Payments Incoming and Swap Termination Payments owed by the Swap
Counterparty to the Issuer to deposits otherwise to be made into the Collection
Account by the Servicer, and any such payments will be deemed to satisfy the
Swap Counterparty's or the Issuer's (as applicable) payment obligations to the
Issuer and the Swap Counterparty, respectively, under the Interest Rate Swap
Agreement.]

     (f) [In addition, for so long as the Monthly Remittance Conditions are
satisfied and TMCC or any Affiliate thereof is the Servicer and TMCC is the
holder of the Revolving Liquidity Note, the Servicer may (i) deduct any amounts
payable to the holder of the Revolving Liquidity Note to the extent amounts
would be available therefor pursuant to Sections 5.06(c)(v) or (vi) or Section
5.06(d)(iv) or (v) from deposits otherwise to be made into the Collection
Account by the Servicer and (ii) add any amounts required to be drawn on the
Revolving Liquidity Note by the Issuer to deposits otherwise to be made into the
Collection Account by the Servicer, and any such payments will be deemed to
satisfy the obligations of the holder of the Revolving Liquidity Note to fund
such draws by the Issuer pursuant to the Revolving Liquidity Note and Revolving
Liquidity Note Agreement.]

     SECTION 5.05 Additional Deposits. (a) The following additional deposits
shall be made to the Collection Account: (i) the Seller shall remit the
aggregate Warranty Purchase Payments with respect to Warranty Receivables
pursuant to Section 3.02, (ii) the Servicer shall remit the aggregate
Administrative Purchase Payments with respect to Administrative Receivables
pursuant to Section 4.08 and the amount required upon any optional purchase of
the

                                       47
<PAGE>

Receivables by the Servicer, or any successor to the Servicer, pursuant to
Section 9.01; (iii) the Servicer shall remit (A) the amount required to be
remitted in respect of certain full Prepayments pursuant to Section 4.03, (B)
the aggregate Advances pursuant to Sections 4.02, 5.03 and 5.04(a), (C) the
amount of Payments Ahead and Applied Payments Ahead withdrawn by the Servicer or
Indenture Trustee at the direction of the Servicer from the Payahead Account for
application with respect to such Collection Period[, and (D) all Swap Payments
Incoming and Swap Termination Payments received from the Swap Counterparty]; and
(iv) the Indenture Trustee shall deposit the amounts described in Sections 5.06,
5.07 and 5.08 [drawn on the Revolving Liquidity Note or] withdrawn from the
Reserve Account into the Collection Account, pursuant to Sections 5.06, 5.07 and
5.08.

            (b) All deposits required to be made pursuant to this Section by the
Seller or the Servicer, as the case may be, may be made in the form of a single
deposit and shall be made in immediately available funds, no later than 5:00
P.M., New York City time, on the Business Day immediately preceding the related
Payment Date. At the direction of the Servicer, the Relevant Trustee shall
invest such amounts in Eligible Investments maturing not later than 3:00 P.M.
New York City Time, on the related Payment Date.

     SECTION 5.06 Payments and Distributions.

     (a) On each Payment Date, the Indenture Trustee shall cause to be made the
following transfers and distributions in immediately available funds in the
amounts set forth in the Servicer's Certificate for such Payment Date (except
that if the Collection Account, Payahead Account and Reserve Fund are not all
maintained by the Indenture Trustee, transfers to be made between such accounts
as described in Section 5.05, 5.06 and 5.07 shall be made on the Business Day
immediately preceding each Payment Date):

            (i) from the Payahead Account (or directly from the Servicer in the
      case of Payments Ahead held by the Servicer pursuant to Section 5.02(a) or
      (b)) to the Collection Account, the aggregate Applied Payments Ahead; and

            (ii) if the Servicer is not permitted to hold Payments Ahead
      pursuant to Section 5.02(a) or (b), from the Collection Account to the
      Payahead Account, the aggregate Payments Ahead for the related Collection
      Period.

            [In addition, on each Payment Date, the Indenture Trustee shall
cause to be paid from the Collection Account any Swap Payments Outgoing and Swap
Termination Payment payable by the Issuer to the Swap Counterparty under the
Interest Rate Swap Agreement, provided that such amounts were not deducted from
amounts remitted to the Collection Account by the Servicer pursuant to Section
5.04(e).]

     (b) On each Determination Date, the Servicer shall calculate (i) the
Available Collections and the amounts to be paid to Noteholders of each Class
and the Certificateholder pursuant to Section 5.06(c) or 5.06(d), as the case
may be, [(ii) the Swap Payments Outgoing, the Swap Payments Incoming, and any
Swap Termination Payments,] [(iii) the amount, if any, to be drawn under the
Revolving Liquidity Note or paid to the holder thereof (including in respect of
interest accrued thereon) or withdrawn from or required to be deposited into the
Reserve

                                       48
<PAGE>

Account] and (iv) all other distributions, deposits and withdrawals to be made
on the related Payment Date.

     (c) Subject to Section 5.06(d), on each Payment Date, the Relevant Trustee
shall make the following payments and distributions from the Collection Account
in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Payment Date; provided, however, that such
payments and distributions shall be made only from those funds deposited in the
Collection Account for the related Collection Period and available therefore as
Available Collections:

            (i) to the Servicer, the Total Servicing Fee (including any unpaid
      Total Servicing Fees from one or more prior Collection Periods);

            (ii) on a pro rata basis (based on the amounts distributable
      pursuant to this clause to each such Class), to the Holders of the Class
      A-1 Notes, the Class A-1 Interest Distributable Amount and any outstanding
      Class A-1 Interest Carryover Shortfall, to the Holders of the Class A-2
      Notes, the Class A-2 Interest Distributable Amount and any outstanding
      Class A-2 Interest Carryover Shortfall, to the Holders of the Class A-3
      Notes, the Class A-3 Interest Distributable Amount and any outstanding
      Class A-3 Interest Carryover Shortfall, and to the Holders of the Class
      A-4 Notes, the Class A-4 Interest Distributable Amount and any outstanding
      Class A-4 Interest Carryover Shortfall;

            (iii) to the Class A-1 Notes until the principal amount thereof is
      reduced to zero, an amount equal to the Principal Distribution Amount; and
      after the principal amount of the Class A-1 Notes is reduced to zero, to
      the Class A-2 Notes until the principal amount of the Class A-2 Notes is
      reduced to zero, then to the Class A-3 Notes until the principal amount of
      the Class A-3 Notes is reduced to zero, and then to the Class A-4 Notes
      until the principal amount of the Class A-4 Notes is reduced to zero,
      either (x) an amount sufficient to reduce the aggregate outstanding
      principal amount of Class A Notes to an amount equal to the product of the
      Noteholders' Percentage and the Pool Balance as of the last day of the
      related Collection Period or (y) if either the Specified Delinquency
      Percentage or Specified Charge-off Rate Percentage exceeds [2.25%] as of
      such Payment Date, all remaining amounts up to the Principal Distribution
      Amount;

            (iv) if the amount on deposit in the Reserve Account is less than
      the related Specified Reserve Account Balance on such Payment Date, to the
      Reserve Account, the amount necessary to cause the balance of funds
      therein to equal the Specified Reserve Account Balance;

            (v) [to the holder of the Revolving Liquidity Note, the amount of
      any unreimbursed draw previously funded thereunder in accordance with the
      Revolving Liquidity Note Agreement (to the extent such amount has not been
      netted by the Servicer from deposits into the Collection Account pursuant
      to Section 5.04(f))];

            (vi) [to the holder of the Revolving Liquidity Note, the amount of
      any accrued and unpaid interest on any draw previously funded thereunder
      in accordance with the

                                       49
<PAGE>

      Revolving Liquidity Note Agreement (to the extent such amount has not been
      netted by the Servicer from deposits into the Collection Account pursuant
      to Section 5.04(f))]; and

            (vii) to the Certificateholder, except on any Payment Date that
      occurs after the Class A Notes are accelerated unless or until such
      acceleration has been rescinded or during a period in which either the
      Specified Delinquency Percentage or the Specified Charge-off Rate
      Percentage exceeds [2.25%], an amount sufficient to reduce the aggregate
      outstanding principal balance of the Certificate to an amount equal to the
      product of the Subordinated Seller's Interest Percentage and the Pool
      Balance as of the last day of the related Collection Period; and

            (viii) any remaining amounts will be distributed to the
      Certificateholders.

     (d) Notwithstanding the provisions of Section 5.06(c), after an Event of
Default occurs that results in the acceleration of the Notes and unless and
until such acceleration has been rescinded, on each Payment Date, the Relevant
Trustee shall make the following payments and distributions from the Collection
Account in the following order of priority and in the amounts set forth in the
Servicer's Certificate for such Payment Date; provided, however, that such
payments and distributions shall be made only from Available Collections
deposited in the Collection Account for the related Collection Period:

            (i) to the Servicer, the Total Servicing Fee (including any unpaid
      Total Servicing Fees from one or more prior Collection Periods);

            (ii) on a pro rata basis (based on the amounts distributable
      pursuant to this clause to each such Class), to the Holders of the Class
      A-1 Notes, the Class A-1 Interest Distributable Amount and any outstanding
      Class A-1 Interest Carryover Shortfall, to the Holders of the Class A-2
      Notes, the Class A-2 Interest Distributable Amount and any outstanding
      Class A-2 Interest Carryover Shortfall, to the Holders of the Class A-3
      Notes, the Class A-3 Interest Distributable Amount and any outstanding
      Class A-3 Interest Carryover Shortfall, and to the Holders of the Class
      A-4 Notes, the Class A-4 Interest Distributable Amount and any outstanding
      Class A-4 Interest Carryover Shortfall;

            (iii) to the Holders of Class A-1 Notes, Class A-2 Notes, Class A-3
      Notes and the Class A-4 Notes, on a pro rata basis (based on the
      Outstanding Amount of each such Class), until the total amount paid to
      such Holders in respect of principal from the Closing Date is equal to the
      Class A-1 Initial Principal Balance, Class A-2 Initial Principal Balance,
      the Class A-3 Initial Principal Balance, and the Class A-4 Initial
      Principal Balance, respectively;

            (iv) [to the holder of the Revolving Liquidity Note, the amount of
      any unreimbursed draw previously funded thereunder in accordance with the
      Revolving Liquidity Note Agreement (to the extent such amount has not been
      netted by the Servicer from deposits into the Collection Account pursuant
      to Section 5.04(f));]

            (v) [to the holder of the Revolving Liquidity Note, the amount of
      any accrued and unpaid interest on any draw previously funded thereunder
      in accordance with the

                                       50
<PAGE>

      Revolving Liquidity Note Agreement (to the extent such amount has not been
      netted by the Servicer from deposits into the Collection Account pursuant
      to Section 5.04(f));] and

            (vi) any remaining funds will be distributed to the
      Certificateholders by the Indenture Trustee.

     (e) For purposes of determining whether an Event of Default pursuant to
Section 5.01(b) of the Indenture has occurred, the amount of principal required
to be paid to the Holders of any Class of Notes on any Payment Date is the
amount available to be paid thereto pursuant to Sections 5.06(c)(iii) or
5.06(d)(iii); provided however that (i) the Class A-1 Notes are required to be
paid in full on or before the Class A-1 Final Scheduled Payment Date, meaning
that Holders of Class A-1 Notes are entitled to have received on or before such
date payments in respect of principal in an aggregate amount equal to the Class
A-1 Initial Principal Balance together with all interest accrued thereon through
such date; (ii) the Class A-2 Notes are required to be paid in full on or before
the Class A-2 Final Scheduled Payment Date, meaning that Holders of Class A-2
Notes are entitled to have received on or before such date payments in respect
of principal in an aggregate amount equal to the Class A-2 Initial Principal
Balance together with all interest accrued thereon through such date, (iii) the
Class A-3 Notes are required to be paid in full on or before the Class A-3 Final
Scheduled Payment Date, meaning that Holders of Class A-3 Notes are entitled to
have received on or before such date payments in respect of principal in an
aggregate amount equal to the Class A-3 Initial Principal Balance together with
all interest accrued thereon through such date; and (iv) the Class A-4 Notes are
required to be paid in full on or before the Class A-4 Final Scheduled Payment
Date, meaning that Holders of Class A-4 Notes are entitled to have received on
or before such date payments in respect of principal in an aggregate amount
equal to the Class A-4 Initial Principal Balance together with all interest
accrued thereon through such date.

     (f) Except with respect to the final payment upon retirement of a Note or
Certificate, the Servicer shall on each Payment Date instruct the Relevant
Trustee to pay or distribute to each Securityholder of record on the related
Record Date by check mailed to such Securityholder at the address of such Holder
appearing in the Note Register, or herein (in the case of the Certificate) (or,
if DTC, its nominee or a Clearing Agency is the relevant Holder, by wire
transfer of immediately available funds or pursuant to other arrangements), the
amount to be paid or distributed to such Securityholder pursuant to such
Holder's Note or Certificate. With respect to the final payment upon retirement
of a Note or of the Certificate, the Servicer shall on the relevant final
Payment Date instruct the Relevant Trustee to pay or distribute the amounts due
thereon only upon delivery for cancellation of the certificate representing such
Note or Certificate in accordance with the Indenture or the Trust Agreement, as
the case may be.

     SECTION 5.07 Reserve Account.

     (a) The Seller will, pursuant to the Securities Account Control Agreement
and the Indenture, establish and maintain with the Indenture Trustee a
segregated trust account (the "Reserve Account") which will include any money
and other property deposited and held therein pursuant to Section 5.06(c)(iv)
and this Section. [Under the circumstances specified in Section 5.08(b), the
holder of the Revolving Liquidity Note will be obligated to fund a draw of the
entire amount available to be drawn thereunder, which amounts will be applied by
the Indenture

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<PAGE>

Trustee pursuant to the written direction of the Servicer to fund certain
shortfalls as described in Section 5.08 and be deposited into the Reserve
Account until the amount on deposit therein equals the Specified Reserve Account
Balance.] On any Payment Date on which the amount on deposit in the Reserve
Account is less than the Specified Reserve Account Balance (which may be the
case whether or not any of the circumstances specified in Section 5.08 has
occurred and is continuing), the Indenture Trustee will, as directed in writing
by the Servicer in accordance with Section 5.06(c)(iv), deposit into the Reserve
Account Available Collections until the amount on deposit therein equals the
Specified Reserve Account Balance. On each Payment Date, to the extent that
Available Collections are insufficient to fully fund the payments and
distributions described in clauses (i) through (iii) of Section 5.06(c) or in
clauses (i) through (iii) of Section 5.06(d), the Indenture Trustee will
withdraw amounts then on deposit in the Reserve Account (excluding net
investment income on Eligible Investments which amounts are payable to the
Seller therefrom), up to the amounts of any such deficiencies, and deposit such
amounts into the Collection Account for application pursuant to such clauses.
Also on each Payment Date, as directed in writing by the Servicer, the Indenture
Trustee [will apply any amounts remaining on deposit in the Reserve Account in
excess of the Specified Reserve Account Balance first to repay any unreimbursed
draws on the Revolving Liquidity Note and any interest accrued thereon (in that
order), and then] will release to the Seller any remaining amounts in excess of
the Specified Reserve Account Balance. Upon the termination of the trusts
established under the Trust Agreement and the Indenture, as directed in writing
by the Servicer, the Indenture Trustee will [repay any unreimbursed draws on the
Revolving Liquidity Note and any interest accrued thereon (in that order) and
will] release to the Seller any amounts remaining on deposit in the Reserve
Account. Upon any such distribution to the Seller, the Issuer, Owner Trustee,
Certificateholder, Indenture Trustee, [holder of the Revolving Liquidity Note]
and Noteholders will have no further rights in, or claims to, such amounts[,
except to the extent that funds may be drawn again pursuant to the terms of the
Revolving Liquidity Note Agreement].

      (b) Any amounts held in the Reserve Account shall be invested by the
Indenture Trustee, as directed in writing by the Servicer, in Eligible
Investments. Earnings on investment of funds in the Reserve Account shall be
paid to the Seller on each Payment Date, and losses and any investment expenses
shall be charged against the funds on deposit therein. The Indenture Trustee
shall incur no liability for the selection of investments or for losses thereon
absent its own negligence or willful misfeasance. 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 date or the failure of the
Servicer to provide timely written investment directions.

      (c) Subject to the right of the Indenture Trustee to make withdrawals
therefrom, as directed by the Servicer, for the purposes and in the amounts set
forth in Section 5.06, the Reserve Account and all funds held therein shall be
the property of the Seller and not the property of the Issuer, the Owner Trustee
or the Indenture Trustee. The Issuer, Owner Trustee, Seller and Indenture
Trustee will treat the Reserve Account, all funds therein and all net investment
income with respect thereto as assets of the Seller for federal income tax and
all other purposes.

      (d) The Seller will grant to the Indenture Trustee, for the benefit of the
Noteholders, a security interest in any funds (including Eligible Investments)
in the Reserve

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<PAGE>

Account and the proceeds thereof, and the Indenture Trustee shall have all of
the rights of a secured party under the UCC with respect thereto; provided that
all income from the investment of funds in the Reserve Account and the right to
receive such income are retained by the Seller and are not transferred, assigned
or otherwise conveyed hereunder. If for any reason the Reserve Account is no
longer an Eligible Deposit Account, the Indenture Trustee shall promptly cause
the Reserve Account to be moved to another institution or otherwise changed so
that the Reserve Account becomes an Eligible Deposit Account.

      Neither the Owner Trustee nor the Indenture Trustee shall enter into any
subordination or intercreditor agreement with respect to the Reserve Account.

      SECTION 5.08 [Revolving Liquidity Note.

      (a) Pursuant to the Revolving Liquidity Note Agreement, the Seller will
issue a Revolving Liquidity Note, with a maximum draw amount of $________to be
initially held by TMCC. On the Business Day preceding each Payment Date with
respect to which Available Collections are insufficient to fund any payment to
be made to the Noteholders pursuant to Section 5.06(c)(ii) or (iii) or 5.06(d)
(ii) or (iii), the Relevant Trustee will be entitled to make draw requests (to
the maximum draw amount) in the amount of any such shortfalls that are not
funded from amounts on deposit in the Reserve Account and that are therefore to
be funded by the holder of the Revolving Liquidity Note. Amounts so funded by
the holder of the Revolving Liquidity Note will be applied by the Indenture
Trustee pursuant to the written direction of the Servicer to fund such
shortfalls in the order of priority of payments specified in Section 5.06.

      (b) In addition, if the Servicer's short-term unsecured debt rating falls
below P-1 by Moody's or A-1+ by S&P (or in either case, such lower ratings as
may be permitted by Moody's and S&P) or if the Servicer fails to fund any amount
drawn under the Revolving Liquidity Note, then the Relevant Trustee shall demand
payment of the entire undrawn amount of the Revolving Liquidity Note. Amounts so
funded by TMCC will be applied by the Indenture Trustee pursuant to the written
direction of the Servicer, first, to fund any shortfalls described in Section
5.08(a) in the order of priority of payments specified in Section 5.06, and then
shall be deposited into the Reserve Account until the amount on deposit therein
equals the Specified Reserve Account Balance. From and after the occurrence of
any event described in this Section 5.08(b), the Reserve Account must be
maintained as detailed in Section 5.7.]

      SECTION 5.09 Statements to Certificateholder, Noteholders[, and Swap
Counterparty].

      (a) On or prior to each Payment Date, the Servicer shall provide to the
Indenture Trustee (with a copy to the Rating Agencies and each Paying Agent) for
the Indenture Trustee to forward on such Payment Date to each Noteholder of
record as of the most recent Record Date and to the Owner Trustee (with a copy
to each Paying Agent) for the Owner Trustee to forward to each Certificateholder
of record as of the most recent Record Date a statement substantially in the
form of Exhibit A, [to the Swap Counterparty (unless TMCC or an Affiliate
thereof is the Servicer and the Swap Counterparty at the time of delivery)] [and
to the holder of the Revolving Liquidity Note (unless TMCC or an Affiliate
thereof is the holder of the Revolving Liquidity Note at the time of delivery)],
setting forth at least the following information as to the Notes and the
Certificate to the extent applicable:

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<PAGE>

          (i) the amount paid or distributed in respect of interest in respect
     of each Class of Notes;

          (ii) the amount paid or distributed in respect of principal on or with
     respect to each Class of Notes;

          (iii) the amount paid or distributed to the Certificateholder in
     respect of principal on or with respect to the Subordinated Seller's
     Interest;

          (iv) any excess amounts paid or distributed to the Certificateholder;

          (v) the Pool Balance as of the close of business on the last day of
     the preceding Collection Period;

          (vi) the Outstanding Amount, the Class A-1 Principal Balance, the
     Class A-2 Principal Balance, the Class A-3 Principal Balance, the Class A-4
     Principal Balance, and the Note Pool Factor for each Class of Notes, in
     each case after giving effect to all payments in respect of principal on
     such Payment Date;

          (vii) [the amounts allocated to a principal accumulation account with
     respect to any class of Notes with a Revolving Period;]

          (viii) the amount of the Servicing Fee paid to the Servicer with
     respect to the related Collection Period;

          (ix) the amount of any Class A-1 Interest Carryover Shortfall, Class
     A-2 Interest Carryover Shortfall, Class A-3 Interest Carryover Shortfall
     and Class A-4 Interest Carryover Shortfall after giving effect to all
     payments of interest on such Payment Date, and the change in such amounts
     from the preceding Payment Date;

          (x) the aggregate amount of Payments Ahead on deposit in the Payahead
     Account or held by the Servicer with respect to the related Receivables and
     the change in such amount from the immediately preceding Payment Date;

          (xi) the amount of Advances made in respect of the related Receivables
     and the related Collection Period and the amount of unreimbursed Advances
     on such Payment Date;

          (xii) [the amount of draws made under the Revolving Liquidity Note
     Agreement;]

          (xiii) the balance of any Reserve Account on such Payment Date and the
     Specified Reserve Account Balance on such Payment Date, after giving effect
     to changes thereto on such Payment Date; and

          (xiv) [the Class A-3 Notional Balance, the Class A-3 Rate, the Swap
     Payments Incoming, the Swap Payments Outgoing and the Swap Termination
     Payment.]

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<PAGE>

     SECTION 5.10 Net Deposits. As an administrative convenience, the Seller,
the Servicer, the Owner Trustee and the Indenture Trustee may make any
remittances pursuant to this Article net of amounts to be distributed by the
applicable recipient to such remitting party. Nonetheless, each such party shall
account to the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders for all of the above described remittances, payments and
distributions as if all deposits, payments, distributions and transfers were
made individually.

                                   ARTICLE VI

                                   THE SELLER

     SECTION 6.01 Representations of Seller. The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date, and shall survive the sale of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

     (a) Organization and Good Standing. The Seller shall have been duly
organized and shall be validly existing as a limited liability company in good
standing under the laws of the State of Delaware, 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 shall now have, power, authority and legal right to acquire,
own and sell the Receivables.

     (b) Due Qualification. The Seller shall be duly qualified to do business as
a foreign limited liability company in good standing, and shall have obtained
all necessary licenses and approvals in all jurisdictions in which the ownership
or lease of property or the conduct of its business shall require such
qualifications and where the failure to so qualify will have a material adverse
effect on the ability of the Seller to conduct its business or perform its
obligations under this Agreement.

     (c) Power and Authority. The Seller shall have the power and authority to
execute and deliver this Agreement and to carry out its terms; the Seller shall
have full power and authority to sell and assign the property to be sold and
assigned to and deposited as part of the Owner Trust Estate or Trust Estate, as
the case may be, and shall have duly authorized such sale and assignment to the
Issuer, the Owner Trustee or the Indenture Trustee, as the case may be; and the
execution, delivery and performance of this Agreement shall have been duly
authorized by the Seller by all necessary action.

     (d) Valid Sale; Binding Obligations. This Agreement shall evidence a valid
sale, transfer and assignment of the Receivables, enforceable against creditors
of and purchasers from the Seller; and shall constitute a legal, valid and
binding obligation of the Seller enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally or by
general equity principles.

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<PAGE>

     (e) No Violation. The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms of this Agreement shall not conflict
with, result in any breach of any of the terms and provisions of, nor constitute
(with or without notice or lapse of time) a default under, the Certificate of
Formation or limited liability company agreement of the Seller or any indenture,
agreement or other instrument to which the Seller is a party or by which it
shall be bound; nor result in the creation or imposition of any Lien upon any of
its properties pursuant to the terms of any such indenture, agreement or other
instrument (other than the Basic Documents), nor violate any law or, to the best
of the Seller's knowledge, any order, rule or regulation applicable to the
Seller of any court or of any federal or state regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the Seller
or its properties which breach, default, conflict, lien or violation would have
a material adverse effect on the earnings, business affairs or business
prospects of the Seller.

     (f) No Proceedings. There is no action, suit or proceeding before or by any
court or governmental agency or body, domestic or foreign, now pending, or to
the Seller's knowledge, threatened, against or affecting the Seller: (i)
asserting the invalidity of this Agreement, the Trust Agreement, the Indenture,
the Securities Account Control Agreement, the Certificates or the Notes, (ii)
seeking to prevent the issuance of the Certificate or the Notes or the
consummation of any of the transactions contemplated by this Agreement, the
Trust Agreement, or the Indenture, (iii) seeking any determination or ruling
that might materially and adversely affect the performance by the Seller of its
obligations under, or the validity or enforceability of, this Agreement, the
Trust Agreement, the Indenture, the Certificate or the Notes, or (iv) relating
to the Seller and which might adversely affect the federal income tax attributes
of the Issuer, the Certificates or the Notes.

     SECTION 6.02 Company Existence. During the term of this Agreement, the
Seller will keep in full force and effect its existence, rights and franchises
as a limited liability company under the laws of the jurisdiction of its
formation 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 the Basic Documents and each other instrument or
agreement necessary or appropriate to the proper administration of this
Agreement and the transactions contemplated hereby. In addition, all
transactions and dealings between the Seller and its Affiliates (including the
Issuer) will be conducted on an arm's length basis.

     SECTION 6.03 Liability of Seller; Indemnities. The Seller shall be liable
in accordance herewith only to the extent of the obligations specifically
undertaken by the Seller under this Agreement.

     (a) The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee and the Servicer from and against any taxes
that may at any time be asserted against any such Person with respect to, as of
the date hereof, the sale of the Receivables to the Issuer or the issuance and
original sale of the Notes and the Certificates, including any sales, gross
receipts, general corporation, tangible personal property, privilege or license
taxes (but, in the case of the Issuer, not including any taxes asserted with
respect to, and as of the date of, the sale of the Receivables to the Issuer or
the issuance and original sale of the Certificates or any of the Notes, or
asserted with respect to ownership of the Receivables or

                                       56
<PAGE>

federal or other income taxes arising out of payments or distributions on the
Certificates or the Notes) and costs and expenses in defending against the same.

     (b) The Seller shall indemnify, defend and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Issuer, the Certificateholders and the
Noteholders and any of the officers, directors, employees and agents of the
Issuer, the Owner Trustee and the Indenture Trustee from and against any loss,
liability or expense incurred by reason of (i) the Seller's willful misfeasance,
bad faith or negligence in the performance of its duties under this Agreement,
or by reason of reckless disregard of its obligations and duties under this
Agreement and (ii) the Seller's or the Issuer's violation of federal or state
securities laws in connection with the offering and sale of any of the Notes or
the Certificates.

     (c) Except as set forth in clause (a) above, the Seller shall pay any and
all taxes levied or assessed upon all or any part of the Owner Trust Estate.

     (d) Promptly after receipt by a party indemnified under this Section 6.03
or Section 3.02 (an "Indemnified Party") of notice of the commencement of any
action, such Indemnified Party will, if a claim in respect thereof is to be made
against the party providing indemnification under this Section 6.03 or Section
3.02 (an "Indemnifying Party"), notify such Indemnifying Party of the
commencement thereof. In case any such action is brought against any Indemnified
Party under this Section 6.03 or Section 3.02 and it notifies the Indemnifying
Party of the commencement thereof, the Indemnifying Party will assume the
defense thereof, with counsel reasonably satisfactory to such Indemnified Party
(who may, unless there is, as evidenced by an opinion of counsel to the
Indemnified Party stating that there is an unwaivable conflict of interest, be
counsel to the Indemnifying Party), and the Indemnifying Party will not be
liable to such Indemnified Party under this Section for any legal or other
expenses subsequently incurred by such Indemnified Party in connection with the
defense thereof, other than reasonable costs of investigation. The obligations
set forth in this Section 6.03 and Section 3.02 shall survive the termination of
this Agreement or the resignation or removal of the Owner Trustee or the
Indenture Trustee and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Seller shall have made any indemnity payments
pursuant to this Section and the Person to or on behalf of whom such payments
are made thereafter collects any of such amounts from others, such Person shall
promptly repay such amounts to the Seller, without interest.

     SECTION 6.04 Merger or Consolidation of, or Assumption of the Obligations
of, Seller. Any Person (a) into which the Seller may be merged or consolidated,
(b) which may result from any merger or consolidation to which the Seller shall
be a party or (c) which may succeed to the properties and assets of the Seller
substantially as a whole, which person in any of the foregoing cases executes an
agreement of assumption to perform every obligation of the Seller under this
Agreement, shall be the successor to the Seller 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 6.01 shall
have been breached (except that the representations regarding the due
organization and valid existence of the successor may be deemed to reference
jurisdictions other than [California] [Delaware]), (ii) the Seller shall have
delivered to the Owner Trustee and the Indenture Trustee an Officer's
Certificate and an Opinion of Counsel each stating that such consolidation,
merger or succession and such agreement of assumption comply with this Section

                                       57
<PAGE>

and that all conditions precedent, if any, provided for in this Agreement
relating to such transaction have been complied with, (iii) the Seller shall
have given 10 days' written notice to each Rating Agency of its intent or
expectation to enter such transaction and neither Rating Agency shall have
notified the Seller, the Owner Trustee or the Indenture Trustee that such
transaction might or would cause it to reduce, withdraw or modify its then
current rating of any Class of Notes and (iv) the Seller shall have delivered to
the Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A)
stating that, in the opinion of such counsel, all financing statements and
continuation statements and amendments thereto have been executed and filed that
are necessary fully to preserve and protect the interest of the Owner Trustee
and Indenture Trustee, respectively, in the Receivables and reciting the details
of such filings, or (B) stating that, in the opinion of such counsel, no such
action shall be necessary to preserve and protect such interests.
Notwithstanding anything herein to the contrary, the execution of the foregoing
agreement of assumption and compliance with clauses (i), (ii), (iii) and (iv)
above shall be conditions to the consummation of the transactions referred to in
clauses (a), (b) or (c) above.

     SECTION 6.05 Limitation on Liability of Seller and Others. The Seller and
any director, officer, employee or agent of the Seller may rely in good faith on
the advice of counsel or on any document of any kind, prima facie properly
executed and submitted by any Person respecting any matters arising hereunder.
The Seller shall not be under any obligation to appear in, prosecute or defend
any legal action that shall not be incidental to its obligations under this
Agreement and that in its opinion may involve it in any expense or liability.

     SECTION 6.06 Seller May Own Certificates or Notes. The Seller will own the
Certificates, and the Seller and any Affiliate thereof may in its individual or
any other capacity become the owner or pledgee of the Notes of any class with
the same rights as it would have if it were not the Seller or an Affiliate
thereof, except as expressly provided in any Basic Document.

                                   ARTICLE VII

                                  THE SERVICER

     SECTION 7.01 Representations of Servicer. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date [and any Additional Closing Date] and shall
survive the sale of the Receivables to the Issuer and the pledge thereof to the
Indenture Trustee pursuant to the Indenture.

     (a) Organization and Good Standing. The Servicer shall have been duly
organized and shall be validly existing as a corporation in good standing under
the laws of the State of California, with corporate 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 shall now have, corporate power, authority and legal right to acquire, own
and sell the Receivables.

     (b) Due Qualification. The Servicer shall be duly qualified to do business
as a foreign corporation in good standing, and shall have obtained all necessary
licenses and

                                       58
<PAGE>

approvals in all jurisdictions in which the ownership or lease of property or
the conduct of its business shall require such qualifications and where the
failure to so qualify will have a material adverse effect on the ability of the
Servicer to conduct its business or perform its obligations under this
Agreement.

     (c) Power and Authority. The Servicer shall have the corporate power and
authority to execute and deliver this Agreement and to carry out its terms; and
the execution, delivery and performance of this Agreement have been duly
authorized by the Servicer by all necessary corporate action.

     (d) Binding Obligations. This Agreement shall constitute a legal, valid and
binding obligation of the Servicer enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting creditors' rights generally or by
general equity principles.

     (e) No Violation. The consummation of the transactions contemplated by this
Agreement and the fulfillment of the terms of this Agreement shall not conflict
with, result in any breach of any of the terms and provisions of, nor constitute
(with or without notice or lapse of time) a default under, the articles of
incorporation or bylaws of the Servicer or any indenture, agreement or other
instrument to which the Servicer is a party or by which it shall be bound; nor
result in the creation or imposition of any Lien upon any of its properties
pursuant to the terms of any such indenture, agreement or other instrument
(other than this Agreement), nor violate any law or, to the best of the
Servicer's knowledge, any order, rule or regulation applicable to the Servicer
of any court or of any federal or state regulatory body, administrative agency
or other governmental instrumentality having jurisdiction over the Servicer or
its properties which breach, default, conflict, lien or violation would have a
material adverse effect on the earnings, business affairs or business prospects
of the Servicer.

     (f) No Proceedings. There is no action, suit or proceeding before or by any
court or governmental agency or body, domestic or foreign, now pending, or to
the Servicer's knowledge, threatened, against or affecting the Servicer: (i)
asserting the invalidity of this Agreement, the Trust Agreement, the Indenture,
the Certificates or the Notes, (ii) seeking to prevent the issuance of the
Certificates or the Notes or the consummation of any of the transactions
contemplated by this Agreement, the Trust Agreement or the Indenture, (iii)
seeking any determination or ruling that might materially and adversely affect
the performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Trust Agreement, the Indenture, the
Certificates or the Notes, or (iv) relating to the Servicer and which might
adversely affect the federal income tax attributes of the Issuer, the
Certificates or the Notes.

     SECTION 7.02 Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement:

     (a) The Servicer shall indemnify, defend and hold harmless the Seller, the
Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders and the
Certificateholders and any of the officers, directors, employees and agents of
the Seller, the Issuer, the Owner Trustee and the

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Indenture Trustee from and against any and all costs, expenses, losses, damages,
claims and liabilities, arising out of or resulting from the use, ownership or
operation by the Servicer or any Affiliate thereof of a Financed Vehicle.

     (b) The Servicer shall indemnify, defend and hold harmless the Owner
Trustee and the Indenture Trustee and their respective officers, directors,
employees and agents from and against all costs, expenses, losses, claims,
damages and liabilities arising out of or incurred in connection with the
acceptance or performance of the trusts and duties herein and in the Trust
Agreement contained, in the case of the Owner Trustee, and in the Indenture
contained, in the case of the Indenture Trustee, except to the extent that such
cost, expense, loss, claim, damage or liability: (i) in the case of the Owner
Trustee, shall be due to the willful misfeasance, bad faith or negligence
(except for errors in judgment) of the Owner Trustee or, in the case of the
Indenture Trustee, shall be due to the willful misfeasance, bad faith or
negligence (except for errors in judgment) of the Indenture Trustee; or (ii) in
the case of the Owner Trustee, shall arise from the breach by the Owner Trustee
of any of its representations or warranties set forth in Section 7.03 of the
Trust Agreement.

     (c) The Servicer shall indemnify, defend and hold harmless the Seller, the
Issuer, the Owner Trustee, the Indenture Trustee, the Certificateholders and the
Noteholders and any of the officers, directors, employees and agents of the
Seller, the Issuer, the Owner Trustee, the Indenture Trustee and the
Certificateholder from and against any and all costs, expenses, losses, claims,
damages and liabilities (including without limitation reasonable fees and
expenses of counsel) to the extent that such cost, expense, loss, claim, damage
or liability arose out of, or is imposed upon any such Person through, the
negligence, willful misfeasance or bad faith of the Servicer in the performance
of its duties under this Agreement or by reason of reckless disregard of its
obligations and duties under this Agreement, including those that may be
incurred by any such indemnified party as a result of any act or omission by the
Servicer in connection with its maintenance and custody of the Receivables
Files.

     (d) Promptly after receipt by a party indemnified under this Section 7.02
or Section 4.08 (an "Indemnified Party") of notice of the commencement of any
action, such Indemnified Party will, if a claim in respect thereof is to be made
against the party providing indemnification under this Section 7.02 or 4.08 (an
"Indemnifying Party"), notify such Indemnifying Party of the commencement
thereof. In case any such action is brought against any Indemnified Party under
this Section 7.02 or 4.08 and it notifies the Indemnifying Party of the
commencement thereof, the Indemnifying Party will assume the defense thereof,
with counsel reasonably satisfactory to such Indemnified Party (who may, unless
there is, as evidenced by an opinion of counsel to the Indemnified Party stating
that there is an unwaivable conflict of interest, be counsel to the Indemnifying
Party), and the Indemnifying Party will not be liable to such Indemnified Party
under this Section for any legal or other expenses subsequently incurred by such
Indemnified Party in connection with the defense thereof, other than reasonable
costs of investigation. The obligations set forth in this Section 7.02 and
Section 4.08 shall survive the termination of this Agreement or the resignation
or removal of the Servicer, the Owner Trustee or the Indenture Trustee and shall
include reasonable fees and expenses of counsel and expenses of litigation. If
the Servicer shall have made any indemnity payments pursuant to this Section and
the Person to or on behalf of whom such payments are made

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<PAGE>

thereafter collects any of such amounts from others, such Person shall promptly
repay such amounts to the Servicer, without interest.

      For purposes of this Section, in the event of the termination of the
rights and obligations of TMCC (or any successor thereto pursuant to Section
7.03) as Servicer pursuant to Section 8.01, or a resignation by such Servicer
pursuant to this Agreement, such Servicer shall be deemed to be the Servicer
pending appointment of a successor Servicer (other than the Indenture Trustee)
pursuant to Section 8.02.

     SECTION 7.03 Merger or Consolidation of, or Assumption of the Obligations
of, Servicer. Any corporation (a) into which the Servicer may be merged or
consolidated, (b) which may result from any merger, conversion or consolidation
to which the Servicer shall be a party or (c) which may succeed to all or
substantially all of the business of the Servicer, which corporation in any of
the foregoing cases executes an agreement of assumption to perform every
obligation of the Servicer under this Agreement, shall be the successor to the
Servicer under this Agreement without the execution or filing of any paper or
any further act on the part of any of the parties to this Agreement; provided,
however, that (i) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 7.01 shall have been
breached (except that the representations regarding the due organization and
valid existence of the successor may be deemed to reference jurisdictions other
than California), and no Servicer Default, and no event which, after notice or
lapse of time, or both, would become a Servicer Default, shall have occurred and
be continuing, (ii) the Servicer shall have delivered to the Owner Trustee and
the Indenture Trustee an Officer's Certificate and an Opinion of Counsel each
stating that such consolidation, merger or succession and such agreement of
assumption comply with this Section and that all conditions precedent provided
for in this Agreement relating to such transaction have been complied with,
(iii) the Servicer shall have given 10 days' written notice to each Rating
Agency of its intent or expectation to enter such transaction and neither Rating
Agency shall have notified the Seller, the Owner Trustee or the Indenture
Trustee that such transaction might or would cause it to reduce, withdraw or
modify its then current rating of any Class of Notes, (iv) immediately after
giving effect to such transaction, the successor to the Servicer shall become
the Administrator under the Administration Agreement in accordance with Section
8 of such Agreement and (v) the Servicer shall have delivered to the Owner
Trustee and the Indenture Trustee an Opinion of Counsel stating that, in the
opinion of such counsel, either (A) all financing statements and continuation
statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Owner Trustee and
the Indenture Trustee, respectively, in the Receivables and reciting the details
of such filings or (B) no such action shall be necessary to preserve and protect
such interests. Notwithstanding anything herein to the contrary, the execution
of the foregoing agreement of assumption and compliance with clauses (i), (ii),
(iii), (iv) and (v) above shall be conditions to the consummation of the
transactions referred to in clause (a), (b) or (c) above.

     SECTION 7.04 Limitation on Liability of Servicer and Others. Neither the
Servicer nor any of the directors, officers, employees or agents of the Servicer
shall be under any liability to the Seller, the Issuer, the Indenture Trustee,
the Owner Trustee, the Noteholders or the Certificateholders, except as provided
under this Agreement, for any action taken or for refraining from the taking of
any action pursuant to this Agreement or for errors in judgment; provided,
however, that this provision shall not protect the Servicer or any such person
against

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<PAGE>

any liability that would otherwise be imposed by reason of willful misfeasance,
bad faith or negligence in the performance of duties or by reason of reckless
disregard of obligations and duties under this Agreement. The Servicer and any
director, officer, employee or agent of the Servicer may rely in good faith on
any document of any kind prima facie properly executed and submitted by any
person respecting any matters arising under this Agreement.

      Except as provided in this Agreement, the Servicer shall not be under any
obligation to appear in, prosecute or defend any legal action that shall not be
incidental to its duties to service the Receivables in accordance with this
Agreement, and that in its opinion may involve it in any expense or liability;
provided, however, that the Servicer may (with the written consent of the Owner
Trustee or Indenture Trustee) undertake any reasonable action that it may deem
necessary or desirable in respect of the Basic Documents and the rights and
duties of the parties to the Basic Documents and the interests of the
Certificateholders under this Agreement and the Noteholders under the Indenture.
In such event, the reasonable legal expenses and costs for such action and any
liability resulting therefrom shall be expenses, costs and liabilities of the
Trust Estate (if any Notes are then outstanding) or the Owner Trust Estate (if
no Notes are then outstanding) and the Servicer will be entitled to be
reimbursed therefor solely from Available Collections.

      SECTION 7.05 TMCC Not To Resign as Servicer. Subject to the provisions of
Section 7.03, TMCC shall not resign from the obligations and duties hereby
imposed on it as Servicer under this Agreement except upon a determination that
the performance of its duties under this Agreement shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of TMCC shall be communicated to the Owner Trustee, the
Indenture Trustee and each Rating Agency at the earliest practicable time (and,
if such communication is not in writing, shall be confirmed in writing at the
earliest practicable time) and any such determination shall be evidenced by an
Opinion of Counsel to such effect delivered to the Owner Trustee and the
Indenture Trustee concurrently with or promptly after such notice. No such
resignation shall become effective until the Indenture Trustee or a successor
Servicer shall have (i) assumed the responsibilities and obligations of TMCC in
accordance with Section 8.02 and (ii) become the Administrator under the
Administration Agreement in accordance with Section 8 of such Agreement.

                                  ARTICLE VIII

                                     DEFAULT

     SECTION 8.01 Servicer Default. Each of the following events is a "Servicer
Default":

     (a) any failure by the Servicer (or the Seller, so long as TMCC is the
Servicer) to deliver to the Relevant Trustee for deposit in the Collection
Account, Payahead Account or Reserve Fund any required payment or to direct the
Relevant Trustee to make any required payment or distribution therefrom, which
failure continues unremedied for a period of three Business Days after discovery
of the failure by an officer of the Servicer or written notice of such failure
is received (i) by the Servicer (or the Seller, so long as TMCC is the Servicer)
from the Owner Trustee or the Indenture Trustee or (ii) to the Seller or the
Servicer, as the case may be, and to the applicable Owner Trustee and Indenture
Trustee by the Holders of Notes

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<PAGE>

evidencing not less than 25% of the Class A Notes, acting as a single Class,
excluding for purposes of such calculation and action all Securities held or
beneficially owned by TMCC, TAFR LLC or any of their Affiliates (provided that
such event will not be a Servicer Default if (A) such failure or delay is caused
by an event of force majeure, (B) does not continue for more than 10 Business
Days, (C) during such period the Servicer uses all commercially reasonable
efforts to perform its obligations under this Agreement and (D) the Servicer
provides to the Owner Trustee, Indenture Trustee, Seller and Securityholders
prompt notice of such failure or delay that includes a description of the
Servicer's efforts to remedy such failure or delay);

     (b) failure by the Servicer or the Seller, as the case may be, duly to
observe or to perform in any material respect any other covenants or agreements
of the Servicer or the Seller (as the case may be) set forth in this Agreement,
which failure shall materially and adversely affect the rights of
Certificateholders or Noteholders and shall continue unremedied for a period of
90 days after the date on which written notice of such failure is received (i)
by the Servicer (or the Seller, so long as TMCC is the Servicer) from the Owner
Trustee or the Indenture Trustee or (ii) to the Seller or the Servicer, as the
case may be, and to the Owner Trustee and Indenture Trustee by the holders of
Notes evidencing not less than 25% of the Class A Notes, acting together as a
single Class, excluding for purposes of such calculation and action all
Securities held or beneficially owned by TMCC, TAFR LLC or any of their
Affiliates; or

     (c) the occurrence of an Insolvency Event with respect to the Servicer.

At any time when a Servicer Default has occurred and is continuing, so long as
the Servicer Default shall not have been remedied, either the Indenture Trustee
or the Holders of Notes evidencing not less than 51% of the Outstanding Amount
of the Class A Notes acting as a single Class, excluding for purposes of such
calculation and action all Securities held or beneficially owned by TMCC, TAFR
LLC or any of their Affiliates, by notice then given in writing to the Servicer
(and to the Indenture Trustee and the Owner Trustee if given by the Noteholders)
may terminate all the rights and obligations (other than the obligations set
forth in Section 7.02 hereof and the rights set forth in Section 7.04 hereof) of
the Servicer under this Agreement. By the same required vote, the Noteholders
specified in the prior sentence may waive any such Servicer Default (other than
a default in the making of any required deposits or payments from or to the
Collection Account, Reserve Account or Payahead Account) for a specified period
or permanently. Upon any such waiver of a past default, such default shall cease
to exist, and any Servicer Default arising therefrom shall be deemed to have
been remedied for every purpose of this Agreement. No such waiver shall extend
to any subsequent or other default or impair any right consequent thereto.

     SECTION 8.02 Appointment of Successor.

     (a) Upon the Servicer's receipt of notice of termination pursuant to
Section 8.01 or the Servicer's resignation in accordance with the terms of this
Agreement, the predecessor Servicer shall continue to perform its functions as
Servicer under this Agreement, in the case of termination, only until the date
specified in such termination notice or, if no such date is specified in a
notice of termination, until receipt of such notice and, in the case of
resignation, until the later of (i) the date 45 days from the delivery to the
Owner Trustee and the Indenture Trustee of written notice of such resignation
(or written confirmation of such notice) in

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<PAGE>

accordance with the terms of this Agreement and (ii) the date upon which the
predecessor Servicer shall become unable to act as Servicer, as specified in the
notice of resignation and accompanying Opinion of Counsel. In the event of the
Servicer's termination hereunder, the Indenture Trustee shall appoint a
Successor Servicer, and the Successor Servicer shall accept its appointment
(including its appointment as Administrator under the Administration Agreement
as set forth in Section 8.02(b)) by a written assumption in form acceptable to
the Owner Trustee and the Indenture Trustee. In the event that a Successor
Servicer has not been appointed at the time when the predecessor Servicer has
ceased to act as Servicer in accordance with this Section, the Indenture Trustee
without further action shall automatically be appointed the Successor Servicer
and the Indenture Trustee shall be entitled to the Servicing Fee.
Notwithstanding the above, the Indenture Trustee shall, if it shall be unwilling
or legally unable so to act, appoint or petition a court of competent
jurisdiction to appoint any established institution having a net worth of not
less than $50,000,000 and whose regular business shall include the servicing of
automobile and/or light-duty truck receivables, as the successor to the Servicer
under this Agreement. In connection therewith, the Indenture Trustee is
authorized and empowered to offer such successor servicer compensation up to,
but not in excess of, the Total Servicing Fee and other servicing compensation
specified in this Agreement as payable to the initial Servicer. Upon such
appointment, the Indenture Trustee will be released from the duties and
obligations of acting as Successor Servicer, such release effective upon the
effective date of the servicing agreement entered into between the Successor
Servicer and the Issuer.

     (b) Upon appointment, the successor Servicer (including the Indenture
Trustee acting as successor Servicer) shall (i) be the successor in all respects
to the predecessor Servicer and shall be subject to all the responsibilities,
duties and liabilities arising thereafter relating thereto placed on the
predecessor Servicer and shall be entitled to the Servicing Fee and all the
rights granted to the predecessor Servicer by the terms and provisions of this
Agreement and (ii) become the Administrator under the Administration Agreement
in accordance with Section 8 of such Agreement.

     (c) On or after the receipt by the Servicer of written notice of
termination pursuant to Section 8.01, all authority and power of the Servicer
under this Agreement, whether with respect to the Notes, the Certificate or the
Receivables or otherwise, shall, without further action, pass to and be vested
in the Indenture Trustee or such Successor Servicer as may be appointed under
this Section 8.02 and, without limitation, the Indenture Trustee and the Owner
Trustee are hereby authorized and empowered to execute and deliver, for the
benefit of the predecessor Servicer, as attorney-in-fact or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or
things necessary or appropriate to effect the purposes of such notice of
termination, whether to complete the transfer and endorsement of the Receivables
and related documents, or otherwise. The predecessor Servicer shall cooperate
with the Successor Servicer and the Owner Trustee in effecting the termination
of the responsibilities and rights of the predecessor Servicer under this
Agreement, including, without limitation, the transfer to the Successor Servicer
for administration by it of all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or have been deposited by the predecessor
Servicer, in the Collection Account or Payahead Account or thereafter received
with respect to the Receivables and all Payments Ahead that shall at that time
be held by the predecessor Servicer. All reasonable costs and expenses
(including attorneys' fees) incurred in connection with transferring the
Receivable Files to the Successor Servicer and amending this Agreement to

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<PAGE>

reflect such succession as Servicer pursuant to this Section shall be paid by
the predecessor Servicer upon presentation of reasonable documentation of such
costs and expenses. In the event that the Indenture Trustee succeeds to the
rights and obligations of the Servicer hereunder, and a subsequent transfer of
such rights and obligations is effected pursuant to Section 8.01 or this Section
8.02 hereof, the original Servicer hereunder shall reimburse the Indenture
Trustee for all reasonable costs and expenses as described in the immediately
preceding sentence. Upon receipt of notice of the occurrence of a Servicer
Default, the Indenture Trustee shall give notice thereof to the Rating Agencies.

     SECTION 8.03 Repayment of Advances; Compensation Payable. If the Servicer
shall resign or be terminated, the Servicer shall continue to be entitled to
receive reimbursement for Outstanding Advances pursuant to Sections 5.03 and
5.04 with respect to all Advances previously made thereby in the manner
specified in such Sections, and shall continue to be entitled to all accrued and
unpaid compensation payable to the Servicer through the date of such termination
as specified in Section 4.09 of this Agreement.

     SECTION 8.04 Notification. Upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article VIII, the Owner Trustee
shall give prompt written notice thereof to Certificateholder, and the Indenture
Trustee shall give prompt written notice thereof to Noteholders, the Swap
Counterparty and the Rating Agencies.

                                   ARTICLE IX

                                   TERMINATION

     SECTION 9.01 Optional Purchase of All Receivables.

     (a) On each Payment Date following the last day of a Collection Period as
of which the Pool Balance shall be less than the Optional Purchase Percentage
(expressed as a seven-digit decimal figure) multiplied by the Original Pool
Balance, the Servicer, or any successor to the Servicer, shall have the option
to purchase the corpus of the Owner Trust Estate (whether or not such assets
then comprise all or a portion of the Trust Estate) for an amount equal to the
Optional Purchase Price. To exercise such option, the Servicer, or any successor
to the Servicer, shall notify [the Swap Counterparty,] the Owner Trustee and the
Indenture Trustee of its intention to do so in writing, no later than the tenth
day of the month preceding the month in which the Payment Date as of which such
purchase is to be effected and shall, on or before the Payment Date on which
such purchase is to occur, deposit pursuant to Section 5.05 in the Collection
Account an amount equal to the Optional Purchase Price, and shall succeed to all
interests in and to the Trust Estate and the Owner Trust Estate. Amounts so
deposited will be paid and distributed as set forth in Section 5.06 of this
Agreement. Upon such deposit of the amount necessary to purchase the corpus of
the Owner Trust Estate, the Servicer shall for all purposes of this Agreement be
deemed to have released all claims for reimbursement of Outstanding Advances
made in respect of the Receivables.

     (b) Notice of any such purchase of the Owner Trust Estate shall be given by
the Owner Trustee and the Indenture Trustee to each Securityholder [and the Swap
Counterparty] as soon as practicable after their receipt of notice thereof from
the Servicer.

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<PAGE>

     (c) Following the satisfaction and discharge of the Indenture and the
payment in full of the principal of and interest on the Notes [and of the
Revolving Liquidity Note], the Certificateholders will succeed to the rights of
the Noteholders under this Agreement other than Section 5.06 and the Owner
Trustee will succeed to the rights of, and assume the obligations of, the
Indenture Trustee provided for in this Agreement.

     (d) Upon the repurchase of any Receivable by the Seller or the Servicer,
pursuant to any provision hereof (including Sections 3.02, 4.08 and 9.01(a)),
the Owner Trustee on behalf of the Issuer and the Certificateholders, and the
Indenture Trustee on behalf of the Noteholders, shall, without further action,
be deemed to transfer, assign, set-over and otherwise convey to the Seller or
the Servicer, as the case may be, all right, title and interest of the Owner
Trustee on behalf of the Issuer in, to and under such repurchased Receivable,
all monies due or to become due with respect thereto and all proceeds thereof
and the other property conveyed to the Issuer hereunder pursuant to Section 2.01
with respect to such Receivable, and all security and any documents relating
thereto, such assignment being an assignment outright and not for security; and
the Seller or the Servicer, as applicable, shall thereupon own each such
Receivable, and all such related security and documents, free of any further
obligation to the Issuer, the Owner Trustee, the Certificateholders, the
Indenture Trustee, [the Swap Counterparty,] [the holder of the Revolving
Liquidity Note] or the Noteholders with respect thereto. The Owner Trustee and
Indenture Trustee shall execute such documents and instruments of transfer and
assignment and take such other actions as shall be reasonably requested by the
Seller or the Servicer, as the case may be, to effect the conveyance of such
Receivable pursuant to this Section. If in any enforcement suit or legal
proceeding it is held that the Seller or Servicer may not enforce a repurchased
Receivable on the ground that it is not a real party in interest or a holder
entitled to enforce the Receivable, the Owner Trustee on behalf of the Issuer
and the Certificateholders, and the Indenture Trustee on behalf of the
Noteholders shall, at the written direction and expense of the Seller or
Servicer, as the case may be, take such reasonable steps as the Seller or
Servicer deems necessary to enforce the Receivable, including bringing suit in
the name or names of the Issuer, Certificateholders or Noteholders.

     SECTION 9.02 Termination of the Trust Agreement. The respective obligations
and responsibilities of the Issuer, the Seller and the Servicer under this
Agreement shall terminate upon the termination of the Trust Agreement pursuant
to Article IX of the Trust Agreement.

                                    ARTICLE X

                                  MISCELLANEOUS

     SECTION 10.01 Amendment. This Agreement may be amended by the Seller, the
Servicer and the Issuer, with the consent of the Indenture Trustee, but without
the consent of any of the Noteholders or the Certificateholders, to cure any
ambiguity, to correct or supplement any provisions in this Agreement or for the
purpose of adding any provisions to or changing in any manner or eliminating any
of the provisions in this Agreement or of modifying in any manner the rights of
the Noteholders or the Certificateholders; provided, however, that such action
shall not, as evidenced by an Opinion of Counsel delivered to the Owner Trustee
and the Indenture

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<PAGE>

Trustee, adversely affect in any material respect the interests of any
Noteholder or Certificateholder [or the holder of the Revolving Liquidity Note].
This Agreement may also be amended by the Seller, the Servicer and the Issuer,
with the consent of the Indenture Trustee [and the holder of the Revolving
Liquidity Note], but without the consent of any of the Noteholders or the
Certificateholders for the purpose of changing the formula for determining the
Specified Reserve Account Balance, the manner in which the Reserve Account is
funded (i.e. to allow the deposit of cash therein by any Person, but not to
change any order of priority of payments and distributions specified in Section
5.06 of the Sale and Servicing Agreement), changing the remittance schedule for
the deposit of collections with respect to the Receivables in the Collection
Account or Payahead Account pursuant to Section 5.02 hereof or changing the
definition of Eligible Investment, in each case only if the Indenture Trustee
and/or the Owner Trustee, as the case may be, (i) has received a letter from
Standard & Poor's to the effect that Standard & Poor's will not qualify, reduce
or withdraw the rating it has currently assigned to any Class of Notes as a
result of such amendment and (ii) has provided Moody's with 10 days prior
written notice of such amendment and Moody's shall not have notified the
Indenture Trustee and/or the Owner Trustee, as the case may be, that such
amendment might or would result in the qualification, reduction or withdrawal of
the rating it has currently assigned to any Class of Notes; provided that no
such amendment may increase or reduce in any manner or accelerate or delay the
timing of collections on the Receivables or payments required to be made to
Holders of any Class of Notes or of the Certificates without the consent of all
Holders of each affected Class or the Certificateholders, if affected.

     This Agreement may also be amended from time to time by the Seller, the
Servicer and the Issuer, with the consent of the Indenture Trustee, the consent
of (A) if the interests of Indenture Trustee or the Noteholders are affected,
the Holders of Notes evidencing not less than 51% of the outstanding Principal
Balance of each affected Class of Notes, acting as a single Class but excluding
for purposes of such calculation and action all Securities held or beneficially
owned by TMCC, TAFR LLC or any of their Affiliates, (B) if the interests of the
Issuer, Owner Trustee or Certificateholder are affected, the Holder of the
Certificate, [(C) if the interests of the Swap Counterparty are affected, the
Swap Counterparty,] [and/or (D) if the interests of the holder of the Revolving
Liquidity Note are affected, the holder of the Revolving Liquidity Note, 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
such Noteholders, Certificateholders or the holder of the Revolving Liquidity
Note]; provided, however, that no such amendment may (i) increase or reduce in
any manner the amount of, or accelerate or delay the timing of, collections of
payments on the related Receivables or payments required to be made to Holders
of any Class of Notes, the Certificateholders [or the holder of the Revolving
Liquidity Note] without the consent of all Holders of each affected Class of
Notes, the Certificateholders [or the holder of the Revolving Liquidity Note],
as the case may be, or (ii) reduce the aforesaid percentage of the Notes, the
aforesaid Certificateholders [or the aforesaid holder of the Revolving Liquidity
Note] required to consent to any such amendment, without the consent of the
Holders of each Class of Notes, the Certificates [or the Revolving Liquidity
Note], as the case may be, affected thereby.

     Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent to each Noteholder, Certificateholder, the Indenture Trustee, [the Swap
Counterparty (unless TMCC or an Affiliate

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<PAGE>

thereof is the Servicer, the Swap Counterparty] [and/or the holder of the
Revolving Liquidity Note] at the time of delivery) and each of the Rating
Agencies.

      It shall not be necessary for the consent of the Certificateholders,
Noteholders [or holder of the Revolving Liquidity Note] pursuant to this Section
to approve the particular form of any proposed amendment or consent, but it
shall be sufficient if such consent shall approve the substance thereof.

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

     SECTION 10.02 Protection of Title to Trust.

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

     (b) Neither the Seller nor the Servicer shall change (i) its location of
organization under Section 9-307(e) of the UCC or (ii) its name, identity or
corporate structure in any manner that would, could or might make any financing
statement or continuation statement filed in accordance with paragraph (a) above
seriously misleading within the meaning of Section 9-507 and 9-508 of the UCC,
unless it shall have given the Owner Trustee and the Indenture Trustee at least
five days' prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or
continuation statements.

     (c) Each of the Seller and the Servicer shall have an obligation to give
the Owner Trustee and the Indenture Trustee at least 60 days' prior written
notice of any relocation of its principal executive office 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 or new
financing statement. The Servicer shall at all times maintain each office from
which it shall service Receivables, and its principal executive office, within
the United States of America.

     (d) The Servicer shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at
any time the status of such Receivable, including payments and recoveries made
and payments owing (and the nature of each) and (ii) reconciliation between
payments or recoveries on (or with respect to) each

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Receivable and the amounts from time to time deposited in the Collection Account
in respect of such Receivable.

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

     (f) If at any time the Seller or the Servicer (or any subservicer appointed
by the Servicer) shall propose to sell, grant a security interest in, or
otherwise transfer any interest in automotive receivables to, any prospective
purchaser, lender or other transferee, the Servicer shall give to such
prospective purchaser, lender or other transferee computer tapes, records or
printouts (including any restored from backup archives) that, if they shall
refer in any manner whatsoever to any Receivable, shall indicate clearly that
such Receivable has been sold and is owned by the Issuer and has been pledged to
the Indenture Trustee.

     (g) Upon request, the Servicer shall furnish or cause to be furnished to
the Owner Trustee or to the Indenture Trustee, within five Business Days, a list
of all Receivables (by contract number and name of Obligor) then held as part of
the Owner Trust Estate, together with a reconciliation of such list to the
Schedule of Receivables and to each of the Servicer's Certificates furnished
before such request indicating removal of Receivables from the Owner Trust
Estate.

     (h) The Servicer shall deliver to the Owner Trustee and the Indenture
Trustee:

          (A) promptly after the execution and delivery of this Agreement and,
     if required pursuant to Section 10.01, of each amendment hereto, an Opinion
     of Counsel stating that, in the opinion of such counsel, either (A) all
     financing statements and continuation statements have been executed and
     filed that are necessary fully to preserve and protect the interest of the
     Owner Trustee and the Indenture Trustee in the Receivables, and reciting
     the details of such filings or referring to prior Opinions of Counsel in
     which such details are given, or (B) no such action shall be necessary to
     preserve and protect such interest, in each case also specifying any action
     necessary (as of the date of such opinion) to be taken in the following
     year to preserve and protect such interest; and

          (B) within 90 days after the beginning of each calendar year beginning
     with the first calendar year beginning more than three months after the
     Cutoff Date, an Opinion of Counsel, dated as of a date during such 90-day
     period, stating that, in the opinion of such counsel, either (A) all
     financing statements and continuation statements have been executed and
     filed that are necessary fully to preserve and protect the interest of the
     Owner Trustee and the Indenture Trustee in the Receivables, and reciting
     the

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     details of such filings or referring to prior Opinions of Counsel in which
     such details are given, or (B) no such action shall be necessary to
     preserve and protect such interest.

     SECTION 10.03 Notices. All demands, notices, communications and
instructions upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the
case of the Servicer, to Toyota Motor Credit Corporation, 19001 S. Western
Avenue, Torrance, California 90509, Attention: Vice President, Treasury, (310)
468-4001, (b) in the case of the Seller, to Toyota Auto Finance Receivables LLC,
19300 Gramercy Place, North Building, Torrance, California 90509, Attention:
President, (310) 468-7333, (c) in the case of the Issuer or the Owner Trustee,
at the Corporate Trust Office (as defined in the Trust Agreement), (d) in the
case of the Indenture Trustee, at the Corporate Trust Office specified in the
Indenture, (e) in the case of Moody's, to Moody's Investors Service, Inc., ABS
Monitoring Department, 99 Church Street, New York, New York 10007, (f) in the
case of Standard & Poor's, to Standard & Poor's Ratings Services, a division of
The McGraw-Hill Companies, 55 Water Street, New York, New York 10041, Attention
of Asset Backed Surveillance Department; or, as to each of the foregoing, at
such other address as shall be designated by written notice to the other
parties.

     SECTION 10.04 Assignment by the Seller or the Servicer. Notwithstanding
anything to the contrary contained herein, except as provided in Sections 6.04
and 7.03 of this Agreement and as provided in the provisions of this Agreement
concerning the resignation or termination of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer.

      [Insert any caveats necessary regarding third party rights under the Yield
Maintenance Agreement or the Collateral Security Agreement.]

     SECTION 10.05 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Seller, the Servicer, the Issuer,
the Owner Trustee, the Certificateholders, the Indenture Trustee and the
Noteholders, and nothing in this Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

     SECTION 10.06 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     SECTION 10.07 Separate Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

     SECTION 10.08 Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

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<PAGE>

     SECTION 10.09 Governing Law. This Agreement shall be construed in
accordance with the laws of the State of California, without reference to its
conflict of law provisions, and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

     SECTION 10.10 Assignment by Issuer. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Receivables and/or the assignment of any or all of the Issuer's rights and
obligations hereunder[, under the Interest Rate Swap Agreement] [or under the
Revolving Liquidity Note Agreement] to the Indenture Trustee.

     SECTION 10.11 Nonpetition Covenants.

     (a) Notwithstanding any prior termination of this Agreement, the Servicer
and the Seller shall not, prior to the date which is one year and one day after
the termination of this Agreement with respect to the Issuer, acquiesce,
petition or otherwise invoke or cause the Issuer to invoke the process of any
court or government authority for the purpose of commencing or sustaining a case
against the Issuer under any federal or state bankruptcy, insolvency or similar
law, or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Issuer or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the
Issuer.

     (b) Notwithstanding any prior termination of this Agreement, the Servicer
shall not, prior to the date which is one year and one day after the termination
of this Agreement with respect to the Seller, acquiesce, petition or otherwise
invoke or cause the Seller to invoke the process of any court or government
authority for the purpose of commencing or sustaining a case against the Seller
under any federal or state bankruptcy, insolvency or similar law, appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Seller or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Seller.

     SECTION 10.12 Limitation of Liability of Owner Trustee and Indenture
Trustee.

            Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by __________, not in its individual capacity,
but solely in its capacity as Owner Trustee on behalf of the Issuer, and by
____________, not in its individual capacity, but solely in its capacity as
Indenture Trustee under the Indenture. In no event shall ___________ in its
individual capacity or __________ in its individual capacity have any liability
for the representations, warranties, covenants, agreements or other obligations
of the Issuer hereunder or in any of the certificates, notices or agreements
delivered by the Seller or Servicer, or prepared by the Seller or Servicer for
delivery by the Owner Trustee on behalf of the Issuer, pursuant hereto, as to
all of which recourse shall be had solely to the assets of the Issuer. For all
purposes of this Agreement, in the performance of its duties or obligations
hereunder or in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles VI, VII and VIII of the Trust
Agreement.

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<PAGE>

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

                                    TOYOTA AUTO RECEIVABLES 200_-_ OWNER TRUST

                                    By:  _____________________,
                                    not in its individual capacity but solely as
                                    Owner Trustee on behalf of the Issuer

                                    By:_________________________________________
                                       Name:
                                       Title:

                                    TOYOTA AUTO FINANCE RECEIVABLES LLC,
                                     Seller

                                    By:_________________________________________
                                       Name:
                                       Title:

                                    TOYOTA MOTOR CREDIT CORPORATION, Servicer

                                    By:_________________________________________
                                       Name:
                                       Title:

ACKNOWLEDGED AND ACCEPTED AS OF
THE DAY AND YEAR FIRST ABOVE WRITTEN:

_______________________________, not in its
individual capacity but solely as Indenture Trustee

By:_________________________________________
   Name:
   Title:

                                      S-1
<PAGE>

                                   SCHEDULE A

                             Schedule of Receivables

 (Omitted - Originals on file at the office of the Seller and Owner Trustee)

                                      SA-1
<PAGE>

                                    EXHIBIT A

                         Form of Servicer's Certificate

                                 (See Attached)

                                      A-1

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