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                                                                     EXHIBIT 4.1

                   LARGE STORAGE CONFIGURATIONS, INCORPORATED

                             1992 STOCK OPTION PLAN
                         AS AMENDED ON FEBRUARY 21, 1993

ARTICLE 1. ESTABLISHMENT AND PURPOSE.

     1.1. ESTABLISHMENT. Large Storage Configurations, Incorporated (the
"Company"), hereby establishes a plan providing for the grant of stock options
to certain eligible individuals who have or will render services to the Company.
This plan shall be known as the Large Storage 1992 Stock Option Plan (the
"Plan").

     1.2. PURPOSE. The purpose of the Plan is to advance the interests of the
Company and its shareholders by enabling the Company to attract and retain
persons of ability to perform services for the Company, by providing an
incentive to such persons through equity participation in the Company and by
rewarding such persons who contribute to the achievement by the Company of its
economic objectives.

ARTICLE 2. DEFINITIONS.

     The following terms shall have the meanings set forth below, unless the
context clearly otherwise requires:

     2.1. "BOARD" means the Board of Directors of the Company.

     2.2. "BROKER EXERCISE NOTICE" means the written notice described in Section
6.6(b) of the Plan.

     2.3. "CHANGE IN CONTROL" means an event described in Section 8.1 of the
Plan.

     2.4. "CODE" means the Internal Revenue Code of 1986, as amended.

     2.5. "COMMITTEE" means the group of individuals administering the Plan, as
provided in Article 3 of the Plan.

     2.6. "COMMON STOCK" means the common stock of the Company, par value $.O1
per share, or the number and kind of shares of. stock or other securities into,
which such Common Stock may be changed in accordance with Section 4.3 of the
Plan.

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     2.7. "DISABILITY" means the disability of the Participant as defined in the
long-term disability plan of the Company then covering the Participant or, if no
such plan exists, the permanent and total disability of the Participant within
the meaning of Section 22(e)(3) of the Code.

     2.8. "ELIGIBLE RECIPIENT" means all employees (including, without
limitation, officers and directors who are also employees) directors who are not
employees, consultants and independent contractors of the Company or any
Subsidiary.

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

     2.10. "FAIR MARKET VALUE" means, with respect to the Common Stock, the
following:

              (a) If the Common Stock is listed or admitted to unlisted trading
         privileges on any national securities exchange or is not so listed or
         admitted but transactions in the Common Stock are reported on the
         NASDAQ National Market System, the mean between the reported high and
         low sale prices of the Common Stock on such exchange or by the NASDAQ
         National Market System as of such date (or, if no shares were traded on
         such day, as of the, next preceding day on which there was such a
         trade).

              (b) If the Common Stock is not so listed or admitted to unlisted
         trading privileges or reported on the NASDAQ National Market System,
         and bid and asked prices therefor in the over-the-counter market are
         reported by the NASDAQ System or the National Quotation Bureau, Inc.
         (or any comparable reporting service), the mean of the closing bid and
         asked prices as of such date, as so reported by the NASDAQ System, or,
         if not so reported thereon, as reported by the National Quotation
         Bureau, Inc. (or such comparable reporting service).

              (c) If the Common Stock is not so listed or admitted to unlisted
         trading privileges, or reported on the NASDAQ National Market System,
         and such bid and asked prices are not so reported, such price as the
         Committee determines in good faith in the exercise of its reasonable
         discretion.

     2.11. "INCENTIVE STOCK OPTION" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Article 6 of the Plan that
qualifies as an "incentive stock option" within the meaning of Section 422 of
the Code.

     2.12. "NON-STATUTORY STOCK OPTION" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Article 6 of the Plan that does not
qualify as an Incentive Stock Option.

     2.13. "OPTION" means an Incentive Stock Option or a Non-Statutory Stock
Option.

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     2.14. "PARTICIPANT" means an Eligible Recipient who receives one or more
Options under the Plan.

     2.15. "PERSON" means any individual, corporation, partnership, group,
association or other "person" (as such term is used in Section 14 (d) of the
Exchange Act), other than the Company, a wholly owned subsidiary of the Company
or any employee benefit plan sponsored by the Company or a wholly owned
subsidiary of the Company.

     2.16. "PREVIOUSLY ACQUIRED SHARES" mean shares of Common Stock that are
already owned by the Participant and shares of Common Stock that are to be
acquired by the Participant pursuant to the exercise of an Option.

     2.17. "RETIREMENT" means the retirement of a Participant pursuant to and in
accordance with the regular or, if approved by the Board for purposes of the
Plan, any early retirement plan or practice of the Company or Subsidiary then
covering the Participant.

     2.18. "SECURITIES ACT" means the Securities Act of 1933, as amended.

     2.19. "SUBSIDIARY" means any subsidiary corporation of the Company within
the meaning of Section 424(f) of the Code.

     2.20. "TAX DATE" means the date any withholding tax obligation arises under
the Code for a Participant with respect to an Option.

ARTICLE 3. PLAN ADMINISTRATION.

     3.1. THE COMMITTEE. The Plan shall be administered by the Board or by a
committee of the Board consisting of not less than two persons; provided,
however, that from and after the date on which the Company first registers a
class of its equity securities under Section 12 of the Exchange Act, the Plan
shall be administered by the Board, all of whom shall be "disinterested persons"
within the meaning of Rule l6b-3 under the Exchange Act, or by a committee
consisting solely of not fewer than two members of the Board who are such
"disinterested persons." Members of such a committee, if established, shall be
appointed from time to time by the Board, shall serve at the pleasure of the
Board and may resign at any time upon written notice to the Board. A majority of
the members of such a committee shall constitute a quorum. Such a committee
shall act by majority approval of the members, shall keep minutes of its
meetings and shall provide copies of such minutes to the Board. Action of such a
committee may be taken without a meeting if unanimous written consent is given.
Copies of minutes of such a committee's meetings and of its actions by written
consent shall be provided to the Board and kept with the corporate records of
the Company. As used in this Plan, the term "Committee" will refer to the Board
or to such a committee, if established.

     3.2. Authority of the Committee.

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              (a) In accordance with and subject to the provisions of the Plan,
         the Committee shall have the authority to determine (i) the Eligible
         Recipients who shall be selected as Participants, (ii) the nature and
         extent of the Options to be made to each Participant (including the
         number of shares of Common Stock to be subject to each Option, the
         exercise price and the manner in which Options will vest or become
         exercisable), (iii) the time or times when Options will be granted,
         (iv) the duration of each Option, (v) the restrictions and other
         conditions to which the exercisability or vesting of Options may be
         subject, and (vi) such other provisions of the Options as the Committee
         may deem necessary or desirable and as consistent with the terms of the
         Plan. The Committee shall determine the form or forms of the option
         agreements with Participants which shall evidence the particular terms,
         conditions, rights and duties of the Company and the Participants with
         respect to Options granted pursuant to the Plan, which agreements shall
         be consistent with the provisions of the Plan.

              (b) With the consent of the Participant affected thereby, the
         Committee may amend or modify the terms of any outstanding Option in
         any manner, provided that the amended or modified terms are permitted
         by the Plan as then in effect. Without limiting the generality of the
         foregoing sentence, the Committee may, with the consent of the
         Participant affected thereby, modify the exercise price, number of
         shares or other terms and conditions of an Option, extend the term of
         an Option, accelerate the exercisability or vesting or otherwise
         terminate any restrictions relating to an Option, accept the surrender
         of any outstanding Option, or, to the extent not previously exercised
         or vested, authorize the grant of new Options in substitution for
         surrendered Options.

              (c) The Committee shall have the authority, subject to the
         provisions of the Plan, to establish, adopt and revise such rules and
         regulations relating to the Plan as it may deem necessary or advisable
         for the administration of the Plan. The Committee's decisions and
         determinations under the Plan need not be uniform and may be made
         selectively among Participants, whether or not such Participants are
         similarly situated. Each determination, interpretation or other action
         made or taken by the Committee pursuant to the provisions of the Plan
         shall be conclusive and binding for all purposes and on all persons,
         including, without limitation, the Company and its Subsidiaries, the
         shareholders of the Company, the Committee and each of its members, the
         directors, officers and employees of the Company and its Subsidiaries,
         and the Participants and their respective successors in interest. No
         member of the Committee shall be liable for any action or determination
         made in good faith with respect to the Plan or any Option granted under
         the Plan.

ARTICLE 4. STOCK SUBJECT TO THE PLAN.

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     4.1. NUMBER OF SHARES. Subject to adjustment as provided in Section 4.3
below, the maximum number of shares of Common Stock that shall be authorized and
reserved for issuance under the Plan shall be 1,000,000 shares of Common Stock.
The maximum number of shares authorized may also be increased from time to time
by approval of the Board and, if required pursuant to Rule l6b-3 under the
Exchange Act, Section 422 of the Code, or the applicable rules of any securities
exchange or the NASD, the shareholders of the Company.

     4.2. SHARES AVAILABLE FOR USE. Shares of Common Stock that may be issued
upon exercise of Options shall be applied to reduce the maximum number of shares
of Common Stock remaining available for use under the Plan. Any shares of Common
Stock that are subject to an Option (or any portion thereof) that lapses,
expires or for any reason is terminated unexercised shall automatically again
become available for use under the Plan.

     4.3. ADJUSTMENTS TO SHARES. In the event of any reorganization, merger,
consolidation, recapitalization, liquidation, reclassification, stock dividend,
stock split, combination of shares, rights offering, extraordinary dividend or
divestiture (including a spin-off) or any other change in the corporate
structure or shares of the Company, the Committee (or, if the Company is not the
surviving corporation in any such transaction, the board of directors of the
surviving corporation) shall make appropriate adjustment (which determination
shall be conclusive) as to the number and kind of securities subject to and
reserved under the Plan and, in order to prevent dilution oe enlargement of the
rights of Participants, the number, kind and exercise price of securities
subject to outstanding Options. Without limiting the generality of the
foregoing, in the event that any of such transactions are effected in such a way
that holders of Common Stock shall be entitled to receive stock, securities or
assets, including cash, with respect to or in exchange for such Common Stock,
all Participants holding outstanding Options shall upon the exercise of such
Options receive, in lieu of any shares of Common Stock they may be entitled to
receive, such stock, securities or assets, including cash, as would have been
issued to such Participants if their Options had been exercised and such
Participants had received Common Stock prior to such transaction.

ARTICLE 5. PARTICIPATION.

     Participants in the Plan shall be those Eligible Recipients who, in the
judgment of the Committee, have performed, are performing, or during the term of
an Option will perform, services in the management, operation and development of
the Company or any Subsidiary, and significantly contributed, are significantly
contributing or are expected to significantly contribute to the achievement of
corporate economic objectives. Eligible Recipients may be granted from time to
time one or more Options, as may be determined by the Committee in its sole
discretion. The number, type, terms and conditions of Options granted to various
Eligible Recipients need not be uniform, consistent or in accordance with any
plan, regardless of whether such Eligible Recipients are similarly situated.
Upon determination by the Committee that an Option is to be granted to an
Eligible Recipient, written notice shall be given such person, specifying the
terms, conditions, rights and duties related thereto. Each Eligible Recipient to
whom an Option is to be granted shall enter into an agreement with the

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Company, in such form as the Committee shall determine and which is consistent
with the provisions of the Plan, specifying such terms, conditions, rights and
duties. Options shall be deemed to be granted as of the date specified in the
grant resolution of the Committee, and the related option agreements shall be
dated as of such date.

ARTICLE 6. STOCK OPTIONS.

     6.1. GRANT. An Eligible Recipient may be granted one or more Options under
the Plan, and such Options shall be subject to such terms and conditions,
consistent with the other provisions of the Plan, as shall be determined by the
Committee in its sole discretion. The Committee may designate whether an Option
is to be considered an Incentive Stock Option or a Non-Statutory Stock Option;
provided, however, that an Incentive Stock Option shall be granted only to an
Eligible Recipient who is an employee of the Company or a Subsidiary, The terms
of the agreement relating to a Non-Statutory Stock Option shall expressly
provide that such Option shall not be treated as an Incentive Stock Option.

     6.2. EXERCISE. An Option shall become exercisable at such times and in such
installments (which may be cumulative) as shall be determined by the Committee
in its sole discretion at the time the Option is granted. Upon the completion of
its exercise period, an Option, to the extent not then exercised, shall expire.

     6.3. EXERCISE PRICE.

              (a) INCENTIVE STOCK OPTIONS. The per share price to be paid by the
         Participant at the time an Incentive Stock Option is exercised shall be
         determined by the Committee, in its discretion, at the date of its
         grant; provided, however, that such price shall not be less than (i)
         100% of the Fair Market Value of one share of Common Stock on the date
         the Option is granted, or (ii) 110% of the Fair Market Value of one
         share of Common Stock on the date the Option is granted if, at that
         time the Option is granted, the Participant owns, directly or
         indirectly (as determined pursuant to Section 424(d) of the Code), more
         than 10% of the total combined voting power of all classes of stock of
         the Company or any subsidiary or parent corporation of the Company
         (within the meaning of Sections 424(f) and 424(e), respectively, of the
         Code).

              (b) NON-STATUTORY STOCK OPTIONS. The per share price to be paid by
         the Participant at the time a Non-Statutory Stock Option is exercised
         shall be determined by the Committee in its sole discretion at the time
         the Option is granted; provided, however, that such price shall not be
         less than 85% of the Fair Market value of one share of Common Stock on
         the date the Option is granted.

     6.4. DURATION.

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              (a) INCENTIVE STOCK OPTIONS. The period during which an Incentive
         Stock Option may be exercised shall be fixed by the Committee in its
         sole discretion at the time such Option is granted; provided, however,
         that in no event shall such period exceed 10 years from its date of
         grant or, in the case of a Participant who owns, directly or indirectly
         (as determined pursuant to Section 424(d) of the Code), more than 10%
         of the total combined voting power of all classes of stock of the
         Company or any subsidiary or parent corporation of the Company (within
         the meaning of Sections 424(f) and 424(e), respectively, of the Code),
         five years from its date of grant.

              (b) NON-STATUTORY STOCK OPTIONS. The period during which a
         Non-Statutory Stock Option may be exercised shall be fixed by the
         Committee in its sole discretion at its date of grant.

              (c) EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.
         Notwithstanding this Section 6.4, except as provided in Articles 7 and
         8 of the Plan, all Options granted to a Participant shall terminate and
         may no longer be exercised upon the termination of the Participant's
         employment or other status with the Company and all Subsidiaries in
         relation to which the Option was granted.

     6.5. MANNER OF EXERCISE. An Option may be exercised by a Participant in
whole or in part from time to time, subject to the conditions contained herein
and in the agreement evidencing such Option, by delivery, in person or through
certified or registered mail, of written notice of exercise to the Company at
its principal executive office (Attention: Chief Financial Officer), and by
paying in full the total Option exercise price for the shares of Common Stock
purchased. Such notice shall be in a form satisfactory to the Committee and
shall specify the particular Option (or portion thereof) that is being exercised
and the number of shares with respect to which the Option is being exercised.
Subject to compliance with Section 11.1 of the Plan, the exercise of the Option
shall be deemed effective upon receipt of such notice and payment complying with
the terms of the Plan and the agreement evidencing such Option. As soon as
practicable after the effective exercise of the Option, the Participant shall be
recorded on the stock transfer books of the Company as the owner of the shares
purchased, and the Company shall deliver to the Participant one or more duly
issued stock certificates evidencing such ownership. If a Participant exercises
any Option with respect to some, but not all, of the shares of Common Stock
subject to such Option, the right to exercise such Option with respect to the
remaining shares shall continue until it expires or terminates in accordance
with its terms. An Option shall only be exercisable with respect to whole
shares.

     6.6. PAYMENT OF EXERCISE PRICE.

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              (a) The total purchase price of the shares to be purchased upon
         exercise of an Option shall be paid entirely in cash (including check,
         bank draft or money order); provided, however, that the Committee, in
         its sole discretion, may allow such payments to be made, in whole or in
         part, by delivery of a Broker Exercise Notice or a promissory note
         (containing such terms and conditions as the Committee may in its
         discretion determine), by transfer from the Participant to the Company
         of Previously Acquired Shares, or by a combination thereof. In
         determining whether or upon what terms and conditions a Participant
         will be permitted to pay the purchase price of an Option in a form
         other than cash, the Committee may consider all relevant facts and
         circumstances, including, without limitation, the tax and securities
         law consequences to the Participant and the Company and the financial
         accounting consequences to the Company. In the event the Participant is
         permitted to pay the purchase price of an Option in whole or in part
         with Previously Acquired Shares, the value of such shares shall be
         equal to their Fair Market Value on the date of exercise of the Option.

              (b) For purposes of this Section 6.6, a "Broker Exercise Notice"
         shall mean a written notice from a Participant to the Company at its
         principal executive office (Attention: Chief Financial Officer), made
         on a form and in the manner as the Committee may from time to time
         determine, pursuant to which the Participant irrevocably elects to
         exercise all or any portion of an Option and irrevocably directs the
         Company to deliver the Participant's stock certificates to be issued to
         such Participant upon such Option exercise directly to a broker or
         dealer. A Broker Exercise Notice must be accompanied by or contain
         irrevocable instructions to the broker or dealer (i) to promptly sell,
         a sufficient number of shares of such Common Stock or to loan the
         Participant a sufficient amount of money to pay the exercise price for
         the Options and, if not otherwise satisfied by the Participant, to fund
         any related employment and withholding tax obligations due upon such
         exercise, and (ii) to promptly remit such sums to the Company upon the
         broker's or dealer's receipt of the stock certificates.

     6.7. RIGHTS AS A SHAREHOLDER. The Participant shall have no rights as a
shareholder with respect to any shares of Common Stock covered by an Option
until the Participant shall have become the holder of record of such shares, and
no adjustments shall be made for dividends or other distributions or other
rights as to which there is a record date preceding the date the Participant
becomes the holder of record of such shares, except as the Committee may
determine pursuant to Section 4.3 of the Plan.

          6.8. DISPOSITION OF COMMON STOCK ACQUIRED PURSUANT TO THE EXERCISE OF
INCENTIVE STOCK OPTIONS. Prior to making a disposition (as defined in Section
424(c) of the Code) of any shares of Common Stock acquired pursuant to the
exercise of an Incentive Stock Option granted under the Plan before the
expiration of two years after its date of grant or before the expiration of one
year after its date of exercise and the date on

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which such shares of Common Stock were transferred to the Participant pursuant
to exercise of the Option, the Participant shall send written notice to the
Company of the proposed date of such disposition, the number of shares to be
disposed of, the amount of proceeds to be received from such disposition and any
other information relating to such disposition that the Company may reasonably
request. The right of a Participant to make any such disposition shall be
conditioned on the receipt by the Company of all amounts necessary to satisfy
any federal, state or local withholding and employment-related tax requirements
attributable to such disposition. The Committee shall have the right, in its
sole discretion, to endorse the certificates representing such shares with a
legend restricting transfer and to cause a stop transfer order to be entered
with the Company's transfer agent until such time as the Company receives the
amounts necessary to satisfy such withholding and employment-related tax
requirements or until the later of the expiration of two years from its date of
grant or one year from its date of exercise and the date on which such shares
were transferred to the Participant pursuant to the exercise of the Option.

     6.9. AGGREGATE LIMITATION OF STOCK SUBJECT TO INCENTIVE STOCK OPTIONS. To
the extent that the aggregate Fair Market Value (determined as of the date an
Incentive Stock Option is granted) of the shares of Common Stock with respect to
which incentive stock options (within the meaning of Section 422 of the Code)
are exercisable for the first time by a Participant during any calendar year
(under the Plan and any other incentive stock option plans of the Company or any
subsidiary or any parent corporation of the Company (within the meaning of
Sections 424(f) and 424(e), respectively, of the Code)) exceeds $100,000 (or
such other amount as may be prescribed by the Code from time to time), such
excess Options shall be treated as Non-Statutory Stock Options. The
determination shall be made by taking incentive stock options into account in
the order in which they were granted. If such excess only applies to a portion
of an incentive stock option, the Committee, in its discretion, shall designate
which shares shall be treated as shares to be acquired upon exercise of an
incentive stock option.

ARTICLE 7. EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.

     7.1. TERMINATION OF EMPLOYMENT OR OTHER SERVICE DUE TO DEATH, DISABILITY OR
RETIREMENT. Except as otherwise provided in Article 8 of the Plan, in the event
a Participant's employment or other service with the Company and all
Subsidiaries is terminated by reason of such Participant's death, Disability or
Retirement, all outstanding Options then held by the Participant shall become
immediately exercisable in full and remain exercisable after such termination
for a period of three months in the case of Retirement and one year in the case
of death or Disability (but in no event after the expiration date of any such
Option).

     7.2. TERMINATION OF EMPLOYMENT OR OTHER SERVICE FOR REASONS OTHER THAN
DEATH, DISABILITY OR RETIREMENT. Except as otherwise provided in Article 8 of
the Plan or as otherwise determined by the Committee either at the time an

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Option is granted or thereafter, in the event of termination of the
Participant's employment or other status with the Company and all Subsidiaries
in relation to which the Option was granted for any reason other than death,
Disability or Retirement, all rights of the Participant under the Plan shall
immediately terminate without notice of any kind, and no Options then held by
the Participant shall thereafter be exercisable; provided, however, that if such
termination is due to any reason other than termination by the Company or any
Subsidiary for "cause," all outstanding Options then held by such Participant
shall remain exercisable to the extent exercisable as of such termination for a
period of three months after such termination (but in no event after the
expiration date of any such Option). For purposes of this Section 7.2, "cause"
shall be as defined in any employment or other agreement or policy applicable to
the Participant or, if no such agreement or policy exists, shall mean (a)
dishonesty, fraud, misrepresentation, embezzlement or material or deliberate
injury or attempted injury, in each case related to the Company or any
Subsidiary, (b) any unlawful or criminal activity of a serious nature, (c) any
willful breach of duty, habitual neglect of duty or unreasonable job
performance, or (d) any material breach of a confidentiality or noncompetition
agreement entered into with the Company or any Subsidiary.

     7.3. MODIFICATION OF EFFECT OF TERMINATION. Notwithstanding the provisions
of this Article 7, upon a Participant's termination of employment or other
status with the Company and all Subsidiaries with respect to which Options were
granted, the Committee may, in its sole discretion (which may be exercised
before or following such termination), cause Options, or any portions thereof,
then held by such Participant to become exercisable and remain exercisable
following such termination in the manner determined by the Committee; provided,
however, that no Option shall be exercisable after the expiration date thereof
and any Incentive Stock Option that remains unexercised more than three months
following employment termination by reason of Retirement or more than one year
following employment termination by reason of death or Disability shall
thereafter be deemed to be a Non-Statutory Stock Option.

     7.4. DATE OF TERMINATION. Unless the Committee shall otherwise determine in
its sole discretion, a Participant's employment or other service shall, for
purposes of the Plan, be deemed to have terminated on the date such Participant
ceases to perform services for the Company and all Subsidiaries, as determined
in good faith by the Committee.

ARTICLE 8. CHANGE OF CONTROL.

     8.1. CHANGE IN CONTROL. For purposes of this Article 8, a "Change in
Control" of the Company shall mean (a) the sale, lease, exchange or other
transfer of all or substantially all of the assets of the Company (in one
transaction or in a series of related transactions) to a corporation that is not
controlled by the Company, (b) the approval by the shareholders of the Company
of any plan or proposal for the liquidation or dissolution of the Company, or
(c) a change in control of the Company of a nature that would be required to be
reported (assuming such event has not been "previously reported") in response to
Item 1(a) of the Current Report on Form 8-K, as in effect on the effective date
of the Plan, pursuant to

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Section 13 or 15(d) of the Exchange Act, whether or not the Company is then
subject to such reporting requirement; provided, however, that, without
limitation, such a Change in Control shall be deemed to have occurred at such
time as any Person becomes after the effective date of the Plan the "beneficial
owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of 50.0% or more of the combined voting power of the Company's
outstanding securities ordinarily having the right to vote at elections of
directors. Notwithstanding anything in the foregoing to the contrary, no Change
in Control shall be deemed to have occurred for purposes of this Section 8.1 by
virtue of any transaction which shall have been approved by the affirmative vote
of at least a majority of the members of the Board of Directors on the effective
date of the Plan, provided that any person becoming a director subsequent to the
effective date of the Plan whose election, or nomination for election by the
Company's shareholders, was approved by a vote of at least a majority of the
directors comprising or deemed pursuant hereto to comprise the board of
directors of the Company on the effective date of the Plan (either by a specific
vote or by approval of the proxy statement of the Company in which such person
is named as a nominee for director) shall be, for purposes of this sentence,
considered as though such person were a member of the board of directors of the
Company on the effective date of the Plan. [As amended on February 21, 1993.]

     8.2. ACCELERATION OF VESTING. If a Change of Control of the Company shall
occur, then, without any action by the Committee or the Board, all outstanding
Options shall become immediately exercisable in full and shall remain
exercisable during the remaining term thereof, regardless of whether the
employment or other status of the Participants with respect to which Options
have been granted shall continue with the Company or any Subsidiary.

     8.3. CASH PAYMENT. If a Change in Control of the Company shall occur, then
the Committee, in its sole discretion, and without the consent of any
Participant effected thereby, may determine that some or all Participants
holding outstanding Options shall receive, with respect to some or all of the
shares of Common Stock subject to such Options, as of the effective date of any
such Change in Control of the Company, cash in an amount equal to the excess of
the Fair Market Value of such shares immediately prior to the effective date of
such Change in Control of the Company over the exercise price per share of such
Options.

     8.4. LIMITATION ON CHANGE IN CONTROL PAYMENTS. Notwithstanding anything in
Section 8.2 or 8.3 above to the contrary, if, with respect to a Participant, the
acceleration of the exercisability of an Option as provided in Section 8.2 or
the payment of cash in exchange for all or part of an Option as provided in
Section 8.3 above (which acceleration or payment could be deemed a "payment"
within the meaning of Section 280G(b) (2) ofthe Code), together with any other
payments which such Participant has the right to receive from the Company or any
corporation which is a member of an "affiliated group" (as defined in Section
1504 (a) of the Code without regard to Section 1504 (b) of the Code) of which
the Company is a member, would constitute a "parachute payment" (as defined in
Section 280G(b) (2) of the Code), then theacceleration of exercisability and the
payments to

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such Participant pursuant to Sections 8.2 and 8.3 above shall be reduced to the
largest amount as, in thesole judgment of the Committee, will result in no
portion of such payments being subject to the excise tax imposed by Section 4999
of the Code.

ARTICLE 9. RIGHT TO WITHHOLD; PAYMENT OF WITHHOLDING TAXES.

     9.1. GENERAL RULES. The Company is entitled to (a) withhold and deduct from
future wages of the Participant (or from other amounts which may be due and
owing to the Participant from the Company), or make other arrangements for the
collection of, all legally required amounts necessary to satisfy any and all
federal, state and local withholding and employment-related tax requirements (i)
attributable to the grant or exercise of an Option or to a disqualifying
disposition of stock received upon exercise of an Incentive Stock Option, or
(ii) otherwise incurred with respect to an Option, or (b) require the
Participant promptly to remit the amount of such withholding to the Company
before taking any action with respect to the exercise of an Option or the
issuance of any stock certificate either to the Participant or any transferee.

     9.2. SPECIAL RULES.

              (a) Without limiting the generality of Section 9.1 above, the
         Committee may, in its sole discretion and subject to such rules as the
         Committee may adopt, permit a Participant to satisfy, in whole or in
         part, any withholding or employment-related tax obligations described
         in Section 9.1 above by electing to use Previously Acquired Shares or
         by electing to have the Company accept a Broker Exercise Notice with
         respect to that number of shares, in any such case, having a Fair
         Market Value, on the Tax Date, equal to the amount necessary to satisfy
         the withholding or employment related taxes due, or by agreeing to
         deliver to the Company a promissory note in payment for some or all of
         the necessary amounts (containing such terms and conditions as the
         Committee in its sole discretion may determine).

              (b) A Participant's election to use Previously Acquired Shares, a
         Broker Exercise Notice or a promissory note must be made on or prior to
         the Tax Date, is irrevocable and is subject to the consent or
         disapproval of the Committee. If the Participant is an officer,
         director or beneficial owner of more than 10% of the outstanding Common
         Stock of the Company and the Company has a class of equity securities
         registered under Section 12 of the Exchange Act, an election to use
         Previously Acquired Shares may not be made within sis months following
         the date the Option is granted (unless the death or Disability of the
         Participant occurs prior to the expiration of such six-month period),
         and (unless otherwise permitted by the Committee in its sole
         discretion) must be made either six months prior to the Tax Date or at
         any time prior to the Tax Date between the third and twelfth business
         days following public release of any of the Company's quarterly or
         annual

                                       12
<PAGE>   13

         summary earnings statements. When shares of Common stock are issued
         prior to the Tax Date to a Participant making an election to use
         Previously Acquired Shares, the Participant shall agree in writing to
         surrender that number of shares on the Tax Date having an aggregate
         Fair Market Value equal to the tax due.

ARTICLE 10. RIGHTS OF ELIGIBLE RECIPIENTS AND PARTICIPANTS; TRANSFERABILITY.

     10.1. EMPLOYMENT OR SERVICE. Nothing in the Plan shall interfere with or
limit in any way the right of the Company or any Subsidiary to terminate the
employment or service of any Eligible Recipient or Participant at any time, nor
confer upon any Eligible Recipient or Participant any right to continue in the
employ or service of the Company or any Subsidiary.

     10.2. RESTRICTIONS ON TRANSFER. Other than pursuant to a qualified domestic
relations order (as defined by the Code), no right or interest of any
Participant in an Option prior to the exercise of such Options shall be
assignable or transferrable, or subjected to any lien, during the lifetime of
the Participant, either voluntarily or involuntarily, directly or indirectly, by
operation of law or otherwise, including execution, levy, garnishment,
attachment, pledge, divorce or bankruptcy. In the event of a Participant's
death, such Participant's rights and interest in Options shall be transferrable
by testamentary will or the laws of descent and distribution, and payment of any
amounts due under the Plan shall be made to, and exercise of any Options (to the
extent permitted pursuant to Article 7 of the Plan) may be made by, the
Participant's legal representatives, heirs or legatees. If in the opinion of the
Committee a Participant holding an Option is disabled from caring for his or her
affairs because of mental condition, physical condition or age, any payments due
the Participant may be made to, and any rights of the Participant under the Plan
shall be exercised by, such Participant's guardian, conservator or other legal
personal representative upon furnishing the Committee with evidence satisfactory
to the Committee of such status.

     10.3. NON-EXCLUSIVITY OF THE PLAN. Nothing contained in the Plan is
intended to amend, modify or rescind any previously approved compensation plans
or programs entered into by the Company. The Plan will be construed to be in
addition to any and all such other plans or programs. Neither the adoption of
the Plan nor the submission of the Plan to the shareholders of the Company for
approval will be construed as creating any limitations on the power or authority
of the Board to adopt such additional or other compensation arrangements as the
Board may deem necessary or desirable.

ARTICLE 11. SECURITIES LAW RESTRICTIONS

     11.1. SHARE ISSUANCES. Notwithstanding any other provision of the Plan or
any agreements entered into pursuant hereto, the Company shall not be required
to issue or deliver any certificate for shares of Common Stock under this Plan,
and an Option shall not

                                       13
<PAGE>   14

be considered to be exercised notwithstanding the tender by the Participant of
any consideration therefor, unless and until each of the following conditions
has been fulfilled:

              (a) (i) There shall be in effect with respect to such shares a
         registration statement under the Securities Act and any applicable
         state securities laws if the Committee, in its sole discretion, shall
         have determined to file, cause to become effective and maintain the
         effectiveness of such registration statement; or (ii) if the Committee
         has determined not to so register the shares of Common Stock to be
         issued under the Plan, (A) exemptions from registration under the
         Securities Act and applicable state securities laws shall be available
         for such issuance (as determined by counsel to the Company) and (B)
         there shall have been received from the Participant (or, in the event
         of death or disability, the Participant's heir(s) or legal
         representative(s)) any representations or agreements requested by the
         Company in order to permit such issuance to be made pursuant to such
         exemptions; and

              (b) There shall have been obtained any other consent, approval or
         permit from any state or federal governmental agency which the
         Committee shall, in its sole discretion upon the advice of counsel,
         deem necessary or advisable.

     11.2. SHARE TRANSFERS. Shares of Common Stock issued pursuant to Options
granted under the Plan may not be sold, assigned, transferred, pledged,
encumbered or otherwise disposed of, whether voluntarily or involuntarily,
directly or indirectly, by operation of law or otherwise, except pursuant to
registration under the Securities Act and applicable state securities laws or
pursuant to exemptions from such registrations. The Company may condition the
sale, assignment, transfer, pledge, encumbrance or other disposition of such
shares not issued pursuant to an effective and current registration statement
under the Securities Act and all applicable state securities laws on the receipt
from the party to whom the shares of Common Stock are to be so transferred of
any representations or agreements requested by the Company in order to permit
such transfer to be made pursuant to exemptions from registration under the
Securities Act and applicable state securities laws.

     11.3. LEGENDS.

              (a) Unless a registration statement under the Securities Act and
         applicable state securities laws is in effect with respect to the
         issuance or Transfer of shares of Common Stock under the Plan, each
         certificate representing any such shares shall be endorsed with a
         legend in substantially the following form, unless counsel for the
         Company is of the opinion as to any such certificate that such legend
         is unnecessary:

         THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
         SECURITIES ACT OF 1933, AS AMENDED

                                       14
<PAGE>   15

         ("THE ACT"), OR UNDER APPLICABLE STATE SECURITIES LAWS. THESE
         SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED FOR
         SALE, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
         DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
         UNDER THE ACT AND SUCH STATE LAWS OR PURSUANT TO AN EXEMPTION FROM
         REGISTRATION UNDER THE ACT AND SUCH STATE LAWS, THE AVAILABILITY OF
         WHICH IS TO BE ESTABLISHED TO THE SATISFACTION OF THE COMPANY.

              (b) The Committee, in its sole discretion, may endorse
         certificates representing shares issued pursuant to the exercise of
         Incentive Stock Options with a legend in substantially the following
         form:

         THE SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD,
         TRANSFERRED, ENCUMBERED, HYPOTHECATED OR OTHERWISE DISPOSED OF ON OR
         BEFORE [THE LATER OF THE ONE-YEAR OR TWO-YEAR INCENTIVE STOCK OPTION
         HOLDING PERIODS), WITHOUT THE PRIOR WRITTEN CONSENT OF THE COMPANY.

ARTICLE 12. PLAN AMENDMENT, MODIFICATION AND TERMINATION

     The Board may suspend or terminate the Plan or any portion thereof at any
time, and may amend the Plan from time to time in such respects as the Board may
deem advisable in order that Options under the Plan shall conform to any change
in applicable laws or regulations or in any other respect the Board may deem to
be in the best interests of the Company; provided, however, that no such
amendment shall be effective, without approval of the shareholders of the
Company, if shareholder approval of the amendment is then required pursuant to
Rule l6b-3 under the Exchange Act or any successor rule or Section 422 of the
Code or under the applicable rules or regulations of any securities exchange or
the NASD. No termination, suspension or amendment of the Plan shall alter or
impair any outstanding Option without the consent of the Participant affected
thereby; provided, however, that this sentence shall not impair the right of the
Committee to take whatever action it deems appropriate under Section 4.3 or
Article 8 of the Plan.

ARTICLE 13. EFFECTIVE DATE OF THE PLAN

     13.1. EFFECTIVE DATE. The Plan is effective as of November 30, 1992, the
date it was adopted by the Board.

     13.2. DURATION OF THE PLAN. The Plan shall terminate at midnight on
November 30, 2002, and may be terminated prior thereto by Board action, and no
Option

                                       15
<PAGE>   16

shall be granted after such termination. Options outstanding upon termination of
the Plan may continue to be exercised in accordance with their terms.

ARTICLE 14. MISCELLANEOUS

     14.1. CONSTRUCTION AND HEADINGS. The use of the masculine gender shall also
include within its meaning the feminine, and the singular may include the plural
and the plural may include the singular, unless the context clearly indicates to
the contrary. The headings of the Articles, Sections and subparts of the Plan
are for convenience of reading only and are not meant to be of substantive
significance and shall not add or detract from the meaning of such Article,
Section or subpart.

     14.2. GOVERNING LAW. The place of administration of the Plan shall be
conclusively deemed to be within the State of Minnesota, and the rights and
obligations of any and all persons having or claiming to have had an interest
under the Plan or under any agreements evidencing Options shall be governed by
and construed exclusively and solely in accordance with the laws of the State of
Minnesota without regard to the conflict of laws provisions of any
jurisdictions. All parties agree to submit to the jurisdiction of the state and
federal courts of Minnesota with respect to matters relating to the Plan and
agree not to raise or assert the defense that such forum is not convenient for
such party.

     14.3. SUCCESSORS AND ASSIGNS. This Plan shall be binding upon and inure to
the benefit of the successors and permitted assigns of the Company, including,
without limitation, whether by way of merger, consolidation, operation of law,
assignment, purchase or other acquisition of substantially all of the assets or
business of the Company, and any and all such successors and assigns shall
absolutely and unconditionally assume all of the Company's obligations under the
Plan.

     14.4. SURVIVAL OF PROVISIONS. The rights, remedies, agreements, obligations
and covenants contained in or made pursuant to the Plan, any agreement
evidencing an Option and any other notices or agreements in connection
therewith, including, without limitation, any notice of exercise of an Option,
shall survive the execution and delivery of such notices and agreements and the
delivery and receipt of shares of Common Stock and shall remain in full force
and effect.

                                       16<PAGE>   1

                                                                     EXHIBIT 4.8

                                    INDENTURE

                                     between

                       ONYX ACCEPTANCE OWNER TRUST 2001-B,
                                   as Issuer,

                                       and

                            THE CHASE MANHATTAN BANK,
                              as Indenture Trustee

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

                             Dated as of May 1, 2001

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                  PAGE
                                                                                  ----
<S>                                                                               <C>
ARTICLE I - DEFINITIONS AND INCORPORATION BY REFERENCE...........................   1
  Section  1.01   Definitions....................................................   1
  Section  1.02   Incorporation by Reference of Trust Indenture Act..............   6
  Section  1.03   Rules of Construction..........................................   7

ARTICLE II - THE NOTES...........................................................   7
  Section  2.01   Form...........................................................   7
  Section  2.02   Execution, Authentication and Delivery.........................   8
  Section  2.03   Temporary Notes................................................   8
  Section  2.04   Registration; Registration of Transfer and Exchange............   9
  Section  2.05   Mutilated, Destroyed, Lost or Stolen Notes.....................  10
  Section  2.06   Persons Deemed Owner...........................................  10
  Section  2.07   Payment of Principal and Interest; Defaulted Interest..........  11
  Section  2.08   Cancellation...................................................  12
  Section  2.09   Book-Entry Notes...............................................  12
  Section  2.10   Notices to Clearing Agency.....................................  13
  Section  2.11   Definitive Notes...............................................  13
  Section  2.12   Release of Collateral..........................................  13
  Section  2.13   Tax Treatment..................................................  14
  Section  2.14   ERISA..........................................................  14

ARTICLE III - COVENANTS..........................................................  14
  Section  3.01   Payment of Principal and Interest..............................  14
  Section  3.02   Maintenance of Office or Agency................................  14
  Section  3.03   Money for Payments to be Held in Trust.........................  15
  Section  3.04   Existence......................................................  16
  Section  3.05   Protection of Trust Estate.....................................  16
  Section  3.06   Opinions as to Collateral......................................  17
  Section  3.07   Performance of Obligations; Servicing of Contracts.............  17
  Section  3.08   Negative Covenants.............................................  19
  Section  3.09   Annual Statement as to Compliance..............................  20
  Section  3.10   Issuer May Consolidate, etc. Only on Certain Terms.............  20
  Section  3.11   Successor Transferee...........................................  22
  Section  3.12   No Other Business..............................................  22
  Section  3.13   Servicer's Obligations.........................................  22
  Section  3.14   Restricted Payments............................................  22
  Section  3.15   Notice of Events of Default....................................  23
  Section  3.16   Further Instruments and Acts...................................  23
  Section  3.17   Compliance with Laws...........................................  23
  Section  3.18   Amendments of Sale and Servicing Agreement and Trust Agreement.  23
</TABLE>

                                      -i-
<PAGE>   3
                               TABLE OF CONTENTS
                                  (Continued)
<TABLE>
<CAPTION>
                                                                                    PAGE
                                                                                    ----
<S>                                                                                 <C>
ARTICLE IV - SATISFACTION AND DISCHARGE............................................  23
  Section  4.01   Satisfaction and Discharge of Indenture..........................  23
  Section  4.02   Application of Trust Money.......................................  24
  Section  4.03   Repayment of Monies Held by Paying Agent.........................  25

ARTICLE V - EVENTS OF DEFAULT; REMEDIES............................................  25
  Section  5.01   Events of Default................................................  26
  Section  5.02   Rights Upon Event of Default.....................................  27
  Section  5.03   Collection of Indebtedness and Suits for Enforcement by
                    Indenture Trustee..............................................  27
  Section  5.04   Remedies.........................................................  28
  Section  5.05   Optional Preservation of the Contracts...........................  30
  Section  5.06   Priorities.......................................................  30
  Section  5.07   Limitation of Suits..............................................  31
  Section  5.08   Unconditional Rights of Noteholders to Receive Principal
                    and Interest...................................................  32
  Section  5.09   Restoration of Rights and Remedies...............................  32
  Section  5.10   Rights and Remedies Cumulative...................................  32
  Section  5.11   Delay or Omission Not a Waiver...................................  32
  Section  5.12   Control by Noteholders...........................................  32
  Section  5.13   Waiver of Past Defaults..........................................  33
  Section  5.14   Undertaking for Costs............................................  33
  Section  5.15   Waiver of Stay or Extension Laws.................................  33
  Section  5.16   Action on Notes..................................................  34
  Section  5.17   Performance and Enforcement of Certain Obligations...............  34

ARTICLE VI - THE INDENTURE TRUSTEE.................................................  34
  Section  6.01   Duties of Indenture Trustee......................................  34
  Section  6.02   Rights of Indenture Trustee......................................  37
  Section  6.03   Individual Rights of Indenture Trustee...........................  38
  Section  6.04   Indenture Trustee's Disclaimer...................................  38
  Section  6.05   Notice of Defaults...............................................  38
  Section  6.06   Reports by Indenture Trustee to Holders..........................  38
  Section  6.07   Compensation and Indemnity.......................................  38
  Section  6.08   Replacement of Indenture Trustee.................................  39
  Section  6.09   Successor Indenture Trustee by Merger............................  40
  Section  6.10   Appointment of Co-Indenture Trustee or Separate
                    Indenture Trustee..............................................  40
  Section  6.11   Eligibility; Disqualification....................................  42
  Section  6.12   Preferential Collection of Claims Against Issuer.................  42
  Section  6.13   Representations and Warranties of Indenture Trustee..............  42

ARTICLE VII - NOTEHOLDERS' LISTS AND REPORTS.......................................  42
  Section  7.01   Issuer to Furnish Indenture Trustee Names and Addresses
                    of Noteholders.................................................  42
  Section  7.02   Preservation of Information; Communications to Noteholders.......  43
  Section  7.03   Reports by Issuer................................................  43
  Section  7.04   Reports by Indenture Trustee.....................................  43
</TABLE>

                                      -ii-

<PAGE>   4
                               TABLE OF CONTENTS
                                  (Continued)
<TABLE>
<CAPTION>
                                                                                    PAGE
                                                                                    ----
<S>                                                                                 <C>
ARTICLE VIII - ACCOUNTS, DISBURSEMENTS AND RELEASES................................  44
  Section  8.01   Collection of Money..............................................  44
  Section  8.02   Trust Accounts...................................................  44
  Section  8.03   [RESERVED].......................................................  45
  Section  8.04   Release of Collateral............................................  45
  Section  8.05   Opinion of Counsel...............................................  46

ARTICLE IX - SUPPLEMENTAL INDENTURES...............................................  46
  Section  9.01   Supplemental Indentures Without Consent of Noteholders...........  46
  Section  9.02   Supplemental Indentures With Consent of Noteholders..............  47
  Section  9.03   Execution of Supplemental Indentures.............................  48
  Section  9.04   Effect of Supplemental Indenture.................................  49
  Section  9.05   Conformity With Trust Indenture Act..............................  49
  Section  9.06   Reference in Notes to Supplemental Indentures....................  49

ARTICLE X - REDEMPTION OF NOTES....................................................  49
  Section  10.01   Redemption......................................................  49
  Section  10.02   Form of Redemption Notice.......................................  49
  Section  10.03   Notes Payable on Redemption Date................................  50

ARTICLE XI - MISCELLANEOUS.........................................................  50
  Section  11.01   Compliance Certificates and Opinions, etc.......................  50
  Section  11.02   Form of Documents Delivered to Indenture Trustee................  51
  Section  11.03   Acts of Noteholders.............................................  52
  Section  11.04   Notices, etc., to Indenture Trustee, Issuer, Insurer and
                     Rating Agencies...............................................  53
  Section  11.05   Notices to Noteholders; Waiver..................................  53
  Section  11.06   Alternate Payment and Notice Provisions.........................  54
  Section  11.07   Conflict With Trust Indenture Act...............................  54
  Section  11.08   Effect of Headings and Table of Contents........................  54
  Section  11.09   Successors and Assigns..........................................  54
  Section  11.10   Separability....................................................  54
  Section  11.11   Benefits of Indenture...........................................  55
  Section  11.12   Legal Holidays..................................................  55
  Section  11.13   Governing Law...................................................  55
  Section  11.14   Counterparts....................................................  55
  Section  11.15   Recording of Indenture..........................................  55
  Section  11.16   Trust Obligation................................................  55
  Section  11.17   No Petition.....................................................  56
  Section  11.18   Inspection......................................................  56
  Section  11.19   Limitation of Liability of Owner Trustee........................  56
  Section  11.20   Certain Matters Regarding the Insurer...........................  56
</TABLE>

                                     -iii-

<PAGE>   5

                                    EXHIBITS

Schedule A      -       Schedule of Contracts
Exhibit A       -       Form of Depository Agreement
Exhibit B       -       Form of Class A-1 Note
Exhibit C       -       Form of Class A-2 Note
Exhibit D       -       Form of Class A-3 Note
Exhibit E       -       Form of Class A-4 Note

                                      -iv-

<PAGE>   6

     This Indenture, dated as of May 1, 2001, is between Onyx Acceptance Owner
Trust 2001-B, a Delaware business trust, as the Issuer, and The Chase Manhattan
Bank, a New York banking corporation, as the Indenture Trustee.

     Each party agrees as follows for the benefit of the other parties and for
the equal and ratable benefit of the holders of the Issuer's 4.02875% Auto Loan
Backed Notes, Class A-1 (the "CLASS A-1 NOTES"), 4.43% Auto Loan Backed Notes,
Class A-2 (the "CLASS A-2 NOTES"), 4.97% Auto Loan Backed Notes, Class A-3 (the
"CLASS A-3 NOTES"), and 5.49% Auto Loan Backed Notes, Class A-4 (the "CLASS A-4
NOTES" and, together with the Class A-1 Notes, the Class A-2 Notes and the Class
A-3 Notes, the "NOTES"):

                                 GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee for the benefit of the
Holders of the Notes and the Insurer on the Closing Date, without recourse, all
of the Issuer's right, title and interest in, to and under 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 the Insurance Agreement, all as
provided in this Indenture and the Insurance Agreement.

     The Indenture Trustee, as Indenture Trustee on behalf of the Holders of the
Notes and the Insurer, 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.

                                    ARTICLE I

                   DEFINITIONS AND INCORPORATION BY REFERENCE

          Section 1.01 Definitions.

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

     "ACT" shall have the meaning specified in Section 11.03(a).

     "ADMINISTRATION AGREEMENT" means the Administration Agreement, dated as of
the date hereof, among the Administrator, the Issuer, the Seller, the Indenture
Trustee and the Trust Agent.

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

                                       -1-

<PAGE>   7

     "AUTHORIZED OFFICER" means, with respect to the Issuer, any officer of the
Owner Trustee who is authorized to act for the Owner Trustee or the Trust Agent,
as the case may be, in matters relating to the Issuer and who is identified on
the list of Authorized Officers delivered by the Owner Trustee or the Trust
Agent, as the case may be, to the Indenture Trustee on the Closing Date (as such
list may be modified or supplemented from time to time thereafter) and, so long
as the Administration Agreement is in effect, any Vice President or more senior
officer of the Administrator who is authorized to act for the Administrator in
matters relating to the Issuer and to be acted upon by the Administrator
pursuant to the Administration Agreement and who is identified on a list of
Authorized Officers delivered by the Administrator to the Indenture Trustee on
the Closing Date (as such list may be modified or supplemented from time to time
thereafter).

     "BASIC DOCUMENTS" means the Certificate of Trust, the Trust Agreement, the
Sale and Servicing Agreement, the Administration Agreement, the Depository
Agreement, the Insurance Agreement, the Policy and this Indenture.

     "BENEFIT PLAN" shall have the meaning specified in the Trust Agreement.

     "BOOK-ENTRY NOTES" means a beneficial interest in the Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as
described in Section 2.09.

     "CERTIFICATE OF TRUST" means the Certificate of Trust of the Issuer
substantially in the form of Exhibit B to the Trust Agreement.

     "CLASS" means all Notes whose form is identical except for variation in
denomination, principal amount or owner.

     "CLASS A NOTES" means the Class A-1 Notes, the Class A-2 Notes, the Class
A-3 Notes and the Class A-4 Notes.

     "CLASS A-1 NOTES" means the Class A-1 Notes, substantially in the form of
Exhibit B.

     "CLASS A-2 NOTES" means the Class A-2 Notes, substantially in the form of
Exhibit C.

     "CLASS A-3 NOTES" means the Class A-3 Notes, substantially in the form of
Exhibit D.

     "CLASS A-4 NOTES" means the Class A-4 Notes, substantially in the form of
Exhibit E.

     "CODE" means the Internal Revenue Code of 1986, as amended.

     "COLLATERAL" means the Trust Property.

     "CONTROLLING PARTY" means the Insurer, so long as no Insurer Default shall
have occurred and be continuing, and the Indenture Trustee, for so long as an
Insurer Default shall have occurred and be continuing.

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

                                      -2-
<PAGE>   8

     "DEFINITIVE NOTES" shall have the meaning specified in Section 2.09.

     "DEPOSITORY AGREEMENT" means the agreement dated May 18, 2001, among the
Issuer, the Indenture Trustee and DTC, as the initial Clearing Agency, relating
to the Notes.

     "EVENT OF DEFAULT" shall have the meaning specified in Section 5.01.

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

     "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 monies payable
thereunder, to give and receive notices and other communications, to make
waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the granting party or otherwise and generally to do
and receive anything that the granting party is or may be entitled to do or
receive thereunder or with respect thereto.

     "HOLDER" or "NOTEHOLDER" means, with respect to a Note, the Person in whose
name such Note is registered in the Note Register.

     "INDEBTEDNESS" means, with respect to any Person at any time, (i)
indebtedness or liability of such Person for borrowed money whether or not
evidenced by bonds, debentures, notes or other instruments, or for the deferred
purchase price of property or services (including trade obligations); (ii)
obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded
as capital leases; (iii) current liabilities of such Person in respect of
unfunded vested benefits under plans covered by Title IV of ERISA; (iv)
obligations issued for or liabilities incurred on the account of such Person;
(v) obligations or liabilities of such Person arising under acceptance
facilities; (vi) obligations of such Person under any guaranties, endorsements
(other than for collection or deposit in the ordinary course of business) and
other contingent obligations to purchase, to provide funds for payment, to
supply funds to invest in any Person or otherwise to assure a creditor against
loss; (vii) obligations of such Person secured by any lien on property or assets
of such Person, whether or not the obligations have been assumed by such Person;
or (viii) obligations of such Person under any interest rate or currency
exchange agreement.

     "INDENTURE" means this Indenture, as amended or supplemented from time to
time.

     "INDEPENDENT" when used with respect to any specified Person, means such a
Person who (i) is in fact independent of the Issuer, the Seller and any of their
respective Affiliates, (ii) is not a director, officer or employee of the
Issuer, the Seller or any of their respective Affiliates, (iii) is not a person
related to any officer or director of the Issuer, the Seller or any of their
respective Affiliates, (iv) is not a Holder (directly or indirectly) of more
than 10% of any voting securities of the Issuer,

                                      -3-
<PAGE>   9

the Seller or any of their respective Affiliates, and (v) is not connected with
the Issuer, the Seller or any of their respective Affiliates as an officer,
employee, promoter, underwriter, trustee, partner, director or person performing
similar functions.

     "INDEPENDENT CERTIFICATE" means a certificate or opinion to be delivered to
the Indenture Trustee under the circumstances described in, and otherwise
complying with, the applicable requirements of 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.

     "ISSUER ORDER" and "ISSUER REQUEST" means a written order or request signed
in the name of the Issuer by an Authorized Officer and delivered to the
Indenture Trustee.

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

     "NOTE REGISTER" and "NOTE REGISTRAR" have the respective meanings specified
in Section 2.04.

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

     "ONYX" means Onyx Acceptance Corporation, and its successors.

     "OPINION OF COUNSEL" means one or more written opinions of counsel who may,
except as otherwise expressly provided in this Indenture, be employees of or
counsel to the Depositor or the Issuer and who shall be satisfactory to the
Indenture Trustee and, if addressed to the Insurer, satisfactory to the Insurer,
and which shall comply with any applicable requirements of Section 11.01, and
shall be in form and substance satisfactory to the Indenture Trustee, and if
addressed to the Insurer, satisfactory to the Insurer.

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

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

          (ii)  Notes or portions thereof the payment for which money in the
     necessary amount has been theretofore deposited with the Indenture Trustee
     or any Paying Agent in trust for the Holders of such Notes (provided,
     however, that if such Notes are to be redeemed, notice of such redemption
     has been duly given pursuant to this Indenture or provision for such notice
     has been made, satisfactory to the Indenture Trustee, has been made); and

                                      -4-
<PAGE>   10

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

provided, however, that in determining whether the Holders of the requisite
Outstanding Amount have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any other Basic Document, Notes
owned by the Issuer, the Seller or any of their respective Affiliates shall be
disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent or waiver, only Notes
that 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, the Seller or any of their respective Affiliates.

     "OUTSTANDING AMOUNT" means the aggregate principal amount of all Notes of
one Class or of all Classes, as the case may be, Outstanding at the date of
determination.

     "PAYING AGENT" means the Indenture Trustee or any other Person that meets
the eligibility standards for the Indenture Trustee specified in Section 6.11
and is authorized by the Issuer to make the distributions from the Note
Distribution 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.

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

     "RATING EVENT" means the qualification, reduction or withdrawal by either
Rating Agency of its then-current rating of any Class of Notes.

     "RECORD DATE" means, with respect to a Distribution Date or Redemption
Date, the close of business on the Business Day immediately preceding such
Distribution Date or Redemption Date, or, in the event that Definitive Notes are
issued, the close of business on the last day of the calendar

                                      -5-
<PAGE>   11

month immediately preceding the month in which such Distribution Date or
Redemption Date occurs.

     "REDEMPTION DATE" means the Distribution Date specified by the Servicer or
the Issuer pursuant to Section 10.01.

     "REDEMPTION PRICE" means an amount equal to the unpaid principal amount of
the Notes redeemed plus accrued and unpaid interest thereon at the respective
Interest Rates of each Class of Notes being so redeemed to but excluding the
Redemption Date.

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

     "SALE AND SERVICING AGREEMENT" means the Sale and Servicing Agreement,
dated as of the date hereof, between the Issuer, the Seller, the Servicer, the
Indenture Trustee and the Trust Agent.

     "STATE" means any one of the 50 states of the United States or the District
of Columbia.

     "SUCCESSOR SERVICER" shall have the meaning specified in Section 3.07(e).

     "TERMINATION DATE" means the latest of (i) the expiration of the Policy and
the return of the Policy to the Insurer for cancellation, (ii) the date on which
the Insurer shall have received payment and performance of all amounts and
obligations which the Issuer may owe to or on behalf of the Insurer under this
Indenture and (iii) the date on which the Indenture Trustee shall have received
payment and performance of all amounts and obligations which the Issuer may owe
to or on behalf of the Indenture Trustee for the benefit of the Noteholders
under this Indenture or the Notes.

     "TRUST AGENT" means The Chase Manhattan Bank, as agent of the Owner Trustee
under the Trust Agreement, and any successor Trust Agent thereunder.

     "TRUST AGREEMENT" means the Trust Agreement, dated as of May 1, 2001, among
the Seller, the Owner Trustee and the Trust Agent.

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

     "UNITED STATES" means the United States of America.

          Section 1.02 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the 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 TO BE QUALIFIED" means this Indenture.

                                      -6-
<PAGE>   12

     "INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the Indenture Trustee.

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

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

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

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

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

          (iii) "or" is not exclusive;

          (iv)  "including" means including without limitation;

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

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

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

                                       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 forms set
forth as Exhibits B, C, D and E to this Indenture with such appropriate
insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may,
consistently herewith, be determined by the officers executing such Notes, as
evidenced by their execution of the Notes. Any portion of the text

                                      -7-
<PAGE>   13

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

     Each Note shall be dated the date of its authentication. The terms of the
Notes set forth in Exhibits B, C, D and E hereto 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 the Owner Trustee, as provided in the
Trust Agreement. 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 receipt of an Issuer Order, authenticate
and deliver for original issue the following aggregate principal amount of
Notes: (i)$78,000,000 of Class A-1 Notes, (ii) $96,000,000 of Class A-2 Notes,
(iii) $131,000,000 of Class A-3 Notes, and (iv) $95,000,000 of Class A-4 Notes.
The aggregate principal amount of Class A-1 Notes, Class A-2 Notes, Class A-3
Notes and Class A-4 Notes outstanding at any time may not exceed such respective
amounts, except as otherwise provided in Section 2.05.

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

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

          Section 2.03 Temporary Notes. 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
tenor and principal amount of definitive Notes of authorized denominations.
Until so exchanged, the temporary Notes shall in all respects be entitled to the
same benefits under this Indenture as definitive Notes.

                                      -8-
<PAGE>   14

          Section 2.04 Registration; Registration of Transfer and Exchange. The
Issuer shall cause to be kept a register (the "NOTE REGISTER") in which, subject
to such reasonable regulations as it may prescribe, the Issuer shall provide for
the registration of Notes and the registration of transfers of Notes. The
Indenture Trustee shall be "NOTE REGISTRAR" for the purpose of registering Notes
and transfers of Notes as herein provided. Upon any resignation of any Note
Registrar, the Issuer shall promptly appoint a successor or, if it elects not to
make such an appointment, assume the duties of Note Registrar.

     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.

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

     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.

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

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

     No service charge shall be made to a Holder for any registration of
transfer or exchange of Notes, but the Issuer or the Indenture Trustee may
require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or
exchange of Notes, other than exchanges pursuant to Section 2.03 or 9.06 not
involving any transfer.

                                      -9-
<PAGE>   15

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

          Section 2.05 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any
mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any
Note, and (ii) there is delivered to the Indenture Trustee and the Insurer
(unless an Insurer Default shall have occurred and be continuing) such security
or indemnity as may be required by them to hold the Issuer, the Indenture
Trustee and the Insurer harmless, then, in the absence of notice to the Issuer,
the Note Registrar or the Indenture Trustee that such Note has been acquired by
a bona fide purchaser, the Issuer shall execute and upon its request the
Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of
any such mutilated, destroyed, lost or stolen Note, a replacement Note of the
same Class; provided, however, that if any such destroyed, lost or stolen Note,
but not a mutilated Note, shall have become or within seven days shall be due
and payable, or shall have been called for redemption, instead of issuing a
replacement Note, the Issuer may pay such destroyed, lost or stolen Note when so
due or payable or upon the Redemption Date without surrender thereof. If, after
the delivery of such replacement Note or payment of a destroyed, lost or stolen
Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of
the original Note in lieu of which such replacement Note was issued presents for
payment such original Note, the Issuer, the Insurer and the Indenture Trustee
shall be entitled to recover such replacement Note (or such payment) from the
Person to whom it was delivered or any Person taking such replacement Note from
such Person to whom such replacement Note was delivered or any assignee of such
Person, except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Issuer, the Insurer or the Indenture Trustee in
connection therewith.

     Upon the issuance of any replacement Note under this Section, the Issuer or
the Indenture Trustee may require the payment by the Holder of such Note of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other reasonable expenses (including the fees and
expenses of the Indenture Trustee or the Note Registrar) connected 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 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 Owner. Prior to due presentment for
registration of transfer of any Note, the Issuer, the Indenture Trustee, the
Insurer and any of their respective agents may treat the Person in whose name
any Note is registered (as of the day of determination) as the owner of such
Note for the purpose of receiving payments of principal of and interest, if any,
on such Note and for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Issuer, the Insurer, the Indenture Trustee nor any of
their respective agents shall be affected by notice to the contrary.

                                      -10-
<PAGE>   16

          Section 2.07 Payment of Principal and Interest; Defaulted Interest.

          (a)  Each Class of Notes shall accrue interest during each Interest
Accrual Period at the related Interest Rate, and such interest shall be payable
on each Distribution Date as specified therein, subject to Section 3.01.
Interest accrued on any Note but not paid on any Distribution Date will be due
on the immediately succeeding Distribution Date, together with, to the extent
permitted by applicable law, interest on such shortfall at the related Interest
Rate. Interest on the Notes shall be calculated on the basis of a 360-day year
of twelve 30-day months, except for the Class A-1 Notes, which shall be
calculated on the basis of a 360-day year and the actual number of days in the
related Interest Accrual Period. Any installment of interest or principal, if
any, payable on any Note which is punctually paid or duly provided for by the
Issuer on the applicable Distribution Date shall be paid to the Person in whose
name such Note (or one or more Predecessor Notes) is registered on the Record
Date, by 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 2.11, 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 Distribution Date, a Redemption Date or on the related Final
Scheduled Distribution Date, as the case may be (and except for the Redemption
Price for any Note called for redemption pursuant to Section 10.01), 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.

          (b)  The principal of each Note shall be payable on each Distribution
Date to the extent provided in the form of the related Note set forth as an
Exhibit hereto. Notwithstanding the foregoing, the entire unpaid principal
amount of the Notes of a Class of Notes shall be due and payable, if not
previously paid, on the earlier of:

               (i)   the Note Final Scheduled Distribution Date of such Class;

               (ii)  the Redemption Date;

               (iii) if an Event of Default shall have occurred and be
          continuing, so long as an Insurer Default shall not have occurred and
          be continuing, the date on which the Insurer shall have declared the
          Notes to be immediately due and payable in the manner provided in
          Section 5.02; or

               (iv)  if an Event of Default shall have occurred and be
          continuing and if an Insurer Default has occurred and is continuing,
          the date on which Holders representing not less than 662/3% of the
          Outstanding Amount of the Notes, acting together as a single Class,
          have declared the Notes to be immediately due and payable in the
          manner provided in Section 5.02.

                                      -11-
<PAGE>   17

All principal payments on each Class of Notes shall be made pro rata to the
Noteholders of such Class entitled thereto. The Indenture Trustee shall notify
the Person in whose name a Note is registered at the close of business on the
Record Date preceding the Distribution Date on which the Issuer expects that the
final installment of principal, of and interest on, such Note will be paid. Such
notice shall be mailed within five Business Days of such Distribution Date (or,
in the case of Notes registered in the name of Cede & Co., as nominee of DTC,
such notice shall be provided within one Business Day of such Distribution Date)
or receipt of notice of termination of the Trust pursuant to Section 9.01(c) of
the Trust Agreement and shall specify that such final installment will be
payable only upon presentation and surrender of such Note and shall specify the
place where such Note may be presented and surrendered for payment of such
installment. Notices in connection with redemptions of Notes shall be mailed to
Noteholders as provided in Section 10.02. In addition, the Administrator shall
notify the Insurer and the Rating Agencies upon the final payment of interest
and principal of each Class of Notes, and upon the termination of the Trust, in
each case pursuant to the Administration Agreement.

          Section 2.08 Cancellation. All Notes surrendered for payment,
registration of transfer, exchange or redemption shall, if surrendered to any
Person other than the Indenture Trustee, be delivered to the Indenture Trustee
and shall be promptly 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 Book-Entry Notes. The Notes, upon original issuance, will
be issued in the form of a typewritten Note or Notes representing the Book-Entry
Notes, to be delivered to DTC, the initial Depository, by, or on behalf of, the
Issuer. Such Notes shall initially be registered on the Note Register in the
name of Cede & Co., the nominee of the initial Clearing Agency, and no Note
Owner will receive a Definitive Note representing such Note Owner's interest in
such Note, except as provided in Section 2.11. Unless and until definitive,
fully registered Notes (the "DEFINITIVE NOTES") have been issued to Note Owners
pursuant to Section 2.11:

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

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

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

               (iv)  the rights of Note Owners shall be exercised only through
          the Clearing Agency and shall be limited to those established by law
          and agreements between such Note Owners and the Clearing Agency and/or
          the Clearing Agency participants.

                                      -12-
<PAGE>   18

          Pursuant to the Depository Agreement, unless and until Definitive
          Notes are issued pursuant to Section 2.11, the Clearing Agency will
          make book-entry transfers among the Clearing Agency participants and
          receive and transmit payments of principal of and interest on the
          Notes to such Clearing Agency participants; and

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

          Section 2.10 Notices to Clearing Agency. Whenever a notice or other
communication to the Noteholders is required under this Indenture, unless and
until Definitive Notes shall have been issued to Note Owners pursuant to Section
2.11, the Indenture Trustee shall give all such notices and communications
specified herein to be given to Holders of the Notes to the Clearing Agency, and
shall have no obligation to the Note Owners.

          Section 2.11 Definitive Notes. If (i) the Administrator advises the
Indenture Trustee in writing that the Clearing Agency is no longer willing or
able to properly discharge its responsibilities as described in the Depository
Agreement, and the Administrator or the Indenture Trustee is unable to locate a
qualified successor, or (ii) after the occurrence of an Event of Default or a
Servicer Default, Note Owners representing in the aggregate more than 50% of the
Outstanding Amount of all Classes of Notes advise the Indenture Trustee through
the Clearing Agency participants in writing that the continuation of a
book-entry system through the Clearing Agency is no longer in the best interests
of the related Note Owners, then the Indenture Trustee shall notify all Note
Owners, through the Clearing Agency, of the availability of Definitive Notes to
Note Owners requesting the same. Upon surrender to the Indenture Trustee of the
Note or Notes evidencing the Book Entry Notes by the Clearing Agency,
accompanied by registration instructions from the Clearing Agency, the Issuer
shall execute and the Indenture Trustee shall authenticate the Definitive Notes
and deliver such Definitive Notes in accordance with the instructions of the
Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee
shall be liable for any delay in delivery of such instructions and may
conclusively rely on, and shall be protected in relying on, such instructions.
Upon the issuance of Definitive Notes of a Class, the Indenture Trustee shall
recognize the Holders of the Definitive Notes as Noteholders hereunder.

     The Indenture Trustee shall not be liable if the Indenture Trustee or the
Administrator is unable to locate a qualified successor Clearing Agency. The
Definitive Notes shall be typewritten, printed, lithographed or engraved or
produced by any combination of these methods (with or without steel engraved
borders), all as determined by the officers executing such Notes, as evidenced
by their execution of such Notes.

          Section 2.12 Release of Collateral. Subject to Section 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 Sections 314(c) and 314(d)(l) of the TIA or an

                                      -13-
<PAGE>   19

Opinion of Counsel in lieu of such Independent Certificates to the effect that
the TIA does not require any such Independent Certificates.

          Section 2.13 Tax Treatment. The Issuer has entered into this
Indenture, and the Notes will be issued, with the intention that, for federal,
state and local income, single business and franchise tax purposes, the Notes
will qualify as indebtedness of the Issuer secured by the Collateral. The
Issuer, by entering into this Indenture, and each Noteholder, by its acceptance
of its Note (and each Note Owner by its acceptance of an interest in the
applicable Book-Entry Note), agree to treat the Notes for federal, state and
local income, single business and franchise tax purposes as indebtedness of the
Issuer.

          Section 2.14 ERISA. Each purchaser or transferee of a Note that is a
Benefit Plan shall be deemed to have represented that the relevant conditions
for exemptive relief under Prohibited Transaction Class Exemption ("PTCE")
84-14, PTCE 90-1, PTCE 91-38, PTCE 95-60 or PTCE 96-23 or other applicable
exemption providing substantially similar relief have been satisfied or has
provided a written representation to the Issuer satisfactory to the Issuer in
lieu thereof.

                                   ARTICLE III

                                    COVENANTS

          Section 3.01 Payment of Principal and Interest. The Issuer will duly
and punctually pay the principal of and interest, if any, on the Notes in
accordance with the terms of the Notes and this Indenture. Without limiting the
foregoing, subject to Section 8.02(c), the Issuer will cause to be distributed
all amounts on deposit in the Note Distribution Account on a Distribution Date
deposited therein pursuant to the Sale and Servicing Agreement for the benefit
of (i) the Class A-1 Notes, to the Class A-1 Noteholders, (ii) the Class A-2
Notes, to the Class A-2 Noteholders, (iii) the Class A-3 Notes, to the Class A-3
Noteholders, and (iv) the Class A-4 Notes, to the Class A-4 Noteholders. Amounts
properly withheld under the Code by any Person from a payment to any Noteholder
of interest and/or principal shall be considered as having been paid by the
Issuer to such Noteholder for all purposes of this Indenture.

          Section 3.02 Maintenance of Office or Agency. The Issuer will or will
cause the Administrator or the Indenture Trustee to maintain in 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.

                                      -14-
<PAGE>   20

          Section 3.03 Money for Payments to be Held in Trust.

          (a)  As provided in Section 8.02, all payments of amounts due and
payable with respect to any Notes that are to be made from amounts withdrawn
from the Note Distribution Account after required transfers thereto from the
other Trust Accounts shall be made on behalf of the Issuer by the Paying Agent
(including the Indenture Trustee when serving as a Paying Agent), and no amounts
so withdrawn from the Note Distribution Account for payments of Notes shall be
paid over to the Issuer except as provided in this Section.

     The Notes shall be non-recourse obligations of the Issuer and shall be
limited in right of payment to amounts available from the Collateral and the
Policy as provided in this Indenture and the Issuer shall not otherwise be
liable for payments on the Notes. No Person shall be personally liable for any
amounts payable under the Notes. If any other provision of this Indenture
conflicts or is deemed to conflict with the provisions of this paragraph, the
provisions of this paragraph shall control.

     On the Business Day immediately preceding each Distribution Date, the
Servicer shall cause funds to be withdrawn from the Collection Account and
deposited into the Payment Account pursuant to Section 4.02(e) of the Sale and
Servicing Agreement, and on each Distribution Date, the Indenture Trustee shall
make the deposits to the Note Distribution Account required by Section 4.03(a)
of the Sale and Servicing Agreement.

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

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

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

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

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

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

                                      -15-
<PAGE>   21
     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 for two years after
such amount has become due and payable shall be discharged from such trust and
be paid to the Issuer upon receipt of an Issuer Request; and the Holder of such
Note shall thereafter, as an unsecured general creditor, look only to the Issuer
for payment thereof, and all liability of the Indenture Trustee or such Paying
Agent with respect to such trust money shall thereupon cease; provided, however,
that the Indenture Trustee or such Paying Agent, before being required to make
any such repayment, shall at the expense and direction of the Issuer cause to be
published once, in a newspaper published in the English language, customarily
published on each Business Day and of general circulation in The City of New
York, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to or for the
account of the Issuer. The Indenture Trustee may also adopt and employ, at the
expense of the Issuer, any other reasonable means of notification of such
repayment (including, but not limited to, mailing notice of such repayment to
Holders whose Notes have been called but have not been surrendered for
redemption or whose right to or interest in monies due and payable but not
claimed is determinable from the records of the Indenture Trustee or of any
Paying Agent, at the last address of record for each such Holder).

          Section 3.04 Existence. The Issuer will keep in full effect its
existence, rights and franchises as a business trust under the laws of the State
of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes,
organized under the laws of any other state or of the United States, 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, and the Collateral.

          Section 3.05 Protection of Trust Estate. The Issuer intends the
security interest Granted pursuant to this Indenture in favor of the Indenture
Trustee on behalf of the Noteholders to be prior to all other liens in respect
of the Collateral, and the Issuer shall take all actions necessary to obtain and
maintain, for the benefit of the Indenture Trustee on behalf of the Noteholders,
a first lien on and a first priority, perfected security interest in the
Collateral. The Issuer will from time to time execute and deliver all such
supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments,
all as prepared by the Servicer and delivered to the Issuer, and will take such
other action necessary or advisable to:

               (i)   Grant more effectively all or any portion of the
          Collateral;

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

                                      -16-
<PAGE>   22
               (iii) perfect, publish notice of or protect the validity of any
          Grant made or to be made by this Indenture;

               (iv)  enforce any of the Collateral;

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

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

The Issuer hereby designates the Indenture Trustee its agent and
attorney-in-fact to execute all financing statements, continuation statements or
other instruments required to be executed pursuant to this Section and the
Indenture Trustee shall execute all financing statements, continuation
statements or other instruments required to be executed pursuant to this section
upon written notice and instructions from the Issuer.

          Section 3.06 Opinions as to Collateral.

          (a)  Promptly after the execution and delivery of this Indenture, the
Issuer shall furnish to the Indenture Trustee and the Insurer an Opinion of
Counsel to the effect that, in the opinion of such counsel, either (i) all
financing statements and continuation statements have been executed and filed
that are necessary to create and continue the Indenture Trustee's first priority
perfected security interest in the Collateral (subject to the rights of the
Insurer under the Insurance Agreement) for the benefit of the Noteholders, and
reciting the details of such filings or referring to prior Opinions of Counsel
in which such details are given, or (ii) no such action shall be necessary to
perfect such security interest.

          (b)  Within 90 days after the beginning of each calendar year
beginning with the first calendar year beginning more than three months after
the Closing Date, the Issuer shall furnish to the Indenture Trustee and the
Insurer an Opinion of Counsel, dated as of a date during such 90-day period, to
the effect that, in the opinion of such counsel, either (i) all financing
statements and continuation statements have been executed and filed that are
necessary to create and continue the Indenture Trustee's first priority
perfected security interest in the Collateral (subject to the rights of the
Insurer under the Insurance Agreement) for the benefit of the Noteholders, and
reciting the details of such filings or referring to prior Opinions of Counsel
in which such details are given, or (ii) no such action shall be necessary to
perfect such security interest.

          Section 3.07 Performance of Obligations; Servicing of Contracts.

          (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 Collateral or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the

                                      -17-
<PAGE>   23

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

          (b)  The Issuer may contract with or otherwise obtain the assistance
of other Persons (including, without limitation, the Administrator under the
Administration Agreement) to assist it in performing its duties and obligations
under this Indenture, and any performance of such duties by a Person identified
to the Indenture Trustee and the Insurer in an Officer's Certificate shall be
deemed to be action taken by the Issuer. The Indenture Trustee shall not be
responsible for the action or inaction of the Servicer or the Administrator.
Initially, the Issuer has contracted with 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 this Indenture, the other Basic
Documents and in the instruments and agreements included in the Collateral,
including but not limited to filing or causing to be filed all UCC financing
statements and continuation statements required to be filed by the terms of this
Indenture and the Sale and Servicing Agreement in accordance with and within the
time periods provided for herein and therein. Except as otherwise expressly
provided therein, the Issuer shall not waive, amend, modify, supplement or
terminate any Basic Document or any provision thereof without the consent of the
Indenture Trustee, the Insurer (unless an Insurer Default shall have occurred
and be continuing) and the Holders of at least a majority of the Outstanding
Amount of the Notes.

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

          (e)  Upon the termination of the Servicer by the Insurer pursuant to
Section 7.01 of the Sale and Servicing Agreement or upon the resignation of the
Servicer pursuant to Section 6.04 of the Sale and Servicing Agreement, the
Insurer shall appoint a successor servicer ("SUCCESSOR SERVICER"). Upon the
termination of the Servicer by the Indenture Trustee or the Noteholders pursuant
to Section 7.01 of the Sale and Servicing Agreement, or upon the resignation of
the Servicer pursuant to Section 6.04 of the Sale and Servicing Agreement in the
event that the Insurer is not entitled to appoint a successor servicer by
operation of Section 9.08 of the Sale and Servicing Agreement, (i) if the Notes
have not been paid in full, the Indenture Trustee shall be the Successor
Servicer, and (ii) if the Notes have been paid in full, the Owner Trustee,
acting at the direction of the Holders of Residual Interest Instruments
evidencing not less than 51% of the Percentage Interests, shall appoint a
Successor Servicer. The Successor Servicer shall succeed to all the
responsibilities, duties and liabilities of the Servicer under the Sale and
Servicing Agreement. Notwithstanding the foregoing, if the Notes have not been
paid in full, the Indenture Trustee may, if it shall be unwilling to act, or
shall, if it shall be legally unable to so act, appoint, or petition a court of
competent jurisdiction (with any related costs to be at the sole expense of the
Issuer) to appoint, any established financial institution, having a net worth of
not less than $50,000,000 and whose regular business shall include the servicing
of automotive retail installment sales contracts, as the successor to the
Servicer under the Sale and Servicing Agreement. If the Indenture Trustee shall
succeed to the Servicer's duties as servicer of the Contracts as provided
herein, it shall do so in its individual

                                      -18-
<PAGE>   24

capacity and not in its capacity as Indenture Trustee and, accordingly, the
provisions of Article Six shall be inapplicable to the Indenture Trustee in its
duties as the successor to the Servicer and the servicing of the Contracts. In
case the Indenture Trustee shall become successor to the Servicer under the Sale
and Servicing Agreement, the Indenture Trustee shall be entitled to appoint as
Servicer one of its Affiliates, provided that it shall not be liable for the
actions and omissions of any such Affiliate in such capacity as Successor
Servicer appointed with due care.

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

          (g)  The Issuer agrees that it will not waive timely performance or
observance by the Servicer or the Seller of their respective duties under the
Basic Documents: (i) without the prior consent of the Insurer (unless an Insurer
Default shall have occurred and be continuing) or (ii) if the effect thereof
would adversely affect the Holders of the Notes.

          Section 3.08 Negative Covenants. Until the Termination Date, the
Issuer shall not:

               (i)   except as expressly permitted by the Basic Documents, sell,
          transfer, exchange or otherwise dispose of any of the properties or
          assets of the Issuer, including those included in the Collateral,
          unless directed to do so by the Indenture Trustee with the prior
          written consent of the Insurer;

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

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

               (iv)  dissolve or liquidate in whole or in part.

                                      -19-
<PAGE>   25

          Section 3.09 Annual Statement as to Compliance. The Issuer will
deliver to the Indenture Trustee and the Insurer, on or before 120 days after
the end of each fiscal year of the Issuer (commencing with the fiscal year ended
December 31, 2001), an Officer's Certificate stating, as to the Authorized
Officer signing such Officer's Certificate, that:

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

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

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

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

               (i)   the Person (if other than the Issuer) formed by or
          surviving such consolidation or merger shall be a Person organized and
          existing under the laws of the United States or any State and shall
          expressly assume, by an indenture supplemental hereto, executed and
          delivered to the Indenture Trustee and the Insurer, in form and
          substance satisfactory to the Indenture Trustee and the Insurer (so
          long as no Insurer Default shall have occurred and be continuing), the
          due and punctual payment of the principal of and interest on all Notes
          and the performance or observance of every agreement and covenant of
          this Indenture and each other Basic Document on the part of the Issuer
          to be performed or observed, all as provided herein;

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

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

               (iv)  the Issuer shall have received an Opinion of Counsel which
          shall be delivered to and shall be satisfactory to the Indenture
          Trustee and the Insurer to the effect that such consolidation or
          merger will not have any material adverse tax consequence to the
          Trust, the Insurer or any Noteholder;

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

               (vi)  the Issuer shall have delivered to the Indenture Trustee
          and the Insurer an Officer's Certificate and an Opinion of Counsel
          (which shall describe the actions taken as required by clause (v)
          above or that no such actions will be taken) each

                                      -20-
<PAGE>   26

          stating that such consolidation or merger and such supplemental
          indenture comply with this Article Three and that all conditions
          precedent herein provided for relating to such transaction have been
          compiled with (including any filings required by the Exchange Act);
          and

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

          (b)  The Issuer shall not convey or transfer all or substantially all
of its properties or assets, including those included in the Collateral, to any
Person (except as expressly permitted by the Basic Documents), unless:

               (i)   the Person that acquires by conveyance or transfer the
          properties and assets of the Issuer shall (A) be a United States
          citizen or a Person organized and existing under the laws of the
          United States or any State, (B) expressly assume, by an indenture
          supplemental hereto, executed and delivered to the Indenture Trustee
          and the Insurer, in form and substance satisfactory to the Indenture
          Trustee and the Insurer (so long as no Insurer Default shall have
          occurred and be continuing), the due and punctual payment of the
          principal of and interest on all Notes and the performance or
          observance of every agreement and covenant of this Indenture and each
          other Basic Document on the part of the Issuer to be performed or
          observed, all as provided herein, (C) expressly agree by means of such
          supplemental indenture that all right, title and interest so conveyed
          or transferred shall be subject and subordinate to the rights of
          Holders of the Notes, (D) unless otherwise provided in such
          supplemental indenture, expressly agree to indemnify, defend and hold
          harmless the Issuer against and from any loss, liability or expense
          arising under or related to this Indenture and the Notes and (E)
          expressly agree by means of such supplemental indenture that such
          Person (or if a group of Persons, then one specified Person) shall
          make all filings with the Commission (and any other appropriate
          Person) required by the Exchange Act in connection with the Notes;

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

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

               (iv)  the Issuer shall have received an Opinion of Counsel which
          shall be delivered to and shall be satisfactory to the Indenture
          Trustee and the Insurer (so long as no Insurer Default shall have
          occurred and be continuing) to the effect that such conveyance or
          transference will not have any material adverse tax consequence to the
          Trust, the Insurer or any Noteholder;

                                      -21-
<PAGE>   27

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

               (vi)  the Issuer shall have delivered to the Indenture Trustee
          and the Insurer an Officer's Certificate and an Opinion of Counsel
          (which shall describe the actions taken as required by clause (v)
          above or that no such actions will be taken) each stating that such
          conveyance or transference and such supplemental indenture comply with
          this Article Three and that all conditions precedent herein provided
          for relating to such transaction have been complied with (including
          any filings required by the Exchange Act); and

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

          Section 3.11 Successor Transferee.

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

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

          Section 3.12 No Other Business. The Issuer shall not engage in (i) any
business other than financing, purchasing, owning, selling and managing the
Contracts in the manner contemplated by this Indenture and the other Basic
Documents and activities incidental thereto or (ii) any other business or
activities as contemplated by Section 2.03 of the Trust Agreement. After the
termination of the Funding Period, the Issuer shall not fund the purchase of any
additional motor vehicle contracts.

          Section 3.13 Servicer's Obligations. The Issuer shall cause the
Servicer to comply with the Servicer's obligations under the Sale and Servicing
Agreement.

          Section 3.14 Restricted Payments. Except as expressly permitted by the
Basic Documents, the Issuer shall not, directly or indirectly, (i) pay any
dividend or make any distribution (by reduction of capital or otherwise),
whether in cash, property, securities or a combination thereof, to the Owner
Trustee or any owner of a beneficial interest in the Issuer or otherwise with
respect to any ownership or equity interest or security in or of the Issuer or
to the Servicer, (ii) redeem,

                                      -22-
<PAGE>   28

purchase, retire or otherwise acquire for value any such ownership or equity
interest or security or (iii) set aside or otherwise segregate any amounts for
any such purpose; provided, however, that the Issuer may make, or cause to be
made, (A) distributions to the Servicer, the Indenture Trustee, the Owner
Trustee, the Insurer, the Noteholders and the Holders of Residual Interest
Instruments as contemplated by, and to the extent funds are available for such
purpose under, the Sale and Servicing Agreement or the Trust Agreement and (B)
payments to the Indenture Trustee and the Owner Trustee pursuant to Section
1(a)(ii) of the Administration Agreement. The Issuer will not, directly or
indirectly, make payments to or distributions from the Collection Account, the
Note Distribution Account, the Capitalized Interest Account, the Prefunding
Account, the Spread Account or the Payahead Account, except in accordance with
this Indenture and the other Basic Documents.

          Section 3.15 Notice of Events of Default. The Issuer agrees to give
the Indenture Trustee, the Trust Agent, the Insurer and each Rating Agency
prompt written notice of each Event of Default hereunder and each default on the
part of the Servicer or the Seller of their respective obligations under the
Sale and Servicing Agreement.

          Section 3.16 Further Instruments and Acts. Upon request of the
Indenture Trustee or the Insurer, the Issuer will execute and deliver such
further instruments and do such further acts as may be reasonably necessary or
proper to carry out more effectively the purpose of this Indenture.

          Section 3.17 Compliance with Laws. The Issuer shall comply with the
requirements of all applicable laws, the non-compliance with which would,
individually or in the aggregate, materially and adversely affect the ability of
the Issuer to perform its obligations under the Notes, this Indenture or any
other Basic Document.

          Section 3.18 Amendments of Sale and Servicing Agreement and Trust
Agreement. The Issuer shall not agree to any amendment to Section 9.01 of the
Sale and Servicing Agreement or Section 11.01 of the Trust Agreement to
eliminate the requirements thereunder that the Holders of the Notes consent to
amendments thereto as provided therein.

                                   ARTICLE IV

                           SATISFACTION AND DISCHARGE

          Section 4.01 Satisfaction and Discharge of Indenture. This Indenture
shall cease to be of further effect with respect to the Notes except as to (i)
rights of registration of transfer and exchange, (ii) substitution of mutilated,
destroyed, lost or stolen Notes, (iii) rights of Noteholders to receive payments
of principal thereof and interest thereon, (iv) Sections 3.03, 3.04, 3.05, 3.07,
3.08, 3.10, 3.11, 3.12, 3.17 and 3.18, (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 Section 4.02), (vi) the rights of Noteholders as beneficiaries
hereof with respect to the property so deposited with the Indenture Trustee
payable to all or any of them and (vii) the obligation of the Indenture Trustee
to make claims under the Policy, which shall survive the Class A-4 Final
Scheduled Distribution Date and extend through any preference period applicable
with respect to the Notes or any payments made in respect of the Notes, and the
Indenture Trustee, on demand of and at the expense of the Issuer, shall execute
proper instruments acknowledging satisfaction and discharge of this Indenture
with respect to the Notes, when

                                      -23-
<PAGE>   29

          (A)  either

               (1)   all Notes theretofore authenticated and delivered (other
          than (i) Notes that have been destroyed, lost or stolen and that have
          been replaced or paid as provided in Section 2.05 and (ii) Notes for
          whose payment money has theretofore been deposited in trust or
          segregated and held in trust by the Issuer and thereafter repaid to
          the Issuer or discharged from such trust, as provided in Section 3.03)
          have been delivered to the Indenture Trustee for cancellation and the
          Policy has expired and been returned to the Insurer for cancellation;
          or

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

                    (i)   have become due and payable,

                    (ii)  will become due and payable at the Class A-4 Final
                          Scheduled Distribution Date within one year, or

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

and the Issuer, in the case of clauses (i), (ii) or (iii) above, has irrevocably
deposited or caused to be irrevocably deposited with the Indenture Trustee cash
or direct obligations of or obligations guaranteed by the United States (which
will mature prior to the date such amounts are payable), in trust in an Eligible
Account for such purpose, in an amount sufficient to pay and discharge the
entire indebtedness on such Notes not theretofore delivered to the Indenture
Trustee for cancellation when due to the Class A-4 Final Scheduled Distribution
Date or Redemption Date (if Notes shall have been called for redemption pursuant
to Section 10.01), as the case may be;

          (B) the Issuer has paid or performed or caused to be paid or performed
all amounts and obligations which the Issuer may owe to or on behalf of (1) the
Indenture Trustee for the benefit of the Noteholders under this Indenture or the
Notes and (2) the Insurer under this Indenture and the Basic Documents; and

          (C) the Issuer has delivered to the Indenture Trustee and the Insurer
an Officer's Certificate, an Opinion of Counsel and (if required by the TIA, the
Indenture Trustee) an Independent Certificate from a firm of certified public
accountants, each meeting the applicable requirements of Section 11.01(a) 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 and the Rating Agency Condition has been satisfied.

          Section 4.02 Application of Trust Money. All monies deposited with the
Indenture Trustee pursuant to Section 4.01 shall be held in trust and applied by
it, in accordance with the provisions of the Notes and this Indenture, to the
payment, either directly or through any Paying Agent, as the Indenture Trustee
may determine, to the Holders of the particular Notes for the payment or
redemption of which such monies have been deposited with the Indenture Trustee,
of all sums due and to become due thereon for principal and interest; but such
monies need not be

                                      -24-
<PAGE>   30

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

                                    ARTICLE V

                           EVENTS OF DEFAULT; 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)  the delivery to the Insurer of a claim for payment under the
Policy;

          (b)  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;

          (c)  default in the payment of any principal due and payable on a
Class of Notes on the Note Final Scheduled Distribution Date for such Class of
Notes;

          (d) (i) 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), and such default shall continue or not be
cured for a period of 90 days after notice thereof shall have been given, by
registered or certified mail, to the Issuer by the Indenture Trustee or the
Insurer 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 or
(ii) any representation or warranty made by the Issuer in this Indenture or in
any certificate delivered pursuant hereto or in connection herewith having been
incorrect in a material respect as of the time made, and such breach not having
been cured within 30 days after notice thereof is given to the Issuer by the
Indenture Trustee or the Insurer, 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;

          (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 Collateral 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 Collateral, or
ordering the winding-up or liquidation of the Issuer's affairs, and such decree
or order shall remain unstayed and in effect for a period of 60 consecutive
days; or

                                      -25-
<PAGE>   31

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

provided, however that so long as no Insurer Default shall have occurred and be
continuing, neither the Indenture Trustee nor the Noteholders may declare an
Indenture Event of Default under the Indenture. So long as an Insurer Default
shall not have occurred and be continuing, an Indenture Event of Default shall
occur only upon delivery by the Insurer to the Indenture Trustee of notice of
the occurrence of an Indenture Event of Default. The failure to pay principal on
a Class of Notes shall not result in the occurrence of an Indenture Event of
Default until the Note Final Scheduled Distribution Date for such Class of
Notes.

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

          Section 5.02 Rights Upon Event of Default.

          (a)  So long as no Insurer Default has occurred and is continuing, if
an Event of Default shall have occurred and be continuing, then the Insurer
shall have the right, but not the obligation, upon prior written notice to each
Rating Agency, to declare by written notice to the Issuer and the Indenture
Trustee that the Notes become immediately due and payable, and upon any such
declaration the unpaid principal amount of the Notes, together with accrued and
unpaid interest thereon, shall become immediately due and payable. The Indenture
Trustee will have no discretion with respect to the acceleration of the Notes
under the foregoing circumstances. In the event of any such acceleration of the
Notes, the Indenture Trustee shall continue to make claims under the Policy with
respect to the Notes.

          (b)  If an Insurer Default shall have occurred and be continuing and
an Event of Default shall have occurred and be continuing, the Indenture Trustee
shall, if so requested in writing by Holders representing at least 662/3% of the
aggregate Outstanding Amount of the Notes, acting together as a single Class,
upon prior written notice to each Rating Agency, declare that all the Notes
become immediately due and payable, and upon any such declaration the unpaid
principal amount of the Notes, together with accrued and unpaid interest
thereon, shall become immediately due and payable.

          (c)  Following any Event of Default, the Insurer may elect to pay all
or any portion of the outstanding amount of the Notes, plus accrued interest
thereon to the date of payment.

                                      -26-
<PAGE>   32
          Section 5.03 Collection of Indebtedness and Suits for Enforcement by
Indenture Trustee.

          (a)  The Issuer covenants that, if the Notes are accelerated following
the occurrence of an Event of Default, the Issuer will, upon demand of the
Indenture Trustee, pay to the Indenture Trustee, for the benefit of the Holders
of the Notes, the whole amount then due and payable on such Notes for principal
and interest, with interest upon the overdue principal, and, to the extent
payment at such rate of interest shall be legally enforceable, upon overdue
installments of interest, at the applicable Interest Rate and in addition
thereto such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses and
disbursements of the Indenture Trustee and its agents and counsel.

          (b)  If an Event of Default shall have occurred and be continuing, the
Indenture Trustee shall (i) if no Insurer Default shall have occurred and be
continuing, at the direction of the Insurer, or (ii) if an Insurer Default shall
have occurred and be continuing, at the direction of Holders representing at
least 662/3% of the Outstanding Amount of the Notes, acting together as a single
Class, as more particularly provided in Section 5.04, proceed to protect and
enforce the rights of the Noteholders, by such appropriate Proceedings as the
Indenture Trustee shall deem most effective to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to
enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

          (c)  In case there shall be pending, relative to the Issuer or any
other obligor upon the Notes or any Person having or claiming an ownership
interest in the Collateral, Proceedings under Title 11 of the United States Code
or any other applicable federal or state bankruptcy, insolvency or other similar
law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or
taken possession of the Issuer or its property or such other obligor or Person,
or in case of any other comparable judicial Proceedings relative to the Issuer
or other obligor upon the Notes, or to the creditors or property of the Issuer
or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Indenture Trustee shall
have made any demand pursuant to the provisions of this Section, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

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

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

                                      -27-
<PAGE>   33

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

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

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

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

          (e)  All rights of action and of asserting claims under this
Indenture, or under any of the Notes, may be enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any
trial or other Proceedings relative thereto, and any such action or Proceedings
instituted by the Indenture Trustee shall be brought in its own name as trustee
of an express trust, and any recovery of judgment, subject to the payment of the
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.

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

          Section 5.04 Remedies.

          (a)  If (i) an Event of Default shall have occurred and be continuing,
the Indenture Trustee shall (subject to Section 5.04(b) below and Section 5.05),
if no Insurer Default shall have occurred and be continuing, at the direction of
the Insurer, or (ii) if an Event of Default shall have occurred and be
continuing, the Indenture Trustee shall (subject to Section 5.04(b) below and
Section 5.05), if an Insurer Default shall have occurred and be continuing, at
the direction of Holders representing at least 662/3% of the Outstanding Amount
of the Notes, acting together as a single Class, take one or more of the
following actions as so directed:

                                      -28-
<PAGE>   34

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

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

               (iii) exercise any remedies of a secured party under the UCC and
          any other remedy available to the Indenture Trustee and take any other
          appropriate action to protect and enforce the rights and remedies of
          the Indenture Trustee on behalf of the Noteholders under this
          Indenture or the Notes;

               (iv)  sell or cause the Servicer to otherwise liquidate the
          Collateral or any portion thereof or rights or interests therein, at
          one or more public or private sales called and conducted in any manner
          permitted by law and deliver the proceeds of such sale or liquidation
          to the Indenture Trustee for distribution in accordance with the terms
          of this Indenture; and

               (v)  maintain possession of the Collateral.

          (b)  Notwithstanding the foregoing,

               (i)   in the event that the Indenture Trustee is acting at the
          direction of the Insurer, so long as an Insurer Default shall not have
          occurred and be continuing, if an Event of Default shall have occurred
          and be continuing, the Insurer shall not have the right to cause the
          Indenture Trustee or the Servicer to, and neither the Indenture
          Trustee nor the Servicer shall, liquidate the Collateral in whole or
          in part if the proceeds of such sale or liquidation would not be
          sufficient to pay all outstanding principal of and accrued interest on
          the Notes; and

               (ii)  in the event that the Indenture Trustee is acting at the
          direction of Holders representing at least 662/3% of the Outstanding
          Amount of the Notes, acting together as a single Class, the
          Noteholders shall not have the right to direct the Indenture Trustee
          or the Servicer to, and neither the Indenture Trustee nor the Servicer
          shall, liquidate the Collateral in whole or in part unless (A) an
          Indenture Event of Default as specified in Section 5.01(b), (c), (e)
          or (f) shall have occurred and be continuing and in any case the
          Insurer shall have failed to make a payment required under the Policy
          in accordance with its terms or (B) (1) an Indenture Event of Default
          as specified in Section 5.01(a) or (d) shall have occurred and be
          continuing, (2) the Insurer shall not have failed to make a payment
          required under the Policy in accordance with its terms and (3) the
          proceeds of such sale or liquidation would be sufficient to pay all
          outstanding principal of and accrued interest on the Notes and all
          amounts owing to the Insurer pursuant to the terms of the Insurance
          Agreement and any unreimbursed Insurer Defense Costs. In the event of
          a liquidation of the Collateral pursuant to clause (B), the Policy
          will not be available to cover losses to Noteholders resulting from
          such liquidation, and the Policy shall be terminated and the Insurer
          shall have no further obligation thereunder.

                                      -29-
<PAGE>   35

          (c)  In determining the sufficiency or insufficiency of the proceeds
of a sale or liquidation of the Collateral to pay all amounts required pursuant
to Section 5.04(b)(i) or (ii) above, the Indenture Trustee may, but need not, at
the sole expense of the Issuer obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the
feasibility of such proposed action and as to the sufficiency of the Collateral
for such purpose.

          (d)  In the event that the Indenture Trustee is directed to sell or to
cause the Servicer to otherwise liquidate the Collateral or any portion thereof
or rights or interests therein pursuant to Section 5.04(a)(iv) above, the
Indenture Trustee shall, prior to any such public or private sales, notify all
Residual Interestholders of the proposed sale. The Indenture Trustee shall
provide the Residual Interestholders the right to match the highest liquidation
price offered at any such sale.

          Section 5.05 Optional Preservation of the Contracts. 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 shall, absent direction to the contrary from the
Insurer or the Noteholders pursuant to Section 5.04, maintain possession of the
Collateral.

          Section 5.06 Priorities.

          (a)  If the Notes have been declared to be due and payable under
Section 5.02 following an Indenture Event of Default and such declaration and
its consequences have not been rescinded and annulled, any money collected by
the Indenture Trustee with respect to the Collateral or the Notes pursuant to
this Article or otherwise and any money that may then be held or thereafter
received by the Indenture Trustee with respect to the Collateral or the Notes
(excluding any payments made under the Policy), shall be applied in the
following order and priority:

               first, to the Servicer, to pay any unpaid Servicing Fee;

               second, to pay any accrued and unpaid fees and expenses of the
          Owner Trustee, the Indenture Trustee and the Trust Agent without
          preference or priority of any kind;

               third, to the holders of Class A Notes, to pay accrued interest
          on each Class of Class A Notes on a pro rata basis based on the
          interest accrued (including, to the extent permitted by applicable
          law, interest accrued on any interest accrued but not timely paid) on
          each Class of Class A Notes at the related Interest Rate for such
          Class;

               fourth, to the holders of Class A Notes, to pay principal on each
          Class of Class A Notes on a pro rata basis based on the Outstanding
          Amount of each Class of Class A Notes, until the Outstanding Amount of
          each such Class of Notes is reduced to zero;

                                      -30-
<PAGE>   36

               fifth, to the Insurer, to pay amounts owing to the Insurer under
          the Insurance Agreement (including the Premium) and any unreimbursed
          Insurer Defense Costs; and

               sixth, any excess amounts remaining after making the
          distributions described in clauses first through fifth to the Spread
          Account, to be applied in accordance with the Insurance Agreement.

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

          Section 5.07 Limitation of Suits. No Holder of any Note shall have any
right to institute any Proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless:

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

               (ii)  the Holders of not less than 25% of the Outstanding Amount
          of the 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;

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

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

               (v)   no direction inconsistent with such written request has
          been given to the Indenture Trustee during such 60-day period by the
          Holders of a majority of the Outstanding Amount of the Notes, acting
          together as a single Class; and

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

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

     In the event the Indenture Trustee shall receive conflicting or
inconsistent requests and indemnity from two or more groups of Holders of Notes,
each representing less than a majority of the Outstanding Amount of the Notes,
the Indenture Trustee shall act at the request of the Holders of the Notes with
the greater Outstanding Amount of Notes; provided, however that if such groups

                                      -31-
<PAGE>   37

of Holders of Notes have the same Outstanding Amount of Notes, the Indenture
Trustee in its sole discretion may determine what action, if any, shall be
taken, notwithstanding any other provisions of this Indenture and any such
action shall be binding on all parties.

          Section 5.08 Unconditional Rights of Noteholders to Receive Principal
and Interest. Notwithstanding any other provisions in this Indenture, the Holder
of any Note shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest on such Note on or after the
respective due dates thereof expressed in such Note or in this Indenture (or, in
the case of redemption of the Notes, on or after the Redemption Date) and to
institute suit for the enforcement of any such payment, and such right shall not
be impaired without the consent of such Holder.

          Section 5.09 Restoration of Rights and Remedies. If the Indenture
Trustee, the Insurer or any Noteholder 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, the Insurer or to such Noteholder, then and in every such
case the Issuer, the Indenture Trustee, the Insurer and the Noteholders shall,
subject to any determination in such Proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and
remedies of the Indenture Trustee and the Noteholders shall continue as though
no such Proceeding had been instituted.

          Section 5.10 Rights and Remedies Cumulative. No right or remedy herein
conferred upon or reserved to the Indenture Trustee, the Insurer or to the
Noteholders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

          Section 5.11 Delay or Omission Not a Waiver. No delay or omission of
the Indenture Trustee, the Insurer or any Holder of any Note to exercise any
right or remedy accruing upon any Default or Event of Default shall impair any
such right or remedy or constitute a waiver of any such Default or Event of
Default or an acquiescence therein. Every right and remedy given by this Article
Five or by law to the Indenture Trustee, the Insurer or to the Noteholders may
be exercised from time to time, and as often as may be deemed expedient, by the
Indenture Trustee, the Insurer or by the Noteholders, as the case may be.

          Section 5.12 Control by Noteholders. The Holders of a majority of the
Outstanding Amount of the Notes 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 Collateral shall be subject to the terms of Section 5.04; and

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

                                      -32-
<PAGE>   38

Notwithstanding the rights of Noteholders set forth in this Section, subject to
Section 6.01, the Indenture Trustee need not take any action that it determines,
in its sole discretion, might involve it in liability or might materially
adversely affect the rights of any Noteholders not consenting to such action.

          Section 5.13 Waiver of Past Defaults. Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.02, the
Insurer or the Holders of Notes representing not less than a majority of the
Outstanding Amount of the Notes, acting together as a single Class, with the
consent of the Insurer may waive any past Default or Event of Default and its
consequences except a Default (a) in the payment of or interest on any of the
Notes or (b) in respect of a covenant or provision hereof that cannot be
modified or amended without the consent of the Holder of each Note, as
applicable. In the case of any such waiver, the Issuer, the Indenture Trustee,
the Insurer and the Holders of the Notes shall be restored to their former
positions and rights hereunder, respectively; but no such waiver shall extend to
any subsequent or other Default or impair any right consequent thereto.

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

          Section 5.14 Undertaking for Costs. All parties to this Indenture
agree, and each Holder of any Note by such Holder's acceptance thereof shall be
deemed to have agreed, that any court may in its discretion require, in any suit
for the enforcement of any right or 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 (i) any suit instituted by the
Indenture Trustee, (ii) any suit instituted by any Noteholder, or group of
Noteholders, in each case holding in the aggregate more than 10% of the
Outstanding Amount of the Notes or (iii) any suit instituted by any Noteholder
for the enforcement of the payment of principal of or interest on any Note on or
after the respective due dates expressed in such Note and in this Indenture (or,
in the case of redemption, on or after the Redemption Date).

          Section 5.15 Waiver of Stay or Extension Laws. The Issuer covenants
(to the extent that it may lawfully do so) that it will not at any time insist
upon, or plead or in and manner whatsoever, claim or take the benefit or
advantage of, any stay or extension law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby
expressly waives all benefit or advantages of any such law, and covenants that
it will not hinder, delay or impede the execution of any power herein granted to
the Indenture Trustee, but will suffer and permit the execution of every such
power as though no such law had been enacted.

                                      -33-
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          Section 5.16 Action on Notes. The Indenture Trustee's right to seek
and recover judgment on the Notes or under this Indenture shall not be affected
by the seeking, obtaining or application of any other relief under or with
respect to this Indenture. Neither the lien of this Indenture nor any rights or
remedies of the Indenture Trustee or the Noteholders shall be impaired by the
recovery of any judgment by the Indenture Trustee against the Issuer or by the
levy of any execution under such judgment upon any portion of the Collateral 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.

          Section 5.17 Performance and Enforcement of Certain Obligations.

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

          (b)  If the Indenture Trustee is the Controlling Party and if an Event
of Default has occurred and is continuing, the Indenture Trustee may, and at the
direction (which direction shall be given in writing and may include a
facsimile) of the Holders of 662/3% of the Outstanding Amount of the Notes
shall, exercise all rights, remedies, powers, privileges and claims of the
Issuer against the Seller or the Servicer under or in connection with the Sale
and Servicing Agreement, including the right or power to take any action to
compel or secure performance or observance by the Seller or the Servicer of each
of their obligations to the Issuer thereunder and to give any consent, request,
notice, direction, approval, extension or waiver under the Sale and Servicing
Agreement, and any right of the Issuer to take such action shall be suspended.

                                   ARTICLE VI

                              THE INDENTURE TRUSTEE

          Section 6.01 Duties of Indenture Trustee.

          (a)  If an Event of Default has occurred and is continuing, and of
which the Indenture Trustee shall have actual knowledge, the Indenture Trustee
shall exercise the rights and powers vested in it by this Indenture and with the
same degree of care and skill in their exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person's own
affairs; provided, however, that if the Indenture Trustee shall assume the
duties of the Servicer pursuant to Section 3.07(e), the Indenture Trustee in
performing such duties shall use the degree of care and skill customarily
exercised by a prudent institutional servicer with respect to automobile retail
installment sales contracts that it services for itself or others.

                                      -34-
<PAGE>   40

          (b)  Except during the continuance of an Event of Default of which a
Responsible Officer of the Indenture Trustee shall have actual knowledge or
written notice:

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

               (ii)  in the absence of bad faith on its part, the Indenture
          Trustee may conclusively rely, as to the truth of the statements and
          the correctness of the opinions expressed therein, upon certificates
          or opinions furnished to the Indenture Trustee and conforming to the
          requirements of this Indenture; however, the Indenture Trustee shall
          examine the certificates and opinions to determine whether or not they
          conform to the requirements of this Indenture and the other Basic
          Documents to which the Indenture Trustee is a party; provided,
          however, that the Indenture Trustee shall not be responsible for the
          accuracy or content of any of the aforementioned documents and the
          Indenture Trustee shall have no obligation to verify, re-compute or
          recalculate any numerical information provided to it pursuant to the
          Basic Documents.

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

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

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

               (iii) the Indenture Trustee shall not be liable with respect to
          any action it takes or omits to take in good faith in accordance with
          a direction received by it pursuant to Section 5.12.

          (d)  Every provision of this Indenture that in any way relates to the
Indenture Trustee is subject to paragraphs (a), (b) and (c) of this Section.

          (e)  The Indenture Trustee shall not be liable for interest on any
money received by it.

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

          (g)  No provision of this Indenture shall require the Indenture
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers, if it shall have reasonable grounds to believe that
repayments of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it.

                                      -35-
<PAGE>   41

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

          (i)  The Indenture Trustee shall, and hereby agrees that it will (i)
perform all of the obligations and duties required of it under the Sale and
Servicing Agreement and (ii) hold the Policy in trust, and will hold any
proceeds of any claim on the Policy in trust solely for application as provided
in the Sale and Servicing Agreement.

          (j)  Except as otherwise required or permitted by the TIA, nothing
contained herein shall be deemed to authorize the Indenture Trustee to engage in
any business operations or any activities other than those set forth in this
Indenture. Specifically, the Indenture Trustee shall have no authority to engage
in any business operations, acquire any assets other than those specifically
included in the Collateral under this Indenture or otherwise vary the assets
held by the Trust. Similarly, the Indenture Trustee shall have no discretionary
duties other than performing those ministerial acts set forth above necessary to
accomplish the purpose of this Trust as set forth in this Indenture.

          (k)  The Indenture Trustee shall not be liable in its individual
capacity with respect to any action taken, suffered or omitted to be taken by it
in good faith in accordance with this Indenture or at the direction of a
majority of the Outstanding Amount of Notes, acting together as a single Class,
relating to the time, method and place of conducting any proceeding for any
remedy available to the Indenture Trustee, or exercising or omitting to exercise
any trust or power conferred upon the Indenture Trustee, under this Indenture.

          (l)  The Indenture Trustee shall not be required to take notice or be
deemed to have notice or knowledge of any Default or Event of Default unless a
Responsible Officer of the Indenture Trustee shall have received written notice
thereof. In the absence of receipt of such notice, the Indenture Trustee may
conclusively assume that there is no Default or Event of Default.

          (m)  Subject to the other provisions of this Indenture, the Indenture
Trustee shall have no duty (i) to see to any recording, filing, or depositing of
this Agreement or any agreement referred to herein or any financing statement or
continuation statement evidencing a security interest, or to see to the
maintenance of any such recording or filing or depositing or to any rerecording,
refiling or redepositing of any thereof, (ii) to see to any insurance, (iii) to
see to the payment or discharge of any tax, assessment, or other governmental
charge or any lien or encumbrance of any kind owing with respect to, assessed or
levied against, any part of the Collateral, or (iv) to confirm or verify the
contents of any reports or certificates delivered to the Indenture Trustee
pursuant to this Indenture believed by the Indenture Trustee to be genuine and
to have been signed or presented by the proper party or parties.

          (n)  Anything in this Agreement to the contrary notwithstanding, in no
event shall the Indenture Trustee be liable for special, indirect or
consequential loss or damage of any kind whatsoever (including but not limited
to lost profits), even if the Indenture Trustee has been advised of the
likelihood of such loss or damage regardless of the form of action.

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<PAGE>   42
          Section 6.02 Rights of Indenture Trustee.

          (a)  Except as otherwise provided in the second succeeding sentence,
the Indenture Trustee may conclusively rely and shall be protected in acting
upon or refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order, note, direction,
demand, election or other paper or document believed by it to be genuine and to
have been signed or presented by the proper person. The Indenture Trustee need
not investigate any fact or matter stated in the document. Notwithstanding the
foregoing, the Indenture Trustee, subject to Section 6.01(b)(ii) upon receipt of
all resolutions, certificates, statements, opinions, reports, documents, orders
or other instruments furnished to the Indenture Trustee that shall be
specifically required to be furnished pursuant to any provision of this
Indenture, shall examine them to determine whether they comply as to form to the
requirements of this Indenture.

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

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

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

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

          (f)  The Indenture Trustee shall be under no obligation to exercise
any of the trusts or powers vested in it by this Indenture or to institute,
conduct or defend any litigation hereunder or in relation hereto at the request,
order or direction of any of the Noteholders, pursuant to the provisions of this
Indenture, unless such Noteholders shall have offered to the Indenture Trustee
reasonable security or indemnity against the costs, expenses and liabilities
which may be incurred therein or thereby; nothing contained herein shall,
however, relieve the Indenture Trustee of the obligation, during the continuance
of an Event of Default of which a Responsible Officer of the Indenture Trustee
shall have actual knowledge, to exercise such of the rights and powers vested in
it by this Indenture, and to use the same degree of care and skill in their
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs.

          (g)  The Indenture Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, bond or other paper or document, unless requested in writing to do so
by a majority of Noteholders; 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

                                      -37-
<PAGE>   43

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 Agreement, the Indenture Trustee may require reasonable
indemnity against such cost, expense or liability as a condition to taking any
such action.

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

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

          Section 6.04 Indenture Trustee's Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or
adequacy of this Indenture, the Collateral or the Notes, it shall not be
accountable for the Issuer's use of the proceeds from the Notes, and it shall
not be responsible for any statement of the Issuer in this Indenture or in any
document issued in connection with the sale of the Notes or in the Notes other
than the Indenture Trustee's certificate of authentication.

          Section 6.05 Notice of Defaults. If a Default occurs and is continuing
and a Responsible Officer of the Indenture Trustee has actual knowledge or has
received written notice thereof, the Indenture Trustee shall mail to each
Noteholder and the Insurer notice of the Default within 90 days after it occurs.
Except in the case of a Default in payment of principal of or interest on any
Note (including payments pursuant to the redemption of Notes), the Indenture
Trustee may withhold the notice if and so long as a committee of its Responsible
Officers in good faith determines that withholding the notice is in the
interests of Noteholders.

          Section 6.06 Reports by Indenture Trustee to Holders. The Indenture
Trustee shall deliver to each Noteholder such information as may be required to
enable such Holder to prepare its federal and state income tax returns.

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

                                      -38-
<PAGE>   44

and the Issuer shall, or shall cause the Administrator to, pay the fees and
expenses of such counsel. Neither the Issuer nor the Administrator need
reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee's own willful
misconduct, negligence or bad faith.

     The Issuer's obligations to the Indenture Trustee pursuant to this Section
shall survive the resignation or removal of the Indenture Trustee and the
discharge of this Indenture. When the Indenture Trustee incurs expenses after
the occurrence of a Default specified in Section 5.01(e) or (f) with respect to
the Issuer, the expenses are intended to constitute expenses of administration
under Title 11 of the United States Code or any other applicable federal or
state bankruptcy, insolvency or similar law.

          Section 6.08 Replacement of Indenture Trustee. The Indenture Trustee
may resign at any time by so notifying the Issuer, the Servicer and the Insurer.
The Issuer, may, with the consent of the Insurer, and, at the request of the
Insurer shall, remove the Indenture Trustee, unless an Insurer Default shall
have occurred and be continuing, if:

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

               (ii)  a court having jurisdiction in the premises in respect of
          the Indenture Trustee in an involuntary case or proceeding under
          federal or state banking or bankruptcy laws, as now or hereafter
          constituted, or any other applicable federal or state bankruptcy,
          insolvency or other similar law, shall have entered a decree or order
          granting relief or appointing a receiver, liquidator, assignee,
          custodian, trustee, conservator, sequestrator (or similar official)
          for the Indenture Trustee or for any substantial part of the Indenture
          Trustee's property, or ordering the winding-up or liquidation of the
          Indenture Trustee's affairs, provided any such decree or order shall
          have continued unstayed and in effect for a period of 30 consecutive
          days;

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

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

     If the Indenture Trustee resigns or is removed or if a vacancy exists in
the office of Indenture Trustee for any reason (the Indenture Trustee in such
event being referred to herein as the retiring Indenture Trustee), the Issuer
shall promptly appoint a successor Indenture Trustee acceptable to the Insurer.

     A successor Indenture Trustee shall deliver a written acceptance of its
appointment to the retiring Indenture Trustee and to the Issuer. Thereupon the
resignation or removal of the retiring Indenture Trustee shall become effective,
and the successor Indenture Trustee shall have all the

                                      -39-
<PAGE>   45

rights, powers and duties of the Indenture Trustee under this Indenture. The
Issuer or the successor Indenture Trustee shall mail a notice of its succession
to Noteholders. The 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 Issuer or the Holders of a majority of the 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 petition any court of competent jurisdiction for the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee.

     Any resignation or removal of the Indenture Trustee and appointment of a
successor Indenture Trustee pursuant to the provisions of this Section shall not
become effective until acceptance of appointment by the successor Indenture
Trustee pursuant to this Section and payment of all fees and expenses owed to
the outgoing Indenture Trustee. Notwithstanding the replacement of the Indenture
Trustee pursuant to this Section, the retiring Indenture Trustee shall be
entitled to payment or reimbursement of such amounts as such Person is entitled
pursuant to Section 6.07.

          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 corporation
or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Indenture Trustee; provided, that
such corporation or banking association shall be otherwise qualified and
eligible under Section 6.11. The Indenture Trustee shall (unless the Indenture
Trustee is The Chase Manhattan Bank) provide the Insurer and each Rating Agency
prompt notice of any such transaction.

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

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

          (a)  Notwithstanding any other provision of this Indenture, at any
time, for the purpose of meeting any legal requirement of any jurisdiction in
which any part of the Collateral 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, jointly with
the Indenture Trustee, or separate trustee or separate trustees, of all or any
part of the Trust, and to vest in such Person or Persons, in such capacity and
for the benefit of the Noteholders, such title to the Collateral, 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.

                                      -40-
<PAGE>   46

No co-trustee or separate trustee hereunder shall be required to meet the terms
of eligibility as a successor Indenture Trustee under Section 6.11 and no notice
to Noteholders of the appointment of any co-trustee or separate trustee shall be
required under Section 6.08.

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

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

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

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

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

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

                                      -41-
<PAGE>   47

          Section 6.11 Eligibility; Disqualification.

          (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. The Indenture Trustee shall provide copies of such reports to the
Insurer upon request. The Indenture Trustee shall comply with TIA Section
310(b); 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.

          (b)  If the long term debt rating of the Indenture Trustee shall not
be at least Baa3 from Moody's and BBB- from Standard & Poor's, the Rating
Agencies shall be given notice of such lower long-term debt rating.

          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 Section 311(a) to the extent indicated.

          Section 6.13 Representations and Warranties of Indenture Trustee. The
Indenture Trustee hereby makes the following representations and warranties on
which the Issuer and Noteholders shall rely:

          (a)  the Indenture Trustee is a corporation duly organized, validly
existing and in good standing under the laws of its place of incorporation; and

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

                                   ARTICLE VII

                         NOTEHOLDERS' LISTS AND REPORTS

          Section 7.01 Issuer to Furnish Indenture Trustee Names and Addresses
of Noteholders. The Issuer will furnish or cause to be furnished to the
Indenture Trustee (i) not more than five days after the earlier of (a) each
Record Date and (b) three months after the last Record Date, a list, in such
form as the Indenture Trustee may reasonably require, of the names and addresses
of the Holders of Notes as of such Record Date and (ii) at such other times as
the Indenture Trustee may request in writing, within 10 days after receipt by
the Issuer of any such request, a list of similar form and content as of a date
not more than ten days prior to the time such list is furnished; provided,
however, that so long as the Indenture Trustee is the Note Registrar, no such
list shall be required to be furnished. The Indenture Trustee or, if the
Indenture Trustee is not the Note Registrar, the Issuer shall furnish to the
Insurer in writing at such times as the Insurer may reasonably request a copy of
the list.

                                      -42-
<PAGE>   48
          Section 7.02 Preservation of Information; Communications to
Noteholders.

          (a)  The Indenture Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of the Holders of Notes
contained in the most recent list furnished to the Indenture Trustee as provided
in Section 7.01 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may
destroy any list furnished to it as provided in such Section 7.01 upon receipt
of a new list so furnished.

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

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

          Section 7.03 Reports by Issuer.

          (a)  The Issuer shall:

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

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

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

          Section 7.04 Reports by Indenture Trustee. To the extent that any of
the events described in TIA Section 313(a) shall have occurred, the Indenture
Trustee shall, within 60 days after each December 15 beginning with December 15,
2001, mail to the Issuer, the Insurer and 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).

                                      -43-
<PAGE>   49

                                  ARTICLE VIII

                      ACCOUNTS, DISBURSEMENTS AND RELEASES

          Section 8.01 Collection of Money.

          (a)  General. 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
Collateral, 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 Five.

          (b)  Claims Under Policy. The Notes will be insured by the Policy
pursuant to the terms set forth therein, notwithstanding any provisions to the
contrary contained in this Indenture or the Sale and Servicing Agreement. All
amounts received under the Policy shall be used solely for the payment to
Noteholders of principal and interest on the Notes.

          Section 8.02 Trust Accounts.

          (a)  On or prior to the Closing Date, the Issuer shall cause the
Servicer to establish in the name of the Indenture Trustee, for the benefit of
the Noteholders and the Insurer, the Trust Accounts as provided in Section 4.01
of the Sale and Servicing Agreement.

          (b)  On the Business Day immediately preceding each Distribution Date,
based solely on the Distribution Date Statement, the Servicer shall cause funds
to be withdrawn from the Collection Account equal to the amount of Net
Collections available with respect to such Distribution Date and deposited into
the Payment Account, as provided in Section 4.02(e) of the Sale and Servicing
Agreement. On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee will apply the Net Collections available with
respect to the related Collection Period, together with amounts, if any,
withdrawn from the Spread Account, the Prefunding Account and the Capitalized
Interest Account or representing payment of the Policy Claim Amount, to make the
deposits to the Note Distribution Account required pursuant to Section 4.03(a)
of the Sale and Servicing Agreement.

          (c)  On each Distribution Date, based solely on the Distribution Date
Statement, the Indenture Trustee shall distribute all available amounts on
deposit in the Note Distribution Account in respect of such Distribution Date to
Noteholders in the following order of priority:

               (i)   to the Holders of Class A Notes, the Note Interest
          Distributable Amount with respect to the Class A Notes for such
          Distribution Date, pro rata;

                                      -44-
<PAGE>   50

               (ii)  if such Distribution Date is the Note Final Scheduled
          Distribution Date with respect to a Class of Notes, to the Holders of
          such Class of Notes, the Note Principal Distributable Amount to the
          extent of the remaining Outstanding Amount of such Class of Notes;

               (iii) to the Holders of the Class A-1 Notes, the remaining Note
          Principal Distributable Amount (after giving effect to the payment, if
          any, described in clause (ii) above), until the Outstanding Amount of
          the Class A-1 Notes is reduced to zero;

               (iv)  to the Holders of the Class A-2 Notes, the remaining Note
          Principal Distributable Amount (after giving effect to the payments,
          if any, described in clauses (ii) and (iii) above), until the
          Outstanding Amount of the Class A-2 Notes is reduced to zero;

               (v)   to the Holders of the Class A-3 Notes, the remaining Note
          Principal Distributable Amount (after giving effect to the payments,
          if any, described in clauses (ii) through (iv) above), until the
          Outstanding Amount of the Class A-3 Notes is reduced to zero; and

               (vi)  to the Holders of the Class A-4 Notes, the remaining Note
          Principal Distributable Amount (after giving effect to the payments,
          if any, described in clauses (ii) through (v) above), until the
          Outstanding Amount of the Class A-4 Notes is reduced to zero.

          (d)  The Indenture Trustee shall make claims under the Policy pursuant
to Section 4.02(c) of the Sale and Servicing Agreement and in accordance with
the Policy. In making any such claim, the Indenture Trustee shall comply with
all the terms and conditions of the Policy. Upon receipt of the Policy Claim
Amount, the Indenture Trustee shall distribute such Policy Claim Amount as part
of the Note Distributable Amount under this Indenture.

          Section 8.03 [RESERVED].

          Section 8.04 Release of Collateral.

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

          (b)  The Indenture Trustee shall, at such time as there are no Notes
Outstanding and all sums due the Indenture Trustee pursuant to Section 6.07 have
been paid, release any remaining portion of the Collateral that secured the
Notes from the lien of this Indenture and release to the Issuer or any other
Person entitled thereto any funds then on deposit in the Trust Accounts. The
Indenture Trustee shall release property from the lien of this Indenture
pursuant to this Section 8.04(b) only upon receipt of an Issuer Request
accompanied by an Officer's Certificate, an Opinion

                                      -45-
<PAGE>   51

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 8.05 Opinion of Counsel. The Indenture Trustee shall receive
at least seven days' notice when requested by the Issuer to take any action
pursuant to Section 8.04(a), accompanied by copies of any instruments involved,
and the Indenture Trustee shall also require, as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee
(and not at the expense of the Indenture Trustee), stating the legal effect of
any such action, outlining the steps required to complete the same, and
concluding that all conditions precedent to the taking of such action have been
complied with and such action will not materially and adversely impair the
security for the Notes or the rights of the Noteholders in contravention of the
provisions of this Indenture; provided, however, that such Opinion of Counsel
shall not be required to express an opinion as to the fair value of the
Collateral. Counsel rendering any such opinion may rely, without independent
investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such
action.

                                   ARTICLE IX

                             SUPPLEMENTAL INDENTURES

          Section 9.01 Supplemental Indentures Without Consent of Noteholders.

          (a)  Without the consent of the Holders of any Notes but with the
consent of the Insurer and with prior notice to each Rating Agency, the Issuer
and the Indenture Trustee, when authorized by an Issuer Order, and the other
parties hereto at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the TIA
as in force at the date of the execution thereof), in form satisfactory to the
Indenture Trustee, for any of the following purposes:

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

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

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

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

               (v)   to cure any ambiguity, to correct or supplement any
          provision herein or in any supplemental indenture which may be
          inconsistent with any other provision

                                      -46-
<PAGE>   52

          herein or in any supplemental indenture or the Basic Documents or to
          make any other provisions with respect to matters or questions arising
          under this Indenture or in any supplemental indenture; provided that
          such action shall not adversely affect the interests of the Holders of
          the Notes;

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

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

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

          (b)  The Issuer and the Indenture Trustee, when authorized by an
Issuer Order, may, also without the consent of any of the Holders of the Notes
but with the consent of the Insurer and with prior notice to each Rating Agency,
enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the
provisions of, this Indenture or of modifying in any manner the rights of the
Holders of the Notes under this Indenture; provided, however, that such action
shall not, as evidenced by an Opinion of Counsel, adversely affect in any
material respect the interests of any Noteholder.

          Section 9.02 Supplemental Indentures With Consent of Noteholders. The
Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may,
with prior notice to each Rating Agency, with the consent of the Insurer and
with the consent of the Holders of not less than 51% of the Outstanding Amount
of the Notes, by Act of such Holders delivered to the Issuer and the Indenture
Trustee, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating
any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; provided, however,
that, subject to the express rights of the Insurer under the Basic Documents, no
such supplemental indenture shall, without the consent of the Holder of each
Outstanding Note affected thereby:

          (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 or the Redemption Price with respect thereto, or change any place of
payment where, or the coin or currency in which, any Note or the interest
thereon is payable;

          (b)  impair the right to institute suit for the enforcement of the
provisions of this Indenture requiring the application of funds available
therefor, as provided in Article Five, to the payment of any such amount due on
the Notes on or after the respective due dates thereof (or, in the case of
redemption, on or after the Redemption Date);

                                      -47-
<PAGE>   53

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

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

          (e)  reduce the percentage of the Outstanding Amount of the Notes, the
consent of the Holders of which is required to direct the Indenture Trustee to
sell or liquidate the Collateral pursuant to Section 5.04;

          (f)  decrease the percentage of the Outstanding Amount of the Notes
required to amend this Indenture or the other Basic Documents;

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

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

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

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

          Section 9.03 Execution of Supplemental Indentures. In executing, or
permitting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications 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.

                                      -48-
<PAGE>   54
          Section 9.04 Effect of Supplemental Indenture. Upon the execution of
any supplemental indenture pursuant to the provisions hereof, this Indenture
shall be and be deemed to be modified and amended in accordance therewith with
respect to the Notes affected thereby, and the respective rights, limitations of
rights, obligations, duties, liabilities and immunities under this Indenture of
the parties hereto and the Holders of the Notes shall thereafter be determined,
exercised and enforced hereunder subject in all respects to such modifications
and amendments, and all the terms and conditions of any such supplemental
indenture shall be and be deemed to be part of the terms and conditions of this
Indenture for any and all purposes.

          Section 9.05 Conformity With Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this
Article shall conform to the requirements of the Trust Indenture Act as then in
effect so long as this Indenture shall then be qualified under the Trust
Indenture Act.

          Section 9.06 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article 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

                               REDEMPTION OF NOTES

          Section 10.01 Redemption. In the event that the Servicer pursuant to
Section 8.01(a) of the Sale and Servicing Agreement purchases the corpus of the
Trust, the Notes are subject to redemption in whole, but not in part, on the
Distribution Date on which such repurchase occurs, for a purchase price equal to
the Redemption Price; provided, however, that the Issuer has available funds
sufficient to pay the Redemption Price. The Seller, the Servicer or the Issuer
shall furnish the Insurer and each Rating Agency notice of such redemption. If
the Notes are to be redeemed pursuant to this Section 10.01, the Servicer or the
Issuer shall furnish notice of such election to the Indenture Trustee not later
than 20 days prior to the Redemption Date and the Issuer shall deposit with the
Indenture Trustee in the Note Distribution Account the Redemption Price of the
Notes to be redeemed whereupon all such Notes shall be due and payable on the
Redemption Date upon the furnishing of a notice complying with Section 10.02 to
each Holder of the Notes.

          Section 10.02 Form of Redemption Notice. Notice of redemption under
Section 10.01 shall be given by the Indenture Trustee by first-class mail,
postage prepaid, mailed not less than five days prior to the applicable
Redemption Date to each Holder of Notes, as of the close of business on the
Record Date preceding the applicable Redemption Date, at such Holder's address
appearing in the Note Register. In addition, the Administrator shall notify the
Insurer and Rating Agencies upon the redemption of any Class of Notes, pursuant
to Section 1(a)(i)(AA) of the Administration Agreement.

                                      -49-
<PAGE>   55
     All notices of redemption shall state:

               (i)   the Redemption Date;

               (ii)  the Redemption Price; and

               (iii) the place where such Notes are to be surrendered for
          payment of the Redemption Price (which shall be the office or agency
          of the Issuer to be maintained as provided in Section 3.02).

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

          Section 10.03 Notes Payable on Redemption Date. The Notes or portions
thereof to be redeemed shall, following notice of redemption (if any) as
required by Section 10.02, on the Redemption Date become due and payable at the
Redemption Price and (unless the Issuer shall default in the payment of the
Redemption Price) no interest shall accrue on the Redemption Price for any
period after the date to which accrued interest is calculated for purposes of
calculating the Redemption Price.

                                   ARTICLE 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 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. Notwithstanding the foregoing, in the case of any such application
or request as to which the furnishing of such documents is specifically required
by any provision of this Indenture, no additional certificate or opinion need be
furnished.

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

               (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.

                                      -50-
<PAGE>   56

          (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 subject to the lien created by 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 and the Insurer an
Officer's Certificate certifying or stating the opinion of the signer thereof as
to the fair value (within 90 days of such deposit) to the Issuer of the
Collateral or other property or securities to be so deposited.

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

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

               (iv)  Whenever the Issuer is required to furnish to the Indenture
          Trustee and the Insurer an Officer's Certificate certifying or stating
          the opinion of any signer thereof as to the matters described in
          clause (iii) above, the Issuer shall also furnish to the Indenture
          Trustee and the Insurer an Independent Certificate as to the same
          matters if the fair value of the property or securities and of all
          other property or securities released from the lien created by this
          Indenture since the commencement of the then current fiscal year, as
          set forth in the Officer's Certificate required by clause (iii) above
          and this clause (iv), equals 10% or more of the Outstanding Amount of
          the Notes, but such Officer's Certificate need not be furnished in the
          case of any release of property or securities if the fair value
          thereof as set forth in the related Officer's Certificate is less than
          $25,000 or less than one percent of the then Outstanding Amount of the
          Notes.

          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

                                      -51-
<PAGE>   57

certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an
opinion as to such matters in one or several documents.

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

     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 Six.

          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 "Act" of the
Noteholders signing such instrument or instruments. Proof of execution of any
such instrument or of a writing appointing any such agent shall be sufficient
for any purpose of this Indenture and (subject to Section 6.01) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in
this Section.

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

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

                                      -52-
<PAGE>   58

          (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, Insurer and
Rating Agencies.

          (a)  Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this
Indenture shall be in writing and if such request, demand, authorization,
direction, notice, consent, waiver or Act of Noteholders is to be made upon,
given or furnished to or filed with:

               (i)   the Indenture Trustee by any Noteholder or by the Issuer
          shall be sufficient for every purpose hereunder if in writing,
          personally delivered, sent by facsimile transmission and confirmed or
          mailed by overnight service, to or with the Indenture Trustee at its
          Corporate Trust Office;

               (ii)  the Issuer by the Indenture Trustee or by any Noteholder
          shall be sufficient for every purpose hereunder if in writing,
          personally delivered, sent by facsimile transmission and confirmed or
          mailed by overnight service, to the Issuer addressed to: Onyx
          Acceptance Owner Trust 2001-B, in care of Bankers Trust (Delaware), as
          Owner Trustee, 1011 Centre Road, Suite 200, Wilmington, Delaware
          19805-1266, Attention: Corporate Trust Administration Department, or
          at any other address furnished in writing to the Indenture Trustee by
          the Issuer; or

               (iii) the Insurer by the Issuer or the Indenture Trustee shall be
          sufficient for any purpose hereunder if in writing, personally
          delivered, sent by facsimile transmission and confirmed or mailed by
          overnight service, to the Insurer addressed to: MBIA Insurance
          Corporation, 113 King Street, Armonk, New York 10504, Attention:
          Insured Portfolio Management, Structured Finance.

          (b)  Notices required to be given to the Rating Agencies by the
Issuer, the Indenture Trustee or the Owner Trustee shall be in writing,
personally delivered, sent by facsimile transmission and confirmed or mailed by
overnight service, to (i) in the case of Moody's, at the following address:
Moody's Investors Service, Inc., ABS Monitoring Department, 99 Church Street,
New York, New York 10007 and (ii) in the case of Standard & Poor's, at the
following address: Standard & Poor's Ratings Services, 55 Water Street (41st
Floor), New York, New York 10041, Attention: Asset Backed Surveillance
Department; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

          Section 11.05 Notices to Noteholders; Waiver. Where this Indenture
provides for notice to Noteholders of any event, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class, postage prepaid to each Noteholder affected by such
event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so

                                      -53-
<PAGE>   59

mailed to any particular Noteholder shall affect the sufficiency of such notice
with respect to other Noteholders, and any notice that is mailed in the manner
herein provided shall conclusively be presumed to have been duly given.

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

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

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

          Section 11.06 Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer
may enter into any agreement with any Holder of a Note providing for a method of
payment, or notice by the Indenture Trustee or any Paying Agent to such Holder,
that is different from the methods provided for in this Indenture for such
payments or notices. The Issuer will furnish to the Indenture Trustee a copy of
each such agreement and the Indenture Trustee will cause payments to be made and
notices to be given in accordance with such agreements.

          Section 11.07 Conflict With Trust Indenture Act. If any provision
hereof limits, qualifies or conflicts with another provision hereof that is
required to be included in this indenture by any of the provisions of the Trust
Indenture Act, such required provision shall control.

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

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

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

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

                                      -54-
<PAGE>   60

          Section 11.11 Benefits of Indenture. The Insurer and its successors
and assigns shall be a third-party beneficiary to the provisions of this
Indenture, and shall be entitled to rely upon and directly to enforce such
provisions of this Indenture so long as no Insurer Default shall have occurred
and be continuing. Nothing in this Indenture or in the Notes, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, and the Noteholders, and any other party secured
hereunder, and any other Person with an ownership interest in any part of the
Collateral, any benefit or any legal or equitable right, remedy or claim under
this Indenture. The Insurer may disclaim any of its rights and powers under this
Indenture, but not its duties and obligations under the Policy, upon delivery of
a written notice to the Indenture Trustee.

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

          Section 11.13 Governing Law. THIS INDENTURE SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS, RIGHTS,
AND REMEDIES OF THE PARTIES UNDER THIS INDENTURE SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS.

          Section 11.14 Counterparts. This Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

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

          Section 11.16 Trust Obligation. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or
the Indenture Trustee on the Notes or under this Indenture or any certificate or
other writing delivered in connection herewith or therewith, against (i) the
Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any
owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director, employee or agent of the Indenture
Trustee or the Owner Trustee in its individual capacity, any Holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or
of any successor or assign of the Indenture Trustee or the Owner Trustee in its
individual capacity, except as any such Person may have expressly agreed (it
being understood that the Indenture Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles Six, Seven and Eight of the Trust
Agreement.

                                      -55-
<PAGE>   61

          Section 11.17 No Petition. The parties hereto, by entering into this
Indenture, and each Noteholder, by accepting a Note or a beneficial interest in
a Note, hereby covenant and agree that they will not at any time institute
against the 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, this Indenture or any of the other Basic Documents.

          Section 11.18 Inspection. The Issuer agrees that, on reasonable prior
notice, it will permit any representative of the Indenture Trustee or of the
Insurer, during the Issuer's normal business hours, to examine all the books of
account, records, reports and other papers of the Issuer, to make copies and
extracts therefrom, to cause such books to be audited by independent certified
public accountants, and to discuss the Issuer's affairs, finances and accounts
with the Issuer's officers, employees and independent certified public
accountants, all at such reasonable times and as often as may be reasonably
requested. The Indenture Trustee and the Insurer shall and shall cause their
respective representatives to hold in confidence all such information except to
the extent disclosure may be required by law (and all reasonable applications
for confidential treatment are unavailing) and except to the extent that the
Indenture Trustee or the Insurer may reasonably determine that such disclosure
is consistent with its obligations hereunder.

          Section 11.19 Limitation of Liability of Owner Trustee.
Notwithstanding anything contained herein to the contrary, this instrument has
been countersigned by Bankers Trust (Delaware) not in its individual capacity
but solely in its capacity as Owner Trustee of the Issuer and in no event shall
Bankers Trust (Delaware) in its individual capacity or any beneficial owner of
the Issuer have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder, as to all of which
recourse shall be had solely to the assets of the Issuer. For all purposes of
this Agreement, in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits
of, the terms and provisions of Articles Six, Seven and Eight of the Trust
Agreement. Notwithstanding anything herein to the contrary, Section 2.07 of the
Trust Agreement shall remain in full force and effect.

          Section 11.20 Certain Matters Regarding the Insurer. So long as an
Insurer Default shall not have occurred and be continuing, the Insurer shall
have the right to exercise all rights, including voting rights, which the
Noteholders or Residual Interestholders are entitled to exercise pursuant to
this Indenture, without any consent of such Noteholders or Residual
Interestholders; provided, however, that without the consent of each Noteholder
or Residual Interestholder affected thereby, the Insurer shall not exercise such
rights to amend this Indenture in any manner that would (i) reduce the amount
of, or delay the timing of, collections of payments on the Contracts or
distributions which are required to be made on any Note or Residual Interest
Instrument, (ii) adversely affect in any material respect the interests of the
Holders of any Notes or Residual Interest Instruments, or (iii) alter the rights
of any such Holder to consent to such amendment.

     Notwithstanding any provision in this Indenture to the contrary, in the
event an Insurer Default shall have occurred and be continuing, the Insurer
shall not have the right to take any action under this Agreement or to control
or direct the actions of the Trust, the Seller, the Indenture Trustee, the Owner
Trustee or the Trust Agent pursuant to the terms of this Indenture, nor shall
the consent of the Insurer be required with respect to any action (or waiver of
a right to take action) to be taken by the Trust, the Seller, the Indenture
Trustee, the Owner Trustee, the Trust Agent or the Holders of the Notes or the
Residual Interest Instruments pursuant to the terms of this Indenture; provided,
that the consent of the Insurer shall be required at all times with respect to
any amendment of this Indenture.

                                      -56-
<PAGE>   62

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed and delivered as of the day and year first above written.

                                              ONYX ACCEPTANCE OWNER TRUST 2001-B

                                              By: BANKERS TRUST (DELAWARE)
                                                  not in its individual capacity
                                                  but solely on behalf of the
                                                  Issuer as Owner Trustee under
                                                  the Trust Agreement

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

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

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

                                      -57-
<PAGE>   63

                                   SCHEDULE A

                              SCHEDULE OF CONTRACTS

Schedules of Contracts on file at the offices of the Seller, the Servicer, the
Owner Trustee and the Insurer.

<PAGE>   64

                                    EXHIBIT A

                          FORM OF DEPOSITORY AGREEMENT

                              [Begins on Next Page]

<PAGE>   65

                                    EXHIBIT B

                             FORM OF CLASS A-1 NOTE

                              [Begins on Next Page]

<PAGE>   66

                                    EXHIBIT C

                             FORM OF CLASS A-2 NOTE

                              [Begins on Next Page]

<PAGE>   67

                                    EXHIBIT D

                             FORM OF CLASS A-3 NOTE

                              [Begins on Next Page]

<PAGE>   68

                                    EXHIBIT E

                             FORM OF CLASS A-4 NOTE

                              [Begins on Next Page]

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